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For more information call: 800-304-4585 Website: www.assistamerica.com or services@assistamerica.com We are the premier provider of Global Emergency Services Through Group Benefit Programs! 1. Spitzer eyes reform of financial services rules-FT NEW YORK, May 29 (Reuters) - New York Gov. Eliot Spitzer, who rose to political prominence by uncovering wrongdoing on Wall Street, is forming a panel to propose ways to streamline state financial services regulations, the Financial Times reported on Tuesday. The panel will include the chief executives of Goldman Sachs Group (GS.N: , Citigroup (C.N: , American International Group (AIG.N: and MetLife (MET.N: , as well as heads of state-chartered banks, the newspaper said. It will be chaired by New York Insurance Superintendent Eric Dinallo, who four years ago spearheaded the state's brokerage research and mutual fund investigations as a prosecutor under then-Attorney General Spitzer. Spokesmen for Spitzer were not available for comment. The panel will also include former SEC enforcement chief Steve Cutler and Ted Levine, who helped represent Wall Street in the $1.4 billion settlement of the brokerage research scandal. Rodgin Cohen, a lawyer who fended off Spitzer's effort to investigate mortgage lending practices at nationally chartered banks, is also on the panel, the FT reported. After years of grappling with New York's banking and insurance giants as the state's top prosecutor, Spitzer as governor has taken a more collegial approach. Earlier this year he lent his support to a regulatory reform panel pushed by New York Mayor Michael Bloomberg and Sen. Charles Schumer. A number of blue-ribbon panels have called for easing U.S. financial services rules. Critics argue that tough regulation is responsible for driving initial stock listings and other financial businesses to other markets. Politicians warn that New York's standing as the world's top financial hub is in jeopardy. One consideration, according to the FT, will be adopting "principles-based" regulation along the lines used by the UK's Financial Services Authority. U.S. business lobbies complain it is more costly to comply with the rules-based regulations favored by the U.S. Securities and Exchange Commission. © Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 2. SEC prevails in first suit over finite insurance Fri May 25, 2007 4:04PM EDT By Emily Chasan NEW YORK, May 25 (Reuters) - The U.S. Securities and Exchange Commission has won its first case over whether companies abused a certain type of insurance to hide earnings losses, it said on Friday. The U.S. market regulator had accused an executive at cell phone distributor Brightpoint Inc. (CELL.O: of scheming to overstate the company's actual earnings through improper use of an insurance policy. After a four-day trial, a New York jury found the defendant in the case, Timothy Harcharik, the company's director of risk management, liable for aiding and abetting Brightpoint's fraud and other violations of securities laws, the SEC said. In November, insurer American International Group Inc. (AIG.N: agreed to pay $126 million to settle U.S. Department of Justice and SEC allegations that it sold products that helped PNC Financial Services Group Inc. (PNC.N: and Brightpoint inflate earnings. The SEC has been probing into whether insurers sold policies akin to business loans that might have helped companies camouflage earnings weakness. In these situations, rather than turning to a bank for a traditional loan or selling corporate debt, the company would borrow money from its insurer. The loan would then be repaid in the form of increased premiums for traditional insurance, falling into the category of finite risk insurance. Several insurers have received regulatory subpoenas or requests concerning the products, including Ace Ltd. (ACE.N: , Chubb Corp. (CB.N: and Travelers Cos. (TRV.N: . "Cracking down on the abuse of so-called finite insurance and reinsurance to cook the books of public companies has been a priority for us," said Mark Schonfeld, director of the SEC's New York Regional Office. "This verdict makes clear that such conduct is fraud, plain and simple." An attorney for Harcharik could not be immediately reached. U.S. District Judge Harold Baer will impose sanctions on Harcharik at a later point, the SEC said. © Reuters 2006. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 3. BestWeek: Terror Mandate Plan Forces Insurers to Ponder Doomsday Attacks OLDWICK, N.J.--(BUSINESS WIRE)--They are the doomsday scenarios that keep many Americans awake at night, but few of them are considered covered perils under most property/casualty insurance contracts. But that could soon change, according to an exclusive story in BestWeek U.S./Canada, as Congress is expected to consider legislation that would expand the Terrorism Risk Insurance Act's “make available” provision--which requires the industry to offer coverage for terrorism risks–to include coverage for events resulting from nuclear, biological, chemical or radiological attacks. The change is one desperately sought by the commercial real estate industry and other major purchasers of terrorism coverage. But many insurers question whether most smaller and midsize insurers could comply with an NBCR mandate, arguing that it would have significant adverse implications for their credit and financial strength ratings, their ability to raise capital, and ultimately, their solvency. Also, in BestWeek Europe: With a predicted active hurricane season set to open in June, reinsurers are intently watching for the expected impact of the huge Florida market as critical June and July renewals approach. Also in BestWeek U.S./Canada: Over the past several years, the individual long-term-care insurance industry has been impacted by numerous challenges, which have led to declining sales and lower-than-expected overall profitability, according to a new A.M. Best special report. www.ambest.