Daily Quote: "Let us make hay while the sun shines." - - Miguel de Cervantes
U.S. annuity sales climb as population ages: LIMRA By Ed Leefeldt - NEW YORK, March 22 (Reuters) - Annuity sales in the United States hit a record $236.2 billion in 2006 as an aging population sought retirement products with guaranteed payments, an insurance research group said. The driver of annuity sales, which provide a stream of post-retirement income in return for a lump sum up front, was variable annuities, which also hit a record $160.6 billion, according to Limra International. Variable annuities are linked to the stock market, where the Standard & Poor's 500 index rose 11.6 percent last year. Variable annuities rose 17 percent, Limra said. "More people are going into retirement with fewer and smaller pensions," said Eric Sondergeld, director of retirement research at Limra. "Even as Baby Boomers enter their 60s, companies are cutting back on defined benefit plans, so they have to create their own." Employer pension plans have declined by about two-thirds in the last 20 years, according to Limra. Meanwhile the U.S. population of 50 and older is rising from 30 percent now to 44 percent by 2030. Sondergeld said new plans offering guarantees on the amount policyholders can withdraw for life, along with programs that insure their accounts will not go down even if the market falls, have been big sellers in the past year. By contrast, sales of fixed annuities, which are tied to the bond market, declined 5 percent in 2006 to $75.6 million, exceeding the 0.7 percent loss that bond funds took during the year. Limra, which works for more than 800 insurers and financial service organizations worldwide, said financial planners were the most successful in selling annuities, followed by stockbrokers. Banks were able to sell variable annuities but lost almost an equal amount of ground on fixed annuities. The biggest firms in annuities are also the biggest insurers: American International Group Inc. (AIG.N: ), the world's largest insurer and MetLife Inc. (MET.N: ), the largest U.S. life insurer. Hartford Financial Services Group Inc. (HIG.N: ) and Prudential Financial Inc. (PRU.N: ) both moved up in annuity sales to fourth and eighth position because of variable annuity sales. ((Reporting by Ed Leefeldt; edward.leefeldt@reuters.com; editing by Angus MacSwan; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net; +1 646 223 6315)) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 1. Survey Finds That Insurance Industry Has Not Made Adequate Improvements in Contract Processing to Avoid Another September 11 Claims Dispute Majority of Respondents Cite Better Access to Deal Documents as Chief Cause NEW YORK, March 21 /PRNewswire/ -- Q.Know Technologies Inc., a global provider of advanced information management software, announced today the findings of its Third Annual Survey conducted jointly with "Reactions/US Insurer" magazine. The information management survey was designed to identify how well business technology is keeping up with industry and regulatory demands and also to measure the impact on the daily life of the knowledge worker. Of the 145 insurance and reinsurance executives responding, 68 percent resoundingly confirmed that their company was under increased administrative and underwriting pressure to keep up with new regulatory demands, such as Sarbanes Oxley in the U.S. and the FSA's Contract Certainty requirements in the UK. Yet, 54 percent are only "somewhat certain" that their policy wording will "always be in place" by the time the coverage is incepted. Thirty-one percent (31%) reported being "completely confident", while the remaining 15 percent were "less than confident" to "not at all." These findings are particularly poignant given the fact that 64 percent of respondents reported that their companies had not improved contract processes enough to avoid another claims dispute like the September 11 scenario. Central to the 9/11 claims problem was that the fact that insurance on the World Trade Center towers was incepted before the contracts were finalized. When the attacks occurred shortly after, it was not clear which contract wording bound the insurers and reinsurers of the property. To date, the matter remains unresolved. "The insurance industry is not unlike most businesses and organizations that struggle to streamline processes in managing the overwhelming volume of electronic information," states Vineet Kalucha, president and chief executive officer, Q.Know Technologies, Inc. "The WTC claims dispute underscores the worst case scenario for what has now become a heavily regulated and discoverable contract and underwriting process with much improvement still required at insurance and reinsurance companies globally." Identifying what technology improvements/upgrades would provide the greatest relief to the daily life of the knowledge worker, the respondents reported the following: -- Better/faster access to deal documents (59%) -- Improved archival systems (43%) -- Larger server capabilities (17%) -- New e-mail platforms (13%) The central issue of information management is primarily focused on the organizing, retrieving, finding, tracking, responding to and managing important electronic business documents. When dealing with electronic information, this includes more than 250 file types, such as documents, spreadsheets, presentations, Web pages, e-mail, voice mail, photos, PDFs, instant messages, VoIP, etc. Business users spend a considerable amount of time managing this information during the work day. The survey respondents revealed the amount of time they spent managing their electronic information was from 10-25 percent of their day for 30 percent of respondents