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According to the Sunday Times, insurance takeover specialist Resolution, is in advanced talks to acquire rival Phoenix Group for 1.2 billion pounds in shares.

Resolution, founded in 2008 by entrepreneur Clive Cowdery to buy underperforming life insurers and merge them into a more profitable whole, is close to securing a deal after presenting its plans last week to heavily-indebted Phoenix’s bank creditors, the paper said.

Resolution faces competition from Swiss Re, whose Admin Re unit specialises in buying up life insurers such as Phoenix that are closed to new business, as well as buyout firm CVC.

An offer of 1.2 billion pounds would represent a 40 per cent premium to Phoenix’s closing price of 488.5 pence Friday, which valued it at about 859 million pounds.

Phoenix’s shares have fallen by a fifth since the start of the year, underperforming an 18 percent drop in the European insurance share index .SXIP.

Source : Reuters  

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Adam Kerr has been appointed as Head of Transactions for Legal and General Property. Adam is the latest senior addition to LGP, following the restructure of its management team announced last month, which included the promotion of Gordon Aitchison, former head of transactions to a new position of Director of Investment and Development.

Adam brings over 23 years of property investment experience, having held Director level positions at Kilmartin Property Group, Merrill Lynch Investment Managers, and more recently Stonehage Property Partners.

In his new role, Adam will report directly to Gordon Aitchison, helping to source transactions which meet LGP’s various funds criteria. Adam will initially focus on the creation of long term income deals through sale and leasebacks and development, but will also assist with the launch of the new innovative fund products.

LGP has continued to focus its attention on the changing needs and appetites of clients during this period of ongoing economic volatility. These include the recent successful launch of the LPI (Limited Price Inflation) Income Property Fund, a segregated mandate, the Property Hybrid Fund and the UK Property Income Fund (UK PIF), which closed last month with a total investment capacity of circa £475 million.

The appointment follows Gordon Aitchison’s promotion to Director of Investment and Development, which involves him taking over the additional responsibility for LGP’s development team. This new role not only provides further integration between the investment activities of the fund platform and its development pipeline, but also allows for greater visibility in terms of identifying transactions which might need specialist development skills to maximise returns.Gordon Aitchison, Director of Investment and Development, commented:

“With a wealth of investment experience and a strong network of industry contacts, Adam is a formidable deal maker and makes a welcome addition to the transactions team, helping us to further expand our access to off-market deals and capitalise on a range of market opportunities.

“LGP has significantly grown its transactional and development capabilities over the last few years through a number of strategic hires in order to enhance its access to off-market deals and extend its project pipeline. Adam’s appointment follows the culmination of a larger restructuring programme and further strengthening of the platform.”

Source : Legal & General

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With the Czech economy’s export-driven recovery slowing, swift implementation of new reforms is needed to ensure sustainable, inclusive long-term growth and better resilience to external shocks, according to the OECD’s latest Economic Survey of the Czech Republic.

The report, presented in Prague today by OECD Secretary-General Angel Gurría and Czech Prime Minister Petr Necas, shows that the ongoing recovery has been weaker than in neighbouring countries, constraining the pace of convergence in income levels with more prosperous European countries. Worsening trade performance and declining domestic demand will limit economic growth to 1.6 percent in 2012, down from 2.1 percent this year, with significant downside risks linked to the continuing international slowdown and the outlook for the euro area.

To counter these risks and boost economic activity, the OECD encourages the Czech Republic to maintain momentum behind reforms aimed at enhancing competitiveness and long-term growth. The reform programme should build on existing efforts to improve the business environment, strengthen the education system and promote innovation in line with the recently adopted Competitiveness Strategy.

“Growth and improvements in living standards will depend on the transition to a more innovative, skill-based and energy-efficient economy,” said Mr Gurría.

A special chapter of the Survey underlines the need to strengthen the country’s fiscal framework through the introduction of an explicit debt target and the establishment of an independent institution to monitor and assess the state of public finances. The chapter also provides guidance for phasing in planned reforms in the health care and pension systems, including the creation of a new, voluntary, defined-contribution retirement pillar.

The OECD calls for economic transformation to foster energy efficiency and reduce greenhouse gas emissions. Market-based instruments should be strengthened, excise tax rates on fossil fuels should be harmonised and support for renewable energies should be streamlined, all of which can improve incentives for changing the way producers and consumers use energy, the OECD said.

