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Aon Benfield has launched the ‘CRO Guide to Solvency II’ to help chief risk officers (CROs) maintain a competitive position and boost financial strength while meeting regulatory compliance. The report aims to unravel the complexities of Solvency II and provide practical advice for a successful implementation.

The guide provides a high level overview of the current Solvency II landscape and highlights the key areas of best practice. Equally, all insurance company professionals involved in Solvency II can benefit from the insight to help better understand the demands of the CRO and how to optimise the flow of information to the board level.

The publication is structured around the three pillars of Solvency II under the themes of capital management, risk management and data quality. Key pieces of advice in the guide include:

– Reinsurance remains the best mechanism for mitigating the risks and associated capital charges under Solvency II.  Since most firms target a Solvency II ratio substantially above 100%, the effect of leverage on required capital makes reinsurance more cost efficient than raising additional equity in today’s market.

– Making the link between optimising return on capital, managing the volatility of results and delivering within risk appetite is a good way to incentivise senior management to use the results of internal models in strategic decision making.

– Operational risk management should be developed for business rather than for regulatory considerations. Accurate and complete risk information, as well as a good capital model and insurance mitigation programme, can really add value.

Marc Beckers, head of Aon Benfield Analytics for EMEA, said: “Regardless of the actual implementation date of Solvency II, the CRO will still be accountable for driving the success of risk management within an insurance company. The CRO’s responsibility reaches across the three pillars and their role is crucial in shaping the business to be successful under the forthcoming new regime.

“Furthermore, the CRO connects and collaborates with the roles across an insurance company – from board to actuary or catastrophe modeller – that are involved in achieving and embedding regulatory compliance. Our guide highlights some of the key challenges firms face, setting out best practice to overcome these hurdles in the most effective way.”

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Delegates the BrokersLink global conference in Madrid were warned that insurance businesses that overlook the importance of the vast pool of talented resource presented by their junior staff and graduates could lose their competitive advantage.

Pedro Gonzalo, International HR Project Manager – Talent Management & People Development at Sociéte Générale Corporate & Investment Banking in Paris said: “As a result of the globalisation of recruitment and demographic trends there is now a war for talent that requires constant reinforcement from the junior ranks to maintain maximum operational efficiency.  This represents a real and immediate threat for the insurance and wider financial services industries.”

“In simple terms, if you don’t invest from the induction stage your rivals will poach your star performers and benefit from their enthusiasm to learn,” he warned.

Mr Gonzalo explained to the 200 international delegates that new key drivers of recent graduates must also be taken into account in order to attract and retain the best candidates.  These drivers, which include generation Y’s demand for attractive employer characteristics and industries, have changed considerably over the last decade and there importance is not always appreciated when nurturing talent.

He continued: “Applying best practice is not difficult, but companies will need to invest in graduate programmes, mentoring and coaching.  They will also need to get to grips with the latest networking initiatives and social media applications the new intake view as rudimentary.”

Mr Gonzalo also told delegates that while recent surveys had shown encouraging signs of talent management becoming of increasing importance to CEOs, this recognition must now trigger long term investment.  He said: “Tomorrow’s leaders are among today’s graduates.  Having a consistent strategy in place to manage them will allow companies to start preparing for the future while building part of this future around some of these talented people.”

José Fonseca, Chairman of BrokersLink, one of the largest independent insurance broker networks, agreed with Mr Gonzalo.  He said: “While the majority of companies within the insurance market appreciate the need to attract new junior talent, not all currently have the knowledge to deliver the best development programmes.  However by actively embracing the continually evolving needs of the next generation we can not only maintain vital competitive advantage, but also see an excellent return any HR related investment.”

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Members of the British Insurance Brokers’ Association (BIBA) are seeing momentum building among their customers about the need to supply Employer Reference Numbers with collection rates as high as 70 to 100%, according to a survey. The ERN forms a mandatory component for the population of the Employers’ Liability Database which is making it easier for potential claimants to find their former employer’s EL insurer.

The BIBA member survey showed that nearly half (49%) of respondents reported between 70 to 100% collection levels of the ERN which is a business specific number issued by HM Revenue & Customs (HMRC).  A further 19% of respondents had a collection rate of between 50% and 70%.

The industry must achieve a 100% success rate in obtaining ERNs by April 2013 or insurers could face penalties from the Financial Services Authority.

Where there are collection problems, lack of awareness of ERN by businesses was identified as the main barrier to collection by 61% of respondents, but 40% also highlighted that businesses did ’not know where to locate’ ERNs.

Steve Foulsham, BIBA’s Head of Technical Services, said: “ELTO has had concerns about success rates so I’m pleased that members are reporting these levels of collection, but further progress is still required. We believe that problems in collection have occurred because of an unwillingness to supply the information at SME and VSME level, due to the alignment of ERNs with the PAYE system. In many ways this could and should be addressed by an education programme driven by HMRC which allocates these numbers.”

All businesses employing one or more staff will have an ERN, but around a third of respondents (35%) highlighted business exemptions as a reason for non-collection. This is a higher figure than expected and requires further investigation by the Employers’ Liability Tracing Office (ELTO).