to as much as 76-100 percent of the day for nine percent of those surveyed. E-mail communications comprises a large part of how business is transacted today. Being able to maintain all electronic documents -- including e-mail -- in one central location, which is accessible across the organization, proved to be at the top of the wish list for respondents. Fifty-three percent (53%) report that being able to maintain e-mail alongside all other electronic deal documentation would be "extremely valuable", while 38 percent responded "somewhat valuable." Nine percent (9%) responded "not at all." "The survey results, as well as the frustration of business users, does not come a big surprise for Q.Know. This is the type of feedback we routinely get from prospects and new clients looking to better serve customers and meet compliance requirements," states Mr. Kalucha. "Having come from the industry, this is exactly why we created Q.Know's enterprise software to address these information management challenges in an easy-to-use platform on Microsoft Outlook." www.qknow.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Homeowners Insurance Line Three Times More Volatile Than Private Passenger Auto: Aon Re Study CHICAGO, March 21 /PRNewswire-FirstCall/ -- The Homeowners insurance line was the most volatile major insurance line in the 14-year period 1992-2005, due in large part to the active 2004 and 2005 Atlantic hurricane seasons. Homeowners was three times more volatile than the Private Passenger Auto line, according to an Aon Re Global study. The study shows that the Private Passenger Auto line experienced the lowest volatility during that period, followed by the Auto Physical Damage, Commercial Auto and Workers Compensation lines. Excluding catastrophe losses, the Homeowners line has a risk level comparable to the Commercial Auto line. Liability lines and Medical Malpractice also have significantly above average volatility. Aon Re's Insurance Risk Study quantifies the systemic risk for each line of business, representing the risk to a large portfolio from non-diversifiable risk sources such as: -- changes to market rate adequacy and underwriting terms and conditions; -- misestimating plan loss ratios; -- frequency and severity trends; -- weather-related losses; -- legal reforms and court decisions; -- level of economic activity and macroeconomic factors. For large books of non-cat-exposed business, systemic risk is the major component of underwriting volatility. The report examined volatility in nearly two dozen lines including Commercial Multi Peril, Other Liability (Occurrence and Claims Made), Fidelity and Surety, and Medical Malpractice. www.aon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. Hub International Amends Arrangement Agreement CHICAGO--(BUSINESS WIRE)--Hub International Limited (NYSE:HBG) (TSX:HBG) (“Hub”), one of the leading insurance brokers in North America, announced today that the Arrangement Agreement pursuant to which Hub will be acquired by funds advised by Apax Partners (“Apax”) together with Morgan Stanley Principal Investments (“MSPI”) has been amended to, among other things, increase the consideration to be received by Hub’s shareholders to US$41.50 in cash per common share from US$40.00. The increase in consideration followed receipt by Hub of competing proposals. In the event the amended Arrangement Agreement is terminated under specified circumstances, Hub will be obligated to pay a break-up fee of 3% of the equity value of the transaction (US$53 million). The amendments to the Arrangement Agreement have been unanimously approved by Hub’s board of directors (with interested directors abstaining) following the unanimous recommendation of a special committee comprised of disinterested directors, which was formed to, among other things, evaluate the terms of the transaction. www.morganstanley.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. RAA RELEASES 2006 FOURTH QUARTER REINSURANCE RESULTS WASHINGTON, D.C. According to a survey of reinsurers’ statutory underwriting results conducted by the Reinsurance Association of America (RAA), a group of 23 U. S. property casualty reinsurers wrote $25.8 billion of net premiums during the twelve months ended December 31, 2006. The reinsurers’ combined ratio was 94.9 percent, compared with the combined ratio of 129.4 percent reported by a similar group of reinsurers for the twelve months ended December 31, 2005. The ratio is attributable to a 67.1 percent loss ratio and a 27.8 percent expense ratio. The survey is available on the RAA website at http://www.reinsurance.org. An annual subscription to the RAA’s quarterly Reinsurance Underwriting Report is available from the RAA by calling 1-800-259-0199, or for more subscription information, contact Kaitlin Hocutt at Hocutt@reinsurance.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. ING looking at options amid consolidation By Reed Stevenson AMSTERDAM, March 22 (Reuters) - ING Groep (ING.AS: ) is looking at strategic options and wants to be involved in industry consolidation, it said after a Dutch newspaper reported on Thursday it was considering expanding in the Benelux region. The report in Dutch daily Financieele Dagblad comes as merger talks progress between British bank Barclays Plc (BARC.L: ) and ING's Dutch rival ABN AMRO (AAH.AS: ). "We don't feel pressure to take on large acquisitions," ING spokesman Peter Jong said, "but if there is consolidation, we will participate." Faced with the prospect of a bigger rival in a merged ABN and Barclays that is also part of a global bank, ING has hired Goldman Sachs and J.P. Morgan to help it find options to expand in Belgium, The Netherlands and Luxemburg, possibly through