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 4. Skittish Insurance Industry Skirts Hurricane-Prone Coastal Areas; Proxix Solution's CATUM Tames Storm-Surge Risk White Paper describes how Proxix's propriety model uses geocoding to assist insurance companies in underwriting hazardous coastal risks PALM HARBOR, Fla., May 29 /PRNewswire/ -- A just-published White Paper http://www.proxix.com/whitepaper0507.htm prepared by Howard Botts, Ph.D., of Proxix Solutions outlines problems with current underwriting methodologies using distance to coast or distance to coast plus elevation to evaluate property risks in hurricane-prone areas. Carriers beg off property risks Homeowners are struggling to find insurance coverage in hurricane-prone coastal areas. Coastal population density is increasing, but several critical factors are causing insurance carriers to abandon Gulf and Northeast coastal property markets. The assumption by reinsures of stronger and more frequent hurricanes from global climate change and troubling court decisions regarding storm-surge damage in the wake of Hurricane Katrina caught insurers off guard, who had always relied on flood exclusions in their policies to limit hurricane damage exposure. Already financially burdened from the 2005 hurricane season, carriers found these trends further inhibited their appetite for risk in those regions. Rules of thumb underwriting provides insufficient data Insurance companies often utilize rules of thumb underwriting techniques such as property elevation and/or distance to coast, often 1,000 or 2,500 feet, which may leave them insuring properties that may not be in a flood zone, but are in a storm-surge zone. Conversely, carriers may decline properties that are within a certain amount of feet from the shoreline yet are not in a storm-surge zone. These underwriting decisions either expose insurers to catastrophic loss or decline properties that could be profitably insured. A National Institute of Standards and Technology (NIST) government study of Hurricane Katrina and Rita damage determined a need for more sophisticated storm-surge prediction. That NIST study found that storm surge was the principal cause of damage in coastal areas from Hurricane Katrina. It also found that flood maps, relied upon when underwriting property coverage, are outdated. Clearly, a more sophisticated underwriting approach is required. GIS experts at Proxix Solutions developed a state of the art storm-surge model that generates storm-surge inundation polygons for all counties along the Gulf and Atlantic Coasts. Accounting for changes in coastal elevations and barriers to inland surge-water movement, the model produces risk polygons identifying five zones of storm-surge risk, from low to extreme. Integrating the storm-surge model into Proxix's automated solution called CATUM (kay' t'm), underwriters input an address or latitude and longitude and receive a detailed risk score for a specific property or location. With CATUM's highly accurate parcel-level geocoding technology, carriers can outperform rule of thumb rating techniques that affect their profitability. Storm-surge levels critically important in evaluating risk Storm-surge levels are now critical in assessing hurricane-prone property coverage. Broussard v. State Farm was a recent case that changed the way insurers view hurricane-prone properties. The first of the so-called "slab suits" to go to trial, State Farm maintained the Broussard's home was destroyed by storm surge and denied their claim. The judge found in favor of the Broussards because the insurer could not prove which portion of the loss was due to flooding and which portion to wind. The January 17, 2007, court decision was an upset to all carriers writing coastal property and especially the carriers with pending slab suits. CATUM's output when run on the Broussard's address determined that their property is located within a zone with a high risk of loss from storm surge. The property, the analysis found, is located 1,162 feet from the Mississippi Sound. The 1,000-ft rule of thumb would not have prevented an underwriter from insuring this home. Proxix's analysis could have provided the data needed to clarify the insurer's level of risk. Because population density will continue to increase in coastal areas, the coastal insurance marketplace will continue to expand. Using Proxix, underwriters can select properties that generate high premiums but are less susceptible to storm-surge damage, allowing carriers to mine this important market. Other Proxix modules available In addition to its coastal risk module, CATUM also evaluates other hazard risks such as wildfires, and damaging winds. www.proxix.