Source : OECD Press Release

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Stuart A. Mintz is new International Executive General Adjuster in the Indochina Zone for Crawford & Company. Stuart will be stationed in Thailand, and will look after Thailand, Vietnam, Cambodia, Laos and Myanmar.

Stuart has more than 30 years of management and adjusting experience. He joined Crawford in the United States during 2004 as an Executive General Adjuster in Global Technical Services (GTSSM) and has worked on large, complex losses worldwide.

Richard Martin, chief executive officer, Asia-Pacific, said, “Stuart has provided his expertise to manage claims resulting from a number of catastrophes, including earthquake losses in Christchurch, New Zealand. He also will be part of our team handling claims from the recent floods in Thailand. Stuart is a great addition to our team in the region and we are looking forward to his continued work on behalf of our clients.”

Stuart will report to Paul Rabbitte as General Manager of the Indochina Zone and Ian Baxter as Managing Director, GTS Asia-Pacific.

Source : Crawford & Company

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Bernard Barrere, 49, is appointed CEO of MMA Holdings UK, in charge of British insurance companies Covéa Group.

Polytechnician,  graduate of the French Institute of Actuaries and the Centre des Hautes Etudes d’Assurances, he began his career at Schlumberger in 1984 as an engineer in Gabon and Nigeria.

In 1985, he joined the insurance industry by integrating Drouot Assurances and AXA Assurances in 1989. In 1990, he returned to Crédit Agricole, taking the Pacifica management products, from its inception.

He joined the Group Azur-GMF in 1998, with the dual role of Commercial Director and CEO of GMF Téléassurances. He then takes the IT department, organization and e-Development Group Azur-GMF in 2000 and became CEO of Azur Assurances in 2002.

In 2003 he became Director of Claims for the Group Azur-GMF, and since November 2005, he was CEO of Fidelia Assistance, a subsidiary of the Group Covéa assistance.

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Hastings Direct has launched Hastings Premier car and motorbike insurance products. These include additional features and benefits as standard, with significant cost savings to drivers and riders.

For car insurance, Hastings Premier includes roadside breakdown cover and legal protection with a 23% cost saving for drivers.  This enhanced policy offers up to £100,000 cover for legal costs and financial protection for any driver against costs incurred through a non fault accident.  Hastings Premier’s benefits also include a free courtesy car if your vehicle is being repaired and, a 24 hours claims helpline.  New cover promises mean if you are hit by an uninsured driver you won’t have to pay an excess and your no claims discount won’t be affected and no loss of no claims discount for vandalism claims.

For motorbike insurance, Hastings Premier includes helmet and leathers cover and legal protection as standard.   There is a cost saving of 33% for these additions and the policy also provides protection against being hit by an uninsured driver at no additional cost.  Hastings Premier’s benefits include free cover in the EU for up to 90 days per trip, discounts for advanced riders, plus no excess to pay and no loss of no claims bonus if hit by an uninsured driver.

Source : Hastings Direct

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Friends Provident International (FPI) announced today the launch of a series of six online seminars designed to educate and support advisers on the subjects of Inheritance Tax (IHT) and trusts. The seminars look at the complex subject of IHT and offer advice and solutions to help advisers meet the needs of their clients. They are aimed at UK based advisers who have, or are looking to work with, UK domiciled clients who may be interested in the benefits of offshore bonds.

The seminars cover a range of subjects including IHT planning options, an explanation of different trust structures and their IHT treatment and the benefits of using FPI’s Succession Planning Bond. One of the modules examines the structure and advantages of the Capital Access Trust, explaining when advisers should consider its use. This trust may be suitable for clients who want to do some IHT planning but still require access to capital from a portion of the trust fund, which they retain access to. With the Capital Access Trust they also have the flexibility to gift this retained capital at a later date if it is no longer required.

The seminars are presented in six bite size pre-recorded modules hosted online and can be accessed ‘on-demand’ at a time and place convenient to advisers. They can pick the seminars that cover any knowledge gaps or listen to the whole series.

Irvine Baxter, UK sales director, at Friends Provident International said:
“The series of IHT online seminars is designed to guide advisers through the IHT Maze. IHT and trusts are often seen as complex subjects. The seminars are designed to be an easy way for advisers to increase their knowledge, which in turn will help them advise their clients on how to mitigate their IHT liability.

