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1. Labor, Business and Health Care Groups Part Ways with MMA’s Healthy Minnesota Committee Groups support overall goal of universal access to health care coverage but lament lack of focus on health care costs ST. PAUL, Minn.--(BUSINESS WIRE)--Representatives of the Minnesota Chamber of Commerce, the Minnesota Business Partnership, the Minnesota Nurses Association and Medica, as well as former state representative Fran Bradley – all of whom participated on the Healthy Minnesota Steering Committee – parted ways with the committee today on the proposed legislation that they say fails to address the most pressing health care issue – the tremendous escalation of health care costs. While the dissenting minority agrees with their colleagues on the steering committee on many goals of this legislation, the group believes that promoting universal coverage without addressing costs is unsustainable. “Mandating that people must purchase insurance, without addressing the cost-drivers that are making health care unaffordable, would be irresponsible,” said Tom Forsythe, chair of the Minnesota Chamber of Commerce Board of Directors, “and would do little to address the real problems in health care.” “This mandate will burden the individual health care consumer with the responsibility of having insurance without the commensurate rights, such as making informed choices based on accurate and meaningful information on quality and costs,” said Gordon McArthur of the Minnesota Nurses Association. “The latest New York Times/CBS News poll names access to affordable health care as the number one issue across America. It is primarily the cost of health care that limits access,” said David Tilford, CEO of Medica. “Why would any reform plan fail to address the driver behind the number one issue in America?” All members of the minority have said that although they are unable to support this legislation, they will continue to work with Healthy Minnesota to find workable solutions that will help achieve the shared goal of making high quality health care available and affordable for all Minnesotans. Contacts: Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Insurance Mandate With No Cost Controls Is Undue Burden On Patients Mass.-Approved Health Plans Unaffordable At Up to 30% of Income SANTA MONICA, Calif. March 8 /PRNewswire-USNewswire/ -- Health plans approved today under Massachusetts' health insurance mandate would be unaffordable for many citizens due to high out of pocket costs and no regulation of future rate increases, said the nonprofit nonpartisan Foundation for Taxpayer and Consumer Rights (FTCR). The cheapest plan providing minimum coverage could cost a 56-year-old, living in Boston and making $30,000 a year, a third of his income in health expenses. "These plans are proof that when private insurers can charge whatever they choose, and consumers must buy what they're selling, patients get the short end of the stick. It's a bonanza for insurers and a financial catastrophe for the consumer. Patients and families cannot afford to spend 30% of their income on health care. Even worse, nothing prevents these prices from going up in the future," said Carmen Balber, consumer advocate with FTCR. A heavy reliance on co-insurance in some plans (meaning a patient could pay 35% of a hospital bill rather than a co-pay for a fixed amount) leaves consumers unable to estimate the real cost of coverage. The state will be forced to exempt many citizens from the health insurance mandate because these plans remain unaffordable, said FTCR, defeating the promise of universal care under the law. On top of premiums, which range from $173 a month for the cheapest "basic" coverage plan to $837 a month for the most expensive "premium" plan, patients are subject to additional costs in all of the basic coverage plans. These include: -- Out of pocket maximums up to $5,000 per individual and $10,000 per family, that do not include premiums, some co-pays or some deductibles. -- Co-pays ranging from $10 a doctor visit to $750 for a hospital admission, in addition to the plan deductible. Plans do not specifically include co-pays in the out of pocket maximum. -- Separate deductibles for drug costs up to $500, after which patients will still pay for drugs in a range between $10 to $100 a month, all the way up to 50% of the cost of every brand name drug. These additional costs would make the basic coverage plans unaffordable for many patients. For example: Under the cheapest basic health plan, Neighborhood Health Plan, in Eastern Mass. -- A 56-year-old living making $30,000 a year could pay over 30% of her income on health costs. She would pay $4164 in premiums, a $2000 deductible, co-insurance costs of 20% for almost all health services up to $5000, as well as a drug deductible of $200 and 50% of the cost of some drugs after that deductible was met. -- A 37-year-old in this area with this plan would pay $2100 in premiums; a 19-year-old would pay $2076. Under Blue Cross Blue Shield in Western Mass. -- A 56-year-old would pay $5,640 a year in premiums and quickly reach the $5000 deductible with required 35% co-insurance costs for all hospital, surgery and laboratory services - over $10,000 a year. Co- pays for doctor and hospital visits appear