a merger with Fortis (FOR.BR: ), Dexia (DEXI.BR.: ) (DEXI.PA: ) or KBC Bank (KBKBt.BR: ), Financieele Dagblad said. ((Reuters Messaging: reed.stevenson.reuters.com@reuters.net; tel +31 20 504 5002; editing by Will Waterman)) ($1=.7515 Euro) ($1=.5109 Pound) (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 6. Fed Rate Action Commentary from Swiss Re Chief U.S. Economist NEW YORK, March 21 /PRNewswire/ -- After today's decision by the Federal Reserve to hold the target fed funds rate at 5.25%, Swiss Re's U.S. chief economist, Kurt Karl, commented, "The economic indicators continue to be mixed, but clearly inflation is not falling rapidly, so the Federal Reserve Board will need to hold interest rates constant at 5.25% for a few more months. Economic activity is below trend, which is helping ease inflationary pressures, but there has not been sufficient actual decline in inflation for the Fed to cut rates. By mid-year, core CPI inflation is expected to be close to 2.0%, allowing the Fed to ease in August." "There are still two scenarios for the U.S. -- a soft landing (our baseline forecast) and a mild recession. The latest report on real GDP growth in the U.S., at 2.2% for 2006Q4 -- revised down from 3.5%, showed continued signs of weakness. This was the third quarter in a row of below-trend growth. The economic indicators for January and February remain mixed. The most serious indication of a potential recession was from the advanced durable goods report which revealed a sharp drop in durable goods orders. If businesses cease to invest and hire, a recession is likely. Currently, the risk of recession this year is estimated to be 35%. Weaker orders, a more deeply inverted yield curve, and the plunge in the stock market in late February are contributing to this elevated risk of recession. The data over the next few months should provide a clearer estimate of the probability of a recession," Karl said. "Growth remains solid outside of the U.S., which tends to reduce the risk of U.S. recession, given the low value of the U.S. dollar. Some tightening is expected overseas, however, which will slow growth modestly. Our current forecast assumes the European Central Bank and the Bank of England raise rates a final time to 4.0% and 5.5%, respectively. The Bank of Japan will raise its policy rate to 0.75% by end-2007, perhaps higher, while China will tighten monetary policy modestly with a renminbi appreciation of 3 to 4% and other financial measures. The Bank of Canada is likely to follow the example of the Fed and cut rates modestly. Long-term government bond interest rates in the Euro area, as in the U.S., are projected to increase modestly in response to ECB tightening, remain in a trading range near current levels in the UK, and rise in Japan as the BoJ raises rates," added Karl. www.swissre.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. CAHI Releases 'Understanding the Uninsured' Publication Examines the Uninsured, Offers Solutions ALEXANDRIA, Va., March 21 /PRNewswire-USNewswire/ -- Today, the Council for Affordable Health Insurance (CAHI) released "Understanding the Uninsured: And What to Do About Them." The publication looks at who are the uninsured and why do they lack coverage. The answers will be a surprise to many. "Policymakers often talk as if the uninsured are one homogenous group," said CAHI Director Dr. Merrill Matthews. "They aren't. Some of the uninsured have a medical condition and can't get coverage. Others have low incomes and can't afford it. And yet others may be young and healthy and don't want to spend the money. A one-size-fits-all solution for a diverse population almost never works." "Understanding the Uninsured": -- Outlines the various segments that make up the uninsured population; -- Considers some of the actions states have taken that actually make the problems worse; and, -- Identifies several targeted solutions that will actually solve much of the problem. Concluded Dr. Matthews, "Our recommendations may not earn legislators the title of 'visionary thinker,' but they will get people covered without breaking the bank." A copy of "Understanding the Uninsured: And What to Do About Them" is available on CAHI's website, http://www.cahi.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. Working America's Health Care Hustle Points Public Anger at Who Is Behind the Broken System AFL-CIO Affiliate Offers Consumers a Prescription for Change WASHINGTON, March 21 /PRNewswire-USNewswire/ -- The AFL-CIO's Working America launched an effort today to unmask the real players behind our nation's broken health care system and to bring healthcare consumers together as a powerful force for change. "People in this country are distraught over the broken health care system and can't understand why it only gets worse year after year," said Karen Nussbaum, Working America's director. "We're getting hustled by powerful interests who don't want to pay their fair share for real reform." Visitors to the Health Care Hustle site at http://www.workingamerica.org/healthcarehustle/ can vent online about their own health care horror stories. Then they can send a message to the special interest they hold most responsible for the sorry state of the system: Big Pharma, the Insurance Industry, Greedy Corporations or Bush & Co. Each letter sent will count as a vote for which hustler has done the most to block meaningful healthcare reform. Working America will tally the votes and the winner will be the target of a campaign that puts the full force of 10 million working men and women behind a call for certain companies to change their ways. The Health Care Hustle will run through April. With more than 1.5 million members, Working America is the community affiliate of the AFL-CIO for workers who do not have a union. It was launched in 2003. Source: AFL-CIO - CONTACT: Caren Benjamin of the AFL-CIO, +1-202-637-5018 - Web site: http://www.aflcio.