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ReContracts:
The Art of Designing Reinsurance Contracts and Programs
The Reinsurance Association of America’s ReContracts: The Art of Designing Reinsurance Contracts and Programs is a four-day educational seminar designed for professionals who want comprehensive and in-depth treatment of reinsurance contracts. You won’t want to miss this year’s program, to be held June 12-15 at the Radisson Hotel in Chicago. Learn from a highly experienced faculty of reinsurance professionals — experts from the market leaders: Who should attend? This is a excellent skill building opportunity for buyers and sellers of reinsurance, brokers, lawyers, accountants and regulators. Why should I attend? Gain insight to better navigate the reinsurance market; connect with industry peers at multiple networking opportunities. RAA’s educational forums are an outstanding opportunity for improving skills for executives dealing in reinsurance and insurance.
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1. Florida storm losses may run $3.5 bln a year Fri May 18, 2007 2:56PM EDT By Suzy Valentine FORT LAUDERDALE, Fla., May 18 (Reuters) - Florida may face an average of nearly $3.5 billion a year in hurricane damages over the next three decades, an insurance industry official said on Friday. Damages in Florida were expected to total $104 billion over the next 30 years, according to the Florida Insurance Council's executive vice president, Sam Miller, who was speaking less than two weeks before 2007's Atlantic hurricane season gets under way. Florida was hit by eight big storms in 2004 and 2005 that caused an estimated $36 billion in insured losses. Many private insurers quit the state after the storms or cut back sharply. "The private insurance is here," Miller told attendees at the 2007 Governor's Hurricane Conference, "but we still need a lot of help from Citizens." Citizens, Florida's state-run insurer of last resort that is now the largest property insurer in Florida, has about $9 billion in reserves to pay claims immediately, with 45 adjusting firms and 6,000 adjusters on standby, Miller said. The U.S. National Hurricane Center has warned that a busy Atlantic hurricane season is likely this year. But all the leading forecasters erroneously predicted a busy season in 2006 as well. The six-month season starts on June 1. "Hurricane-free 2006 enabled private insurers and Citizens to begin rebuilding their cash reserves," said Miller. "They had an opportunity to rest and retrain adjusters and develop computer and internet enhancements to claim processing." If Florida suffers a direct hit this year -- and the southeast of the state was the most vulnerable during the 20th century -- as many as 1.3 million people will turn to Citizens for claims, according to Miller. Miller said consumers will ultimately bear the brunt of any damage caused by increased intensity during what meteorologists describe as a multidecadal cycle. This is the phenomenon in which 30 or 40 years of heavy hurricane activity follows an equivalent period of milder weather. "Rates are down a little," he said, "but at a cost later." Meanwhile, Miller said, the state was doing what it could to encourage residents to take responsibility for minimizing their risk. Among other measures, the state legislature has directed that homes that are insured at $750,000 and above in windborne debris regions must have shutters or some other opening protections in place by Jan. 1, 2009. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. Daimler bears $1 bln Chrysler pension risk Mon May 21, 2007 6:18am ET FRANKFURT (Reuters) - DaimlerChrysler (DCXGn.DE: ) has assumed a $1 billion risk from Chrysler should its pension plans be terminated before an agreement with U.S. agency Pension Benefit Guaranty Corporation (PBGC) expires in five years. A spokesman for Daimler said on Monday that it had shouldered the risk as part of a deal to sell its loss-making U.S. unit Chrysler to buyout firm Cerberus (CBS.UL: ), confirming a statement from the PBGC late last week. "We have said that with the closing of the transaction, the topic of pension obligations is settled. If there is something coming, then we know what is coming," he said, adding that the agreement was based on PBGC's model, which calculates risks in the event that the pension plan were terminated immediately. "We take provisions for the hypothetical case it would be terminated," the Daimler spokesman continued. A federal corporation created under the Employee Retirement Income Security Act of 1974, the PBGC monitors corporate transactions that might jeopardize the financial security of U.S. defined-benefit pension plans and arranges protection for the plans and the pension insurance programme. "Both Daimler and Cerberus have made significant financial commitments to strengthen Chrysler pensions. Daimler has agreed to provide a guarantee of $1 billion to be paid into the Chrysler plans if the plans terminate within five years," PBGC interim director Vince Snowbarger said in a recent statement. He also said that under its new ownership, Chrysler would make $200 million in pension contributions over the next five years above and beyond the legally required minimum. "I commend both Daimler and Cerberus