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EGI Financial Holdings Inc. (“EGI” or “the Company”) (TSX: EFH), which operates in the property and casualty insurance industry in Canada, the United States and Europe, today reported that it has entered into a definitive stock purchase agreement with White Pine Insurance Company (“White Pine”), a Michigan-based specialty insurance company, to sell its United States non-standard automobile insurance operations.

EGI announced that the transaction will result in a pre-tax $5.7 million reduction in book value, which will be reflected in its third quarter financial statements.

“The results of our U.S. business were not tracking to profitability as quickly as originally planned”, commented Steve Dobronyi, Chief Executive Officer. “The exit from the U.S. is expected to add $0.30 per share to our annual 2014 earnings and will allow management to concentrate its time and resources on our profitable Canadian and European businesses.”

“I would like to recognize the extraordinary effort that our U.S. team has put into this business”, Mr. Dobronyi continued. “They have completely built the entire operations from the ground up – the systems, products, agency plant and the entire infrastructure. They should be very proud of their accomplishments and excited to be working with a new shareholder that will invest strategically in the business.”

White Pine President Brian J. Roney adds, “EGI US fits well with our goal of growing through the addition of niche specialty insurance companies that complement our overall diversification strategy. We are pleased to welcome a new group of agents, insureds and employees to our organization.”

Under the terms of the agreement, White Pine will purchase EGI Insurance Services, Inc. (“EGI US”) and all subsidiary companies, including American Colonial Insurance Company (“American Colonial”), a Florida domiciled insurance company and EGI Insurance Services (Florida), Inc., a Florida based managing general agency. The transaction is expected to close in the fall, subject to regulatory approval.

American Colonial wrote US$10 million of direct premiums in 2012. It is currently writing new and renewal non-standard automobile insurance in Florida and also has insurance licenses in Georgia, Louisiana and Alabama.

EGI will remain responsible for the run-off of its discontinued Texas operations.

Philo Smith & Co. acted as exclusive advisor and agent to EGI. McKenna Long & Aldridge LLP (MLA) acted as legal counsel.

Read more: http://www.digitaljournal.com/pr/1405241#ixzz2bSHlrknw

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Impact Forecasting, the catastrophe model development center of excellence at Aon Benfield, today releases the latest edition of its monthly Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during July 2013. Aon Benfield is the global reinsurance intermediary and capital advisor of Aon plc (NYSE: AON).

The report reveals that strong thunderstorms brought record rainfall to the greater Toronto metropolitan region, resulting in Canada’s second billion-dollar natural disaster event of 2013 – the first being an extensive flood event that inundated the province of Alberta in June.

No fatalities or serious injuries were reported amid the flooding and power outages, and total economic losses were estimated to approach CAD1.5 billion (USD1.45 billion), with an expectation that roughly half of that cost will be covered by insurance (CAD750 million (USD730 million)).

Meanwhile, three stretches of severe weather impacted the United States during the month, comprising highly damaging straight-line winds and hail. Total combined economic and insured losses were expected to reach hundreds of millions of dollars (USD).

Steve Jakubowski, President of Impact Forecasting, said: “With the calendar turning into August, the focus in the United States begins to shift from tornadoes to hurricanes as we begin to enter the peak of the Atlantic Hurricane Season. The U.S. remains in a record stretch without a major hurricane landfall (Category 3+), though recent history with Superstorm Sandy (2012), Hurricane Irene (2011) and Hurricane Ike (2008) shows that storms with weaker intensities can still cause catastrophic damage. Historical averages suggest that the U.S. is overdue for a major hurricane landfall, and we’ll watch to see what the rest of the 2013 season brings.”

Elsewhere during the month, seasonal rainfall swept across several Asian countries.

China was among the hardest-hit, with three stretches of severe rainfall killing more than 225 people and causing economic losses in excess of USD1.0 billion.

Monsoon rains prompted renewed flooding and landslides in northern India, killing at least 174 people in the state of Uttar Pradesh.

Elsewhere in Asia, excessive rainfall resulted in dozens of casualties and severe damage across Indonesia, Myanmar, Thailand, Vietnam, Japan, and North Korea.

A magnitude-5.9 earthquake occurred in China’s Gansu Province, killing at least 95 people, injuring 2,840 others, and causing total economic losses at CNY20 billion (USD3.25 billion) according to the Ministry of Civil Affairs (MCA), with an estimated 80,000 homes damaged or destroyed.