Foulsham added: “BIBA is fully committed to the success of ELTO, and we will continue to encourage members to ensure that they do not take their foot off the pedal, but we do need support from government, where HMRC do have the information. We would like to see the HMRC data made available to the industry or directly to ELTO.  Further education of the business community is also required in order to reiterate why this information is needed, and this could include publicity provided by other trade associations. This was also cited as a barrier to collection by a small number of our survey respondents.”

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More than half of family members that give money to first time buyers (FTBs) expect to get it back – and three quarters want to be paid interest on top.

The ‘bank of mum and dad’ has its own terms and conditions according to new research from HSBC. While almost one in five (19%) first time buyers (FTBs) received family financing in the last year, more than half (52%) of family members who offered financial assistance provided it with an expectation to be paid back.

Just 31% of those families who offered financial assistance to their FTB relatives gave outright cash gifts as the primary source of family financing, and even fewer (17%) requested part-ownership in the property in order to collect their money when the house is eventually sold on.

The survey of 1,000 FTBs revealed that for those who expect to be paid back nearly three quarters (73%) want to be paid interest as well. The most common rate ranged between 2.1% and 2.5%, around the current rate of inflation. Women are slightly less likely to be asked to pay interest than men, (70% vs. 77%). The bank of mum and dad is also more likely to ask for interest if their FTB relative is purchasing a first home with a partner (75%), rather than on his or her own (69%).

How likely families are to charge interest to their FTB relatives also differs by region. In the South East, 56% of families want interest to be paid on any financial assistance they offer to the FTB. In London, this figure rises to 77%. Moving north, families are even keener to be paid interest. In Yorkshire, 92% of families who help their FTB relatives request interest, as do 94% of families in the North West.

The size of the property is another important factor at the bank of mum and dad, with purchasers of larger homes more likely to be asked to pay interest than those buying smaller ones. More than 8 out of 10 (82%) families lending to an FTB buying a detached house expect to receive interest, compared with 72% of those buying a semi-detached house, and 63% of those purchasing a terraced property.

Peter Dockar, Head of Mortgages at HSBC, commented: “Family support has become an important part of the first-time buyer financing mix, however the research shows that many relatives would like to be repaid at a later date. To avoid unnecessary strain on relations further down the line it is best to agree the terms with family members at the outset. Whether first time buyers receive financial support or not, we will continue to offer accessible mortgages at competitive interest rates.

THE BANK OF MUM AND DAD – KEY FACTS:

1. One in five (19%) of families provided some sort of financing to the first-time buyer relatives last year.
2. Of the families that provided financing, approximately 52% want to be repaid.
3. Only 31% of families providing family financing give an outright gift as the primary source of family financing.
4. Some 17% of those families who provided family financing bought a part-share in their FTB relative’s home as the primary source of family financing.
5. Nearly three-quarters (73%) of families who want to be repaid also charge interest.
6. Families are more likely to charge interest to males (77%) than to females (70%)
7. Families are more likely to charge interest if their FTB relative is purchasing a first home with a partner (75%) rather than on his or her own (69%)
8. More than 8 out of 10 (82%) families expect to receive interest if they offer assistance on a detached house, compared with 72% and 63% for semi-detached and terraced houses respectively.
9. For those families providing family financing, some form of gift is provided to 80% of FTBs
10. Some 83% of FTBs whose families have provided family financing and who purchased their first home with a partner get some form of gift, compared with only 75% for those who purchased without a partner.

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Swiss Re’s Board of Directors announces that Guido Fürer, currently Head Chief Investment Office, is appointed as Group Chief Investment Officer of Swiss Re and Member of the Group Executive Committee, effective 1 November 2012. He succeeds David Blumer who has decided to leave the company. Additionally, John R. Dacey, Swiss Re’s Head Group Strategy & Strategic Investments, is named as a new Member of the Group Executive Committee, effective 1 November 2012. In addition, John R. Dacey will also become Chairman of Swiss Re’s Admin Re business.

Walter B. Kielholz, Chairman of the Board of Directors of Swiss Re Ltd, says: “We are delighted to welcome Guido Fürer and John R. Dacey into the Group Executive Committee at Swiss Re. Mr. Fürer’s appointment as Group Chief Investment Officer represents a smooth transition for this important area of our company. He has a successful track record of 15 years at Swiss Re, and his experience and expertise ensure that our very successful Asset Management strategy will continue to be implemented in a consistent and transparent manner.

“Appointing John R. Dacey to the Group Executive Committee underscores the central role played by Group Strategy & Strategic Investments in advancing our strategy and exploiting our research expertise. In addition to these responsibilities, Mr. Dacey will act as Chairman of Admin Re®. He has many years of executive management experience in primary insurance, and this will be of great value to our Admin Re® business.”

Currently Head Chief Investment Office and Member of the Group Management Board, Guido Fürer has been responsible for Swiss Re’s global asset allocation, portfolio steering and portfolio analytics, as well as for the Reinsurance Business Unit’s investments. In assuming the role of Group Chief Investment Officer, he will take on overall responsibility for managing all investments of the Swiss Re Group.

John R. Dacey joined Swiss Re in October 2012 as Head Group Strategy & Strategic Investments. Prior to Swiss Re, he was at AXA where he held the role of Group Vice-Chairman for Asia-Pacific as well as member of AXA’s Group Executive Committee.