to be in addition to the deductible. -- A 56-year-old making just above 300% of the poverty line - approximately $30,000 a year - would pay over 15% of their income on premiums alone before incurring a single co-pay, co-insurance, deductible or drug cost. -- A 37-year-old in this area with this plan would pay $3,300 in premiums per year, and a 19-year old would pay $3024. Under Tufts Health Plan in Central Mass. -- A 56-year-old would pay $5136 a year in premiums, a $500 drug deductible, $35 or $50 copays for doctor visits in addition to a $2000 deductible for services. -- A 37-year-old in this area with this plan would pay $2,688 in yearly premiums, and a 19-year-old would pay $2,568. "Low-income patients will be hard-pressed to afford the premiums for these plans, even if they never get sick enough to incur the added cost of co-pays, co-insurance, deductibles and drugs," said Balber. The "young adult" plans provide no real value to patients, said FTCR, because they cap benefits at low levels but still set premiums over $100 a month. The cheapest young adult plan, through Neighborhood Health, would charge $126 a month to consumers in Central and Western Massachusetts, but cap all benefit payments at $50,000 a year, meaning any serious illness or injury would leave the patient with crushing medical bills. This premium is just $50 a month cheaper than the same company's basic coverage plan, that has no yearly cap on benefits. (All examples assume drug coverage is included in basic coverage plans, a decision that will be made later this month.) The Foundation for Taxpayer and Consumer Rights (FTCR) is the state's leading consumer watchdog group. For more information, visit us on the web at: http://www.ConsumerWatchdog.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. SEC probes possible abuse in exec trading plans Thu Mar 8, 2007 7:07PM EST By Karey Wutkowski WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission is investigating if executives are illegally trading on insider information and using a preset trading plan to avoid suspicion, a senior agency official said on Thursday. A recent Stanford University study showed that executives' stock trades under preset trading plans performed nearly 6 percent better than executives' trades that were not part of such a plan, SEC Enforcement Director Linda Thomsen said. "It raises the possibility that these plans are being abused," she said during a panel discussion at the Corporate Counsel Institute's annual symposium. In 2000, the SEC adopted a rule known as 10b5-1 that allows corporate executives to file a trading plan for future sales of their stock. The plans are intended to prevent suspicions that executives illicitly traded on material insider information. The 10b5-1 rule is typically used by top executives to liquidate stock on a systematic basis at a prearranged market price. It provides what lawyers call a "safe harbor" against illegal insider trading. "We're looking at this hard," Thomsen said. "If executives are in fact trading on inside information and are using a plan as a cover, they should not expect to use the safe harbor" as a legal protection. Thomsen declined to elaborate further on the investigation. The Stanford study, led by accounting professor Alan Jagolinzer, found evidence that executives with trading plans systematically sold shares after positive news and before negative news. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Forbes list shows rich getting richer Fri Mar 9, 2007 12:39AM EST By Herbert Lash NEW YORK (Reuters) - The world's richest are getting younger and richer with more Russians and Indians cropping up among the 946 people on Forbes magazine's 2007 billionaires list unveiled on Thursday. The number of billionaires is 19 percent higher than last year when there were 793, and their total net worth grew 35 percent to $3.5 trillion, the magazine said. The average billionaire's age fell by two years to 62, and 60 percent started with very little. Two-thirds of those on the list were richer, with net worth up for nearly everyone in the top 50. "This is the richest year ever in human history," said Forbes Chief Executive Steve Forbes. "Never in history has there been such a notable advance." Among those joining the list are Howard Schultz, the founder of Starbucks, which pioneered the $3 cup of coffee, and former Walt Disney boss Michael Eisner. Microsoft Corp. Chairman Bill Gates was the richest man for the 13th straight year, with $56 billion, followed by Warren Buffett, chief executive of Berkshire Hathaway Inc., with $52 billion. Mexican telecoms tycoon Carlos Slim remained No. 3, with $49 billion. Schultz is 840th on the list and worth $1.1 billion. Eisner is 891st and worth $1 billion. There were 178 new billionaires and 53 nations were represented on the list. Of the 83 billionaire women, 10 were self-made, it said. Spain added 10 new billionaires, nine of whom made fortunes in the country's booming real estate and construction business. Americans made up 44 percent of the world's billionaires, with 415, 55 of whom were new to the list. FAST PACE Google founders Larry Page and Sergey Brin are now worth $16.6 billion each, and the speed at which they amassed their fortune far is exceeding the pace of Gates, the magazine said. They both were ranked No. 26 on the list. Back on the list were BET television network founder Robert Johnson and AOL's Stephen Case, in 840th place with $1.1 billion and 891st with $1 billion, respectively. Japan's Yoshiaki Tsutsumi, the world's richest man in 1987, is no longer a billionaire, the magazine said. Tsutsumi, the former chairman of Kokudo Corp., the core firm of regional railway operator Seibu Railway group, received a suspended prison sentence in October 2005 for falsifying financial statements and insider trading. Computer maker Michael Dell and the heirs of Wal-Mart founder Sam Walton fell from the top 20. Dell was No. 30, worth $15.8 billion, and four Waltons were worth from $16.4 billion to $16.8 billion, ranking 23rd to 29th. © Reuters 2007. All rights reserved. 