Also in Asia, a magnitude-6.1 earthquake impacted Indonesia’s Aceh Province, killing at least 39 people and injuring more than 2,362 others. The heaviest damage was recorded in the districts of Bener Meriah and Central Aceh, where a combined 16,019 homes and 626 public facilities were damaged or destroyed.

In New Zealand, a magnitude-6.5 earthquake occurred in the Cook Strait causing minor damage across the North and South islands. Four people were injured and the New Zealand Earthquake Commission (EQC) reported that at least 3,128 insurance claims had been filed, resulting in an estimated insured loss of NZD50 million (USD40 million).

Three tropical cyclones affected Asia during July, the costliest being Super Typhoon Soulik, which caused USD460 million in economic damages after making landfall in Taiwan and China. Meanwhile, Typhoon Rumbia caused economic losses of USD177 million in China after affecting the provincial regions of Guangdong, Guangxi and Yunnan; and Tropical Storm Cimaron made landfall in China’s Fujian Province, causing an estimated USD253 million in economic damages.

Hurricane Erick skirted the western Mexico coastline, killing two people; while Tropical Storm Chantal degenerated while crossing the Caribbean Sea

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Insuremywedding.co.uk is a website dedicated to providing insurance for that all important wedding day.

Lynda Holland of Insure My Wedding explained “Everybody wants their wedding day to go off without any problems; however, things can go wrong and with the average wedding costing in excess of £20,000 you could be left seriously out of pocket.”

The website allows you to buy a policy in minutes from as little as £29.95 and apart from cancellation, offers cover for wedding gifts, clothes, rings, cakes, transport photography and personal liability.

“Our website covers all types of weddings and civil partnerships”, continues Holland, “that includes overseas weddings as well. Not only that, we can also cover wedding extras like marquees and ceremonial swords”.

http://www.insuremywedding.co.uk allows customers to quote and buy on-line using their PC or Mobile device and is also backed up by a UK based call centre. The site is owned and operated by CETA Insurance, who have been providing insurance for 20 years.

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Standard & Poor’s Ratings Services today said it affirmed its unsolicited public information (pi) insurer financial strength and counterparty credit ratings on Danish non-life insurer GF-Forsikring A/S (GF) at ‘BBBpi’.

The ratings predominantly reflect our view of the company’s fair business risk profile, mainly driven by a limited competitive position and operating underperformance relative to domestic peers, and an upper adequate financial risk profile, based on its moderately strong capital and earnings. The company’s strong capital adequacy, partially offset by the small absolute size of its capital base, supports its moderately strong capital and earnings. We combine these factors to derive a ‘bbb’ anchor for GF.

GF faces low industry and country risk, in our view, because it writes its business solely in the stable Danish non-life market, characterized by favorable profitability. Still, we believe that the currently low interest rates and volatile financial markets could strain earnings. While we recognize moderate product risk exposure for the Danish non-life sector, we consider that GF carries higher product risk in its accident and health activity, based on its poor results over the past five years.

We view GF’s competitive position as less than adequate. GF writes its business through 67 insurance clubs, which collectively own GF. The company enjoys a unique business feature, as only motor policyholders become members of their respective insurance club, and profits made on motor insurance are paid back to members in the form of discounts and rebates. Gross premium written (GPW) increased by 1.5% to Danish krone (DKK) 1.53 billion in 2012 (€205.6 million). GF writes all its business in its domestic market, albeit with a diverse business mix. In 2012, motor liability represented 23% of GPW, motor damage 20%, property and casualty 42%, and accident and health 14%.

We regard the company’s capital and earnings as moderately strong. Over 2013-2015, we expect GF to maintain its capital adequacy above our benchmark for the ‘A’ level, based on our risk-adjusted capital adequacy model. However, due to the small absolute size of its capital base, the company is susceptible to volatility in its capital adequacy. Net income rose to DKK119 million from DKK17 million in 2012, driven by a favorable combined ratio (loss and expense) of 98% (against 101.3% in 2011), and increased net unrealized gains of DKK60 million. The combined ratio would have been about 6 percentage points lower than reported excluding the company’s material reserve strengthening in 2012. We view the underwriting performance as moderate, based on GF’s five-year average net combined ratio of 101.8%. Its five-year average return on equity is low at 2.5%. In the past five years, GF posted technical losses in accident and health, except in 2009, when it reported a technical profit.