“FPI’s Succession Planning Bond and the range of trusts that we offer are just some of the options available to advisers who have high net worth clients looking for ways to mitigate IHT liabilities.”

Source : Friends Provident International Press Release

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The Northern Public Services Alliance and Trade Unions across the whole of the northern region will be out in force on Action Saturday, 19th November.

Building support and giving out vital information about pensions and why the unions involved are taking industrial action, ahead of the national Day of Action on 30th November.

From Northumberland to Tees Valley in the North East and Carlisle to Whitehaven in Cumbria hundreds of trade unionists from the broadest spectrum if public services unions including Unite, Unison, PCS, RMT, GMB, UCU, POA will be taking to streets and town centres to hand out more than 35,000 pensions leaflets and other literature.

The aim of Action Saturday is to dispel the widely held myths and misconceptions around pensions – public sector pensions in particular, and to encourage as many people as possible to show their support and solidarity for all workers who are suffering from the Government’s ‘Triple Squeeze’ on pensions, working longer and harder for less, by joining any of the four regional marches/rallies on November 30th.

Some of the myths dispelled in the Pensions Justice booklet are:

Most public sector pensions in payment are less than £5,600 a year (£3,000 in local government). Half of women public service pensioners get less than £4,000 a year.

– Only 1 in 3 private sector workers is an employer-backed pension scheme.

– Cutting public sector pensions will not make anyone’s pension in the private sector any better.

– Unions have spent hours in talks over the spring and summer with ministers and their officials, but there has yet to be any real negotiation. Unions are taking action as the only way to start to get ministers to negotiate properly.

– Despite what the Government says, public sector pensions are affordable.

– None of the savings that the government intends to make are going back into low-paid workers pensions, public sector workers are quite simply being made to pay for the deficit – caused by wreckless speculators.

Source : TUC

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Virgin Money has agreed to purchase Northern Rock from Her Majesty’s Treasury. The deal is subject to regulatory and EU merger approval and is set to be completed on January 1 2012. Combined with Virgin Money’s existing business of three million customers, the enlarged Group will have four million customers, will be strongly capitalised and will be highly liquid. Sir David Clementi will be Chairman of the combined business and Jayne-Anne Gadhia will be its Chief Executive Officer. The combined business will operate under the Virgin Money brand.

The acquisition, upon completion, includes:

– 75 Northern Rock branches

– One million customers

– c.£14bn mortgage book

– c.£16bn retail deposit book

– c.2,100 employees.

The acquisition is funded by an investment consortium led by Virgin Group and WL Ross & Co.

The transaction will create a significant new competitor in UK retail banking and is:

– Good for taxpayers: the Government will receive £747 million in cash on closing of the sale, plus an expected circa £50 million of cash within six months of completion. A further £150 million will be paid in the form of a capital instrument and an additional cash consideration of £50-80 million will be paid upon a future profitable IPO or sale in the next five years. This means the taxpayer has the potential to receive over £1 billion pounds in total.

– Good for jobs: the business is committed to future growth and so there will be no compulsory redundancies, beyond those already announced by Northern Rock plc, for at least three years from completion. The transaction has no impact on Virgin Money’s existing operations.

– Good for financial stability: the combined business will have a minimum 15% Tier 1 capital ratio and will be fully Basel III and ICB compliant from completion of the transaction. This compares favourably with major high street banks and building societies.

– Good for Northern Rock customers: the total number of Northern Rock branches will be retained, and in due course extended as the business’ growth allows. The combined business will aim to lend £45bn in total to support its customers over the next five years.

– Good for competition: the combined business will compete strongly in the UK retail savings and mortgage markets – launching current accounts in 2013 and, in due course, lending to small businesses.

– Good for the North East of England: the operational headquarters of Virgin Money will be based in Newcastle.

– Good for the Northern Rock Foundation: upon completion, Northern Rock’s current commitment to the Foundation will be extended immediately, in respect of Northern Rock’s existing business, to the end of 2013. This gives Virgin Money and the Northern Rock Foundation time to agree how they will work together after that.

Jayne-Anne Gadhia, Chief Executive Officer at Virgin Money, commented: “We plan to create a major new competitor in UK retail banking as we bring together Northern Rock and Virgin Money at the beginning of 2012. The two businesses complement each other well and together they will create a strong bank with over 4 million customers. It is the outstanding fit between the two businesses that will allow us to create a strong, stable, growing and profitable business for the future. We are aiming to build a true banking alternative for the UK consumer, one centred around our ambition to make everyone better off”.