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5. ING, Kookmin to discuss ING unit stake-source By Kim Yeon-hee SEOUL, March 9 (Reuters) - South Korea's Kookmin Bank is set to negotiate to sell a stake in an insurance unit of ING Groep NV (ING.AS: ) back to the Dutch firm, a source close to the talks said on Friday, a deal which could end their strategic tie-ups. Kookmin (060000.KS: ) (KB.N: ), the country's top lender, owns a 20 percent stake in unlisted ING Life Insurance Korea Ltd., or 1.4 million shares with a book value of 117.84 billion won ($124.5 million). The life insurance unit ranks fourth in South Korea, after three top domestic players. But the South Korean lender has to reduce its holding in the life insurer to below 15 percent by the end of 2007, complying with regulators' conditions after it bought half of a small-sized domestic life insurance firm in 2004. "Kookmin will start the talks soon. It is thinking about selling more than 5 percent stake in the insurance company," the source told Reuters by telephone, asking not to be named. Depending on the conditions, Kookmin may sell off its whole shareholding in ING Life, another source close to Kookmin had told Reuters earlier this year. ING (ING.N: ) holds a 4 percent stake in Kookmin after it bought shares in the former H&CB in 1999, which Kookmin absorbed in 2001. The Dutch financial group also owns 49 percent of KB Life Insurance Co. and 20 percent of KB Asset Management, in which Kookmin holds the remainder of shares, respectively. But business relations between the two financial services firms started being loosened, after ING opened its wholly-owned asset management unit in South Korea in late 2006. ((Reporting by Kim Yeon-hee, editing by Keiron Henderson; yeonhee.kim@reuters.com; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net;+82-2-3704-5646)) Keywords: ING KOOKMIN/STAKE (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. AXA near deal on S.Korea's Kyobo auto insurer Fri Mar 9, 2007 12:43AM EST SEOUL, March 9 (Reuters) - French insurer AXA (AXAF.PA: ) is close to buying a majority of the online auto insurance unit of South Korea's Kyobo Life Insurance Co. Ltd., a regulatory official said on Friday, in a deal reportedly worth $106 million. The purchase would make AXA, Europe's No. 2 insurer, the first foreign player in South Korea's $6.5 billion auto insurance market. It withdrew from South Korea's life insurance market in 2001. "I am aware that the negotiations have made substantial progress, while a few issues are left unresolved," the official at the Financial Supervisory Commission said by telephone, asking not to be named. "If those issues are settled, a final signing is expected around March 15 or sometime this month." A Kyobo spokesman said by telephone that it was still in talks with the French insurer to sell its 74.7 percent stake in Kyobo Auto Insurance, which was formed in 2001, but said no deal has been signed yet. The value of the prospective sale was estimated at about 100 billion won ($105.5 million), the Maeil Business Newspaper said on Friday, citing unnamed industry and regulatory sources. Continued... AXA said last year that it had been looking at the possibility of starting an auto insurance unit in east Asia and could buy small and mid-sized local insurance firms, as it was looking to expand its presence in Asia. Unlisted Kyobo, the country's second-largest life insurer, had been contacting foreign investors to raise new capital to shore up its balance sheet. But analysts view AXA's entrance in the auto insurance sector in South Korea as odd, given the market's accumulated losses of more than 2 trillion won since 2000 according to regulators, and AXA's abrupt pullout from a South Korean life insurance joint venture six years ago. "It's difficult to understand," said Chang Hyo-sun, a Samsung Securities insurance analyst. "AXA may want to move towards long-term insurance policies after starting as an auto insurance firm, or it may expect the auto insurance market to recover." Higher car accident rates and stiffer competition have driven up insurance firms' spending, although a recent change in the way they charge premiums depending on car models would offer more room to raise premiums. Kyobo Auto, with assets of 221 billion won, represents a meagre 5 percent of South Korea's auto insurance market, in which sector leader Samsung Fire and Marine Insurance Co. (000810.KS: ) makes up a quarter. ($1=947.6 Won) ((Reporting by Kim Yeon-hee and Lee Chang-ho, editing by