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The overwhelming majority of respondents to a new study on private equity in emerging markets report that traditional due diligence methods fall short in emerging markets. Key issues cited in these jurisdictions include difficulties in dealing with the political environment (60%), lack of transparency (56%) and dealing with bureaucracy (52%). Corruption (46%) and local infrastructure (42%) also rank highly on the list.

Despite these particular concerns, respondents often do not flex their due diligence methods appropriately when investing in emerging markets. The majority are taking a more detailed approach to the legal (100%), tax (94%) and financial (92%) elements, while far fewer are intensifying the commercial (34%) and the reputational (41%).

“In emerging and frontier markets, we continue to find that there is a strong overlap between business and government”, says Melvin Glapion, Managing Director Kroll Advisory Solutions. “Government, or representatives of government, are often found as entrepreneurs, shareholders, competitors, regulators, suppliers and market drivers–sometimes disclosed, but often not. This overlap suggests that both the reputational and the commercial due diligence are critical components; moreover their influence upon each other is paramount to understanding the investment thesis. If investors don’t account for this unique challenge when targeting growth markets, they risk overlooking valuable transaction intelligence which can have severe repercussions on the success of their investment, and their reputation.”

The report, published by Kroll Advisory Solutions and mergermarket, polls 50 UK-based private equity investors on their experience in emerging markets to uncover the most common obstacles presented in these jurisdictions.

Due diligence has surely become more stringent since the financial crisis and deals take long to complete, says Giovanni Amodeo, Global Editor in Chief of mergermarket. However, M&A practitioners surveyed by mergermarket believe that in the long run this will have a positive effect, since it is likely to result in more solid firms being acquired.

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The Chief Secretary, Rt Hon Danny Alexander MP, has welcomed the progress by the National Association of Pension Funds (NAPF) and the Pension Protection Fund (PPF) in securing a critical mass of Founding Investors needed to move to the next stage of development.

NAPF and PPF today announced that several major UK pension funds have signed up to the Pension Investment Platform (PIP). The intention is that the Founding Investors will provide around half of the target £2 billion of investment capital for the fund, before it launches early next year.

The Government, the NAPF and PPF signed a memorandum of understanding to create the PIP last year. It forms part of plans to encourage up to £20 billion of private sector finance for UK infrastructure over the next decade announced at the Autumn Statement 2011. These plans remain on track.

The Government has worked closely with NAPF and PPF to support the foundation of the PIP, which will provide pension schemes with the expertise and tools needed to make long-term investments in UK infrastructure.  With these Founding Investors on board, work will now start on recruiting adequate resource and further developing the PIP in time for its launch in early 2013.

Danny Alexander said: “The NAPF and PPF have made excellent progress on delivering a unique vehicle for pension funds to invest in our infrastructure, and the uptake shows industry can see the compatibility between the two.

“Infrastructure networks form the backbone of a modern economy and are a key driver of growth, the PIP is another innovative scheme to unlock investment for major projects. I look forward to watching the scheme develop further in the next few months and congratulate the NAPF and PPF on the strong work they have done to complete this first stage in record time.”

Alan Rubenstein, Chief Executive, PPF, said: “Today’s announcement is a testament to the hard work that has been put into making this platform a reality. We look forward to continuing to engage with Government as the PIP moves forward.”

Joanne Segars, Chief Executive, NAPF, said: “This is an important milestone for an exciting and unique project. Pension funds are on the lookout for long-term, inflation-linked investments, and infrastructure projects can be a strong match. We’ve had some useful talks with the Government over the past six months, and we will continue working together to take this project forward.”

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The Board of Directors of Willis Group Holdings announced that Dominic Casserley will serve as the company’s next Chief Executive Officer, effective January 7, 2013. The Board also announced that Steve Hearn, currently the Chairman and CEO of Willis Global, will serve as Deputy CEO of Willis Group. Joe Plumeri, who has served as Chairman and CEO of Willis Group since 2000 and led the company back to public ownership and steered its global expansion during his 12-year tenure, will serve as non-executive Chairman through July, 2013.

Dominic Casserley, 54, is currently a senior partner of McKinsey & Company, which he joined in New York in 1983. During his 29-years at McKinsey, Casserley has been based in the U.S. for 12 years, Asia for five and, since 2000, has been working across Europe from London.  During his time at McKinsey, Casserley led the firm’s Greater China Practice and its UK and Ireland Practice. A noted expert on global financial services, including insurance companies, and the opportunities of expanding into new markets, Casserley has been a member of McKinsey’s Shareholder Council, the firm’s global board, since 1999 and for four years served as the Chairman of the Finance Committee of that board. Casserley, married with three children, is a graduate of Cambridge University. Following a transition period in 2013, Casserley will be based in Willis’ New York office.

“The Board of Directors, which has now concluded a rigorous and thorough search for our next CEO, is thrilled to welcome Dominic Casserley to Willis to inaugurate the next great era for our company. We think Dominic will be an extraordinary leader for Willis, just as Joe Plumeri has been,” said Sen. Bill Bradley, Managing Director of Allen & Co. LLC and Willis’ presiding independent director. “Willis is indebted to Joe for his passionate stewardship of our firm spanning more than a decade in which Willis delivered unrivaled shareholder value among our peers. We are also grateful that Steve Hearn, a great broking industry leader within our own ranks, will step up as Dominic’s partner and Deputy CEO to help bring Willis to the next level,” Bradley added.