We believe that regulatory capital remains well above intervention levels, given that in 2012 GF reported its regulatory solvency requirements as covered by a multiple of 5x and its individual solvency requirements, based on Solvency II principles, as covered by a multiple of 3.1x. In our view, the company’s technical reserves are adequate. Loss reserves covering net premium written improved to 72.3% in 2012, from 65.1% in 2011. We note that the company experienced a significant reserve run off loss of 9% in 2012 (after -2.3% in 2011, 2.7% in 2010, 0.8% in 2009, and -1.6 in 2008). The company makes limited use of reinsurers, with a reinsurance utilization ratio of 2.3% for 2012 against 3.4% in 2011. GF states that it uses only reinsurers with at least an ‘A’ rating from Standard & Poor’s.

In our view, GF’s risk position reflects moderate risk, based on low volatility in underwriting results but high investment risk. However, its loss ratios are traditionally relatively high, ranging between 77% and 86% over the past five years. Investment risk is also high, evidenced by GF’s substantial equity-type investments amounting to 16.8% of its invested assets. In our view, the equity investments bear inherent and sizable market risk, which exposes the company to volatility in capital and earnings. Still, we view favorably the company’s efforts in asset derisking under which it reduced its equity investments to the current 16.8% from 42.4% in 2010. In 2012, the company invested 74% of its invested assets in bonds, 6% in cash and cash equivalents, and 2.4% in real estate.

We consider GF’s financial flexibility to be adequate. The company’s access to external sources of capital is limited because of its mutual-like structure. However, we factor in GF’s track record to tap credit facilities from its house bank. Total debt increased to DKK52 million in 2012 from DKK27 million in 2011, translating into a relatively low financial leverage ratio of 4.5% compared with 2.7% in 2011.

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AIR Worldwide (AIR) today announced that it has updated its Multiple Peril Crop Insurance (MPCI) Models for the United States and China.

These are weather-based models that estimate underwriting gains and losses based on crop yield probabilities in the context of current conditions. Munich Re, a leading global reinsurer, has licensed the updated models to enhance its risk management capabilities for its catastrophe-exposed agricultural treaties.

“The risk associated with agricultural insurance portfolios is extremely complex, which makes them challenging for insurance and reinsurance carriers participating in the U.S. MPCI program,” said Lambert Muhr, senior underwriter for agricultural risks, Munich Re. “The ability to analyze the sensitivity of agricultural portfolios to different yield and price volatility scenarios is available in AIR’s new model. That represents a major advantage given the recent changes in overall premiums, premium rates, and other uncertainties affecting this market.”

The MPCI Model for the U.S. accounts for the latest Standard Reinsurance Agreement (SRA) released by the U.S. government to estimate retained losses for the crop insurer. With the Version 15 release of AIR’s CATRADER® system, the model was also enhanced to include multiple price volatility catalogs that allow for more refined reinsurance analysis given increasing uncertainty in commodity market prices. Another update is the ability for the model user to modify industry premiums by adjusting default values as the U.S. government changes premium rates of the key program crops. Finally, the historical event catalog has been updated to incorporate all years from 1974 through 2011, and additional reporting tools have been added for easy manipulation and visualization of model results.

The MPCI Model for China has been updated to include the latest policy conditions used in the market and an updated database of industry exposure.

“Weather is the predominant driver of agricultural losses in China, and AIR’s crop model properly accounts for weather events at a very high resolution,” said Karl Murr, head of agriculture, Munich Re. “The model provides a holistic view of our risk and will be a central part of our China agricultural portfolio risk assessment process.”

AIR’s MPCI Model for the United States was first released in 2007. Currently, it is the leading independent pricing model for the crop reinsurance industry. Last year, the majority of the traditional crop reinsurance transactions were analyzed using the AIR U.S. MPCI Model. Crop insurance companies are using the AIR U.S. MPCI Model results to assess policy risk and allocate policies to the various risk-sharing funds available in the SRA program as part of their fund designation process. The model is also being adopted by investors in the ILS crop risk transfer markets.

AIR released the industry’s first Multiple Peril Crop Insurance Model for China in 2011. It provides a fully probabilistic approach for determining the likelihood of losses to the country’s major crops of corn, cotton, rapeseed, rice, soybeans, and wheat. The model employs AIR’s advanced Agricultural Weather Index(TM) to capture the significant effects that weather-related perils have on each crop during different growth stages. It explicitly models damage resulting from various weather perils, including drought, floods, and typhoons, which are the leading causes of crop loss in China. The model accommodates China’s complex policy conditions, which vary by crop type, peril, and province.