on their willingness to work with the PBGC to protect the retirement security of Chrysler workers and retirees," Snowbarger added. PBGC receives no funds from general tax revenue but is financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns. Daimler had not mentioned the pension agreement when it announced the sale, but Merck Finck analyst Robert Heberger played down its significance. Referring to a comment by Chief Executive Dieter Zetsche regarding risks for Daimler if Chrysler went bankrupt, the analyst wrote: "This is more than 'basically none', but we consider $1 billion a very moderate risk," the analyst wrote. © Reuters 2007. All Rights Reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. A.M. Best Special Report: U.S. Hurricane Catastrophe Review — One Blow Away From $10 Gas OLDWICK, N.J.--(BUSINESS WIRE)--A well-aimed hurricane in the Gulf of Mexico could couple staggering insured catastrophe losses with severe economic disruptions as the storm tears through the dense, onshore and offshore infrastructure of the region’s all-important petroleum industry. Hurricanes Katrina and Rita gave a taste of the possibilities in 2005. Now, forecasts for the upcoming season suggest the quiet passage of 2006 may have been a greater aberration than was the mayhem of 2005, given current, long-term atmospheric trends. The impact of a possible mega-catastrophe in the Houston area would include financial stress for certain property/casualty insurers, particularly those companies with a Vulnerable Best’s Rating (B and below) and some insurers without a Best’s Rating, according to a new special report from A.M. Best Co. Also, disruption to the energy markets and prices could roil the financial markets and dampen the economy, with mixed implications for the broad insurance industry. The 2007 annual hurricane catastrophe review looks at the potential impact of a mega-hurricane hitting the Galveston/Houston area. Beyond the scope of potential human and property losses are significant risks to the U.S. and global economy and financial markets from damage to U.S. energy facilities. Leading catastrophe modelers—AIR Worldwide Corp., EQECAT Inc. and Risk Management Solutions Inc.—provided A.M. Best with simulated insured losses or background material on how a potential hurricane could affect the Gulf and surrounding energy infrastructure. The two Category 5 hurricanes modeled by AIR could produce insured losses of $120 billion. The Category 5 hurricane modeled by RMS yielded estimated insured losses of $163.2 billion, including $12.2 billion of offshore platform industry damage, not accounting for limits and deductibles. EQECAT provided a storm intensity map of the actual 1900 Galveston Hurricane, which is estimated to have made landfall as a Category 4. With caveats as to the limited availability of insurance coverage data from captive insurers along the Houston Ship Channel, EQECAT estimates that a replay of the 1900 catastrophe would generate roughly $25 billion to $30 billion of insured losses in today’s environment. Two weeks before the start of the 2007 hurricane season, gasoline prices rival the highs reached immediately after Katrina two years ago. A major hurricane hit on Gulf energy facilities—even the suggestion of a developing hurricane headed in that direction—could push energy prices significantly higher and disrupt the economy. A Category 5 storm moving on Houston through the northern Gulf would dwarf energy industry disruptions from Katrina and Rita. Forty percent of U.S. refinery production could be shut, as well as nearly all offshore production facilities. In the short term, a spike in gasoline prices proportionate to that seen as Katrina targeted the Gulf and made landfall would take the national average for all grades within striking range of $5 a gallon. In a protracted disruption to supplies, $6 a gallon or more would not be out of the question. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Moore film attacks U.S. health care Mon May 21, 2007 7:07AM EDT By Mike Collett-White CANNES, France (Reuters) - Director Michael Moore says the U.S. health care system is driven by greed in his new documentary "SiCKO", and asks of Americans in general, "Where is our soul?" He also said he could go to jail for taking a group of volunteers suffering ill health after helping in the September 11, 2001 rescue efforts on an unauthorized trip to Cuba, where they received exemplary treatment at virtually no cost. The controversial film maker is back in Cannes, where he won the film festival's highest honor in 2004 with his anti-Bush polemic "Fahrenheit 9/11". In "SiCKO" he turns his attention to health, asking why 50 million Americans, 9 million of them children, live without cover, while those that are insured are often driven to poverty by spiraling costs or wrongly refused treatment at all. But the movie, which has taken Cannes by storm, goes further by portraying a country where the government is more interested in personal profit and protecting big business than caring for its citizens, many of whom cannot afford health insurance. "I'm trying to explore bigger ideas and bigger issues, and in this case the bigger issue in this film is who are we as a people?" Moore told reporters after a press screening. "Why do we behave