“I am honored by the confidence the Board has placed in me and look forward to working with Joe, Steve, Vic Krauze, Tim Wright and our accomplished management team to build on the foundation that Willis has established in every corner of the world,” Dominic Casserley said. “I have observed over 30 years as governments, businesses and organizations that operate across borders have become increasingly interconnected. Managing their risks is more complex than ever, but Willis consistently demonstrates how to do it right. I believe the opportunities in front of Willis are enormous, and I am very excited to be joining the team at this critical time.”

Steve Hearn, 46, joined Willis as Chairman and CEO of Glencairn Limited, the third-party wholesale brokerage business that Willis acquired through its $2.1 billion acquisition of Hilb Rogal & Hobbs (HRH) in 2008. Hearn’s influence at Willis has grown steadily since the HRH acquisition, continuing with his appointment as CEO of Willis Re in February, 2011. In January 2012, Hearn was appointed Chairman and CEO of Willis Global, encompassing the company’s global reinsurance, placement and specialty operations. Hearn will continue in that role in addition to his Deputy CEO post.

“I have worked as an insurance broker all of my professional career, but never enjoyed it more than the last four years as a Willis Associate,” Steve Hearn said. “Across geographies and across functions, whether in retail, reinsurance, specialisms or placement, there is no company that combines the human talent that Willis has assembled. I am looking forward tremendously to working with Dominic to build on the extraordinary foundation that Joe has put in place, and am personally grateful for the opportunities that Joe has given me and so many other people at this fine company,” Hearn added.

Joe Plumeri, 69, joined Willis as Chairman and CEO 12 years ago, on October 15, 2000, following a 32 year career with Citigroup, Inc. and its predecessors. Willis in 2000 was owned by private equity firm Kohlberg Kravis Roberts (KKR), but Plumeri successfully engineered an initial public offering within a year. From that 2001 IPO through the end of September 2012, Willis’ share price has risen 174% outperforming, by a wide margin, the company’s closest competitors, the Dow Jones Industrial Average, the S&P 500 and the S&P average of insurance stocks.

During his 12-year tenure, Plumeri successfully navigated Willis through a series of challenges that faced both the company and the insurance industry as a whole.

  • Willis’ IPO in June 2001, priced at $13.50 per share, represented a confident return to public ownership following three years as a privately held company.
  • Just months after Willis’ 2001 initial public offering, the attack on the World Trade Center, a Willis client then and now, represented a monumental challenge in securing insurance coverage and insurance carrier confidence to rebuild the site.
  • In 2004-2005, amid a broad investigation of the industry by the New York Attorney General, Willis led the response among the world’s largest brokers by disavowing contingent commissions and establishing the industry’s first Client Bill of Rights.
  • Throughout the last decade, Willis has helped to develop the Chinese insurance market. It was the first global broker to receive a license to operate there and, remaining the largest, established its 22nd office in China in the summer of 2012.
  • In 2008, with the world facing a financial crisis, Willis continued its expansion in Asia, Europe and Latin America, and effectively doubled Willis’ footprint in North America with its $2.1 billion acquisition of Hilb Rogal & Hobbs (HRH).
  • With its brand on its Norman Foster-designed skyscraper in London and the iconic Willis Tower in Chicago, the tallest building in North America, Willis has cemented its name as a leader in insurance risk management across the globe.

For his role in guiding Willis toward its current position of prominence, Plumeri was named, among many other honors, “The Insurance Leader of the Year” in 2006 by St. John’s University and among “The 100 Most Influential People in Finance” by Treasury & Risk Magazine in 2009 and 2010. Plumeri’s legacy at Willis is marked by a passion for client service and the company’s commitment to integrity and transparency.

“I am proud beyond words of our company’s achievements seizing on opportunities and confronting challenges spanning a dozen years,” Plumeri said. “But I’m equally excited about the path ahead for Willis under the leadership of Dominic Casserley and Steve Hearn and our outstanding team of leaders and the 17,000 Associates around the world. In the past and in the future, it is our people who provide expertise, uphold our values and put a human face on The Willis Cause for every one of our clients,” Plumeri added.

Bill Bradley added: “In January, Dominic will assume leadership of a strong company with 184 years of history and a heritage of always putting its clients first. Dominic and Steve embrace our past and will add their own stamp as Willis moves ahead ambitiously on a global scale. Twelve years ago, when Joe Plumeri arrived at Willis’ office at Ten Trinity Square in London, it was a much smaller company and a very different world. Joe put a new roof over Willis with our building on Lime Street and gave the Willis brand new meaning with the renaming of the Willis Tower in Chicago. But in a larger sense, Joe’s unswerving belief that ‘Anything is Possible’ has propelled Willis toward global leadership in insurance broking and risk advice that has marked our record for the last decade and will serve the company well in the years ahead.”

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SSL Claims, the Northampton-based specialist motor and property loss adjustor has announced that it has appointed Jon Holloway as Network Surveyor Director of its property division.