Sir David Clementi, Chairman of Virgin Money said: “Returning Northern Rock to private ownership is an important step in rebuilding the UK banking sector, as well as an outstanding opportunity to enhance competition and financial stability whilst protecting jobs and the economy in the North East of England. It is our intention to build a significant banking competitor in the UK and to take that business to the public markets within five years through an IPO”.

Sir Richard Branson, Founder of the Virgin Group said: “Banking in the UK needs some fresh ideas and an injection of new competition. I’m delighted we will get the chance to work with the loyal staff of Northern Rock to create a new force in the market. Virgin has a history of entering new sectors to improve service and provide value for customers. We plan to do the same in banking”.

Wilbur Ross, CEO and Chairman of WL Ross & Co. LLC, said: “We are pleased to be the lead partner with Virgin Group in the investment consortium that has agreed to buy Northern Rock. Virgin Money and Northern Rock together are an excellent fit, and they will be able to make a real difference to banking in the UK by offering high quality service and a full range of fairly priced products”.

Source : Virgin Money 

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Aon Risk Solutions and ACE have today announced the successful implementation of Rüschlikon accounting and settlement standards via The Exchange.

The move takes the London market’s e-capabilities a large step forward into the global marketplace with Aon and ACE implementing the international Rüschlikon accounting and settlement standards, via The Exchange for the notification and settlement of insurance premiums and claims on business outside the bureaux.

The Rüschlikon initiative is a working group of global insurance and reinsurance industry organisations who work together to define and implement international business rules for processing insurance and reinsurance transactions using ACORD standards.

Ian Summers, CIO for Aon Risk Solutions, explains, “With the addition of accounting and settlement messaging using the Rüschlikon rules, The Exchange now supports the life cycle of the insurance transaction process; e-placement through e-endorsements, premiums and claims. Aon has worked with its trading partners to develop the business processes and standards now available internationally which position this key piece of the London Market’s infrastructure on the Global map”

Peter Houston, ACE head of operations for UK and Ireland, said “ACE is pleased to have partnered with Aon on this initiative which will further improve current accounting practices for all parties, particularly our clients due to faster settlement times and enhanced service standards. ACE see a significant opportunity to extend these settlement and accounting benefits to the wider market already connected to The Message Exchange platform and to continue our drive to improve operational performance.”

This eAccounting solution gives the entire UK and international market, brokers and carriers, the opportunity to automate premium and claim processes administered outside of the London bureaux, with quicker settlement times and greater security.

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According to the chairman of the Insurance Association of China, the country is ready to open to foreign insurance companies its mandatory auto insurance market.

The 200 billion yuan ($31.5 billion) auto insurance market is dominated by Chinese insurers such as PICC Property and Casualty Co and Ping An Insurance, but regulators aim to introduce more competition.

“Foreign firms can only sell commercial auto insurance now. We want to make it possible for them to do both commercial and mandatory auto insurance,” Jin Jianqiang told Reuters on the sidelines of a business event in Taipei.

“We see a good chance to open the market next year to foreign companies, including those from Taiwan.”

Giving foreign companies access to the mandatory auto insurance market may help foreign insurers compete more effectively with Chinese rivals in selling commercial auto policies as car-owners tend to buy both products in one shop.

Commercial auto insurance companies sell policies to cover different types of risks but it is not mandatory for auto owners to buy these.

Analysts, however, say such a rule change won’t have a major impact on the sector in the near term, as Chinese insurers have a huge advantage in terms of sales networks and after-sales capabilities.

“If China opens the market, I don’t expect to see a big impact in the short term,” said Zeng Sufen, analyst at Industrial Securities Co.

“It takes time for foreign insures to steal market share from big players like PICC or Ping An.”

Currently, 19 foreign property and casualty insurance companies operate in China, including Tokio Marine & Nichido Fire Insurance Co, Chubb and RSA Insurance Group .

They recorded 4.28 billion yuan in total premiums in 2010, equivalent to just 1 percent of the premiums collected by 34 Chinese players.

In September, China Insurance Regulatory Commission, the industry watchdog, published draft rules to reform the pricing of commercial auto insurance policies.

The mandatory insurance policies were introduced five years ago, and the government has been keeping a tight leash on pricing. As a result, insurers have been making losses for years due to rising costs of selling such policies, Chinese media have reported.