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Big “I” Praises Nelson, Martinez For Introducing Natural Disaster Insurance Bills Big “I” supports jumpstarting dialogue with bill introductions WASHINGTON, D.C., March 20, 2007—The Independent Insurance Agents & Brokers of America (the Big “I”) applauds Senators Bill Nelson (D-FL) and Mel Martinez (R-FL) for today’s introduction of six different pieces of legislation aimed at comprehensively addressing hurricane and other natural disaster insurance issues across the nation. Senator Nelson and Martinez each took the lead in sponsoring three bills and serving as the lead cosponsor of the other three. Senator Nelson’s bills include: Catastrophe Savings Accounts Act—The measure creates tax-exempt catastrophe savings accounts (CSAs) for consumers and allows for tax-free distributions from CSAs to pay expenses resulting from a presidentially declared major disaster. Policyholder Disaster Protection Act—The measure allows insurance companies to make tax deductible contributions to a tax-exempt policyholder disaster protection fund specifically for the payment of policyholders' claims arising from certain catastrophic events, such as windstorms, earthquakes, fires, or floods. Homeowners Protection Act—The measure creates a federal backstop for state natural catastrophe insurance programs to help the United States better prepare for and protect its citizens against the risks of natural catastrophes. Senator Martinez’s bills include: The Nonadmitted and Reinsurance Reform Act--The measure is aimed specifically at streamlining and reducing barriers in state regulation of nonadmitted insurance and reinsurance. It will create a uniform system, while preserving the role of the state regulator. The Hurricane and Tornado Mitigation Investment Act—The measure provides a tax credit, equal to 25 percent, of mitigation expenditures. This preventative measure will lessen the impact disasters have on lives and property. The National Hurricane Research Initiative--This is a ten-year, $4.35 billion dollar initiative to build a foundation for better, more targeted and more coordinated research designed to better research, predict and prepare for hurricanes. “We are very pleased that Senators Nelson and Martinez have worked together on the introduction of a package of natural disaster insurance bills,” says Charles E. Symington Jr., Big “I” senior vice president for government affairs and federal relations. “Natural disasters are a national problem that requires a national solution, and we fully support Congress considering each of these bills and developing a comprehensive solution to the natural disaster insurance crisis." www.independentagent.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. The Tao Of Warren Buffett, The Tao Of Warren Buffett, the book portfolio manager timothy vick says, “is destined to be the business world’s little red book... Practical, lasting strategies we can use to improve our financial performance.” Mary Buffett and David Clark bring readers a collection of pithy and inspiring sayings that reveal the secrets of Warren Buffett’s success: From Rule Number 1 -- “Rule Number 1: Never Lose Money. Rule Number. 2 Never Forget rule No. 1” to Rule No. 125 -- “Of the Billionaires I have known, money just brings out the basic traits in them. If they were jerks before they had money, they are simply jerks with a billion dollars” The Tao of Warren Buffett contains dictums on business, investing, mentors, the workplace, education, discipline, greed, advisors, and much more. The authors provide short explanations for each quote and use examples from Warren Buffett’s own business transactions whenever possible to illustrate his words at work. Mary Buffett is an author and lecturer on investing and was married to Warren’s son Peter for twelve years. She and David Clark – a longtime friend of the Buffett family who is a portfolio manager, attorney, and lecturer – are the bestselling authors of the internationally acclaimed investment books Buffettology, The New Buffettology, and The Buffettology Workbook. Available wherever books are sold …Amazon link Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 11. New York to sue Education Finance Partners Thu Mar 22, 2007 3:22PM EDT By Joseph A. Giannone NEW YORK (Reuters) - New York Attorney General Andrew Cuomo said on Thursday it intends to file a lawsuit against student lender Education Finance Partners, the first legal action arising from the state's probe into the college loan industry. Cuomo's notice of intent to sue alleges that closely held EFP offered to pay kickbacks to colleges and universities in exchange for those schools steering students to apply for EFP loans. In addition, these financial arrangements were not properly disclosed to students, the notice said. Officials at EFP were not immediately available for comment. EFP, the notice said, required schools to promote EFP to its students as a "preferred" loan provider. In return, EFP would pay back a percentage of the net value of the loans referred by each school. Cuomo's notice said EFP has five days to show why New York should not proceed with a formal lawsuit. "EFP aggressively offered schools cash kickbacks in exchange for business," Cuomo said. "This lawsuit is just the beginning of an investigation that will show that lenders put market share above fair play." Cuomo last month expanded an investigation launched last year by former AG Eliot Spitzer to see whether lenders were using perks and payments