Mr Holloway’s role will involve managing the nationwide surveying network, recruiting new surveyors and developing the buildings validation business.

Mr Holloway was previously a Network Manager for another large loss adjuster, where he worked with leading insurers, Legal and General, Halifax, LTSB and contractor clients such as Homeserve.

Julia Hewett, joint Managing Director of SSL Claims Limited commented: ‘’Securing the services of Jon means we can make a significant move into the property claims market. Jon brings with him a wealth of experience that, coupled with our existing business model, enables us to provide a truly nationwide and multi-disciplined offering to our principles. Jon’s appointment forms part of our continued growth and development into the claims management arena.’’

Jon Holloway, Network Surveyor Director for SSL Claims Limited, said: ‘’I am extremely excited to be joining SSL Claims. The company’s forward-thinking approach, drive for success and ambition to bring new products and services to the insurance market to the benefit of the insurer and policyholder alike left me with no doubt that I would like to be part of it. I am confident that I can make a real difference in my position as Network Surveyor Manager and bring true independence back to buildings claims validation as well as a host of ancillary services to the construction industry.

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    The European Insurance and Occupational Pensions Authority (EIOPA) launches today the first Quantitative Impact Study (QIS) on Institutions for Occupational Retirement Provision (IORPs), as part of its process to advise the European Commission on the review of the IORP Directive. 

    The QIS will assess the financial impact of different sets of options for the valuation of the holistic balance sheet and the calculation of capital requirements.

    It will also deal with the quantification of the security and benefit adjustment mechanisms existing in different countries. The exercise is targeted at IORPs that run defined benefit pension plans.

    IORPs that only provide pure defined contribution schemes are excluded from the scope. In order to facilitate the participation in the QIS of smaller IORPs, EIOPA developed so-called ’helper tabs’ – spread sheets that will assist IORPs in valuing sponsor support and pension protection schemes by using simplifications.

    Nine European countries, in which defined benefit pension plans are most prevalent, have volunteered to participate in the study: Belgium, France, Germany, Ireland, the Netherlands, Norway, Portugal, Sweden and the United Kingdom. The national supervisory authorities (NSAs) are responsible for conducting the QIS in their country.

    The exercise will be performed by either selected IORPs or by the NSAs themselves using real or aggregate data; or by actuarial firms acting on behalf of NSAs; or a combination.

    EIOPA will coordinate the QIS at the European level, will be in charge of a question & answer procedure and will analyse the individual data in order to ensure consistency of the results.

    The exercise runs until 17 December 2012 and the report on the QIS outcome is expected to be released in spring 2013.

    Gabriel Bernardino, Chairman of EIOPA, said: “I am pleased that we have been able to take this important step in the development of a new European framework for occupational pension funds. In our advice to the European Commission we proposed the holistic balance sheet (HBS) concept as a means to capture the wide diversity of retirement systems in a single prudential regime. This QIS will allow us to investigate the feasibility of implementing the HBS in practice”.

    The documentation related to the QIS for occupational pensions can be found here (Link: https://eiopa.europa.eu/consultations/qis/occupational-pensions/quantitative-impact-study/index.html).

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    Energy supplier Scottish Power has announced an average price rise of 7 per cent in electricity and domestic gas prices, effective from 3 December 2012.

    The energy firm has blamed increased costs, including a 34% increase in the cost of delivering Government schemes (e.g. – energy efficiency programmes) for this energy price rise.

    This price hike will affect around 2.3 million households across the UK and as a result, a monthly Direct Debit customer will see an increase of 8.7%*, with a new average annual Dual Fuel bill of £1,271. This price announcement takes place in a time where many people are already having financial difficulty and concerned about how they will afford to heat their homes this winter.

    Scottish Power is the 4th supplier to announce a hike in energy prices following SSE’s announcement in August that they would be rising gas and electricity prices by 9% with effect from today and announcements from British Gas and nPower last Friday (12 October).

    Kate Rose, Head of Energy says “After the announcements from British Gas and nPower last week, we’re not surprised that yet another of the ‘Big 6′ have announced price hikes today; as like in previous years, once one goes they all tend to follow.

    This news however will be a serious blow to millions of households who are already concerned about ever increasing living costs, especially given that this latest rise will come in to effect just a few weeks before Christmas.

    Three easy steps customers can take to lower their energy costs and make sure they are paying as little as possible are; getting your gas and electricity supplied by the same supplier (dual fuel), paying by direct debit and switching to online account management. We also suggest customers look at opting for a fixed price or capped tariff which can offer price security.”

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    Asian insurance giant AIA said Thursday it will buy ING’s Malaysian insurance unit for $1.73 billion, the Dutch banking firm’s first step in selling off its assets in the region. 

    Hong Kong-listed AIA, which is partly owned by the troubled American International Group, said the two parties aim to complete the acquisition by the first quarter of 2013. The deal is subject to regulatory approval.

    AIA said the 1.34 billion euros ($1.73 billion) deal will make it the number one insurance provider by premiums in what it described as the “high-growth Malaysian market”.

    “We view the acquisition as a rare and compelling opportunity in an attractive growth market,” group chief executive Mark Tucker told reporters.