Sei Chong; yeonhee.kim@reuters.com; Reuters Messaging: yeonhee.kim.reuters.com@reuters.net;+82-2-3704-5646)) Keywords: AXA KYOBO/ACQUISITION (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. New Century seen filing bankruptcy Fri Mar 9, 2007 11:08AM EST NEW YORK (Reuters) - New Century Financial Corp. (NEW.N: ) shares plunged further on Friday after analysts said they expect the subprime lender to seek bankruptcy protection soon. In morning trading, shares fell 69 cents, or 17.8 percent, to $3.18, after earlier falling to $2.96. They began the year at $31.59. The decline came after New Century said on Thursday it stopped taking loan applications, lined up $265 million of funding secured by its mortgage loan portfolio and other assets, and arranged to refinance $710 million of loans. Morgan Stanley provided the financing, people familiar with the matter said. New Century said it has failed so far to obtain relief from several lenders. Analysts said the Irvine, California-based real estate investment trust, having pledged most of its assets as collateral, has little left to offer creditors. "We feel it is likely that New Century just used up its last option to avoid collapse, and believe a bankruptcy filing or liquidation may well be announced in the next week or two," wrote JPMorgan analyst Andrew Wessel. Merrill Lynch & Co. analyst Kenneth Bruce added that while the financing might provide New Century a "temporary lifeline," the REIT faces "likely liquidation in bankruptcy." Bruce and Wessel wrote that a bankruptcy filing "seems imminent." New Century did not immediately return a call seeking comment. The company is the largest independent U.S. subprime lender, and said it made $59.8 billion of mortgage loans in 2006. Subprime lenders make loans to people with poor credit histories, and have suffered from rising defaults. More than 20 have quit lending or gone bankrupt in the past year. New Century a week ago disclosed a federal criminal probe into its accounting and trading in its securities, and said its survival might depend on help from its own lenders. It faces many shareholder lawsuits. Among shares of other subprime lenders, Accredited Home Lenders Holding Co. (LEND.O: ) fell as much as 7.6 percent, and NovaStar Financial Inc. (NFI.N: ) as much as 6.1 percent. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Second Nikko shareholder dismisses Citigroup offer By Jonathan Soble TOKYO, March 9 (Reuters) - A second U.S. investment fund dismissed Citigroup's (C.N: ) $10.8 billion buyout offer for Nikko Cordial Corp. (8603.T: ) on Friday, propelling the Japanese brokerage's shares further above Citigroup's offer price. Southeastern Asset Managment, which owns 6.6 percent of Nikko, said Japan's third-biggest securities house was worth 50 percent more than Citigroup's proposed bid price of 1,350 yen per share. Nikko was trading at 1,407 yen on Friday afternoon. "We believe that the price is not sufficient and that the company is worth at least 2,000 yen per share," Southeastern Vice President Andrew McCarroll said in a statement. In dismissing Citigroup's offer, Southeastern followed Nikko's top shareholder, Chicago-based Harris Associates, which owns a roughly 7.5 percent stake and has told media it also thinks Nikko is worth 2,000 yen per share. Southeastern, Harris and other North American investment funds bought stakes in Nikko after its shares plunged following an accounting scandal that emerged in December. Continued... Such funds own at least a quarter of the firm, and all types of offshore investors together own about 60 percent. Citigroup, the largest U.S. bank and Nikko's partner in an eight-year-old investment banking venture, plans to initiate a formal tender offer by next Tuesday, and Nikko's management has agreed to a takeover. The deal would be Citigroup's biggest-ever acquisition in Asia and the largest foreign buyout in Japan. ((Editing by Mike Miller; Reuters Messaging: jonathan.soble.reuters.com@reuters.net; jonathan.soble@reuters.com; +81-3-3432-8971)) Keywords: NIKKO CITI/SHAREHOLDER (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Direct General’s Shareholders Approve Merger with Private Equity Consortium NASHVILLE, Tenn.--(BUSINESS WIRE)--Direct General Corporation (Nasdaq: DRCT) announced today that its shareholders voted to approve the proposed merger agreement that the Company entered into on December 4, 2006, providing for the acquisition of Direct General by an investor group including Calera Capital (formerly known as Fremont Partners) and TPG Capital (formerly known as the Texas Pacific Group). Based upon the tally of shares voted, holders of approximately 17,268,800 shares voted in favor of approving the merger agreement and the transactions contemplated thereby, representing 84.9% of Direct General’s total outstanding voting shares and 99.9% of the total votes cast. Under the terms of the merger agreement, holders of Direct General’s common stock will be entitled to receive $21.25 per share in cash, without interest. The transaction is still subject to required regulatory approvals, as well as satisfaction of other closing conditions. www.directgeneral.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Phoenix’s Hartford-Based Fixed Income Manager Rebranded as Goodwin Capital Advisers Will manage $17 billion in fixed income assets HARTFORD, Conn.