to curry favor with colleges and universities. About 90 percent of students choose the preferred lenders listed by their schools, Cuomo's office said. Last week, Cuomo told reporters his investigation had discovered widespread examples of kickbacks and perks paid to schools of financial aid officials. The investigation, which has reached out to 100 schools and at least six lenders, found EFP had revenue sharing agreements with more than 60 schools across the United States, including Boston University, Duquesne University of Pittsburgh and Drexel University of Philadelphia. Cuomo's legal action alleged that the relationship and financial arrangements between EFP and the schools constituted unlawful and deceptive business practices. EFP's agreement with Duquesne University of Pittsburgh, for example, gave the school 0.6 percent of the net value of referred loans. Its agreement with Boston University offered payments of up to 0.75 percent over certain thresholds, while Drexel in Philadelphia received over $100,000 in kickbacks from EFP in one year. A spokesman for Boston University said its general counsel's office is providing information as requested. Drexel and Duquesne were not immediately available for comment. (Additional reporting by Dan Wilchins) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Merrill Lynch tired of research rip-offs NEW YORK, March 22 (Reuters) - Merrill Lynch & Co. (MER.N: ) is fed up with the rip-off of its research reports. The world's largest brokerage told clients in a note on Thursday it is taking aggressive steps to curb distribution of its research, including restricting and delaying media access and establishing licensing agreements. U.S. brokerage research has already come under pressure as a profit center in recent years after regulators pushed for further separation between analysts and investment bankers. In the note, Merrill Lynch's global research chief, Candace Browning, complained that research opinions provided by the brokerage for its clients can appear verbatim in other outlets within 60 seconds. Not long ago, Browning said a contrarian upgrade of a major U.S. company's stock by the brokerage was being replicated "with plagiaristic precision by a New Jersey-based digital financial news source." "This is a Web site that purports to provide its paying customers with research it compares to 'having a seat at Wall Street's best houses and learning what they know when they know it,'" Browning said in the note. "But that day I realized that, much like the music and film industries before us, Merrill Lynch Research is in the throes of being Napsterized," she said. Browning didn't name the Web site. But Theflyonthewall.com, which makes the claim that she cited in her note, was sued by Merrill Lynch and two other Wall Street companies last year. Officials at the Web site could not immediately be reached for comment. Last year, Lehman Brothers (LEH.N: ), Morgan Stanley (MS.N: ) and Merrill Lynch accused Theflyonthewall.com Inc. of copyright infringement in a lawsuit filed in Manhattan federal court. The companies complained their research was being pirated by the Web site, which generates revenue from subscription fees. The Web site filed a counterclaim and denied the allegations. Lawyers for the Web site said the company expends substantial resources to gather market-moving financial news and information. It said it gets its information from publicly available sources and through contacts with Wall Street trading desks, money managers and brokers. Theflyonthewall accused the companies of interfering with its business since at least June 2005, court papers show. The Web site also blamed the three companies for the loss of subscription renewals with several outlets. Morgan Stanley has blocked the Web site's
Internet and email address, Theflyonthewall said in its counterclaim.
Last week, U.S. District Judge George B. Daniels dismissed
Theflyonthewall's counterclaims. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. LTC Global Solutions Acquires Senior Wealth Insurance Services MEDFORD, Ore.--(BUSINESS WIRE)--LTC Global Solutions, Inc. (LTCGS) today announced the successful acquisition of Senior Wealth Care Insurance Services of The Woodlands, Texas, as of March 9, 2007. The addition of Senior Wealth Care to the LTCGS suite of companies will enable LTCGS to add the distribution of fixed and equity-indexed annuities to its existing customer base of nearly 100,000 long-term care insurance clients. LTCGS operations are headquartered in Medford, Oregon, and Ft. Myers, FL. The company maintains a national presence in the marketing of long-term care insurance products and other insurance-related products through its subsidiaries ACSIA Long Term Care, Inc. and Senior Global Solutions, LLC. Senior Wealth Care represents the latest acquisition by LTCGS as it makes progress toward becoming the nation’s pre-eminent distributor of senior market products. www.ltcglobalsolutions.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Chubb Board Approves Increase to Share Repurchase Program WARREN, N.J., March 21 /PRNewswire-FirstCall/ -- The Board of Directors of The Chubb Corporation today approved an increase of 20 million shares to the existing share repurchase program. The existing program approved by the Board on December 7, 2006 provided for the purchase of up to 20 million shares, of which 9,308,361 shares remain available for repurchase. Purchases will be made from time to time in the open market or in privately negotiated transactions. The program has no expiration date. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. The Hanover Insurance Group Launches Connections(TM) Home - Product Offers More Choice, Competitive Pricing, Ease-of-Doing Business - - Rounds out The Hanover's Total Account Solution for Personal Lines - WORCESTER, Mass., March 22 /PRNewswire-FirstCall/ -- The Hanover Insurance Group, Inc. (NYSE: THG), a leading super regional property and casualty company, today announced the launch of Connections(TM) Home, a new homeowners insurance product. Connections Home makes it easier for agents to sell and retain more business by providing a total account solution, competitive coverage packages, enhanced premium choices, an expanded appetite and reliable, more convenient service. www.hanover.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Assurant Provides Additional Financial Information on Solutions Business NEW YORK, March 21 /PRNewswire-FirstCall/ -- Assurant, Inc. ("Assurant") (NYSE: AIZ), a premier provider of specialty insurance and insurance-related products and services, announced today that it is providing additional supplementary financial information relating to Assurant Solutions to help provide a broader understanding of the business. Assurant has enhanced the top line disclosure for Assurant Solutions expanding it from selected products to a complete reconciliation of gross written premiums, net earned premiums and fee income for all product lines and subtotals for domestic and international revenues. Assurant has also restated gross written premiums for service contracts to include all service contracts, including consumer electronics, autos and recreational vehicles. Also included are domestic and international combined ratios for all Assurant Solutions products, excluding preneed. Preneed portfolio yield and average invested assets are also provided. The company is filing a Form 8-K with the Securities and Exchange Commission that provides this information. Access is available through Assurant's Web site at http://www.assurant.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Minnesota Life Group Insurance Teams With Ceridian to Offer Wellness and Life Benefits Package ST. PAUL, Minn., March 21 /PRNewswire/ -- Large employers can reduce health insurance costs and provide employees personalized services to build healthier lives with a new health and wellness program offered by Ceridian through Minnesota Life group life insurance plans. "Packaging a wellness program with our group life insurance addresses a number of issues employers face," said Robert M. Olafson, senior vice president, Minnesota Life Group Insurance, a Securian Financial Group affiliate. "Wellness programs help drive down medical expenses and boost employee productivity. Along with Minnesota Life's group life products, this value-added service sends the message to employees that management truly cares about them and their families and is giving them the tools to take responsibility for their own health." www.lifebenefits.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. 3i Infotech Provides Self Service Portal for Beta Health Association’s User groups/stakeholders - Employers, Members, Brokers & Providers Beta Health Association, Inc. capitalizes on 3i Infotech’s technology expertise to empower user groups with e-enablement EDISON, N.J. March 20, 2007 -- 3i Infotech, a global provider of IT solutions and services, announced today that Beta Health Association, Inc. has selected PREMIA™ Collaborator to provide its various user groups with a powerful online portal. Delivering access to vital information on demand, Beta Health’s employers, employees, brokers and providers would have advanced self service functionality at their fingertips. www.3i-infotech.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. HealthFirst Selects Online Planning, Reporting and Analysis Solutions from Benefit Informatics Clients Now Have Access to Benefit Analyzer, Benefit Planner Resources TULSA, Okla. – In an environment with constantly increasing benefit costs, the number of employers choosing to self-fund their employee health benefit plans has risen to more than 55% nationwide. Third party administrators who serve the self-funded market are increasingly seeking proven solutions to help employer groups control costs and develop the most effective benefit plans. HealthFirst Third Party Administrators, a Tyler, TX-based administrator of self-insured benefit plans, has moved to differentiate itself from the competition by implementing Benefit Analyzer® and Benefit Planner® online benefit administration solutions from Benefit Informatics. These technology resources enhance HealthFirst’s comprehensive services and provide cutting-edge analytics, reporting and plan modeling capabilities for both HealthFirst staff and employer group clients. Through use of this technology, HealthFirst will help clients better understand, predict and lower employee benefit costs by monitoring and acting upon daily claim information. www.hftpa.com www.benefitinformatics.com 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. M Financial Group Welcomes VisionLink Corporate Insurance Services, LLC to Network of Member Firms PORTLAND, OR, MARCH 21, 2007 - M Financial Group ("M Financial") today announced that VisionLink Corporate Insurance Services, LLC ("VCIS") has become a Provisional Member Firm. Based in Irvine, California, VCIS is a specialized professional services firm that, together with its companion firms, the VisionLink Advisory Group, Inc. and VisionLink Financial Advisors, Inc., helps companies envision, create, and sustain compensation strategies focused on the key performance factors related to those organizations' goals for growth. VisionLink has been developing innovative solutions for clients since 1995. Its formation grew out of its Principals' desires to better help their clients build unified financial visions for growing their businesses. VCIS was organized as one of the VisionLink companies to provide an effective means for fulfilling the funding requirements many compensation and benefits strategies demand. To learn more about VisionLink, please visit www.vladvisors.com. www.mfin.