    ING Malaysia is the third largest insurer in Malaysia, serving more than 1.6 million customers, according to AIA. ING put its Asian business up for sale in January after scrapping plans to float the unit along with its European insurance operations, saying a tough market in Europe no longer made a combined European-Asian IPO sensible.

    The European Commission has told ING to restructure its business, as the Dutch firm seeks to repay 10 billion euros in state aid it received in October 2008 during the financial crisis.

    “Today’s announcement is the first major step in the divestment of our Asian insurance and investment management businesses and shows that ING continues to make steady progress in the restructuring of our company,” ING Group chief executive Jan Hommen said in a statement.

    ING said the sale will result in a net gain of 780 million euros. It is still looking to sell off its other Asian assets.

    AIA on Thursday also said the value of its new business in the three months to August 31 grew 22 per cent year-on-year to $300 million, driven by growth in the Singapore, Indonesia and the Philippine markets. The firm, which operates in 14 Asia-Pacific markets, raised $20.5 billion in an initial public offering in 2010.

    Its Hong Kong-listed shares rose 0.34 per cent to HK$29.70 by the break, while the benchmark Hang Seng Index up 0.24 per cent.

    Hong Kong, Oct 11, 2012 (AFP) 

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    Malaysian tycoon Tony Fernandes plans to raise up to $550 million by listing shares in the long-haul arm and Indonesian unit of AirAsia as well as in his insurance firm, a source said Thursday. 

    The plan comes as Fernandes tries to tap the Kuala Lumpur exchange’s popularity as a centre to launch initial public offerings, which has seen it rise to fourth globally despite the global slowdown.

    A source familiar with the deal told AFP on condition of anonymity that the three listings — the long-haul AirAsia X, the Indonesian unit and Tune Insurance — were worth between $400 million and $550 million.

    AirAsia chairman Aziz Bakar said that work was in progress for the triple initial public offering but declined any details.

    “We are working on it. God willing we would be able to launch the three listing by early next year,” he said. Aziz said the three companies were growing fast and needed funds to expand in a bigger marketplace.

    “So we need to go listing. It is a cheaper way to raise funds,” he said.

    Aziz said despite the slowdown in Europe and the United States, AirAsia X would press ahead with its expansion plans in the Asia-Pacific.

    “As far as we are concerned, our market is growing and we are opening up more routes,” he said.

    Tune Group is owned by Fernandes and his deputy Kamarudin Meranum who are founders of AirAsia, the region’s largest budget carrier.

    The former record industry executive stepped down in June as chief executive officer of the Malaysian-listed AirAsia and shifted his office to Jakarta to concentrate on regional growth through Indonesia.

    Kuala Lumpur, Oct 11, 2012 (AFP) 

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    Today’s decision by the Court of Appeal to revise its original decision in the case of Simmons v Castle is good news for consumers, businesses and the taxpayer says the ABI.

    The ABI applied to re-open the judgment on the grounds that it would upset the carefully balanced package of Government reforms to the civil litigation system by introducing the 10% increase in general damages ahead of other measures. Under the original decision, the 10% increase would have applied to all cases decided after 1 April 2013. Instead this will now be more aligned with the Government’s reforms and will not be introduced on cases where the claimant has entered a conditional fee arrangement before 1 April 2013. For any cases started after this date, the 10% increase will be balanced by reductions in legal costs.

    James Dalton, the ABI’s Assistant Director of Motor and Liability, said: “The insurance industry took this action in our continuing fight to reduce unnecessary costs being passed onto honest motorists. Today’s decision by the Court of Appeal means that insurers will not be forced to pass on about £300 million in increased costs to the premium paying public, which represents around £13 per motor insurance policy. We have won a battle against unnecessary costs but not the war. So the fight to bring about a speedier, more cost-efficient civil litigation system for the benefit of claimants and customers continues.

    “We are pleased that the Court recognised that the original judgment upset the package of measures which feature in the Legal Aid, Sentencing and Punishment of Offenders Act 2012 and which were originally intended by Lord Justice Jackson to maintain a careful balance between the interests of claimants and defendants. We are also pleased that the Court now acknowledges that it should have sought submissions from ABI and other interested parties before announcing the increase.”

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      Bernard Hogan-Howe, Commissioner of the Metropolitan Police, visited the Motor Insurers’ Bureau (MIB) on 8 October 2012 to see first-hand how MIB supports his officers in the Capital, as well as all police officers in the UK, in taking uninsured cars off the road.

      During the visit, Commissioner Hogan-Howe met with MIB Chief Executive, Ashton West and MIB Chairman Keith Morris. Commissioner Hogan-Howe then listened in to calls coming in to the dedicated Police Helpline from road-side officers with vehicles they suspected of being driven without insurance.

      The Metropolitan Police are targeting uninsured drivers through Operation Cubo – a sustained programme across the network of roads around the capital. The monthly operation sees mobile checkpoints appearing on London’s roads with Roads Policing teams using automatic number plate recognition (ANPR) cameras, which are connected to MIB’s Motor Insurance Database via the Police National Computer.  It quickly indicates whether or not a vehicle is on the database. To date, around 37,000 vehicles have been seized by the Met since Operation Cubo began in October 2011.

      Recently, a £227,000 Ferrari FF was seized for having no insurance in the Royal Borough of Kensington and Chelsea and was put on display outside Scotland Yard alongside an £18,000 Mercedes – also seized for no insurance.

