Daily Quote: "I will speak ill of no man, and speak all the good I know of everybody." - - Benjamin Franklin 1. The following is an open letter to the Congress of the United States & the National Association of Insurance Commissioners, the insurance industry and insurance industry media. From: Clark Sitzes, executive vice president of the PIA Western Alliance This letter has been faxed to the leadership of the U.S. Senate and House as well as to individuals on a number of key congressional committees. It has also been sent to the National Association of Insurance Commissioners and the commissioners of the nine PIA Western Alliance states. We also forwarded this letter to the insurance media. The insurance industry is under scrutiny. Insurance company response to Hurricane Katrina upset some powerful members of Congress. Now some of those members are pushing hard to eliminate the McCarran-Ferguson Act that exempts the industry from anti-trust regulations. At the very least they want to change it drastically. Hearings have already begun. Last year some of the same members of Congress pushing to change McCarran-Ferguson worked to establish an optional federal charter. They were not successful. However, the OFC idea has not died and will come back again during this Congressional session. Tie all of that to the heels of investigations into bid-rigging and other criminal acts at the nation’s largest brokerage firms by now New York State Governor Eliot Spitzer when he was attorney general and you have an industry with a serious image problem. A couple of weeks ago in a story exclusive to the PIA Western Alliance’s on-line newsletter, Industry & Association News, former Safeco CEO Mike McGavick warned that stultifying regulations are coming soon. He said the industry needs to do some serious image retooling. We agree. In the McGavick story we quoted PIA Washington/Alaska president Heidi Duncan-Yonker. In her inauguration speech at last year’s PIA Washington conference she said as the daughter of an insurance agent she knew at an early age that she was going to be an agent. Heidi equated her father with super heroes. He was the one who came to the rescue when human tragedies like a house fire or a wrecked car wrecked lives. This is who the individuals in this industry are—we are super heroes. Problem solving is what we do. Honoring the contract with our clients is what we do. And I’m not just talking about the independent agent. The insurance companies represented by the PIA and other agent associations solve problems, too. They quickly settle claims and honor agreements. Yes, they are human and yes, they are sometimes flawed but insurance companies like independent agents solve problems—they don’t tend to create them. The push in Congress to regulate the industry from the top down is dangerous and ill-conceived. If federal regulation happens it will take years to iron out the wrinkles between the states that will still have regulatory authority and regulations imposed by an insurance czar. And who loses in this scenario? The consumer. This is the point where this analysis that gets complicated. We are an association that represents professional independent insurance agents. Both agents and the carriers they represent are regulated at the state level by insurance departments and by insurance commissioners or administrators. A mutual spirit of cooperation exists among PIA members, their carrier partners and those departments. However, we now must take these departments and commissioners to task—not as individuals—but as a group. Until testifying at a Senate hearing last week the National Association of Insurance Commissioners (NAIC) was silent. Where were you? Insurance commissioners and administrators the independent insurance agents and the consumers of this nation needed you to step forward and be heard. And we needed you to be heard loud and clear. Yet you were silent. When Eliot Spitzer brought down Marsh & McLennan and the other large brokerage firms your response was to give the independent insurance agent or broker onerous and unnecessary new regulations. Few states implemented them the way you wanted but most inflicted some sort of damage on agents and brokers that had committed no crimes. And then you fell silent. And you remained silent while forces at the national level threaten to turn this industry upside down. Not only that but Mr. Spitzer and the attorneys general of states around the country have forced brokerage firms and insurance companies to sign agreements that are changing the nation’s insurance regulations. And you have said little. Attorneys general do not have constitutional authority to regulate this industry. Yet they have changed established insurance contracts and done away with contingency commissions. A bit at a time they are starting to re-establish those commissions for the large brokerage firms. What they haven’t done is cared at all about what the loss of those commissions is doing to the independent insurance agent that didn’t commit crimes in the first place. Where is the due process? And even more importantly, where are you? At a time when this industry needs your leadership the most, you are nowhere to be found. Contingency commission aside, you certainly must agree with us that regulation of the insurance industry is best kept at the state and local level. The consumers these companies serve are closer to you than they are to Washington D.C. Oregon Insurance Administrator Joel Ario addressed last year’s PIA Oregon/Idaho convention and put the reason federal regulation is not a good idea into one succinct sentence: “Can you