the way we behave? What has become of us? Where is our soul?" "SiCKO" uses humor and tragic personal stories to get the point across, and had a packed audience variously laughing and in tears. There was loud applause at the end of the two-hour documentary, which is out of the main Cannes competition. Moore was asked by journalists why he painted such a rosy picture of other countries' health systems, including Britain, France, Canada and Cuba, and the implied criticism is likely to be raised again. But he defended his methods. "I recognize that there are flaws in your system but that's not for me to correct, that's for you to correct," he told a Canadian reporter. RANGE OF EMOTIONS One section of the film explains how a U.S. man severed the tip of two fingers in an accident and was told he would have to pay $12,000 to re-attach the end of his ring finger, and $60,000 to re-attach that of his index finger. "Being a hopeless romantic, Rick chose his ring finger," Moore quipped in a typically sardonic voiceover. It also follows a woman whose young daughter falls seriously ill but who said she was refused admission to a general hospital and instructed to go to a private one instead. By the time she got to the second hospital, it was too late to save the girl. One of the most controversial passages of the film, due to be released in the United States on June 29, compares health care in the United States to that which Islamic militant suspects receive at Guantanamo Bay in Cuba. "I think when Americans see this they are not going to focus on Cuba or Fidel Castro," Moore said, referring to the controversy surrounding his trip to Cuba, which has prompted a U.S. government investigation. "They are going to say to themselves, 'You're telling me that the al Qaeda detainees are receiving better health care, the people that helped participate in the attacks of 9/11 are receiving better health care from us than those who went down to rescue those who suffered and died on 9/11?" Moore added that he was taking the investigation seriously. "I'm the one who's personally being investigated and I'm the one who's personally liable for potential fines or jail, so I don't take it lightly." © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. True Group LTC Advisor - May 2007, Milliman Inflation is a crucial element in any long term contract. For instance, if we assume an annual increase in LTC costs of 5%, 30 years later, a 50-year old participant of a long-term care plan will face nursing home costs more than four times the initial purchased coverage amount. It is clear that there is very little value in such a benefit, particularly since inflation in nursing home costs runs in the range of 5-10%, by far outpacing consumer price index average for nursing home care which exceeds 5.0% for the beginning of 2007.i For this reason, it is prudent for a long-term care plan to either provide a large daily benefit or some variety of inflation protection. In fact, some plans such as the New York State Partnership for Long Term Care do not allow policies without such protection at most ages.ii Commercially available long-term care insurance policies offer several different kinds of options for insuring against the risk of rising costs. Since working-age employees can face 30 to 60 years before experiencing LTC costs, these features are especially useful for an employer to consider. Automatic Benefit Increases Guaranteed Purchase Options In practice, however, these options are infrequently exercised, so that the inflation protection is not afforded. We have seen examples where the rate at which the upgrades are chosen is as low as 10%. On the other hand, if individuals do choose to purchase the guaranteed options on a regular basis, the total premium paid can grow to potentially unaffordable levels. This could cause individuals to stop paying premium altogether, so that the coverage is not available when they need it most. Discretionary Inflation Adjustments If the employer is in control of the benefits, it can make ongoing choices of upgrades in daily benefits to reflect actual inflation levels as they emerge. These decisions could be made relative to a benefit with no inflation adjustment in the base, or relative to a benefit with a low (2% to 3%) inflation adjustment, if the need arises. However, adjustments made in this fashion would need to be funded after they are made, so they do not work as well for retirees. Note! For an essential perspective about true group long-term care, please refer to the book True Group Long-Term Care by Milliman's consulting actuaries Jon Shreve and Jill Van Den Bos (published by the International Foundation of Employee Benefit Plans). We also provide a variety of resources for true group long-term care, such as informative white papers and articles, on our website at www.milliman.com/denver. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
This half-day program is ideal for in-house and private practice lawyers, business-side company employees, and regulators who are involved in mergers and acquisitions of small and medium insurers, insurance agencies and books of business. Learn from experienced professionals:
If you will be in San Francisco attending the Summer NAIC meeting, you won't want to miss this seminar. It promises to be terrific! Register today to attend this program. Agenda and meeting information at http://www.forc.org Telephone: 303.825.7307
6. Video News Report From Corporate Research Group - Robert Greczyn, President, CEO, Blue Cross Blue Shield of North Carolina
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. 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 8. BANK INSURANCE NEWS IN BRIEF - MAY 21, 2007 Bank Insurance News In Brief - May 7,
2007
Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. AIR Worldwide Collaborates with the Beijing Institute of Architectural Design for Better Understanding of Building Vulnerability in China BOSTON--(BUSINESS WIRE)--AIR Worldwide Corporation (AIR) today announced a collaboration with the Beijing Institute of Architectural Design (BIAD) to better understand the vulnerability of buildings in China. BIAD, the leading design firm in China, researched and analyzed seismic response of building types common to China. The findings will be used to enhance AIR’s industry leading China earthquake model. “Through structural performance studies, we will quantify the relative vulnerability of various classes of engineered buildings throughout China,” said Dr. Qisong Miao, director of the research department at BIAD. “Our team of experts will analyze the design of these commercial buildings to determine how various factors such as the seismic fortification levels and the age of the building impact their earthquake vulnerability. We are excited to work with a leading catastrophe modeling firm like AIR on this project.” As part of the project, BIAD will create a database of China-specific building characteristics and their seismic performance. www.air-worldwide.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. Affiliated Delta Dental Companies Report 1 Million New Enrollees Added in 2007 SAN FRANCISCO--(BUSINESS WIRE)--The holding company system that includes Delta Dental of California, Pennsylvania and affiliates in a total of 16 states and the District of Columbia announced today that more than one million new enrollees will join in 2007. The nonprofit enterprise, which operates under a single, shared management structure led by President and CEO Gary D. Radine, expects to add up to 1.1 million enrollees in 2007, based on new sales in 2006, combined with first quarter sales in 2007. With 98 percent retention of last year’s enrollment, the growth means the affiliated companies now cover nearly 22 million Americans in an array of commercial and government-sponsored dental programs. Consolidated gross revenues for the non-profit enterprise in 2006 are estimated at $5.1 billion, representing a $400 million gain in revenues over the previous year. www.delta.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
Key Benefit Resources: (877) 907-5511, sbell@keybenefitresources.com, www.keybenefitresources.com 11. Barclays and AEGON UK Form Distribution Partnership THE HAGUE, The Netherlands, May 21 /PRNewswire-FirstCall/ -- AEGON and Barclays today announce a new distribution partnership, which will see selected AEGON products made available to Barclays customers through its national network of Financial Planners. Through the partnership Barclays will offer a range of products to retail investors via its Select Choice offering. The launch of AEGON's "5 for Life" which offers guaranteed income in retirement later this month will see investment solutions featuring on Barclays Financial Planning's Select Choice platform for the first time. This represents the most significant bank distribution deal AEGON has secured in the UK to date and is an important step in AEGON's strategy to extend its distribution capability in the UK market to a wider range of business and individual customers. AEGON will join Barclays Select Choice panel of providers, which means that selected products will be available to Barclays' network of over 900 Financial Planners across the UK covering their Retail, Premier and Business Banking customer bases. www.barclays.co.uk Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 12. Sun Helps Insurance Industry Open New Markets Through New Distribution Channels Sun Distribution Channel Portal Solution Lets Insurers Reach New Customers, Reduce Costs and Improve Client Service, without Extra Operational Risk or Complex IT Processes LAKE BUENA VISTA, Fla., May 21 /PRNewswire-FirstCall/ -- Acord Loma Insurance Systems Forum -- Sun Microsystems, Inc. (Nasdaq: SUNW) today introduced the Sun Distribution Channel Portal solution to help the insurance industry open up new markets and better serve new and existing customers by making it easier to develop new product distribution channels. The solution includes Sun servers, storage, services and software to help insurers quickly and cost-efficiently reach new customers through non- traditional channels such as banks, supermarkets, post offices, kiosks, telephones and PDAs. At the same time as increasing top-line growth, the Sun solution also helps insurers reduce bottom-line costs associated with traditional distribution channels and offers ways to improve customer service. www.sun.