      The UK’s level of insured driving has fallen by 30% in the last five years and is currently estimated to be 1.2m.

      Visit the Drive Insured campaign on Facebook – www.facebook.com/driveinsured.

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      American health insurance and services company UnitedHealth will purchase a 90-percent stake in Brazil’s top private health care provider Amil Participacoes, for about $4.9 billion, the US firm said in a statement Monday. 

      UnitedHealth Group will take Amil’s huge health and dental benefits management and provider network serving more than 5 million people. Amil itself operates 22 hospitals and 50 clinics, as well as specialty and emergency care centres.

      “The combination of patient-focused disease management programs, effective alignment with and direction of patients to clinical centres of excellence for complex procedures, and the performance of its integrated network have consistently produced superior clinical outcomes and cost performance,” the two companies said in a statement.

      Amil founder and chief executive Dr. Edson Bueno — who will remain as head of the Brazilian operation — said UnitedHealth will bring it advanced technology and new service programs that will enable Amil “to grow faster and do more to care for patients and serve consumers as a leading Brazilian company.”

      Stephen Hemsley, CEO of UnitedHealth Group, said Brazil’s rapidly growing economy and expanding middle class make it a valuable market for health benefits management.

      “Combining Amil, the clear market leader serving an under-penetrated market of nearly 200 million people, with UnitedHealth Group’s experiences and capabilities developed over the last three decades is the most compelling growth and value creation opportunity we have seen in years.”

      United Health said the purchase bring with it realizable Brazilian tax benefits of $600 million, bringing the effective price of the investment down to $4.3 million.

      New York City, USA, Oct 8, 2012 (AFP) 

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      September’s Bank of Scotland PMI report showed private sector output north of the border decrease for the first time since December 2010, reflecting a sustained fall in incoming new work. Employment levels were kept broadly steady over the month, while excess capacity was signalled by a further reduction in backlogs. Businesses also took a hit on the costs front, as input price inflation accelerated to the fastest since January on the back of rising fuel and commodity prices.

      Total output across Scotland’s manufacturing and service sectors combined decreased slightly in September, as signalled by the Bank of Scotland PMI posting 49.6 – down from 50.3 in August. That contrasted with modest growth across the UK as a whole. There were negative developments in the performance of both broad sectors north of the border, with a marked and slightly accelerated decrease in goods production more than offsetting slower growth in services activity.

      September saw a third straight monthly decrease in the amount of new business placed with Scottish private sector firms. The rate of decline eased since August, however, and was only modest overall. Sector data showed that a renewed (albeit marginal) increase in new business at services firms contrasted in a sharp drop in new orders for manufactured goods.

      The level of employment in Scotland’s private sector was virtually unchanged in September from one month before, bringing to an end a three-month sequence of job creation. The Scottish jobs market showed considerable resilience compared to the broader UK picture, with nine out of the other 11 regions monitored by PMI data recording decreases in employment.

      September data meanwhile showed a further decrease in the volume of outstanding business at Scottish private sector companies, highlighting a degree of excess operating capacity. The pace of decline was solid, but the slowest in three months.

      Input price inflation quickened again in September, and was the fastest in eight months amid rising prices for commodities and fuel. Stronger cost pressures led to a second consecutive monthly increase prices charged by private sector firms north of the border, though competition restricted pricing power to an extent and charge inflation was only modest overall.

      Donald MacRae, Chief Economist at Bank of Scotland, said: “The PMI ended a twenty month run of positive readings showing the private sector of the Scottish economy contracting slightly in September.  Growth in services activity did not quite offset a fall in manufacturing output.  However employment did grow in the month while the  rate of decline in new orders  eased since August.  The services sector recorded a rising level of new business.  The Scottish economy is struggling to maintain growth momentum in the face of both the Eurozone and global slowdowns.”

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      Third Point Reinsurance Investment Management and Hiscox Insurance Company have announced an initial agreement in principle to partner in the development of Third Point Reinsurance Investment Management Ltd.’s catastrophe reinsurance fund management business.

      Hiscox will be a shareholder of Third Point Reinsurance Investment Management Ltd., which was recently established by Third Point Reinsurance Ltd., and intends to make a significant investment in the Third Point Reinsurance Opportunities Fund Ltd., the initial fund entity launched.  Structured via a quota share agreement, tailored portfolios of catastrophe reinsurance exposure will be ceded by Hiscox to the Fund.

      John Berger, Chief Executive Officer of Third Point Reinsurance Ltd., commented on the announcement, “We are thrilled to be teaming up with Hiscox on this project.  Hiscox is one of the best (re)insurance groups in the world and we look forward to developing a catastrophe reinsurance fund business with them.”

      Jeremy Pinchin, Hiscox Bermuda’s CEO added, “Finding innovative ways to bring fresh sources of capital to the market is a key objective of ours, it gives our clients and broker partners more opportunities to work with us.  We look forward to developing a successful partnership with Third Point Reinsurance Ltd.”