imagine a federal call center?” It is obvious to everyone that insurance industry reform is a high priority to this session of Congress. To the NAIC we say, that reform now needs to be your high priority. However, that reform needs to come from the bottom up and not from the top down. We need you to come forward with some concrete proposals to streamline this industry and to make company and client connections between one state and another seamless. We need you, the National Association of Insurance Commissioners to be leaders in this much-need reform. At this point we must also point a hard finger at certain members of Congress who because of dealings with one insurance company are now on a vendetta against the entire industry. Do you—and you know who you are—think that the confusion and chaos in the aftermath of Hurricane Katrina was bad? The changes you seek to make are—at the very least—ill-conceived. You have not thought this through. You are going to create a mess that cannot be easily fixed if you proceed in the direction you are going. You will be surprised to find that a majority of those working in this industry from the largest brokerage firms to the smallest independent insurance agency want reform. The alteration you propose with this legislation will give the departments of commerce and justice oversight of the insurance industry. It is then up to them to determine how that oversight looks. I cannot think of a more illogical thing to do than give career bureaucrats responsibility for designing the regulations governing part of that reform or—truthfully—any aspect of this industry. If you insist on change then at least come up with a plan of your own—a plan that includes plenty of input from those most experienced in insurance regulation. Please pay close attention to what you are doing. In your haste to make changes that you believe will benefit consumers the exact opposite is going to happen. Radical changes to McCarran-Ferguson and the adoption of an optional federal charter will ultimately eliminate many of the smaller insurance companies that provide much needed competition in this industry—competition that provides lower rates and better service for consumers. Hopefully those entrusted to regulate this industry at the state level and who have failed to step up and be heard at this critical juncture will hear and respond to this message. It is also our hope that Congress will slow down and think through the changes they are considering. At the end of March PIA members—yet again—will travel to Washington, D.C. and attempt to talk some sense into our elected representatives. We will point out the fact that the insurance industry, much more than the banking system, provides the financial stability required by the American Free Enterprise System for our economy to flourish. Despite what Trent Lott says, the insurance industry is not broken. It is folly to make broad, ill-advised, structural changes to a system that—although in need of modernization—is functioning quite well. Who will be the losers if we allow the changes outlined in this letter to happen? Consumers who will pay higher rates for insurance—if they can even find insurance—and the independent insurance agents who have wronged no one and who have faithfully served their consumer clients. Gary Wolcott, Director of Communications, PIA Western Alliance, garywolcott@piawest.com, (360) 571-7100, 888-246-4466. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Gadfly asks Goldman investors to end stock options NEW YORK, March 19 (Reuters) - Gadfly shareholder Evelyn Davis, who has railed against excessive executive compensation for decades, wants shareholders to bar Goldman Sachs Group Inc. (GS.N: ) from ever again granting stock options to its executives. Davis' proposal, included in an amended shareholder proxy filed with the Securities and Exchange Commission on Monday, urges Goldman shareholders to approve a proposal "so that no future new stock options are awarded to anyone." It also seeks to bar renewing or re-pricing current stock options, unless called for under an existing contract. Goldman's annual meeting is scheduled for March 27 at a company facility in Manhattan. "Stock option awards have gone out of hand in recent years, and some analysts might inflate earnings estimates because earnings affect stock prices and stock options," Davis wrote in her proposal. "There are other ways to 'reward' executives and other employees, including giving them actual stock instead of options." Goldman recommended shareholders vote against the proposal, saying it is too restrictive and potentially harmful to the investment bank. Goldman should continue to have the ability to grant stock options to employees and directors as one form of compensation, the bank said. "The board of directors believes that stock options, as an element of compensation, can align the interests of management with the interests of Goldman Sachs' shareholders," the bank wrote. Eliminating options, which are used by rivals, also "could place Goldman Sachs at a disadvantage in retaining, motivating and recruiting employees," the bank said. ((Reporting by Joseph Giannone, editing by John Wallace; Reuters messaging: joseph.giannone.reuters.com@reuters.net;+1 646 223 6184)) Keywords: GOLDMAN PROXY/OPTIONS (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Conning Research: M&A Transactions Up in 2006; Values Expected to Rise in 2007-2008 - Increasing Surplus and Private Equity Interest to Drive Rise in Transaction Values HARTFORD, Conn., March 19 /PRNewswire/ -- Insurance industry mergers and acquisitions transactions