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Leading Global Experts to Explore, Address Latest Developments in Enterprise Risk Management at March 28-30 Symposium in Chicago CHICAGO, IL – Risk management professionals have the opportunity to learn firsthand from a distinguished group of experts representing the insurance, financial, consulting, and academic communities about the latest developments in enterprise risk management (ERM) at the world’s largest symposium on ERM, March 28-30 in Chicago, Illinois. The focus of the event is on providing practical knowledge, tools, and techniques to help risk managers enhance or establish a value-creating ERM program. The symposium will explore and address risk issues common to various disciplines, and targets all risk management professionals, including chief financial officers, chief actuaries, risk managers, investment professionals, asset liability management practitioners, and actuaries interested in or practicing in risk management roles. An estimated 500 risk management professionals will be able to choose from over 20 sessions that focus on risk management strategies, modeling, risk metrics, and capital management for consumer products corporations, banks, asset management firms, insurance companies, pension systems, health care, and energy firms. In addition, in response to the need for “executive level” education about the costs and benefits of ERM, the Symposium will also feature an “ERM Essentials for Decision Makers” workshop on March 28. This program has been designed for CFOs, CEOs, and others who oversee the ERM function. The ERM Symposium is sponsored by the Casualty Actuarial Society, the Professional Risk Managers’ International Association, and the Society of Actuaries, in collaboration with the Canadian Institute of Actuaries and the Bowles Symposium Series of Georgia State University. Members of the press are welcome to attend the Symposium and are asked to register with Mike Boa, CAS director of communications and research, at 703-276-3100 in advance of the meeting. For more information, visit www.ermsymposium.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. Beacon’s Fixed Annuity Premium Study Reports Fourth Quarter’s Fixed Annuity Sales Evanston, IL, March 1, 2007—U.S. sales of fixed annuities fell to an estimated $16.5 billion in fourth quarter, 2006, a decrease of 15.7% from the previous quarter and 1.1% from fourth quarter, 2005. On a calendar year basis, estimated sales of $70.9 billion were 3.3% below 2005, according to new data from the Beacon Research Fixed Annuity Premium Study based on sales of 48 insurance companies. By product type, estimated annual sales in 2006 were: book value - $30.2 billion, indexed - $25 billion, market value-adjusted (MVA) - $9.6 billion, and immediate - $6.1 billion. These estimates reflect declines in all product types except MVA annuities, which grew 71.3%. However, estimated sales of these products decreased 21.7% from the prior quarter. Beacon Research is an independent research organization founded in 1997. It compiles market intelligence on fixed annuity products for subscribers to its web-based systems at www.annuitynexus.com. www.beaconresearch.net Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. CPCU Society Regional National Leadership Institute Course Coming To Fort Worth MALVERN, PA, MARCH 22, 2007—On May 9, the CPCU Society and the Society’s Fort Worth Chapter will be hosting a CPCU Society National Leadership Institute (NLI) course: Leadership and Ethics—The Power to Succeed. This course has been approved for four continuing education credits in Texas. 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. www.cpcusociety.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Colorado Lawmakers Vote Friday on Legislation That Would Raise Car Insurance Rates Hundreds of Dollars Per Car, Per Year Denver, Colorado (March 21, 2007) – SB-193 adds up to big bucks coming out of the pockets of Colorado drivers who will be forced to pay for mandated coverage that more than 70 percent of insurance consumers now choose to reject. The Senate Appropriations Committee is scheduled to vote on SB-193 Friday morning. The bill would roll $50,000 of extra medical coverage on every driver’s car insurance. This government mandate translates into a rate hike for most consumers of an extra $200 per car, per year. For some that adds up to as much as a 40 percent increase. For most people this extra coverage duplicates their health insurance—for seniors and military personnel it requires them to buy insurance that is available to them for free through the federal government. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. CE-credit class on business writing Apr. 26 in Springfield, NJ Insurance producers can enhance their business writing skills while earning three continuing education credits at a special course, “Business writing for insurance professionals,” on Thursday, April 26, 8:30 a.m. to noon at 66 Morris Ave. in Springfield, N.J. The course is open to all producers, with credits awarded to those with life/health and property/casualty designations in New Jersey or New York. Jack Appleman, corporate writing instructor and seasoned insurance communication professional, will teach the class. www.sgwriting.