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 5. Swiss Re's Commercial Insurance and IIABA Sign Five-Year Agreement Continuing Long Tradition of Protecting Independent Agents OVERLAND PARK, Kan., May 29 /PRNewswire/ -- Independent insurance agents and brokers across America have enjoyed the benefits of first-class Errors & Omissions protection for decades, and that tradition lives on. The Independent Insurance Agents & Brokers Association of America and Swiss Re's Commercial Insurance signed an agreement whereby Swiss Re remains the endorsed E&O carrier of the Big I for five more years. "Our affiliation with Westport and Swiss Re's Commercial Insurance allows us to offer independent agents unparalleled protection and loss control," said Mark Wolf, Associate Vice President and Head of the Big I Professional Liability Program. "We are extending our relationship with Swiss Re Commercial Insurance for five years because of the strength of our relationship as well as the depth of expertise and financial strength they bring to the table." "Our parent, Swiss Re, is committed to protecting the reputations and assets of the nation's best independent agents and this agreement underscores that commitment," said Robin Sterneck, Head of Swiss Re's Commercial Insurance. "We look forward to providing innovative solutions to the Big I and its members and continuing to grow with them." Under the agreement Swiss Re's Commercial Insurance continues to offer coverage terms and loss control credits that are exclusive to members of IIABA. Policies are underwritten by Westport Insurance Corporation and are backed by Swiss Re's financial strength and A+ (Superior) A.M. Best rating. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
6. AEGON and Industrial Securities Agree on Asset Management Joint Venture THE HAGUE, Netherlands, May 28 /PRNewswire-FirstCall/ -- AEGON and China's Industrial Securities have agreed to establish an asset management joint venture. Under the agreement, AEGON will acquire a 49% interest inIndustrial Fund Management Company (IFMC), a Chinese mutual fund manager with approximately EUR 1.7 billion in assets under management(*). Industrial Securities, one of China's leading securities companies, will retain the remaining 51% of IFMC. The transaction will be submitted to the China Securities Regulatory Commission (CSRC) for approval and is subject to normal closing requirements. The new partnership with Industrial Securities and the stake in IFMC represent an excellent opportunity for AEGON in entering the asset management market in China. Expanding into the asset management business will serve to strengthen AEGON's long-term commitment to the Chinese market. The joint venture also offers Industrial Fund Management Company the possibility to extend its activities into the pension market. To support IFMC's ambition, AEGON will contribute its longstanding and broad-based expertise in pensions, innovative product development and risk management. "China represents one of AEGON's key growth markets, given the significant potential in the coming years for life insurance, pension and related investment products," said Don Shepard, CEO and Chairman of the Executive Board of AEGON N.V. "We welcome this opportunity to combine our expertise with the broad and expert asset management capabilities of Industrial Securities, one of the country's leading securities companies." "We strongly believe that AEGON's support for Industrial Fund Management Company in the areas of product development, investment processes, operations and risk management will improve our core competencies and raise our quality to allow us to develop our capabilities further as an excellent fund management company", said Lan Rong, Chairman of Industrial Securities. www.aegon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 7. Destiny Health and AEGON Direct Marketing Services Announce Partnership to Deliver Health Empowerment Plan Nationwide CHICAGO--(BUSINESS WIRE)--Chicago-based Destiny Health and Maryland-based AEGON Direct Marketing Services, Inc. today announced they are partnering to offer the Destiny Health Empowerment Plan™ nationwide. The Destiny Health Empowerment Plan is a wellness-based healthcare plan(1) being made available to employer and affinity groups through various distributors. The Marketing Agreement between Destiny Health and Stonebridge Life Insurance Company(2) is effective immediately. Under the Agreement, Stonebridge Life Insurance Company, licensed nationwide, will underwrite the Destiny Health Empowerment Plan. Art Carlos, Destiny Health’s President and CEO, said the marketing focus initially will be on Illinois, Wisconsin, Colorado and Michigan, and that the rollout to additional states will occur in due course. “At the core of the Destiny Health Empowerment Plan is Vitality, the wellness program that, along with insurance, encourages members to make and benefit from smarter choices with everything from lower health costs, to free merchandise and, best of all, better health,” Carlos said. “With 15 years of worldwide experience, this is the only plan that can back its cost-saving claims with hard data. We are proud to be allied with ADMS and excited about the opportunities that come with that partnership.” Carlos said the joint venture means Americans across the nation will eventually be able to avail themselves of the plan. www.destinyhealth.com www.aegondms.