increased in 2006 to the highest level since 2001 and may foreshadow an acceleration of activity into 2007-2008, according to a new study by Conning Research and Consulting, Inc. "Insurance industry mergers and acquisitions transactions in 2006 increased due to a significant increase in the distribution sector. This is the highest level of transactions since 2001, yet the total value of these transactions was $8 billion lower than 2005 levels," said Clint Harris, senior analyst at Conning Research & Consulting, Inc. "The property-casualty sector led public offerings, including secondary offerings, with eight of the nine IPOs and nine of the fourteen secondary offerings." The Conning Research study, "Mergers & Acquisitions and Public Equity Offerings -- 2007 Edition" continues Conning's annual review of insurance industry M&A and its effects on the industry. "While transaction level increases in the insurance industry have kept pace with the broader marketplace over the past five years, the annual value of transactions has been very volatile," said Stephan Christiansen, director of research at Conning Research & Consulting. "Despite this, we forecast an increase in acquisition transaction values in the next 12-18 months, due to the continuing increase in surplus in the industry, along with private equity's increasing involvement in insurance. The ability of these firms to access large amounts of capital, and their ability to secure relatively inexpensive debt layers, means that they can be part of transactions exceeding $10 billion. Therefore, we expect more transactions valued between $1 billion and $5 billion, with perhaps a few $10 billion or higher. Of course long-term drivers of scalability of data and process and global trends in business continue." "Mergers & Acquisitions and Public Equity Offerings-2007 Edition" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at http://www.conningresearch.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. InsuranceBroadcasting.com Announces Cristina Basaran Promoted To President Cleveland, OH - (03/19/07) InsuranceBroadcasting.com is pleased to announce that Cristina Basaran has been promoted to the position of President. Walter B. Podgurski, CEO of InsuranceBroadecasting.com commented: "every organization that grows needs to find people with skills and talents whose performance can be trusted. We are fortunate to be able to find and promote someone like Cristina from within the organization." Cristina Basaran grew up in central Ohio and graduated from Kent State University with a degree in Education. Upon graduation, Cristina has been involved in training, education, and volunteer work. Since joining InsuranceBroadcasting.com Cristina has been extensively involved in all the company processes and procedures. "I am excited about the opportunity to continue to assist in serving the insurance industry with related news and information. Technology is continuing to evolve and we are striving to ensure the most efficient and beneficial delivery of media information," Cristina commented. Cristina like horses, sports, water skiing and wake boarding, exercising and staying fit, reading, and music. Cristina is married and her husband Adam is an airline pilot. Cristina and her husband live in Stow with their dog, Jet, and their cat, Blitz. www.insurancebroadcasting.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Employer Survey Points to Need for Health Management, Including Incentives for Employees WASHINGTON, March 19 /PRNewswire/ -- Companies that combine "consumer- directed health plans" with other health-related tactics are more effective than others at controlling health care costs, according to a recent independent survey. Officials from IncentOne, a consultive technology company specializing in incentives-based health and productivity administration solutions, praised the findings. Companies that are best at controlling costs are focused on adopting approaches that involve quality, health improvement and productivity (including the use of incentives), data and evidence, and the appropriate use of health care services, the report, issued last week by Watson Wyatt Worldwide and the National Business Group on Health, found. IncentOne offers technology platforms to allow large employers to provide incentives, including but not limited to cash awards, to employees who take proactive steps to improve their health (for example, a gift card for completing a smoking cessation program). "Managing and improving the health of a work force is a critical component of controlling health costs," said Michael Dermer, president and chief executive officer of IncentOne. "A robust incentive strategy leveraging plan- design or other incentive models is critical to the success of any health and disease management program." www.IncentOne.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. BestWeek: UnitedHealth’s $2.6 Billion Buyout of Las Vegas-Based Sierra Health a Good Bet OLDWICK, N.J.--(BUSINESS WIRE)--UnitedHealth Group’s pending $2.6 billion acquisition of the Las Vegas-based Sierra Health Services is a strategic move affording it access to among the fastest-growing markets in the United States. In an exclusive article in this week’s BestWeek, industry observers speculate about more managed-care mergers ahead and note the smaller Sierra offers UnitedHealth a business model the other large publicly traded companies may find hard to match. UnitedHealth wants to be big everywhere, and because it was lacking in size in the Nevada area, the deal makes sense, said Donald Light, a senior equity analyst with Celent. With Sierra, UnitedHealth becomes the dominant player in Nevada’s employer market, he said. Also featured is Best’s Insurance Composite Index, which finished the week of March 15, 2007 at 1,295.24, up 6.79% from a year ago. The composite index reflects the performance of 183 insurance stocks. The week’s top performers were Sierra Health; National Interstate; Fairfax Financial Holdings; Affirmative Insurance; and China Insurance International. The bottom five were Conseco Inc.; Progressive; Penn Treaty American, NIPPONKOA Insurance and Axa. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Fitch: Insurance Criteria Reports Provide Insights into Rating Methodology CHICAGO--(BUSINESS WIRE)--Fitch Ratings has issued a series of criteria reports for the Life, Non-Life, Reinsurance, Title, and U.S. Health sectors, with each report outlining the rating methodology used by Fitch to analyze the credit quality and financial strength of these rated entities. The methodology directly supports Fitch's assignment of Insurer Financial Strength (IFS), Issuer Default Ratings (IDRs), and debt/issue ratings. The intent of each report, now available on www.fitchratings.com, is to provide insight into the rating methodology for all key parties involved in the credit rating process, including the rated entities, users of the insurer financial strength and debt ratings such as institutional investors and insurance agents/brokers, and ratings advisory personnel at investment banker firms. www.fitchratings.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. XL Insurance (Bermuda) Ltd Announces Enhanced Broad Form D&O Policy HAMILTON, Bermuda, March 16 /PRNewswire-FirstCall/ -- XL Insurance (Bermuda) Ltd, a subsidiary of XL Capital Ltd (NYSE: XL) ("XL"), today announced that its professional lines operation has enhanced its existing directors and officers (D&O) insurance policy specifically tailored for U.S. publicly traded companies with worldwide exposures.The revised policy, known as "A PLUS D&O Advantage", was launched today at an XL broker reception in Bermuda. It is a further development of the "A PLUS D&O" product line which launched in November 2004. www.xlcapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Securities Fraud Attorney Urges Elderly Investors to Beware Aggressive Brokers Bearing Mortgage Backed Securities FORT LAUDERDALE, Fla., March 19 /PRNewswire/ -- Securities Fraud Attorney Mark Tepper who represents investors deceived by abusive broker sales practices, says shareholders should be wary of brokers who sell financial products known as Collateralized Mortgage Obligations (CMOs), some of which are volatile and unsuitable for unsuspecting investors. AAA ratings or government guarantees do not protect these securities against interest rate risk. Tepper, a former New York Assistant Attorney General and Chief Trial Counsel at the Bureau of Investor Protection and Securities, representing the interests of investors in criminal and civil actions over 30 years of practicing law, has filed a claim in arbitration before the National Association of Securities Dealers (NASD). The claim, on behalf of a Davie, Florida widow whose investment portfolio, drawn from her late husband's life insurance, was bankrupt shortly after it was sold to her, describes the portfolio as "toxic waste." "The claim names five respondents including now defunct brokerage firm SAMCO Financial Services," Tepper said. "Wall Street is dividing CMOs, a type of mortgage-backed security, into several parts or tranches and giving the safe portions to financial institutions like banks while sticking the volatile parts into portfolios of unsuspecting novice or elderly investors. We allege that my client, a recent widow, was defrauded by SAMCO which falsified records with the intent to deceive and sold her a CMO portfolio on margin without proper risk disclosure." www.MarkTepper.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. New Survey Reveals That Marketers are Overlooking the Missing Link -- Boomer-To-Friend (B2F) Connections 89 Percent of Boomers Advise Their Friends on Purchasing Decisions NEW YORK, March 19 /PRNewswire/ -- Global public relations firm Weber Shandwick released a new study today revealing that companies can gain a significant competitive advantage by creating marketing programs that target baby boomers' expansive relationship networks. The survey, conducted with KRC Research, found that Boomer-to-Friend (B2F) communications are untapped in their potential to influence purchasing decisions for products and services. According to the study of 502 U.S. boomers, titled "B2F Connections," boomers serve as important information sources for fellow boomers when making purchasing decisions. Nearly six out of 10 boomers (57 percent) are asked for their recommendations on products and services almost twice a week (or 90 times per year). Of those boomers who were asked to make a recommendation in the past year, the large majority (89 percent) advised their friends, or fellow boomers. The study also revealed that B2F communications are circular, with nearly all boomers (93 percent) identifying their friends, who are also boomers, as trusted sources of information. "When it comes to word-of-mouth recommendations, boomers have both unrivaled influence and rich networks of peer advisors. Our new study found that companies can forge new relationships with prospective customers by capitalizing on the power of B2F communications," said Weber Shandwick's Chief Reputation Strategist Dr. Leslie Gaines-Ross. "Companies can discover new avenues for reaching boomers by approaching boomers' networks of mutual advisors and creating marketing, advertising and other communications that portray boomers in realistic social settings to which they can relate." www.webershandwick.com www.krcresearch.