Source : Reuters 

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UK life insurers are on track to meet Solvency II requirements yet remain under pressure due to a lack of clarity about the final requirements.

KPMG’s annual Solvency II Benchmarking Survey for life insurers reveals that documentation, uncertainty over transitional arrangements and Own Risk and Solvency Assessments (ORSAs) are the top three challenges facing the industry.

John Jenkins, insurance partner at KPMG, commented: “The fact that 78% of respondents believe their implementation projects are on track is positive.  However there are still significant challenges facing life insurers, and now is not the time to become complacent. The lack of guidance provided so far by the European regulators remains a problem and while the 12 month implementation delay gives insurers more time, firms urgently need clarity as the lack of specific guidance is stunting the progress of many programmes.  In many respects the year’s extension may mean a further delay in clarification which is bad news for the industry.

“External reporting challenges arising from Pillar 3 were identified as a key challenge, with 56% of insurers confirming that significant work is still required. Additionally, the preparation of ORSAs remains a major concern. Ninety per cent of respondents will be producing a formal ORSA report on an annual basis and 40% will be assessing their solvency position against their ORSA every quarter. Given that the majority are also planning to start their ORSA dry runs by the end of this year time is running out. Both insurers and regulators must work together to ensure deadlines are met and that clarity on outstanding aspects is gained quickly.

“Further it is no surprise that documentation is the most common area identified as needing attention with over half of life insurers highlighting this as a key implementation challenge. Given just over one quarter (27%) are still in the early stages of meeting the internal model documentation requirements, this is an area that needs immediate attention.

“Over the past six months insurers have started to assess the wider business implications in more detail.  As the capital impact of Solvency II becomes clearer and risk models provide better information, insurers will start to reassess the economics of their businesses and re-evaluate their strategies. As part of this process, we expect insurers to begin to really assess and take action on which markets they wish to be in and what prices they intend to charge in the light of the new regulatory requirements.  There is still significant market change yet to come as this process happens across the industry.”

Source : KPMG

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The US Supreme Court agreed to take up the case of President Barack Obama’s landmark health care reform, which has come under fire from rival Republicans, in a move which could weigh on next year’s elections. 

The nation’s nine top justices will “likely” hear the case in March, a court spokesman said, and are expected to rule on whether the reforms are constitutional by June, just months before the November presidential elections.

The court said they would consider a request by the Obama administration to declare the measure constitutional, as well as two cases challenging the law, including one brought by 26 US states and small businesses that want to strike down the totality of the reform.

Opponents say the most controversial feature of the law — mandating that people buy health insurance or face a tax penalty — violates individual rights as set out under the US Constitution. But the White House said it was satisfied that the legislation, a key plank of Obama’s 2008 White House campaign which passed into law amid much fanfare in 2010, was being taken up by the nation’s top bench.

“We are pleased the court has agreed to hear this case,” said a White House spokesman, Dan Pfeiffer, of the law which extended health coverage to an extra 32 million people and was the long-held dream of Democrats for social reform.

“We know the Affordable Care Act is constitutional and are confident the Supreme Court will agree.”

The hearing on the case will last about five and a half hours, apparently “the longest in modern history,” the court spokesman told AFP. Republican opponents argue the government has no power to compel people to buy health insurance and Republican House Speaker John Boehner on Monday renewed his pledge to repeal the law.

“The American people did not support this law when it was rushed through Congress and they do not support it now that they’ve seen what’s in it,” he said in a statement.

“This government takeover of health care is threatening jobs, increasing costs, and jeopardizing coverage for millions of Americans, and I hope the Supreme Court overturns it.”

Analyst Ilya Shapiro said the case would be the most important examined by the court since the 1973 Roe v. Wade decision which legalized abortion in America.

“The Supreme Court has now set the stage for the most significant case since Roe v. Wade,” she told AFP. “Indeed, this litigation implicates the future of the Republic as Roe never did.”

Another expert said the decision would weigh on the 2012 polls, and could be almost as significant as the Supreme Court’s ruling in 2000 which handed the presidency to George W. Bush over his Democratic rival Al Gore.

“But I don’t think it could have a direct affect on the election result,” Elizabeth Papez said, adding that the vote of Justice Anthony Kennedy, widely seen as a reformer, could be key in the final decision. Despite Obama’s nominations to the Supreme Court of justices Sonia Sotomayor and Elena Kagan, the nine-strong bench, which acts as the nation’s arbiter on the toughest legal and moral issues facing the country, has been viewed as one of the most conservative in decades.