“The AIR crop models for the United States and China address significant weaknesses found in traditional crop models,” said Dr. Oscar Vergara, business development manager at AIR Worldwide. “To provide the most accurate probabilistic estimate of potential crop portfolio losses, they account for the effects of weather, technology improvements over time, changes in policy types and their market penetration, and changes in government protection agreements.”

About Munich Re
Munich Re stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. This is how Munich Re creates value for clients, shareholders and staff. In the financial year 2012, the Group – which combines primary insurance and reinsurance under one roof – achieved a profit of €3.2bn on premium income of around €52bn. It operates in all lines of insurance, with around 45,000 employees throughout the world. With premium income of around €28bn from reinsurance alone, it is one of the world’s leading reinsurers. Especially when clients require solutions for complex risks, Munich Re is a much sought-after risk carrier. Its primary insurance operations are concentrated mainly in the ERGO Insurance Group, one of the major insurance groups in Germany and Europe. ERGO is represented in over 30 countries worldwide and offers a comprehensive range of insurances, provision products and services. In 2012, ERGO posted premium income of €19bn. In international healthcare business, Munich Re pools its insurance and reinsurance operations, as well as related services, under the Munich Health brand. Munich Re’s global investments amounting to €214bn are managed by MEAG, which also makes its competence available to private and institutional investors outside the Group.

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The ACE Group has announced the appointment of Eric Larson as Chief Compliance Officer, effective today. In this role, Mr. Larson will have direct oversight of ACE’s compliance staff in all regions and will have responsibility for implementing the company’s worldwide compliance strategy.

He will work directly with senior management, division presidents and regional management, as well as the Chairman and CEO, providing counsel on a wide range of compliance-related matters. Based in New York, Mr. Larson will report to Joseph Wayland, General Counsel, ACE Limited.

Mr. Larson succeeds Ashley Mullins, who has been named Global Compliance Counsel. In this new role, Mr. Mullins will be responsible for the coordination of global, regional and local compliance policies and standards, providing guidance to compliance counsel in all regions as well as providing counsel in connection with significant compliance-related internal investigations and government examinations. He will continue to be based in New York and report to Mr. Wayland.

“I am delighted to welcome such a talented compliance executive as Eric to ACE,” said Mr. Wayland. “His extensive experience in senior legal and compliance roles in which he established and enhanced global compliance functions for leading companies in the insurance, brokerage and banking sectors will be critical in helping us achieve our growth strategies around the world. At the same time, I would like to thank Ashley for his leadership and development of the global compliance function over the past two years and look forward to his continued contributions to our global compliance strategy in his new role.”

With more than 30 years of legal experience in the financial industry, Mr. Larson most recently served as Chief Compliance Officer for HSBC’s North American businesses after holding senior legal and compliance leadership roles with Standard Chartered Bank and Willis Group. Previously, Mr. Larson had a 21-year career with Citigroup and predecessor companies, where he advanced through a series of legal and compliance roles of increasing responsibility. He earned a B.A. degree from the University of Connecticut and a J.D. degree from California Western School of Law.

Mr. Mullins has served as ACE’s Global Compliance Officer since 2011. He joined ACE in 2002 as Legal Counsel to ACE’s Asia Pacific region. In 2006 he was appointed Company Secretary and General Counsel of ACE’s Australia and New Zealand operations.

The ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.

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    The Met Office has issued a weather warning for : London, South East England, Wales, South West England, South East England and West Midlands.  Heavy Snow is expected from 0800 Wed 20 Jan to 1800 Wed 20 Jan.

    Rain is expected to turn to sleet or snow, especially over hills, at times today with accumulations of 2 to 5cm. Locally 8cm is possible over higher ground.

    The public are advised to take extra care and refer to the Highways Agency for further advice regarding traffic disruption on motorways and trunk roads.

    Outbreaks of sleet and snow will continue through the day. Accumulations of 2 to 5 cm of snow are likely in places with up to 8 cm possible over the higher ground.

    The public are advised to take extra care and refer to the Highways Agency for further advice regarding traffic disruption on motorways and trunk roads.

    To take action to prevent or protect your home or business against water damage from burst or frozen pipes you can find all you need to know about flood and natural disaster insurance below:

    Advice on coping with bad weather when driving

    Advice to motorists during ‘big freeze’

    Property owners at risk from serious water damage claims

    All you need to know about flood and natural disaster insurance

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    Ship owners are facing a more modest range of general increases – at 4.54% on average – on their protection and indemnity (P&I) premiums at the annual February renewal, as predicted by Aon in its Mid-Term Review (published 20 August 2009). The global insurance broker forecasts that the 2010 round of increases will generate an extra $159 million for P&I clubs in its P&I 2010 Pre-renewal report, launched today.