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. Salesforce.com Unveils Spring '07 Featuring AppSpace, a New Model for Enterprises to Engage Customers On-Demand LONDON, March 19 /PRNewswire-FirstCall/ -- Salesforce.com (NYSE:CRM) , the market and technology leader in on-demand business services, today announced the release of Salesforce Spring '07, its 22nd generation release. Spring '07 features AppSpace, a new product which enables companies to engage with customers using Salesforce and AppExchange applications inside a secure, branded online environment. AppSpace is scheduled to be made a part of Spring '07 in April. In addition, Spring '07 dramatically advances every component of salesforce.com's Circle of Success, including the Salesforce CRM applications and the Apex platform. www.salesforce.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. INSURANCE NEWSLINK Articles Recent articles added to INSURANCE NEWSLINK, the worldwide, strategic concise intelligence database of over 27,000 articles including interviews, uniquely analysed by company, market, research, regulatory, and IT topics. Please click here for a content overview and a 15-day free review. THE TIME EFFECTIVE WAY TO STAY AHEAD
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. The Government Accountability Office (GAO) released the following reports, testimony, and correspondence: 1. "Fiscal, Retirement, and Health Care Challenges" by David M. Walker, comptroller general of the United States, before the Securities Industry and Financial Markets Association's 2007 savings and retirement symposium, in Washington. GAO-07-544CG, March 1. [slides] [Reposted file clarifies certain information] http://www.gao.gov/cghome/d07544cg.pdf 2. "Fiscal and Health Care Challenges" by David M. Walker, comptroller general of the United States, before the Federation of American Hospitals' annual public policy conference, in Washington. GAO-07-577CG, March 5. [slides] [Reposted file clarifies certain information] http://www.gao.gov/cghome/d07577cg.pdf Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. BANK INSURANCE NEWS IN BRIEF - MARCH 19, 2007 TODAY'S BANK INSURANCE NEWS IN BRIEF" is provided each week courtesy of Michael White Associates @ www.bankinsurance.com. To read these stories, visit http://www.bankinsurance.com/editorial/news/default.htm.
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Hylant Financial Services Consolidates to Form Growing Division Within Hylant Group TOLEDO, Ohio, March 14 /PRNewswire/ -- In early January of 2007, Hylant Financial Services (HFS), led by President Paul Abendroth, consolidated its talented investment advisory staff of Hylant Group, Inc., into its own division. Since its inception in 2001, HFS has specialized in offering qualified plan and investment advisory services to mid-size businesses and not for profit institutions. In addition, HFS offers wealth management and financial planning expertise to individuals and corporate executives. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Michigan Chamber and Insurance Institute Comment on House Passage of No-Fault Related Bill; Urge Senators to Reject It LANSING, Mich., March 19 /PRNewswire-USNewswire/ -- The following statement was issued today by Wendy Block, Director of Health Policy and Human Resources for the Michigan Chamber of Commerce, and Peter Kuhnmuench, Executive Director of the Insurance Institute of Michigan, in response to recent passage of legislation in the State House to make it easier for personal injury attorneys to sue for non-economic damages under the state's no-fault automobile insurance system (HB 4301, Rep. Condino). Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. JPMorgan Global E-Tax System Expanded Latest Version Offers Daily Updates of Tax Relief Worldwide NEW YORK--(BUSINESS WIRE)--JPMorgan Worldwide Securities Services today announced an expansion of JPMorgan E-Tax, an Internet-based, patent-pending, tax service providing institutional investors with global tax intelligence, rates and breaking news. The latest version of JPMorgan E-Tax offers detailed tax profiles that are updated daily in more than 90 markets providing in-depth tax information including statutory exemptions, tax procedures and reclaim forms worldwide. The service is designed for global investors looking for breaking international tax news, updates on tax industry developments, trends, policies and treaties; reports on tax rates, exemptions, capital gains, and the latest tax forms necessary. “This new version of JPMorgan E-Tax is a tax portal giving institutional investors access to portfolio services for maximum tax relief worldwide,” said Larry Manning, head of JPMorgan Worldwide Securities Services’ Tax Services. “JPMorgan is the only custodian to offer an integrated Web-based global tax service and has the largest worldwide network of agents, who can turn around real-time and detailed intelligence.” JPMorgan E-Tax is designed for institutional investment professionals at investment banks, asset management firms, pension funds, banks and life insurance companies. www.jpmorgan.com/visit/etax Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Evolution Benefits Receives Patent for Advanced Auto-Substantiation Technologies that Power Benefits Cards for Flexible Spending Accounts (FSAs) and Health Reimbursement Accounts (HRAs) 2007 Prepaid Card Expo AVON, Conn.