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 8. New Vermont Sponsored Captive Formed by United Insurance Company BURLINGTON, Vt., May 25 /PRNewswire-FirstCall/ -- United Insurance Company, a Cayman based reinsurance company announces the formation of its sponsored captive insurance company subsidiary, United Insurance Company, USA, Ltd. in Burlington, Vermont as part of its global expansion. (Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO ) United USA will provide US corporations with many insurance/reinsurance solutions. United USA can assist with unusual or one-off transactions, provide access to all reinsurance markets including United Insurance Company, assist corporations bridge the growing gap between reinsurance and higher property and casualty deductibles and self insured retentions, and provide access to controlled third party risks via United's risk sharing pool Nexus Re. The Vermont sponsored captive model provides these risk financing solutions without the investment in capital and management time required for stand alone captives which could be attractive to the middle market segment. Nancy Gray, Executive Director for North America, of Aon Global Insurance Managers commented: "United chose to form its cell captive subsidiary in Vermont because Vermont has the most experience in the cell captive option in the United States. The knowledge and flexibility of the Vermont captive regulators, Len Crouse and Derrick White, for cells enables us the opportunity to provide our clients with a quick, simple, effective and cost beneficial method of entering the captive market." www.aon.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 9. Eastbridge Consulting Group Announces Release of Worksite MarketVision™ —The Employee Viewpoint Revisited AVON, Conn.--(BUSINESS WIRE)--The benefits world continues to change, and employees appear to be more educated as well as more experienced in choosing and buying insurance. They look closely at the cost and value of each product and want to understand exactly how the product fits their particular needs. Carriers wanting to gain more of their business will need to fully understand the needs of today’s employees and then create value propositions that focus on more than just features and benefits. Eastbridge’s newest study, Worksite MarketVision™ —The Employee Viewpoint Revisited, provides important information that every carrier can use to understand and improve their employee value proposition. The study results are based on interviews with over 400 employees nationwide in accounts ranging from 10 to over 2,000 employees. Here are just a few of the study’s findings: Most employees don’t have a good sense of what they are actually paying for their medical and other benefits. Medical insurance is still the most important benefit to employees, but there was some change in the importance of other product lines. Ownership of voluntary products has increased substantially since 2002 when only 40 percent of employees owned at least one voluntary product. The report covers the following topics:
The Worksite MarketVision™--The Employee Viewpoint Revisited is now available for purchase for $2,750. For more information on this report or to order a copy, call the company at (860) 676-9633 or email info@eastbridge.com. Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada. Contacts: Eastbridge Consulting Group, Inc., Jennifer Davis, 860-676-9633 Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 10. A.M. Best Special Report: Bermuda—12-Month Financial Review OLDWICK, N.J.--(BUSINESS WIRE)--After Bermuda’s insurers braced for another chaotic 2006 hurricane season, the exact opposite occurred, as insured losses relating to catastrophes were only a fraction of 2005 losses. Marking the two extremes, the Bermuda market reported a very healthy 2006 combined ratio of 83.7, compared with a catastrophic combined ratio of 119.4 for 2005, according to a new special report from A.M Best Co. Underpinning this dramatic improvement was the robust level of price improvement attained in 2006 relative to U.S. catastrophe-exposed business. That, combined with the absence of major catastrophe losses and favorable loss-reserve development emerging from the 2003 and 2004 underwriting years, set the stage for one of the most favorable earnings years on record. Underwriting activities alone generated $6.9 billion of earnings. Combine that with net investment income of $7.0 billion, and the sector produced a composite return on equity of 19.3%. After taxes and other miscellaneous expenses, net income totaled $11.6 billion, which net of $1.4 billion in shareholders dividends was added to the coffers of Bermuda's leading reinsurance and insurance organizations. Leading the Bermuda pack for 2006 in terms of net premium volume was Ace, followed by XL Capital, Everest Re and Partner Re. In terms of combined ratio, the property-catastrophe-oriented companies posted the lowest combined ratios in the sector, indicating higher underwriting margins for the year. However, for property-oriented companies, one year's underwriting gain can be a shortsighted view of success, as gains can be wiped out overnight. While the market has for the most part remained rational, the current overall consensus is that the peak of the cycle, if only temporarily sustained by the events of 2005, is now clearly in the rearview mirror. As a result, the key to successful navigation in 2007 will be a clear focus on capital management and underwriting discipline. Given the increased competitive pressures, A.M. Best believes that the 2005 start-ups now will be forced to seek alternative business opportunities in an attempt to fully utilize the capital raised. www.bestweek.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
Key Benefit Resources: (877) 907-5511, sbell@keybenefitresources.com, www.keybenefitresources.com 11. Video News Report From Corporate Research Group - Lon Castle, M.D., Medco Health Solutions