    Despite the seismic upheaval in the world’s economies, Aon suggests that the mutual market had been steadily, over recent renewals, getting to grips with basic fundamentals of underwriting to near balance and reducing reliance on investment income. A number of clubs resorted to additional supplementary calls to reflate their balance sheets and a number down risked their investment stategy too late. Nevertheless, Aon believes that the reinforcement of these fundamentals has aided recovery.

    Aon cautions that events of the last 18 months have starkly exhibited that the mutual system is over sensitive to external forces. Large claims (in excess of $7 million) for 2009, at this very immature stage, already show a level that could, potentially, outstrip 2006 and 2007.

    Stephen Hawke, head of Aon’s marine liability team, commented: “The early outlook for the medium-term is cautiously positive. Absent catastrophic world events we would suggest low single digit increases for renewals in 2011 and 2012.”

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    Your State Pension is paid directly into your bank, building society, Post Office® or National Savings account that accepts Direct Debit payment.

    If you’re registered blind or need someone else who cares for you to collect your money you can be sent a cheque to cash at the Post Office®.

    Putting off claiming your State Pension until later

    You don’t have to claim your State Pension as soon as you reach State Pension age. If you wish, you can put off claiming it and get a higher weekly amount or the option of a one-off taxable lump sum payment instead.

    If you are thinking about deferring your State Pension you need to consider how the changes to State Pensions from April 2010 may affect your decision.

    What to do if your circumstances change

    You should tell The Pension Service if:

    • you go into or come out of hospital
    • you go abroad to live or for a long visit
    • you go into a care home

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    It is unlikely that pension scheme deficits will recover without proactive management, according to Aon Consulting. The aggregate pension fund deficit in company accounts for the 200 largest UK privately sponsored pension schemes ballooned again in November from £78 billion to £88 billion.

    The £88bn deficit would take drastic action to repair. If it were to be reduced to zero over the next seven years, this would require investment returns of 11% per annum, equivalent to the FTSE100 reaching 9000; or company contributions of £15bn per annum (purely to clear the deficit, excluding all costs for new benefits).

    In practice, the deficit could be recovered by a combination of these approaches but Aon believes that many schemes will be considering reducing members’ benefits to help manage their deficits.

    It is likely that increased contribution requirements stemming from the market falls over the past two years will drive employers into reconsidering the future of their schemes.  Common options are scheme closure, whereby no future pension is provided from the scheme and benefits are frozen (so that the link between salary and pension is lost) or providing a lower pension.

    The prospects for the provision of defined benefit pensions seem bleaker still when the wider move to make pension funding more rigorous is considered. The Pensions Regulator’s recent requirement for greater scheme funding has pushed up contribution requirements for companies.

    On top of this, Solvency II (not yet applicable to pension funds) is likely to raise the cost of purchasing annuities, while the UK Accounting Standards Board is proposing that risk-free discount rates be used when determining the pensions deficit on the company balance sheet. Both these dynamics are likely to discourage DB pension provision even further.

    Commenting on the latest figures, Marcus Hurd, head of corporate solutions at Aon Consulting, said:     “As things stand, the inescapable reality is that pension deficits are here to stay until the final salary scheme is passed across to an insurance company and employers will have to think carefully about how to handle the situation.

    “There is no quick fix imminent in financial markets and the size of the challenge for UK companies is immense.  In order for pension schemes to return to balance in aggregate within the next seven years, we need either the FTSE to return 11% per annum or for companies to inject £15bn per annum.

    “In addition, the measures to value final salary pension scheme liabilities are under severe pressure to become even stronger, making pension deficits look even greater. There is no easy way of clearing a pension scheme deficit and as employers wake up to the reality of their pension promises, we would expect to see more and more companies shying away from defined benefit schemes and looking to the lower risk defined contribution options instead.”

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    Insurance, investments and pensions group LV= is the new title sponsor of the LV= Cup, rugby’s Anglo-Welsh tournament. The competition is jointly managed by the Rugby Football Union (RFU) and the Welsh Rugby Union (WRU).