--(BUSINESS WIRE)--The U.S. Patent and Trademark Office has granted Evolution Benefits (EB) an important patent for its breakthrough technology used in the substantiation of health benefits debit card transactions. The company’s patent, U.S. Patent 7,174,302 titled “System and Method for Processing Flexible Spending Account Transactions,” refers to the system and method EB developed for real time substantiation of card transactions prior to authorizing payment. This patented process ensures that payment is made only for qualified items and eliminates the need to request documentation from the cardholder. The system is widely used by EB’s clients and permits 100 percent electronic substantiation of transactions like prescription drug claims. www.EvolutionBenefits.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. AIG Global Investment Group Closes the Acquisition of P&O’s U.S. Marine Terminal Operations from DP World NEW YORK--(BUSINESS WIRE)--AIG Global Investment Group (“AIGGIG”) announced that it has completed the purchase of 100% of the stock P&O Ports North America (“POPNA”) from P&O Holdings, Inc., a wholly-owned subsidiary of global marine terminal operator, DP World. Following the closing of the transaction, the company will operate as Ports America, Inc. This transaction was previously announced on December 11, 2006. Ports America, Inc.’s operations principally comprise marine terminal concessions in the ports of New York/New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans, coupled with stevedoring operations in 16 locations along the East and Gulf Coasts and a passenger terminal in New York City. 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. Survey Data Reveal Stunning Lack of Awareness of Retirement ``Saver's Credit'' Many Qualifiers May Be Missing Out On Important Tax Credit LOS ANGELES--(BUSINESS WIRE)--According to recent survey data, very few American adults are aware of an existing tax credit designed to help low- to middle-income Americans build their retirement nest eggs. The survey, commissioned by the Transamerica Center for Retirement Studies (“The Center”), found that only 9 percent of American adults who fall within the credit’s income eligibility requirements are familiar with it. With regard to the adults overall in the American public, only 16 percent are familiar with it. The survey results could raise concerns that many Americans who are already saving for retirement through a company-sponsored retirement plan such as a 401(k), or through an individual retirement account, may miss out on taking the Saver’s Credit simply because they don’t know about it. Particularly vulnerable are the 29 percent of survey respondents who meet the credit’s income limits and have either filed, or plan to file, their taxes using the Form 1040EZ. The Form 1040EZ does not provide for claiming the credit, which can only be claimed using the Form 1040, Form 1040A or Form 1040NR (along with the accompanying Form 8880). “While many qualifiers may be missing out on a significant tax credit, there are also many non-savers who might start saving for retirement with the help of an incentive like this. Unfortunately, they don’t know about it,” says Catherine Collinson, retirement and market trends expert for The Center. Adding to the confusion, the credit is most commonly known as the “Saver’s Credit,” but the IRS refers to it as the “Retirement Savings Contributions Credit” and the “Credit for Qualified Retirement Savings Contributions” in its forms and publications. www.TA-Retirement.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Alfa Corporation Estimates Recent Storm Losses MONTGOMERY, Ala.--(BUSINESS WIRE)--The Alfa Insurance Group and Alfa Corporation (NASDAQ:ALFA) today announced a preliminary estimate of losses in Alabama stemming from a series of storms that occurred in February and March. These storms produced tornadoes, wind, and hail, which caused damage to both automobiles and homes. Combined, these events generated claims that are estimated to be between $30 million to $40 million for the Alfa Group. The impact of these claims on Alfa Corporation’s first quarter earnings, after reinsurance and taxes, is estimated to be $0.11 per diluted share. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. MassMutual Launches New Advertising Campaign to Inspire Consumers to Take a Step Toward Meeting Life Insurance, Retirement Needs Campaign prompts consumers to bring financial needs to "front of the mind" SPRINGFIELD, Mass., March 19 /PRNewswire/ -- MassMutual Financial Group today announced the launch of an innovative new advertising campaign, "Front of the Mind," that helps consumers move beyond just thinking about their financial future and actually taking action to begin meeting their financial goals. "Most people fully understand the importance of preparing for the future, but many tend to run into barriers to actually doing something about their life insurance or retirement needs," said Trish Robinson, senior vice president, Strategic Communications and Community Responsibility, MassMutual. "MassMutual - through our highly-trained, knowledgeable financial professionals and dedicated employees - is committed to simplifying the process by removing those barriers and helping people take steps to a secure financial future. We feel this campaign inspires people to take that step in a fresh way that is completely different and helps us stand apart from the crowd." The campaign, created by Mullen of Wenham, Mass. and set to debut March 17, consists of four television commercials as well as a consumer and trade- oriented print and online campaign. The campaign demonstrates the company's understanding of the real, practical issues consumers face when it comes to life insurance and retirement, and positions MassMutual as the company that helps consumers take the steps that are right for them. Each ad encourages consumers to visit http://www.MassMutual.com/GetThere to help realize the difference between thinking about their life insurance or retirement needs and actually getting there. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Flagship Global Health Partners With ArmadaCare Executive Health to Offer Next Generation Executive Health Plan Plan combines tax-advantaged, medical reimbursement with high-end, specialist care for key executives NEW YORK, March 19 /PRNewswire-FirstCall/ -- Flagship Global Health, Inc. (OTC: FGHH), an international health assurance organization, has partnered with ArmadaCare Executive Health of Maryland, to offer a new executive health plan that gives corporations the opportunity to provide key employees with enhanced medical benefits. ArmadaCare combines Flagship's Specialist Care Direct(TM) product with its fully insured medical reimbursement program to cover key executives who want additional benefits such as preferred access to leading physician specialists, guidance for treatment options and full medical emergency and travel support. The plan also incorporates additional risk management features such as premier domestic and international air evacuation and high-end physicals to facilitate early detection. www.armadacare.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Country Hedging Introduces Grain Contract With Health Savings Account (HSA) Funding ST. PAUL, Minn., March 16 /PRNewswire/ -- Country Hedging Inc has launched a new grain contract, CHI Health Fund Plus(TM), which is a traditional grain marketing commitment at a maximum fixed strike price but with an untraditional benefit: It sets up and funds a health savings account (HSA) for the farmer customer. "HSAs can be an affordable health care coverage solution for independent businesses like a farm operation," said Kent Beadle, commodity analyst for Country Hedging who has been rolling out the new program to co-ops in Minnesota and the Dakotas. "Coupled with a high-deductible health insurance policy, the combination keeps premiums low, has tax advantages and protects producers and their families for catastrophic medical events." Under CHI Health Fund Plus, producers cover both their new crop marketing with an over-the-counter contract and their health care expenses with funding for an HSA. Each customer decides how much to contribute to the HSA (up to federal limits) in exchange for a grain sale commitment. The HSA funds are owned by the producer and unused account balances roll over from year to year. Accumulated funds grow tax-free, too. More information on CHI Health Fund Plus is available at http://www.countryhedging.com including a downloadable handout specifically on the most frequently asked questions about HSAs. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. White Mountains Re Group, Ltd. to Offer $400 Million of its Senior Notes Due 2017 HAMILTON, Bermuda, March 14 /PRNewswire-FirstCall/ -- White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that its wholly-owned subsidiary, White Mountains Re Group, Ltd. ("White Mountains Re"), has entered into an agreement to sell $400 million of 6.375% senior notes due 2017 (the "Notes") in an offering exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"). White Mountains Re intends to use the net proceeds from the offering of the Notes to pay a cash distribution to White Mountains. White Mountains intends to use the majority of this distribution to repay its outstanding borrowings under a credit facility, of which White Mountains Re is a co-borrower and co-guarantor. www.whitemountains.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Merrill Lynch gets Russia brokerage license Wed Mar 14, 2007 7:40am ET MOSCOW (Reuters) - U.S. Merrill Lynch (MER.N: ) has received a brokerage and dealing license in Russia, the country's market regulator said on Wednesday amidst a race among investment banks to capitalize on the Russian boom. The Russian Federal Financial Markets Service said in a brief statement that the license had been granted to Merrill Lynch Securities, the bank's Russian subsidiary. Merrill last year hired Sergei Aleksashenko, a former first deputy head of Russia's central bank, as a managing director in Moscow. Aleksashenko had also worked as deputy finance minister and deputy chief executive of major Russian industrial group Interros. Russia has become the darling of investment bankers, who are pulling in big fees for advising on a flood of initial public offerings, borrowings and takeovers by Russian companies. The bull market has been driven by an economic boom now into its eighth year on the back of high oil prices and soaring consumer demand. Many banks left Moscow in disgust after the August 1998 domestic debt default and rouble devaluation sent volatility through world markets, losing major banks billions of dollars. Citigroup (C.N: ), Goldman Sachs (GS.N: ), ING (ING.AS: ), Credit Suisse (CSGN.VX: ), Morgan Stanley (MWD.N: ) and Dresdner, a unit of Allianz (ALVG.DE: ), have all expanded their Moscow offices over recent years. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Encompass Insurance: How to Insure Your Good Name Tips to protect your identity from thieves and scammers NORTHBROOK, Ill.