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. Bank Insurance News In Brief - May 29, 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 14. AIG's aim: $20 bln in Taiwan wealth management Mon May 28, 2007 5:19AM EDT By Faith Hung TAIPEI (Reuters) - American International Group (AIG.N: , the world's biggest insurer, is aiming for US$20 billion in assets in five years at its new Taiwan wealth management unit, which opens for business around September. The unit, with wealth management and private banking businesses, is the fourth for AIG Private Bank in Asia as the U.S. company expands beyond its insurance business into the wealth management sector. "Taiwan is the most important market in Asia" for AIG Private Bank, unit head Mark Wei told Reuters in an interview on Monday. "We hope to become a tier-one player in Taiwan." Affluent Taiwan residents control 2.5 percent of the US$7.6 trillion in assets owned by wealthy individuals in the Asia Pacific region, according to a report co-issued by Merrill Lynch (MER.N: in 2006. Some 65 percent of the assets were owned by people in Japan and China, the report said. Competitors in Taiwan's wealth management sector include major multinationals like UBS (UBSN.VX: , HSBC (0005.HK: (HSBA.L: , Citigroup (C.N: and ABN Amro (AAH.AS: , as well as leading domestic banks such as Chinatrust Financial (2891.TW: and Taishin Financial (2887.TW: . They are all taking aim at Taiwan because of its growing number of wealthy individuals, many of them executives at the island's bumper crop of high-technology firms with major operations in China. "Competition is not an issue for us," said Wei, who will be chairman of the Taiwan unit. AIG hopes to build its Taiwan wealth management business by signing up the 9,000-10,000 high-net-worth clients that its insurance arm now serves in Taiwan, said Barry Chen, who will be the new unit's president. "We assume each of them has investable assets of US$2 million. We aim to take all of the 10,000 clients over the next five years," Chen said. AIG's insurance arm is one of Taiwan's top three players, competing with Cathay Financial (2882.TW: and Shin Kong (2888.TW: . AIG currently has a presence in Shanghai, Hong Kong and Singapore, Wei said. The new unit, which received Taiwan regulatory approval this month, aims to have US$1 billion in assets under management next year and to break even in the next two to three years, Wei said. (US$1=T$33.14) (Additional reporting by Ricci Chan) © Reuters 2006. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 15. U.S. investors buy stake in China Pacific Insurance Fri May 25, 2007 11:45PM EDT SHANGHAI, May 26 (Reuters) - U.S. investors, including private equity firm Carlyle Group [CYL.UL], have acquired a combined 19.9 percent stake in China Pacific Insurance (Group) Co. by subscribing to the insurer's new share offer. China's third-largest life insurer, which plans a Hong Kong stock listing, has expanded its share capital by 42.6 percent to 6.7 billion yuan ($876 million) through a share placement, the China Insurance Regulatory Commission (CIRC) said. A U.S. firm called Parallel Investors Holdings Ltd. bought a 15.7 percent stake in China Pacific through the share offer, the CIRC said in a statement, adding that the foreign investors must hold their stakes for at least three years. An official at China Pacific, which is also engaged in property insurance, told Reuters that Parallel is an overseas investment arm of U.S. insurer Prudential Financial (PRU.N: . Carlyle and Prudential Financial recently transferred their holdings in China Pacific's life insurance arm to China Pacific Insurance (Group) to pave the way for the group company's Hong Kong listing. Shanghai-based China Pacific Group sold a 25 percent stake in its life insurance arm to Carlyle and Prudential Financial for $400 million in 2005. The rest of the stakes in China Pacific Group are now held by a number of state-owned companies, including Shenergy Group and top Chinese steel maker Baosteel, the statement said. ($1=7.651 Yuan) (Additional reporting by George Chen) © Reuters 2006. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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16. Aegon to buy stake in China fund manager -sources Mon May 28, 2007 2:48AM EDT SHANGHAI, May 28 (Reuters) - Dutch insurer Aegon (AEGN.AS: has agreed to buy a 49 percent stake in Industrial Fund Management Co., a medium-sized Chinese fund manager, two sources involved in the deal said on Monday. China's Industrial Securities Co. will have control with 51 percent of the company, which will be renamed Industrial-Aegon Fund Management Co., the sources said. Senior executives of Aegon will fly to Shanghai as early as Monday for an official announcement of the deal, which was expected on Tuesday, the sources added. Aegon has already set up an insurance joint venture in China. © Reuters 2006. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 17. Alvarez & Marsal Launches Risk Management Advisory Practice Managing Director Daniel Spragg to Lead Practice Dedicated to Providing Objective, Independent Risk Management Consulting and Due Diligence Services NEW YORK--(BUSINESS WIRE)--Alvarez & Marsal, a leading independent global professional services firm, announced it has formed a dedicated Risk Management Advisory (RMA) practice. Led by managing director Daniel Spragg, the practice provides objective, independent risk management consulting and due diligence services to mid/large cap corporations and private equity firms. Mr. Spragg brings more than 18 years of technical and management experience in the commercial insurance industry. He is joined by senior director George Alvisio and senior advisor Jack McCarthy, Sr. to spearhead the practice launch. “Integrated with the firm’s world-class operational and financial expertise, the new risk management advisory practice is an outstanding complement to our suite of professional services aimed at minimizing cost of risk, and creating value for companies and investors,” said Bryan Marsal, co-CEO of Alvarez & Marsal. “Dan and his team each bring decades of experience as former leaders of national insurance carriers and Fortune 500 risk management departments. They have the breadth of experience and depth of technical expertise necessary to provide comprehensive analysis of exposures and identify issues that can impact value.” “Protecting an organization’s assets and earnings from the impact of unexpected loss can be time consuming and complicated,” said Mr. Spragg. “Our expert team brings objective and independent scrutiny to insurance matters. We closely monitor and analyze the insurance marketplace, products and pricing trends in order to design the most comprehensive and cost effective risk transfer solutions on behalf of clients.” The specific Risk Management Advisory services include: Merger and Acquisition Due Diligence Risk Finance Solutions and Programs Risk and Insurance Management Audits Insurance Marketing, Broker and Carrier Selection www.alvarezandmarsal.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 19. Statement of Robert A. Jackson State Director, AARP-Texas on Passage of CHIP Legislation Today AUSTIN, Texas, May 27 /PRNewswire-USNewswire/ -- "There's no higher priority than the health and welfare of our children. We applaud the Legislature for recognizing this today. In a state not known nationally for taking care of its most vulnerable, adding 100,000 children to the rolls of the insured is most welcome news. Some of our lawmakers exhibited real statesmanship in fighting a good battle to get the best bill passed under the current circumstances. We commend them for their efforts. "Unfortunately, during the last four years, Texas has marched full speed in reverse, dropping 212,000 children from the rolls of CHIP. More sick children without insurance has resulted in more children missing school, more showing up in our emergency rooms and more working parents having to stay at home to take care of them. Not funding this program to its capacity has been, and continues to be, penny wise and pound foolish. "While today's vote is an important first step, we're hardly where we need to be. Texas tops the nation in the proportion of uninsured with 22 percent, compared with 12 percent nationally. That's 1.4 million children. Overall, 5.5 million Texans do not have health insurance, roughly a quarter of our population. Many of our younger AARP members -- those in the 50 to 64-age bracket -- are particularly vulnerable. From cradle to grave, the Texas health care safety net needs to be strengthened. The current status quo is unacceptable for any state, let alone one with our rich natural resources. "As part of a new multigenerational campaign, AARP will intensify its efforts to reduce the number of uninsured children in Texas. We will work hand-in-hand with public officials who prioritize the health and welfare of our young ones, and hold those insensitive to their needs accountable." 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. Top 500 Managers' Worldwide Institutional Assets Approach $25 trillion NEW YORK, May 25, 2007 /PRNewswire - The 500 largest money management firms saw their worldwide institutional assets approach $25 trillion, as of Dec. 31, 2006, according to Pensions & Investments' annual money manager survey. That represents a 14.3% increase from the previous year, to $24.578 trillion. Assets managed by the top 500 managers on behalf of U.S. institutional tax-exempt investors jumped 15% in 2006, to $11.826 trillion. P&I's annual survey is widely cited by investment industry officials. Following a 13.5% advance in 2005, the latest gains lifted the top 500 managers' worldwide institutional assets under management to $24.578 trillion. Strong capital market gains last year, including a 15.7% rise by the Russell 3000 U.S. equity index and a 16.6% advance for the NCREIF property index, contributed to that growth. On a market-adjusted basis, the top 500's U.S. institutional tax-exempt internally managed assets rose 3.8%. Experts said institutional money continued to pour into alternative strategies in 2006, including hedge funds, private equity and real estate, while demand for international and global equity strategies remained high as well. P&I's survey data showed equity accounting for 52.2% of the average asset allocation for the 500 largest firms' $10.85 trillion in internally managed U.S. tax-exempt institutional assets, down 0.2 points from the year before, with bonds dropping 1.8 points to 27.9%. But "other" investments, including hedge funds and private equity, climbed 0.8 points to 4.7%; real estate gained 0.5 points to 3.7%; and cash jumped 0.7 points to 11.5%. Despite sharply different rates of worldwide asset growth for individual firms, rankings of top institutional managers remained remarkably stable last year. Boston-based State Street Global Advisors remained in first place with $1.69 trillion in total worldwide institutional assets, up almost 21%. SSgA was followed once again by San Francisco-based Barclays Global Investors, up 16% to $1.46 trillion; Boston-based Fidelity Investments, up 11% to $930 billion (after restating its institutional total for the previous year); Baltimore-based Legg Mason Inc., up 11.4% to $744.8 billion; and Boston-based Mellon Financial, up 31.5% to $744.5 billion. Industry consolidation accounted for the most dramatic shift among the top 10, with New York-based BlackRock Inc.'s October 2006 purchase of Merrill Lynch Investment Managers lifting it to sixth place from 13th the year before. That move pushed New York-based AIG Global Investment Group down one spot to seventh and Chicago-based Northern Trust Global to eighth. Rounding out the list were Boston-based Wellington Management Co. and Malvern, Pa.