--(BUSINESS WIRE)--The Phoenix Companies, Inc. (NYSE: PNX) today announced that its fixed income investment division based in Hartford will now operate as a registered investment advisor under the name of Goodwin Capital Advisers, Inc. Previously, the group was organized under Phoenix Investment Counsel, the investment adviser for all Phoenix mutual funds. Goodwin Capital Advisers has expertise in all sectors of the bond market, including evolving, specialized and out-of-favor sectors. It seeks the best opportunities for total return and avoids interest-rate bets. Goodwin expects to have more than $17 billion in mutual fund and institutional account fixed income assets under management when its investment management agreements are complete. www.phoenixwm.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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11. Healthways, Blue Cross Blue Shield of Massachusetts Expand Strategic Partnership Collaboration to make additional Care SupportSM Services Available to Members NASHVILLE, Tenn.--(BUSINESS WIRE)--Building on six years of successful disease management initiatives, Healthways, Inc. (NASDAQ:HWAY) and Blue Cross Blue Shield of Massachusetts (BCBSMA) today announced they are expanding their collaborative efforts to deliver industry-leading support to the health plan’s chronically ill members. Under the agreement, Healthways will add coronary artery disease (CAD) and chronic obstructive pulmonary disease (COPD) Care Support programs to the interventions currently offered to BCBSMA members. www.bluecrossma.com www.healthways.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Flexpoint Partners Announces Acquisition of Norwich Group, Inc. and Its Affiliated Companies CHICAGO, March 8 /PRNewswire/ -- Flexpoint Partners, LLC announced today that it has acquired a majority interest in Rosemont, PA-based Norwich Group, Inc. and its affiliated companies via a newly formed holding company. Norwich is a specialist in the development, implementation and administration of commercial insurance products targeted to narrowly-defined industry segments. In connection with the acquisition, Flexpoint will provide capital to Norwich to support the company's plan to increase its underwriting participation in the insurance programs it manages. The company's co-founders, Kirby Hill and William McPherson, will continue to serve as Chief Executive Officer and President, respectively, and will maintain minority equity ownership in the company. Norwich was established in 1996, initially to provide comprehensive consulting services to program managers in the specialty insurance market, an approximately $10 billion industry. Norwich advises program managers on underwriting structures, risk management models, claims audits and underwriting audits. While the company has historically generated predominantly fee-based consulting income for its services, Flexpoint's investment will provide the equity capital required for Norwich to increase its risk sharing capacity for its client's programs. Norwich participates in underwriting risk via its wholly-owned Bermuda-based reinsurance company. Flexpoint's Principals have previously invested in a variety of insurance businesses, including First Acceptance Corporation, a nonstandard automobile insurance company, and NLASCO, Inc. (via Flexpoint's investment in Affordable Residential Communities), a leading provider of homeowners insurance for low-value dwellings and manufactured homes. Sandier O'Neill & Partners, L.P. acted as financial adviser to Norwich on the transaction. www.norwichgroup.com Flexpoint Partners, LLC is an equity investment firm focused on the healthcare and financial services industries. Flexpoint seeks to build relationships with executives and companies who look for Flexpoint to be a value-added partner. Flexpoint aims to invest $10 to $100 million of equity in each opportunity. For more information, visit http://www.flexpointpartners.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Thomson Acquires Oden Insurance Services EAGAN, Minn., March 8, 2007 – The Thomson Corporation today strengthened its position in the insurance compliance and advisory markets, announcing the acquisition of Oden Insurance Services, Inc., a leading provider of insurance compliance and advisory information and workflow tools. Oden will be aligned with Thomson West in the company’s Legal segment; terms of the acquisition were not disclosed. Tulsa, Okla.-based Oden is renowned for its extensive, authoritative compliance and regulatory content and innovative workflow tools, and its team of editorial specialists are widely recognized for their ability to organize, summarize and interpret insurance regulations. Tim Wahlberg, Thomson West vice president, Strategic Marketing, Corporate Segment, said Oden’s editorial expertise and leadership position in the insurance compliance market provides a powerful complement to West’s legal research information and software offerings. “Compliance and advisory are among the fastest-growing sources of litigation,” Wahlberg noted. “Our strategy is to build on our leadership position by creating specialized offerings for specific practitioners in areas such as insurance. Oden gives us critical mass in the insurance compliance market, and also provides a suite of innovative insurance workflow software tools that are a powerful channel for delivering Oden and West content to this strategic market.” www.thomson.