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 13. Antares Management Solutions, Prudential Insurance Partnership Continues to Grow WESTLAKE, Ohio, May 21 /PRNewswire/ -- Antares Management Solutions has received a contract renewal to provide full Business Process Outsourcing (BPO) services for Prudential's (NYSE: PRU), individual health insurance business through the year 2017. Under terms of the ten-year contract extension, Antares will continue to assume all administration duties, including full claims processing, customer service, premium administration, benefit and policy administration, financial administration and reporting, along with banking services, imaging and compliance management. Antares will also provide information technology systems services for Prudential's entire block of individual health insurance business. "With individual health policyholders in all 50 states, the U.S. Virgin Islands and Guam, Antares' expertise and experience in information systems and third-party administration of health claims have been, and will continue to be a valued- added resource for Prudential," said Richard Welch, vice president, Business Solutions at Prudential. Since the beginning of the BPO relationship in 2002, Antares has processed over 600,000 claims for Prudential, which averages approximately 10,500 claims per month.www.prudential.com www.AntaresSolutions.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 14. Community Bank System, Inc. Completes Acquisition of Hand Benefits & Trust, Inc. SYRACUSE, N.Y., May 18 /PRNewswire-FirstCall/ -- Community Bank System, Inc. (NYSE: CBU), through its Benefit Plans Administrative Services, Inc. subsidiary (BPAS), has completed its acquisition of Hand Benefits & Trust, Inc. (HBT), a Houston, Texas-based provider of employee benefit plan administration and trust services. BPAS provides daily valuation, actuarial and employee benefit consulting services on a national scale, from offices in Upstate New York and Pittsburgh. With the addition of HBT, BPAS adds a physical presence in Houston and enhances its service offerings in flexible spending account and collective investment fund administration services. The combined company administers over 150,000 defined contribution and flexible spending participant accounts, provides custodial services for more than $3 billion in retirement plan assets, and consults on more than 250 actuarial engagements. Total revenue for BPAS will exceed $20 million.www.communitybankna.com www.firstlibertybank.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. Assurity Life introduces new Long-Term Care Insurance Assurity Life Insurance Company, Lincoln, Neb., has entered the long-term care market with the introduction of its new AssurityBalance® Long-Term Care Insurance, a comprehensive plan offering some of the most desirable benefits available in the industry. “AssurityBalance LTCI provides individuals an affordable, flexible solution to the rapidly growing costs of long-term care,” said Debra K. Patterson, LTCP, director, long-term care insurance, at Assurity. “The wide range of competitive policy features and riders allows insureds more control over the types of care they receive, whether at home, in the community, or in an assisted living or nursing facility.” Two base policy options include a Facility Care-Only Option and a Comprehensive Option that covers both facility care and home and community-based care. Joint coverage is available on both options with up to an 80 percent premium discount. There is also a choice of either a simple or compound inflation protection rider which allows for an annual benefit amount increase regardless of claim status. “AssurityBalance Long-Term Care also includes several unique features—an Optional Policy Surrender Rider and a Step-Rated 5 Percent Compound COLA payment option,” Patterson said. Under the Optional Policy Surrender Rider, the policy may be surrendered after five years in force with 80 percent of the paid premiums returned, subject to evidence of insurability. Along with a standard premium option for the Compound Benefit Increase Rider, a step-rated option increases the rider premiums by the same amount on each policy anniversary. The rider provides an annual 5 percent increase over the previous year’s daily benefit amount compounded for life. For more information about AssurityBalance Long-Term Care Insurance, contact Debra Patterson at (800) 276-7619, ext. 3774. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 16. Global Expansion Marks 25th Anniversary of Workplace Options Largest U.S. Provider of Work-Life Benefits Continues to Shape the Industry While Overcoming Decades of Change Raleigh, N.C. – May 21, 2007 -- Twenty-five years after Workplace Options (WPO) began offering work-life consulting and training services, the once-small company is now the world’s largest provider of work life employee benefits, spanning four continents and 80 countries. The company, based in Raleigh, North Carolina, celebrates its 25th anniversary year with continued growth. This month, Workplace Options will move into a new headquarters three times the size of its current center. Global expansion includes the June 2006 purchase of Employee Advisory Resource (EAR) in London, one of the UK’s largest providers of employee effectiveness services. In early 2007, Workplace Options acquired Dublin’s EAP Solutions, further extending its worldwide network of