-based Vanguard Group. Falling out of the top 10 in 2006 were Newport Beach, Calif.-based Pacific Investment Management Co., which slipped from eighth place to 11th with a 5.6% gain in worldwide institutional assets to $548.1 billion, and ING, Hartford, Conn., which tumbled to 25th place from 10th with a 12% drop in assets to $411.3 billion. An ING spokeswoman said the decline reflected a decision to reclassify variable annuity assets last year as retail money. Detroit-based Crain Communications Inc publishes nearly 30 highly respected business-to-business newspapers and magazines including Pensions & Investments, InvestmentNews, FinancialWeek, Workforce Management, Business Insurance, Automotive News, Crain's New York Business, Advertising Age and Crain's Chicago Business. Crain has more than 1,000 employees in 16 offices worldwide. The company's website is http://www.crain.com SOURCE Pensions & Investments Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 22. PSS World Medical to Acquire Activus Healthcare Solutions Strategic Physician Business Acquisition in Fast-Growing Markets JACKSONVILLE, Fla.--(BUSINESS WIRE)--PSS World Medical, Inc. (NASDAQ GS: PSSI) announced today that it has entered into a definitive agreement to acquire 100% of the outstanding stock of Activus Healthcare Solutions, Inc. (“Activus”). Activus is a California-based distributor of medical supplies to office-based physicians and ambulatory surgery centers in California, Oregon, Nevada, and Arizona. Activus generates $22 million in annual revenue and adds 14 sales representatives with an average tenure of over 19 years in fast-growing markets. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 23. S&P: Enhanced Insurance Risk-Based Capital Model Released NEW YORK May 25, 2007—On May, 23, 2007, Standard & Poor's Ratings Services released a comprehensive enhancement of its capital models for life, annuity, property/casualty, health insurance, and reinsurance companies worldwide. This globally consistent framework developed for analyzing insurance company capital includes regional risk factors developed to reflect features unique in the local market. From the initial request for comment release in November 2006 until the end of the comment period in February 2007, we received more than 200 responses from market constituents worldwide. This feedback expressed a remarkable level of depth, detail, and engagement, and played a valuable role in the development of our enhanced model. The teleconference held May 24, 2007, which drew more than 250 participants, provided a forum to share the new capital model's framework, to highlight the major changes, and, more importantly, to respond to specific questions from the market following the release. Information on the new capital model, its changes, and a user's guide, can also be found at Standard & Poor's Web site (http://www.standardandpoors.com). Click on 'United States,' and then on the left side of the screen, click the 'Ratings' tab, and then the 'Insurance' tab. On the right-hand side of the screen, under 'Related Information,' click on 'Insurance Capital Model Updated.' For those who would like to listen to yesterday's teleconference, the replay number is (1) 203-369-0697. It will be available until May 31. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 24. For A Price, Lender Captives Benefit Both Lenders And Mortgage Insurers, Article Says NEW YORK (Standard & Poor's) May 24, 2007—Standard & Poor's Ratings Services has published a report titled, "Lender Captives Benefit Both Lenders And Mortgage Insurers, For A Price," which examines the relationship between the two industries. According to mortgage insurers' (MI) statistics, much of the new insurance written (NIW) in 2006 was subject to lender captives, which are mortgage lenders established to reinsure a portion of the insurance they direct to MIs. "We consider the claims lender captives would pay during adverse economic conditions to be the primary benefit to MIs," said Standard & Poor's credit analyst James Brender. "Our 2005 report on the mortgage insurance industry expressed concern that a 40% level of ceded premium could be too high for the amount of risk assumed. Today, however, we believe it's safe to say that we no longer have such concerns," Mr. Brender added. Several years of low lender losses have enhanced lender captive profitability, which in turn has improved their ability to satisfy obligations. www.ratingsdirect.