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Life Of The South Announces Agreement With Summit Partners (March 07, 2007) JACKSONVILLE, FL and BOSTON, MA - Life of the South Corporation (LOTS) today announced that its Board of Directors approved an agreement whereby Summit Partners, a private equity and venture capital firm, will buy approximately 85 percent of the issued and outstanding shares in Life of the South Corporation. LOTS’ senior management group will hold approximately 15 percent of the shares and continue the operations of the company, with no change in location, personnel, or business model. The transaction provides LOTS with access to capital to continue its strong growth. Since 2003, the company has doubled its net written premium and entered major new ventures in the direct and database marketing arena. In addition, the company has expanded its licenses and now holds life and property and casualty licenses in 40 states. www.life-south.com www.summitpartners.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Lincoln Financial Group Announces Pricing of Debt Offering PHILADELPHIA, March 8 /PRNewswire-FirstCall/ -- Lincoln Financial Group NYSE: LNC) today announced that it has priced an offering of $500 million of 6.05% Capital Securities (callable in year 10 at par) due April 20, 2067 and $250 million of 3-year floating rate senior notes at LIBOR plus 8 basis points due March 12, 2010 for aggregate gross proceeds of $750 million. This offering is pursuant to an existing shelf registration statement. Lincoln intends to use the net proceeds to repay short-term debt that had been used to redeem long-term debt and to fund share repurchases. These debt offerings do not change Lincoln's previous interest expense guidance of approximately $65-70 million per quarter, pre tax. The joint book-running managers for the debt offerings are Citigroup and Merrill Lynch & Co. The co-managers for the capital securities offering are Bank of America Securities LLC, JP Morgan, Morgan Stanley, UBS Investment Bank and Wachovia Securities. www.LFG.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
16. RAA Commends NAIC Committee Action On Reinsurance Regulation WASHINGTON, DC (March 8, 2007) – The Reinsurance Association of America (RAA) today commended the National Association of Insurance Commissioners (NAIC) Financial Condition Committee for directing its Reinsurance Task Force to consider the design of a revised framework for reinsurance regulation in the U.S. and related financial considerations. Franklin W. Nutter, president of the RAA, applauded the NAIC for examining key aspects of reinsurance regulation beyond the narrow issue of collateral, which has dominated NAIC discussions in recent years. Nutter said, “Reinsurance is a critical component of financial solvency for U.S. insurers. The reinsurance industry operates on a global capital business model. Regulation must reflect the evolving nature of capital management, international regulatory and accounting developments, and more contemporary credit criteria." Focusing on broad based risk and credit criteria, the NAIC Financial Condition Committee agreed that the critical issues that must be examined include: the appropriate risk based capital charge for reinsurance; a single home regulator for U.S. licensed reinsurers; credit and insolvency risk for cedants; regulatory reliance on risk management systems for cedants and assuming reinsurers; and coordination among regulatory authorities within the U.S. and in cross-border transactions. In praising the NAIC Committee action, Nutter said, “The NAIC recognizes that change in reinsurance regulation is warranted but must be pursued broadly, yet with careful attention to the impact on cedents and reinsurers." www.reinsurance.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Rep. Wasserman Schultz To Address Big “I” Rising Democratic leader to speak to Young Agents WASHINGTON, D.C., March 8, 2007—Rep. Debbie Wasserman Schultz (D-Fla.), a rising star of the Democratic party and a member of House leadership as the Chief Deputy Whip, will speak to members of the Independent Insurance Agents & Brokers (the Big “I”) during its Legislative Conference & Convention in April. Wasserman Schultz will address the Young Agents/InsurPac luncheon on April 25. The Big “I” Legislative Conference & Convention is the insurance industry’s premier legislative meeting. This year’s event will take place April 25 through 27 at the Marriott Wardman Park Hotel in Washington, D.C. To register online and make hotel reservations go to www.independentagent.com and select the “Events and Conferences” link. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. BCSB Reaches Settlement with Insurance Provider BALTIMORE, March 8 /PRNewswire-FirstCall/ -- BCSB Bankcorp, Inc. (Nasdaq: BCSB), the holding company for Baltimore County Savings Bank, FSB, headquartered in Baltimore, Maryland, announced today that the Bank reached a settlement with its insurance provider, pursuant to which the Bank received a payment of $3.35 million as a recovery of a portion of its losses sustained in a check kiting scheme perpetrated by a commercial deposit customer during the quarter ended June 30, 2006. The Bank continues to pursue collection of its check kiting losses, although further recoveries, if any, are expected to take an extended period of time to resolve. As a result of the recovery, the Company will recognize additional income of $2.2 million, net of taxes, during the quarter ending March 31, 2007. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. AHIP Board Issues Statement on Generic Biopharmaceuticals WASHINGTON, March 8 /PRNewswire-USNewswire/ -- America's Health Insurance Plans' (AHIP) Board of Directors released a policy statement on improving the availability and affordability of generic biopharmaceuticals for patients. Karen Ignagni, President and CEO of AHIP, issued the following statement on the policy outlined by the AHIP Board of Directors: "Consumers deserve access to safe and affordable medications. Too often, cost is a prohibitive factor for patients to access biopharmaceuticals. Health insurance plans' efforts to encourage the use of generic drugs and to maintain broad access by tiering pharmaceuticals have slowed the rate of growth in prescription drug costs in recent years. By allowing timely market entry of generic biologics while ensuring these drugs are comparable to brand- name products in safety, quality and efficacy, we have an opportunity to build on the progress that has been made so far." The AHIP Board believes the FDA should establish an abbreviated regulatory process for manufacturers to receive approval of generic biologics that is consistent with the following principles: -- Ensuring that generic biologics are comparable to brand-name products in safety, quality, and effectiveness; -- Promotion of timely market entry of generic biologics; and -- Providing a mechanism to allow the review criteria to keep pace with innovation in biologics. The full policy statement can be viewed at http://www.ahip.org/content/fileviewer.aspx?docid=19134&linkid=164036. America's Health Insurance Plans -- Providing Health Benefits to More Than 200 Million Americans Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 20. INSURANCE NEWSCAST "Pictures Of The Day" -- Sponsored By:
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21. PCMA Urges Policymakers to Create a Clear Pathway for Approval of Biogenerics WASHINGTON, March 8 /PRNewswire-USNewswire/ -- The Pharmaceutical Care Management Association (PCMA) applauds Chairman Kennedy and Ranking Member Enzi for holding today's Senate Health, Education, Labor and Pensions Committee hearing to explore new ways to improve access and affordability for biologic products. Americans currently spend $35 billion annually on biologics, which are more expensive than necessary because they lack generic competition. PCMA continues to believe that the best way to meet this challenge is to pass legislation creating a clear regulatory pathway to approve follow-on biologics, or "biogenerics." Because such a pathway exists for "small molecule" drugs, there is tremendous generic competition in that space, which leads to lower prices. The Food and Drug Administration (FDA), however, currently lacks a clear regulatory pathway to approve "biogenerics." To address this, PCMA was recently joined by a number of influential consumer, employer, and insurer groups who endorsed the bi-partisan "Access to Life Saving Medicine Act of 2007" (ALSMA). PCMA believes that the ALSMA improves on the experiences of the European Union biogenerics model. This new legislation relies upon competition, not price controls, to drive down costs. It would also create a streamlined process empowering the FDA to employ its high safety standards to independently determine approval for these products. "Momentum is building for Congress to create a clear regulatory pathway for approval of biogenerics this year," said PCMA President Mark Merritt. "More competition means lower prices, broader access and increased patient compliance. These can only be accomplished by creating real, generic competition in the biologics marketplace." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Arizona Welcomes insurephoenix.com PHOENIX, March 9 /PRNewswire/ -- Insurephoenix.com is proud to offer products and services to Arizona drivers. Customers in Arizona will have access to an innovative new website that offers free no-obligation car insurance quotes in minutes and provides the ability to customize car insurance policies to meet a client's specific needs. www.insurephoenix.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. MetLife Named a Top Company for Executive Women for Second Consecutive Year NEW YORK--(BUSINESS WIRE)--For the second year in a row, MetLife, Inc. (NYSE: MET) has been recognized for its focus and efforts to provide advancement opportunities for women as the company was named one of NAFE’s Top Companies for Executive Women for 2007. In addition, for the first time, MetLife was recognized as one of NAFE’s distinguished Top 10 companies for its efforts to promote and retain women at the senior levels of the company. With more than half of its U.S. workforce consisting of women, MetLife was recognized by NAFE for its innovative ways of developing and advancing talented women. In addition to the representation of women on MetLife’s board of directors, NAFE also examined the number of women in the company overall, in senior management and also scrutinized how well women were represented among MetLife’s top earners. www.metlife.