--(BUSINESS WIRE)--You work hard to make sure your credit rating is high. You pay your bills on time, pay down your debt and stay within your budget. Then one day your mail arrives with bills from credit card and utility companies. Someone has stolen your identity – and has built up debt in your name. This scenario is not unusual. In a Federal Trade Commission report, in fact, the State of Arizona ranked No. 1 in identity theft in 2006 nationally, with six Arizona metropolitan areas (with a population of 100,000 or more) ranking in the nation’s top 20 for consumer complaints. They are, in order: Flagstaff; Prescott; Sierra Vista-Douglas; Lake Havasu City- Kingman; Phoenix, Mesa, Scottsdale; and Tucson. The cost of recovering your identity can be staggering. But fortunately, this cost can be covered by insurance. www.encompassinsurance.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. John Hancock Patriot Closed-End Funds Seek Shareholder Approval of Reorganizations BOSTON, March 12 /PRNewswire-FirstCall/ -- As announced on December 6, 2006, the board of trustees of each of four Patriot closed-end funds sponsored by John Hancock Advisers, LLC approved their reorganization into a fifth John Hancock closed-end fund, the John Hancock Patriot Premium Dividend Fund II (NYSE:PDT) . Today, John Hancock Advisers announced the notice of shareholder meetings to seek approval of each reorganization and the mailing to shareholders of a prospectus/proxy statement relating to such reorganizations. www.jhfunds.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Travelers Calls Convertible Junior Subordinated Notes for Redemption SAINT PAUL, Minn.--(BUSINESS WIRE)--The Travelers Companies, Inc. (NYSE:TRV) has called for redemption all of its outstanding 4.50% Convertible Junior Subordinated Notes due 2032 (the “Notes”). The Notes [CUSIP 89420G307] trade on the New York Stock Exchange under the symbol “TPK”. The Notes were originally issued by Travelers Property Casualty Corp. The Travelers Companies, Inc. assumed certain obligations relating to the Notes pursuant to a Second Supplemental Indenture dated April 1, 2004. Each Note has a principal amount of $25.00. The redemption date will be April 18, 2007, and the redemption price for each Note will be $25.5625 plus $0.009375 of accrued and unpaid interest. The normal quarterly interest payment to be paid on April 16, 2007, will be paid to record holders of April 1, 2007, in the amount of $0.28125 per Note. www.travelers.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 31. Willis Group Holdings Limited Announces Accelerated Share Repurchase of $50 Million of Common Shares NEW YORK--(BUSINESS WIRE)--Willis Group Holdings Limited (NYSE: WSH), the global insurance broker, today announced that it has entered into an agreement to purchase approximately 1.25 million shares of its common stock from Keefe, Bruyette & Woods using an accelerated stock repurchase program for an initial purchase price of approximately $50 million. This repurchase is part of Willis’ previously announced stock repurchase program. “We believe that the best use of our capital is to continue to buy back our own stock,” said Joe Plumeri, Chairman and Chief Executive Officer of Willis. “Our strong financial performance, cash flow and balance sheet allow us the financial flexibility to continue to return value to our shareholders.” www.willis.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 32. AIG Financial Products Corp. Launches New Partnership with Tenaska Energy -Signals Move Into Physical Energy Arena- WILTON, Conn.--(BUSINESS WIRE)--AIG Financial Products Corp. (AIG-FP), a member company of American International Group, Inc. (AIG), today announced that it has signed an agreement to purchase a 50 percent partnership interest in Tenaska Energy’s (Tenaska) natural gas marketing companies Tenaska Marketing Ventures, Tenaska Marketing Canada, and Tenaska Gas Storage (collectively TMV). Financial terms of the transaction were not disclosed. The new joint venture will combine AIG-FP’s financial strength and financial structuring and risk management capabilities with the physical natural gas marketing expertise of TMV, which ranks among the top ten gas marketing companies in North America. AIG-FP and Tenaska will jointly guarantee the venture’s payment obligations. www.aigfp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 33. Delta Financial Announces Securitization Backed by $950 Million in Mortgage Loans WOODBURY, N.Y.--(BUSINESS WIRE)--Delta Financial Corporation (Amex: DFC) today announced it has securitized $950 million of mortgage loans through its subsidiary, Renaissance Mortgage Acceptance Corp. - the Renaissance Home Equity Loan Trust 2007-1. www.deltafinancial.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 34. XL Capital Ltd Announces Plans To Issue Preference Ordinary Shares HAMILTON, Bermuda, March 12 /PRNewswire-FirstCall/ -- XL Capital Ltd ("XL" or the "Company") (NYSE: XL) announced today that it currently intends to raise approximately $1.0 billion from an offering of Fixed/Floating Series E Perpetual Non-Cumulative Preference Ordinary Shares (the "Series E Preference Shares") pursuant to XL's currently effective shelf registration statement. The Series E Preference Shares offered will not be exchangeable for or convertible into ordinary shares of XL. XL intends to use the net proceeds from the sale of the Series E Preference Shares for the purchase of approximately $830 million of XL's Class A ordinary shares from time to time and for general corporate purposes, in particular, to refinance its indebtedness and other components of its capital structure. www.xlcapital.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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