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      RMS continues to monitor the fourteenth named storm of the 2012 Atlantic hurricane season – Tropical Storm Nadine. As of Thursday morning, October 4, the center of Nadine is approaching the Azores (the archipelago in the North Atlantic around 900 miles west of Portugal). At this time, according to the National Hurricane Center (NHC), the center of Nadine was located approximately 130 miles west-southwest of the Azores. Maximum sustained winds of 45 mph were recorded, equating to a tropical storm on the Saffir-Simpson Hurricane Wind Scale. Nadine is a large tropical cyclone with tropical storm force winds extending up to 140 miles from the center of the system.

      Nadine is forecast to track extremely quickly to the northeast, passing over the northwestern Azores within the next 6 hours – in doing so it will become the second  storm of the 2012 Atlantic season to track over the Azores. Nadine passed within 150 miles of the Azores on Thursday, 20 September, before re-curving to the south (away from the Azores). Nadine has been a named tropical system for 22 days (including today) and has become the longest lived named storm since 1950.

      Nadine is expected to bring tropical storm conditions across the Azores, and to produce total rainfall accumulations of 1 to 2 inches over potions of the Azores through Thursday – in particular across the central Azores.

      After passing over the Azores, Nadine is forecast to weaken to a remnant low.

      Tropical Storm Oscar

      Early on Wednesday, October 4, the fifteenth named storm of the 2012 Atlantic hurricane season was declared – Tropical Storm Oscar. As of on Thursday, according to the National Hurricane Center (NHC), the center of Oscar was located in the eastern tropical Atlantic, over 1,000 miles west-northwest of the Cape Verde Islands, and was moving quickly north-northwest at 12 mph. At this time, maximum sustained winds of 40 mph were recorded, equating to a tropical storm on the Saffir-Simpson Hurricane Wind Scale. Oscar is a large tropical storm with tropical storm force winds extending up to 150 miles from the center of the system, predominantly to the east.

      Oscar is forecast by the NHC to track northward over the next 24 hours as tropical storm, before dissipating late (UTC) on Friday. Under this forecast Oscar poses no threat to land.

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      Aon Benfield releases the latest edition of its Global Catastrophe Recap report, which reviews the natural disaster perils that occurred worldwide during September.

      Published by Impact Forecasting, the firm’s catastrophe model development center of excellence, the report reveals that seasonal monsoonal rains caused significant flooding across parts of Asia during the month.

      Of the more than USD7.5 billion in economic losses recorded in Asia, China sustained much of that loss as two separate flood events affected several provinces. The most costly occurred during a six-day stretch, in which the Ministry of Civil Affairs confirmed economic losses of at least CNY31.1 billion (USD4.92 billion) across six provinces.

      In Pakistan, at least 442 people have been killed and 2,912 others injured following persistent heavy rains and flooding that began in mid-August. The National Disaster Management Authority reported that more than 407,138 homes and at least 444,580 hectares (1.1 million acres) of crops have been damaged or destroyed. Damage to agriculture and infrastructure alone was listed at PKR250 billion (USD2.64 billion).

      Seasonal monsoon flooding was also recorded in India, Bangladesh, Thailand, Vietnam, and Cambodia during the month. In India, at least 56 people died after floods inundated roughly 400,000 homes.

      Steve Jakubowski, President of Impact Forecasting, said: “Over the past few years and again in 2012, we have seen flooding emerge as one of the costliest perils across the globe from an economic perspective. It is a hazard that our catastrophe modelling teams are increasingly addressing, and one that we will continue to focus heavily on going forward.  As insurance and reinsurance penetration continues to increase across Asia, we expect that flood exposures will become a key challenge for the industry, and so we are obtaining the very best data and developing appropriate modeling technology to ensure that the insurers can assuredly offer a range of products to mitigate flood risk across multiple regions.”

      Flooding also occurred in parts of Europe during September, where a slow-moving storm system brought torrential rainfall across northern sections of the United Kingdom, killing at least three people amid damages estimated to have exceeded GBP50 million (USD81 million) in the northeast U.K.

      In southern Spain, at least 10 people were killed after floods affected six separate provinces. The Insurance Compensation Commission reported that 19,500 claims were filed worth EUR120 million (USD155 million).

      Elsewhere, rounds of severe weather swept across central and eastern sections of the United States, with two tornadoes recorded in the New York City metropolitan area. One 48-hour stretch of inclement weather caused estimated economic losses of USD225 million, with various insurers receiving at least 35,000 claims with payouts exceeding USD125 million.

      Severe weather also occurred in several South American countries during September, as a powerful storm system killed at least nine people and injured more than 100 others. Paraguay was the hardest-hit country, where more than 5,000 homes were destroyed. Uruguay, Bolivia and Argentina also reported impacts.

      Typhoon Sanba caused economic losses of JPY950 million (USD12.2 million) in Japan and KRW389 billion (USD389 million) in South Korea, while Typhoon Jelawat killed two people in Japan, where the system made landfall and damaged at least 3,800 homes and structures.

      Meanwhile, a magnitude-7.6 earthquake struck Costa Rica, killing at least three people and injuring 30 others, amid total economic losses of approximately CRC22.5 billion (USD45 million).

      In China, two magnitude-5.6 tremors struck Yunnan and Guizhou provinces, killing at least 81 people and affecting more than 452,000 homes. Economic losses were listed at CNY7.31 billion (USD1.15 billion).

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