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Plan Member Securities Teams Up With TRAK to Create Compelling New Retirement Illustration System New Calculator Helps Prepare Broker Dealer's Reps for Upcoming Regulatory Changes CARPINTERIA, Calif., March 8 /PRNewswire/ -- Plan Member Securities has teamed with TRAK (The Retirement Analysis Kit) to create the Personal Retirement Calculator (PRC) -- a vivid retirement illustration tool with Plan Member's proprietary investment recommendations and risk questionnaire bundled with the TRAK features top advisers have become accustomed to. "Plan Member Securities and my company provide advisers with what they need to sell more and to sell faster," said Ed Dressel, president of Trust Builders, Inc. (formerly known as The Annuity People), manufacturers of TRAK software. "That's made this a very effective collaboration." Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. CPCU SOCIETY NATIONAL LEADERSHIP INSTITUTE ETHICS COURSE COMING TO ST. LOUIS MALVERN, PA, MARCH 8, 2007—On March 20, the CPCU Society and the Society’s St. Louis Chapter will be hosting a CPCU Society National Leadership Institute (NLI) course: Ethical Decision Making for Insurance Professionals. This course has been approved for three continuing education credits in Missouri. A continental breakfast and course materials will be included. The CPCU Society National Leadership Institute (NLI) is the CPCU Society’s premier educational program for insurance industry professionals looking to advance their careers or take on leadership roles within their organizations. Both CPCU Society members and nonmembers are invited to attend NLI courses. Members and nonmembers can register online at www.cpcusociety.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Date SET for 13Th Annual IIABNJ Trusted Choice® Charity Golf Classic to benefit the make-a-wish foundation of new jersey Trenton, NJ, March 2007… The Independent Insurance Agents & Brokers of New Jersey (IIABNJ) have set the date for their 13th Annual Trusted Choice® Charity Golf Classic to benefit the Make-A-Wish Foundation of New Jersey. The event will take place May 1, 2007 at Forsgate Country Club in Monroe Township and will include a luncheon and awards dinner. The Make-A-Wish Foundation of New Jersey is celebrating its 23rd year of making dreams a reality for seriously ill children. To date, well over 4,700 wishes have been granted for NJ children. Last year, IIABNJ raised $50,000 for the New Jersey chapter of the Make-A-Wish Foundation which was presented at the IIABNJ Annual Conference on September 26, 2006. www.iiabnj.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. PIANY’s Long Island RAP to help insurance professionals gain competitive edge through education and networking opportunities GLENMONT, N.Y.—Focusing on better educating and protecting consumers, the Professional Insurance Agents of New York State Inc.’s annual Long Island Regional Awareness Program, is designed to help insurance producers serve their clients, serve their businesses and serve the insurance industry. More than 450 insurance professionals are expected to attend the event, which will be held Thursday, April 19, 2007, at Leonard’s of Great Neck, Great Neck, N.Y., from 7 a.m. to 5:40 p.m. “Consumer-driven health plans and identity theft are hot topics in today’s society, as well as in the insurance industry,” said Long Island RAP Committee Chair Peter Resnick. “When consumers start asking questions, their independent insurance agents need to have the answers. Long Island RAP’s education sessions will provide participants with the facts that will make educating policyholders easier, and provide insurance professionals with an advantage over the ‘1-800’ way of doing business.” For more information, logon to PIANY’s Web site (www.pia.org) and type EC10074 in the Quick-Link box; or contact the PIANY’s Education and Conference Department at (800) 424-4244; or via e-mail at conferences@pia.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Euler Hermes enters the capital of ICIC, Israel's leading credit insurer March 8, 2007 (Paris) - Euler Hermes, the world premier credit insurer, acquired one third of the capital of Israel's leading credit insurance provider ICIC based in Tel Aviv. At the same time, Euler Hermes concluded a partnership with ICIC's two other shareholders each holding a third of ICIC's capital. This operation finalizes the complete change in ICIC's shareholding structure that started a few months ago. With this operation, Euler Hermes reinforces its presence in the Mediterranean basin by entering a new country where it will hold a strong position: with a turnover of around 16 M€, ICIC holds a 55% market share in Israel. Euler Hermes, subsidiary of AGF and a member of Allianz, is listed on Euronext Paris. The group and its principal credit insurance subsidiaries are rated AA- by Standard & Poor's. www.eulerhermes.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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