providers. "The changes we’ve experienced as a result of tremendous growth are matched only by the sweeping changes that have taken place across the work-life industry,” said Stephanie Fanjul, founder of Workplace Options. “We’re proud to have reached this significant milestone.” “What’s most exciting is the international growth we’ve achieved in recent years, including the acquisition of EAP Services in Ireland and a partnership with London-based Employee Advisory Resource,” noted Dean Debnam, chief executive officer of Workplace Options. “Today, our customers now enjoy the benefits of worldwide work-life services and access to an extensive network of behavioral health providers throughout Europe.” Several key changes have transformed the work-life landscape since the early 1980s. Then, fewer than five percent of large employers offered work-life benefits to employees, while today more than 75 percent offer such benefits. Also in the industry’s early years, work-life benefits consisted primarily of childcare resource and referrals. Now WPO offers customizable solutions for all aspects of an employee’s life -- including childcare, elder care, financial, legal, wellness, identity threat recovery, training, concierge services and more. “What has carried us through the past 25 years is our willingness to be flexible and creative as we work to meet our customers’ needs,” explained Alan King, president of WPO. “We have become a full-service provider for our EAP clients, adding new services such as health risk assessments and eMindhealth, which offers network provider solutions for behavioral health companies.” The technology has changed, too. Two decades ago, work-life employee benefits could only be accessed via the telephone; today, employees can access WPO’s services by telephone, e-mail or via instant messaging. Seminars can even be downloaded onto MP3 players and other portable devices. www.workplaceoptions.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article Dallas – May 21, 2007 – MarketScout, the Dallas, Texas based eInsurance Exchange, announced Jay Chase has joined the firm as Chief Underwriting Officer and Senior Vice President. Mr. Chase with over 25 years of executive level underwriting experience for major US and international insurers will add substantial strength and leadership to MarketScout’s growing eInsurance business. www.marketscout.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 18. Merrill Lynch takes minority stake in GSO NEW YORK, May 21 (Reuters) - Merrill Lynch & Co. (MER.N: said on Monday it agreed buy a minority stake in GSO Capital Partners LP, an $8 billion hedge fund that will give the world's largest brokerage access to more leveraged finance deals. Financial terms were not disclosed. Reporting by Tim McLaughlin, Editing by Derek Caney (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Lloyds sells Registrars business for 550 mln stg LONDON, May 21 (Reuters) - Lloyds TSB (LLOY.L: has agreed to sell its share registration business to private equity firm Advent International for 550 million pounds ($1.1 billion) in cash, the British bank said on Monday. People familiar with the situation had told Reuters earlier this month that Advent was in exclusive talks to buy Lloyds TSB Registrars for around that amount, having fought off rival suitors including Australia's Link Market Services and private equity group Doughty Hanson. Lloyds, which said it decided on a sale of the business after a strategic review, added it expected the deal to be completed in the second half of the year. Lloyds TSB Registrars handles share registration services for about 700 companies, including about 55 of the FTSE 100 (.FTSE: , and manages over 24 million investor and shareholder accounts. The business contributed 32 million pounds to group profit after tax in 2006 and had gross assets of approximately 85 million pounds as at the end of December 2006. Lloyds said it expected a profit before tax of around 440 million pounds would be recognised in the income statement of Lloyds TSB Group for the year ending Dec. 31, 2007. Reporting by Clara Ferreira-Marques; Editing by Mark Potter ($1=.5070 Pound) (C) Reuters 2007. All rights reserved. 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. INTERVIEW-MetLife aims to double S.Korea market share By Kim Yeon-hee and Lee Eun-yul SEOUL, May 21 (Reuters) - MetLife Inc., the largest U.S. life insurer by assets, aims to double its share in South Korea, with the domestic life insurance market seen growing 5-10 percent annually in the next few years, the head of its South Korean unit said on Monday. South Korea, the world's seventh-largest insurance market by premiums, is the second-largest overseas market for MetLife (MET.N: , after Mexico. But the New York-based insurer held just 2.5 percent in the East Asian market in 2006, below Dutch insurer ING Group (ING.AS: and Germany's Allianz (ALVG.DE: which each have a 4-5 percent share. U.S.