    LV= has over 3.6m customers and employs over 3,800 people, and has been expanding its businesses and its sponsorships. The initial two-year deal for the LV= Cup, with an option to renew for a further two years, will build on LV=’s existing investment in Rugby Union and complements its LV= County Championship sponsorship in cricket.¹

    The high profile LV= Cup is a 16-team competition involving the 12 English Guinness Premiership clubs and four Welsh regional teams. This year’s competition commences on 5 November 2009 and the final will be played in March 2010 at a neutral venue to be confirmed. The eventual winner, if an English club, will gain a place in the Heineken Cup for next season.

    The tournament already has a broadcaster, with Sky Sports committed to promoting the LV= Cup. They will screen one live match per round, plus the semi-finals and final, for the next five years. The competition also has a committed supporter base with an average of 8,500 spectators at each pool game over the last three years, and 55,000 attending last April’s final at Twickenham Stadium.

    The RFU, WRU and LV=, as well as Premier Rugby Limited (PRL) and Regional Rugby Wales, which oversee the teams playing in the competition, have all jointly committed to extensively promote the LV= Cup using existing channels and media.

    David Radford, LV=Group Marketing Director, commented    : “We are delighted to be extending our sponsorship interests in rugby with The LV= Cup. As an expanding business we see The LV= Cup providing a good fit with our target audiences and we’re pleased to put our support behind this popular competition.”

    Francis Baron, Rugby Football Union (RFU) Chief Executive, added: “The Anglo-Welsh Cup is rich with heritage and history stretching back over many years, much like LV=. This year’s tournament promises to be as exciting and hard fought as ever with the ultimate prize of a place in the Heineken Cup on offer for any English club that wins. In addition we believe the new structure will give players, coaches and supporters an exciting tournament that embodies all that’s best about cross-border knockout competition, and further showcases the game.”

    Roger Lewis, Welsh Rugby Union (WRU) Chief Executive, concluded: “Anglo-Welsh rivalries are among the oldest in world rugby and this competition will once again stir a huge amount of excitement from players, coaches and fans. The Welsh Rugby Union has always championed this competition and so we very much welcome LV= as title sponsors of the tournament and Sky as host broadcaster. We look forward to another season of top class rugby between the best English clubs and our Welsh regions.”

    Note : ¹ LV= has been the title sponsor of the LV= County Championship, the premier domestic cricket championship since 2002.

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    The US banking industry returned to profit in the third quarter, but the government insurance fund went into deficit for the first time since 1992, regulators announced Tuesday.

    The Federal Deposit Insurance Corp. said commercial banks and thrifts earned a collective 2.8 billion dollars in the third quarter.
    This came after a collective 4.3 billion dollar loss in the second quarter, and the profit was well above the 879 million dollars the industry earned in the same period in 2008.

    But the sector is still feeling the effects of the deep financial crisis triggered by a collapse of the US housing market and global credit crunch.

    FDIC chairman Sheila Bair said: “Today’s report shows that, while bank and thrift earnings have improved, the effects of the recession continue to be reflected in their financial performance”.

    More than 26 percent of all insured institutions reported a net loss in the latest quarter, and total loan balances declined by the largest percentage since quarterly reporting began in 1984, the FDIC said.

    As projected in September, the FDIC’s deposit insurance fund balance fell below zero for the first time since the third quarter of 1992.

    The fund balance of negative 8.2 billion dollars reflects a 38.9 billion dollar contingent loss reserve that has been set aside to cover estimated losses over the next year.

    The FDCI report showed total loans and leases declined by 210.4 billion dollars, or 2.8 percent, during the quarter.

    Loans to commercial and industrial borrowers declined by 6.5 percent, residential mortgage loan balances fell by 4.2 percent, and real estate construction and development loans dropped 8.1 percent.

    “There is no question that credit availability is an important issue for the economic recovery,” Bair said.

    “We need to see banks making more loans to their business customers. This is especially true for small businesses that rely on FDIC-insured institutions to provide over 60 percent of the credit they use.”

    The FDIC noted that 124 banks had failed so far this yer, and the number on the “problem list” grew to 552,the highest number in 16 years.

    “For now, the credit adversity we have been discussing for some time remains with us, and we expect that it will be at least a couple of more quarters before we see a meaningful improvement in that trend,” Bair said.

    “Despite the challenges, I am optimistic that if we address these problems head-on, we will see clear signs of improvement in bank earnings and lending in 2010
    The FDIC noted that it has 23.3 billion dollars of cash and marketable securities on hand. It has moved to bolster its position by approving a measure on November 12 to require insured institutions to prepay three years’ worth of deposit insurance premiums — about 45 billion dollars — by the end of 2009.