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. $10k MDRT Grant to Benefit FSP’s Financial Education Partners Newtown Square, PA—The Foundation for Financial Service Professionals has received a $10,000 grant from the Million Dollar Round Table (MDRT) Foundation. The grant will be used to support the Financial Education Partners (FEP) program, which provides pro bono financial counseling and education to people in need. Anthony J. Domino, ChFC, MSFS, of White Plains, NY, secured the MDRT Foundation grant on behalf of the Foundation for Financial Service Professionals. Domino is president of Associated Benefit Consultants, a field representative with The Guardian Life Insurance Company of America in White Plains, NY and a registered representative for Park Avenue Securities. He is co-author of the highly regarded book “The 401(k) Advisor,” as well as a past president of the Society of Financial Service Professionals (FSP). Domino, a 19-year MDRT member, nominated and endorsed the grant application. www.FinancialProFoundation.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. New Research Finds Patients Do Live Longer Under Hospice Care Hospice Patients Lived an Average 29 Days Longer Reports NHPCO ALEXANDRIA, Va., March 21 /PRNewswire-USNewswire/ -- A new study published in the March 2007 issue of the Journal of Pain and Symptom Management reports that hospice care may prolong the lives of some terminally ill patients. Among the patient populations studied, the mean survival was 29 days longer for hospice patients than for non-hospice patients. In other words, patients who chose hospice care lived an average of one month longer than similar patients who did not choose hospice care. Sponsored by the National Hospice and Palliative Care Organization, the study was conducted by NHPCO researchers in collaboration with the highly regarded consulting and actuarial firm, Milliman, Inc. www.nhpco.org www.caringinfo.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Venture-Backed Company Growth Surpasses Counterparts Across All Industry Sectors, Economic Impact Study Shows Companies that Received Venture Financing Represent 17 Percent of U.S. GDP and Growing State Economies Coast to Coast Benefit from Venture Investing WASHINGTON, March 21 /PRNewswire/ -- U.S. companies that received venture capital from 1970-2005 accounted for 10 million jobs and $2.1 trillion in revenues in 2005, according to a study conducted by Global Insight and issued today by the National Venture Capital Association (NVCA). This represents 9 percent of the total private sector work force and 16.6 percent of total U.S. GDP. Venture-backed companies also outperformed their non-ventured counterparts between 2003 and 2005 with a 4.1 percent compound annual growth rate in jobs and an 11.3 percent compound annual growth rate in sales versus total private sector growth rates of 1.3 percent and 8.5 percent respectively. The study further revealed that venture-backed companies comprise significant percentages of the jobs and revenues in the technology and retail sectors. "Since we first measured venture capital's impact on the U.S. economy in 2000, we have seen that venture-backed companies consistently outperform their non-ventured counterparts for job creation and revenue generation across all industries," said Mark Lauritano, managing director of Global Insight's Lending & Payments Practice. "We took three different measurements at three different points in the business cycle with unwavering results. The economic contribution that venture-backed companies make is sustainable and growing." Some of the nation's best known venture-backed companies include FedEx, Intel, Cisco, Starbucks, Genentech, Google, eBay, Apple and Home Depot. For a full copy of the study, state figures, and additional data charts and tables, please contact Emily Mendell at emendell@nvca.org or visit www.nvca.org or go to www.globalinsight.com/venturecapital. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 30. Aon Aviation Expert Says A380 Tour Reminds of 1969 The 747 was the first to turn heads CHICAGO, March 20 /PRNewswire-FirstCall/ -- Aviation history is repeating itself with the Airbus A380's U.S. tour, according to an Aon Aviation expert. Aon Aviation President Wayne Wignes says the marketplace changes posed by Airbus' new jumbo jet are almost identical to those presented in 1969 when Boeing rolled out its 747. "People forget there were other jumbo jets then, too," he said. "The L-1011 and DC-10 were also coming on the scene at the same time. But neither presented the challenge the 747 did for the industry in 1969. Nearly 40 years later, the same can be said of the A380. It's a revolution for the aviation industry." Wignes says the A380 presents significant new liability exposures for all of Airbus' service providers. "If action or inaction by a service provider is ever found to be the direct or indirect cause of an incident with the A380, the liability would be immense," Wignes said. "Underwriters would be aware of that and it would be reflected in insurance pricing." The nation's airports may also not be enthusiastic about the new aircraft, he says. "Most airports don't have the gate space for a plane with a wingspan the length of a football field," he says. "Even those airports that can accommodate the aircraft would have to expand their jetway facilities to deal with an influx of A380s. Airports all over the world would be looking at a significant capital expenditure if and when the A380 enters the market." Wignes says there's another parallel with 1969. "Back then most observers felt the 747 was a 'bet-the-company' decision for Boeing. Many experts are saying the same thing now about Airbus." www.aon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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