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 25. Nasdaq to buy Nordic bourse group OMX for $3.7 bln By Patrick Lannin and Anna Ringstrom STOCKHOLM, May 25 (Reuters) - U.S. electronic stock market Nasdaq (NDAQ.O: has agreed to buy Nordic markets owner OMX (OMX.ST: for $3.7 billion, as Nasdaq seeks to expand abroad following a series of rival stock market mergers. The move, announced on Friday, comes after Nasdaq's bid for the London Stock Exchange (LSE.L: was rejected in February and as rivals have pushed ahead with their own mergers. "This combination provides our organisations with the ability to grow and accelerate the global flow of equity capital," said Nasdaq's chief executive, Robert Greifeld, who will be chief executive of Nasdaq OMX Group. The deal brings together the largest electronic stock market in the United States and the owner of the share markets in Stockholm, Helsinki, Copenhagen, Iceland and the Baltic states as well as OMX's market technology business, which accounts for over a third of its annual turnover. (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 26. Watchdog puts back Scor offer period for Converium ZURICH, May 25 (Reuters) - The Swiss Takeover Board said on Friday that the start of Scor's (SCOR.PA: offer period for Swiss reinsurer Converium (CHRN.S: should be put back to June 12. Earlier in May, French rival Scor ended a protracted takeover struggle for Converium after it raised its bid to 3.4 billion Swiss francs ($2.77 billion). Converium advised its owners to accept Scor's increased cash-and-share offer. Scor already held a 32.9 percent in the group. But the offer period, originally scheduled to start on May 29, has been repeatedly put back because of legal wrangling in the United States. Scor said it regretted the takeover board's decision. "This decision will delay the progress of the friendly offer, which was unanimously accepted by Converium's board of directors and executive committee and approved by Scor's extraordinary shareholders' meeting on 26 April," Scor said in a statement. Scor said that it reserved the right to reject the takeover board's recommendation during a period of five trading days as from its notification, pursuant to and in accordance with applicable laws and regulations. "Scor is all the more surprised by this postponement given that the complaint filed by Converium in the United States on 16 April 2007 has been withdrawn on 10 May 2007," Scor said. Reporting by Katie Reid, editing by Martin Golan ($1=1.228 Swiss Franc) Keywords: CONVERIUM SCOR/ (C) Reuters 2007. All rights reserved. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 27. Growth In Thailand's Insurance Industry Expected Despite Challenges, S&P Reports Say HONG KONG May 23, 2007--Thailand's insurance industry shows considerable promise for life and non-life players despite the challenges and competition expected, said Standard & Poor's Ratings Services today in its "Thailand Insurance Outlook 2007-2008" series of articles. These views were published in two articles titled "Thai Life Insurers Embark On A Long, Rocky Path To Growth" and "Regulatory Shakeup Should Spur Consolidation Among Thailand's Non-Life Insurers." In the Thai life insurers article, Standard & Poor's notes that the country's low penetration rates offer solid longer-term growth prospects for the players in the sector. "Life premium growth should pick up this year, boosted by tax incentives, GDP growth, and the rising attraction of insurance products with savings elements following a drop in interest rates earlier this year," said Standard & Poor's credit analyst Paul Clarkson. www.ratingsdirect.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 28. Guaranteed Minimum Withdrawal Benefit Launched in Integrity Variable Annuities Retirement Confidence Rider Pairs Guarantees with Growth Potential CINCINNATI--(BUSINESS WIRE)--Integrity Life Insurance Company (Integrity) today introduced a new variable annuity living benefit rider that can guarantee investors regular income for life — no matter how financial markets fare.1 Designed to maintain, sustain and potentially gain income during retirement, Guaranteed Lifetime Income Advantage, a guaranteed minimum withdrawal benefit (GMWB) rider, also offers investment flexibility and control. www.westernsouthern.com Return to Headlines - - Print Article / Read Entire Article / E-Mail Article 29. Guy Carpenter Publishes Report on Legislative and Judicial Trends in Continental Europe LONDON--(BUSINESS WIRE)--Guy Carpenter & Company, LLC, the leading global risk and reinsurance specialist and a part of the Marsh & McLennan Companies (NYSE: MMC), today announced the publication of Recent Legislative and Judicial Trends in Continental Europe Affecting the Casualty Insurance Industry, a new report produced by the firm’s International Casualty Specialty Unit, in conjunction with the international law firm DLA Piper. The report, the second in a bi-annual series, provides a brief summary of key legislative and judicial changes taking place in Continental Europe on a territory-by-territory basis, including Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden and Switzerland. “We launched this series to help insurers and reinsurers navigate an increasingly complex legal liability environment in Continental Europe,” said George Carrington and David Lewin, of Guy Carpenter’s International Casualty Specialty practice. “Our aim is to provide a concise overview of the major legal and legislative trends on a country-by-country basis, focusing specifically on those developments that have the greatest impact – or potential impact – on organizations covering legal liability risks. We would like to extend our thanks to DLA Piper for their outstanding assistance in assembling this report.” A copy of the full report is available for download at www.guycarp.com. For printed copies, please contact Guy Carpenter at marketing@guycarp.com. Return to Headlines - - Print Article / Read Entire Article / E-Mail Article
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