    “This measure will provide the FDIC with the funds needed to carry on with the task of resolving failed institutions in 2010, but without accelerating the impact of assessments on the industry’s earnings and capital,” Bair said.

    With AFP, Washington Nov 24, 2009

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    AmyBarnes_smjpgMarsh announces the appointment of Amy Barnes as a Development Executive in its Aberdeen office. Ms Barnes will focus on driving business development in the independent oil and gas sector in Scotland and supporting local service delivery for Marsh’s London-based Energy Practice clients.

    Ms Barnes has worked for Marsh’s Energy Practice for eight years, specialising in risk financing for super-major and independent oil and gas companies.

    Commenting on Ms Barnes’ appointment, Ron Thomson, head of Marsh’s Aberdeen office, said: “With her incisive understanding of the risk and insurance issues that concern our clients the most, Amy will be a strong asset to our team. The global economic downturn has touched all parts of the global oil and gas industry and Aberdeen has not been immune to its effects. I look forward to working with Amy as she delivers innovative solutions that add value to our clients and help them to manage through the downturn.”

    Ms Barnes said: “By putting risk management at the centre of all that they do, oil and gas firms can reduce uncertainty and obtain a clearer picture of consequences of their investment and other business decisions. By having a more complete picture of the risks facing their organisations, oil and gas companies can gain a stronger competitive footing that will be key to success as the economy recovers.”

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      The ABI has issued advice to people who have suffered flood damage following the recent heavy rainfall.

      • Household and business insurance policies cover flood damage. If you have been affected, contact your insurer as soon as possible.  Most offer 24-hour emergency helpline services to arrange for repairs to be carried out and damage to be inspected.
      • If necessary, arrange for temporary repairs to be carried out to stop any damage getting worse. Keep receipts, as these will be needed for your insurance claim.
      • Most policies will cover the cost of alternative accommodation (up to a specified limit) if you need to move out of your home while it is being repaired.
      • Comprehensive motor insurance will cover flood damage caused to vehicles.
      • Do not use electricity or water supplies until the all clear is given.
      • Once flood water has receded, disinfect floors and furnishings. Where practical, leave doors, windows and cupboards open. If possible, keep rooms heated.
      • Do not rush to redecorate, as it may take some weeks for the property to fully dry out.
      • Don’t do anything that puts you or your family at risk.

      Nick Starling, the ABI’s Director of General Insurance and Health, said: “Events like flooding highlight why insurance is so important. The first priority for insurers will be to ensure that every claim is dealt with as quickly as possible and they will do everything they can to help customers recover.”

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      Aon, the UK’s leading insurance broker, is warning that insurers may reduce the amount of capital they’re willing to commit to the food industry in Q4 2009 and into 2010. Only companies that can evidence a constructive and proactive approach to understanding and managing risk will maintain a positive response from insurers.

      By comparison, nearly all other UK sectors are likely to see little change in rates for property, liability and motor insurance if renewing their policies in Q4, according to Aon’s Market Pulse* that monitors insurers’ premium predictions.

      Some 70% of underwriters are predicting motor rates to move slowly upwards during the end of 2009 but 68% and 64% expect no rate change or decreases in property and casualty insurance, respectively.

      Insurers’ desire to increase rates has been thwarted by the entry of new capacity into the mid-market further driving competition. Increased pricing attracts new capacity to the sectors perceived to be problematic or challenging but this has proven to normally mean increased premiums.

      Steve Redgwell, head of broking for Aon’s mid to large sized companies, said: “Competition remains very strong as we come to the final months of 2009, which will keep rates at the levels already experienced in the first three quarters of 2009. Into 2010, however, a combination of a continued softening market over the past five to six years, lower reserve releases and weak investment returns will lead to premium increases. This will be at a slower pace than previously predicted.

      “The market remains very competitive and whilst rate increases have mainly been selective and imposed on poorer performing trades and risks, the view of insurers is that increases will start to show on a more general basis in 2010.”

      * Aon Market Pulse is a quarterly index that tracks the UK underwriters’ premium predictions for property, liability and motor fleet insurance. The insurers surveyed underwrote £23.5 billion worth of premiums for UK companies in 2008.

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      This is a way of protecting yourself against some of the costs involved when funding a legal dispute, which can be very expensive.

      The cover often provides for legal advice helplines, as well as the costs of appointing solicitors, expert witnesses and representation if the claim goes to court.