-based insurer Prudential (PRU.N: also competes in the South Korean market. MetLife has logged an average 35 percent increase in compound premiums and fees a year in South Korea between 2001 and 2005, with earnings rising 16 percent to 62.9 billion won in the April-December period of 2006 from a year ago. Editing by Keiron Henderson (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. Newbridge extends deadline to buy Taiwan insurer TAIPEI, May 21 (Reuters) - U.S. buyout firm Newbridge Capital [NB.UL] has extended a deadline on its proposal to buy a controlling stake of Taiwan's Union Insurance (2816.TW: for US$100 million, the insurer said on Monday. "We are still in the final stage of negotiation with Newbridge," said Union spokesman Kenny Cheng. "We hope we can close the deal as soon as possible. A Newbridge executive declined to comment. Union, the No. 7 player with about 5 percent of Taiwan's T$120 billion ($3.6 billion) property insurance market, has seen its market cap tumble by 62 percent since January, amid financial woes for its parent, the Rebar Asia Pacific Group. Private equity funds have been flocking to Taiwan and the rest of Asia in recent years, attracted by the region's growth and values. Investors tend to buy troubled firms like Union Insurance at low prices, restructure and exit with a big profit years later. (US$1=T$33.36) © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. State Auto introduces Web-based quoting for business insurance through bizXpressTM COLUMBUS, Ohio – May 21, 2007 – State Auto Insurance has made quoting a business policy easier than ever with its new Web-based quoting system, bizXpressTM. The rating and new business processing application is now available to State Auto’s Ohio agents, and will be rolled out to agents throughout the company’s 29 operating states throughout summer 2007. Requiring only a PC, Web browser (Internet Explorer 6.0 or higher) and an Internet connection, the system will initially quote and issue policies for small- to medium-sized business prospects. Rating/issuance for commercial auto and workers’ compensation prospects should be available by the end of the year. Created and developed with input from agency focus groups, bizXpress is fast and easy to use. It was also tested by several agency pilot groups to ensure proper performance and accuracy. Available on State Auto’s extranet for agents, AgentSite, bizXpress gives users the ability to print proposals and completed applications and to request policy issuance electronically. www.StateAuto.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. Agent’s Sales Journal Spotlights Long Term Care in August, September Partners with AALTCI to educate agents on how to help clients prepare for long term care needs CLEARWATER, FL (May 21, 2007) – The Agent’s Sales Journal will be making the long term care industry the focus of its coverage with two upcoming issues devoted to helping agents learn more about the market in order to increase long term care sales. The August issue, in honor of Long-Term Care Awareness Week, will feature the Producer’s Guide to Long-Term Care Insurance, a special pull-out insert, sponsored by the American Association for Long-Term Care Insurance. www.AgentMediaCorp.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. HVB Luxembourg Upgrades Regulatory Reporting Systems with FRS - Private bank to benefit from common financial reporting standards Brussels and London, 21, May 2007 – FRS, a leading global provider of enterprise risk and regulatory compliance solutions, has announced that it has secured a contract with HVB Luxembourg, a bank of the UniCredit Group, to implement new software to support Common Reporting (COREP) and Financial Reporting (FINREP) Standards. COREP and FINREP are guidelines set out by the Committee of European Banking Supervisors (CEBS), to homogenise, simplify, and accelerate the exchange of financial information. www.frsglobal.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. AIA Urges Auto Insurance Competition In Massachusetts BOSTON, May 18, 2007 – The American Insurance Assocation (AIA) today urged Massachusetts Insurance Commissioner Nonnie Burnes to move the state auto insurance rating system to a competitive model. AIA’s comments came in testimony at a hearing on whether to move to competition or maintain the “fix and establish” system. “The time has come to retire the ‘one size fits all’ rating structure so that Massachusetts consumers can shop for auto insurance which fits their needs,” said John Murphy, AIA vice president, Northeast Region. AIA also made the point that the Commissioner has broad regulatory powers to allow competition to operate while taking reasonable steps to ensure market stability and avoid market dislocation. Those steps include flex-rating bands and reasonable subsidies for some drivers. “Insurers are ready, willing and able to compete. The Commissioner can ensure a deliberate and controlled move toward full competition. AIA urges the Commissioner to embrace this opportunity to revitalize and modernize the auto insurance marketplace,” concluded Murphy. www.aiadc.org Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Improve Your Communication With Professional Insurance Communicators of America Indianapolis, IN / May 15, 2007 - Professional Insurance Communicators of America (PICA) offers professional development and technical education to insurance communicators in historical Charleston, South Carolina, June 11-13. The 53rd Annual PICA Workshop takes place at the Renaissance Charleston Hotel Historic District, Charleston, S.C. Insurance communicators share ideas, learn about current industry trends and news, acquire tips on writing and designing more effectively and experience a variety of speakers with a wealth of information, while taking in all that the city of Charleston has to offer. This year, PICA is proud to welcome John McDermott, Business Editor, Charleston Post & Courier; Cybil Gilmore, Business Continuity Manager, Grange Insurance; Allison Dean Love, Executive Director, South Carolina Insurance News Service; and Mark Towers, Founder, Speakout Seminars, LLC. To learn more about the conference and register online, please visit www.pro-ins-coa.org. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. PIA National Announces Call for Awards Nominations Insurance Company, Company Representative, Managing General Agency to be Honored WASHINGTON, May 18 /PRNewswire/ -- The National Association of Professional Insurance Agents (PIA National) has announced a call for nominations for three prestigious national awards. The 2007 PIA National Company Award of Excellence, Company Representative of the Year and Managing General Agency of the Year awards will be presented during a luncheon ceremony on September 15, 2007, held in conjunction with the association's fall 2007 meetings in Albuquerque, New Mexico. Nominations for the Company Award of Excellence and the Managing General Agency of the Year awards are made by individual PIA members, as well as by PIA state and regional affiliate associations. Nominations for Company Representative of the Year are made exclusively by PIA state and regional affiliate associations. The deadline for nominations for all three awards is July 25, 2007. Individual PIA members wishing to nominate a Company of the Year or Managing General Agency of the Year can do so online at http://www.PIANET.com/awards. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. GLOBAL LEADERS NAMED TO INSURANCE HALL OF FAME New York, New York -- May 18, 2007 -- The International Insurance Society (IIS) today announced three insurance leaders as the 2007 winners of the prestigious Insurance Hall of Fame Awards, Robert Clements, United States, José Manuel Martínez, Spain, and Frederic Reiss, Bermuda. They will be honored during the gala dinner at the 43rd IIS Annual Seminar, this year to be held at the InterContinental hotel in Berlin, July 9, 2007. Robert Clements is the chairman of Integro Ltd., an insurance brokerage firm he co-founded in 2005, and he is also interim chairman and co-founder of Ironshore Insurance Limited and a member of Tara Partners LLC. Until 2005 Mr. Clements was Chairman of Arch Capital Group Ltd., which he founded in 1995. Prior to Arch, Mr. Clements served as President and a Director of Marsh & McLennan Companies, Inc. (MMC). Mr. Clements was a major force in changing the way the United States’ largest corporations insure their excess liability risks and he was instrumental in introducing alternative risk financing. He has also been called the father of the Bermuda insurance market for his pioneering leadership in developing ACE and X.L. José Manuel Martínez is Chairman and Chief Executive Officer of MAPFRE, Spain’s largest and most successful insurance group, which in 2005 also was for the first time the largest Non-life insurer in Latin America, with close to 28,000 employees and 5,000 branches and offices in 40 countries. During his tenure, MAPFRE evolved from a good local market leader to a large international group that is a benchmark for growth, results and quality of service. He also has substantially expanded MAPFRE’s contribution to society through FUNDACIÓN MAPFRE. Frederic Reiss (1924-1993), founder of the International Risk Management Group, coined the term “captive insurer” and became the first person to popularize the insurance captive movement. He ensured that the captive concept became an established practice in the insurance industry and in so doing, he helped establish Bermuda as a center for captive domicile companies. Today, most of the Fortune 500 companies use a captive in some form and Bermuda is the domicile of choice with more than 1,000 captives. The Insurance Hall of Fame is sponsored in New York by the International Insurance Society, Inc., a non-profit educational enterprise of insurance executives with almost 1000 members representing 90 nations. The Insurance Hall of Fame was instituted in 1957 by the Griffith Foundation for Insurance Education, Columbus, Ohio and later moved to The University of Alabama. There are currently 116 laureates in the Insurance Hall of Fame from more than 20 countries. The qualifications for induction in the Hall of Fame include having made a broad and lasting contribution to the insurance industry, thereby affecting a substantial influence on the ability of the industry to serve society. Members of the Hall of Fame are selected by the membership of the International Insurance Society in a secret, independently audited ballot. Biographies, photos and videos about the Insurance Hall of Fame and its recipients are available at www.InsuranceHallofFame.org. Information can also be obtained by visiting the Claire and Joseph Smetana Gallery located at St. John’s University in New York City. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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