      It can be bought along with some insurance policies. For example, some companies selling motor and household contents insurance may include this cover as a free add-on, while others give you the option to attach the cover for an additional premium.

      Check

      • if you’ve decided you want this type of cover, check your motor or household contents insurance policies – you may already have this cover written into your insurance.
      • you should also check your insurance policy documents carefully to make sure you understand what you are covered for, the level of cover and any limitations that apply. For example, in most circumstances you may not be able to choose which lawyer is instructed – the insurance company usually appoints a lawyer to act for you.
      • this type of cover normally allows the insurer to withhold or withdraw funding if there isn’t a ‘reasonable prospect of success’, which usually means that you have a 51% or better chance of winning or defending your case.

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      Group highlights

      • Group gross written premium for the nine months of 2009: £308.2 million, up 15.1% (Q1-Q3 2008: £267.8 million)
      • Rate increases averaged 9% for the first nine months of 2009 (Q1-Q3 2008: 7% reduction)
      • Investment return during the first nine months of 2009: £26.5 million (Q1-Q3 2008: £32.0 million). This equates to an annualised return on average invested assets of 3.34% (Q1-Q3 2008 annualised return: 4.44%)
      • A more benign claims experience in the three months to 30 September 2009 compared to the first half of the year
      • Novae’s bank facilities increased and extended


      British non-life insurer Novae Group Plc said on Wednesday a healthy third-quarter profit helped in offsetting losses at its credit and aviation reinsurance business in the first half.

      While Novae expects its aviation reinsurance business to benefit from rate increases in the fourth quarter, it remains cautious about the specialty business, the largest of its four reporting segments.

      Novae, which had swung to a pretax loss of 2.1 million pounds ($3.52 million) in the first half of the year, said it expected increasing diversification of its underwriting portfolio to help the company in 2010.

      “If the steady improvements enjoyed during the third quarter are maintained for the remainder of the year, we can counter the disappointments of the first half,” Chief Executive Matthew Fosh said in a statement.

      During the nine months ended Oct. 31, the company’s gross written premium rose 15 percent to 308.2 million pounds.

      Investment return during the period was 26.5 million pounds, compared with 32.0 million pounds in 2008.

      Click here to read the full quarterly results

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      Hannover Re raised its 2009 earnings targets after third-quarter results beat expectations thanks to low damage claims and revitalised investment income, sending its shares up more than 3 percent.

      The world’s fourth-biggest reinsurer’s repeated predictions of strong growth in its property-casualty and life and health reinsurance business have boosted the share price by more than 40 percent so far this year.

      The company said it expected to post “a very good result” for 2009, and raised its outlook to an after-tax return on equity of above 20% from the previous goal of at least 18%, and earnings-per-share of at least €5.75 ($8.55) compared with the previous target of €5.

      Net profit was €159.4 million in the third quarter compared with a net loss of €395 million a year earlier. Gross premium income rose 23% to €2.42 billion from €1.96 billion, boosted by the contribution of the U.S. individual-life-reinsurance portfolio that Hannover Re bought from Bermuda-based reinsurer Scottish Re Group Ltd. in the first quarter.

      Hannover Re, has now posted net profit in three consecutive quarters as the financial crisis has eased.

      Chief Executive Ulrich Wallin said: “With our result for the third quarter, we have secured a very good foundation and are in a position to raise our profit target for the full financial year,”

      Hannover Re also said it aims to pay a dividend of at least €2 a share. Around this time last year, Hannover Re warned on full-year profit and said it would omit a dividend for 2008, because of a higher-than-budgeted hurricane bill and hefty write-downs related to the financial crisis.

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      Aon Trade Credit, the UK’s largest credit insurance broker, has appointed Elizabeth Jenkin as sector leader for pulp and paper products in the UK. She will be responsible for leading a specialist team to deliver broking and technical support to the trade.

      Elizabeth has worked for Aon Trade Credit for 11 years and is a director in the team. Previously, she was an underwriter at Euler Hermes, working in the forest products team.

      Elizabeth commented: “The pulp and paper sector has faced a tough two years, seeing insurers cut back on credit insurance cover while pushing up rates. We’re working with the sector to deliver bespoke trade credit solutions, alongside credit management products that may complement, enhance or replace a traditional trade credit policy. Our objective is to use Aon’s leverage in the credit insurance market and knowledge of the sector to be the first choice for pulp and paper companies.”

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