Last year a controversial Supreme Court ruling lifted curbs on corporations, lobbyists, and special interest groups spending millions of dollars to back election candidates and influence outcome of US elections. Lower court rulings have conflicted on the constitutionality of the health care law, and the top US court turned down two other requests to review the landmark legislation.

On November 8, a US appeals court upheld the constitutionality of health care overhaul, ruling that mandating that people buy health insurance or face a tax was not a violation of individual rights.

In August a federal appeals court in Georgia ruled that the individual mandate exceeded the powers of Congress, but also ruled that the remainder of the health care law was within the bounds of the constitution.

Washington, Nov 14, 2011 (AFP)

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Aon Risk Solutions has released its 2011 Construction Industry Report, which reflects the input of 60 global construction industry respondents to Aon’s 2011 Global Risk Management Survey. While survey respondents cited senior management’s intuition and experience as the primary method to identify major risks, the report underlines the importance for organizations to embrace an enterprise-wide risk management approach that is optimized on a global basis.

The industry’s top risks as identified by survey respondents are included in the report, with the economic slowdown leading the list. Rounding out the top four risks are increasing competition, damage to reputation/brand and failure to attract or retain top talent. Regulatory/legislative changes and third-party liability tied for the fifth spot.

“In today’s business environment of high supply and limited demand, it has become especially vital for organizations in the construction sector to effectively manage risk,” said Henry Lombardi, executive vice president of Aon Construction Services Group. “Relying exclusively on gut instinct could result in a significant loss as leaders may miss an emerging risk.”

Mary Ann Krautheim, client strategy officer of Aon Construction Services Group, added, “The construction industry is expected to grow by 67 percent by 2020. Business leaders who use an enterprise-wide approach to identifying and assessing risks today will emerge from the economic storm in a stronger position with a larger market share.”

Additional Key Findings of the 2011 Construction Industry Report Include:

– Construction companies have invested and committed significant resources to risk control/safety practices to help lower the frequency and severity of loss, and according to the survey, they would like to see recognition of this investment by carriers in the form of lower premiums.

– Capacity has been steady over the past three to four years with continued low rates. General liability/third-party liability continues to be a key issue for construction companies, most likely caused by concerns over construction defect claims and court interpretations of insurance coverage available to pay these claims.

– Heavy industrial, engineering, procurement and construction contractors continue to enjoy strong backlogs, but are experiencing increased global competition.

– While ranked number 11 on the list of top risks, political risk/uncertainties is expected to grow as the construction sector expands into developing countries.

– Contractors’ abilities to compete with new project delivery methods, such as public-private partnerships, prove to be a challenge and an opportunity. Many non-U.S. contractors understand the value of bringing equity to the deal. This is a trend expected to continue as public bodies lack resources to invest large sums into infrastructure.

Source : Aon Risk Solutions

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Columbus Direct is the first British travel insurance intermediary to emerge as top choice in a survey of Australia’s best value international travel insurance by Canstar Cannex. Columbus Direct received five stars for its international travel insurance offering, alongside one other brand, New Zealand-based Southern Cross Travel Insurance (SCTI), which also received five stars.

As well as giving an overall five-star rating to Columbus Direct as a brand, the same survey also awarded five stars to both the Single-Trip Premier and the Single-Trip Standard individual products in various categories.

The research by Canstar Cannex, a research house providing data and ratings to consumers and financial institutions, compared the prices and product offering of 42 insurance brands in the travel insurance market, awarding star ratings for easy consumer comparison, with five stars awarded for outstanding value.

David Evans, Managing Director of Columbus Direct, said: “Columbus Direct always strives to lead in its market, quickly responding to the changing needs of customers with innovative solutions. This award acknowledges all the hard work everyone at Columbus Direct has put in to provide flexible and cost effective solutions to our customers. It’s fantastic to be recognised for both our product offering as well as its value.”

Columbus Direct offers insurance products in over 50 countries, which are available to purchase online, through the Columbus Direct website. The five-star rated Columbus Direct Single-Trip Standard product has been purchased by over 20,000 individuals in Australia in the past year.

Source : Columbus Direct

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London market broker Lockton has commenced trading with e-Accounts. Lockton’s Property and Aviation division partnered with Xchanging to successfully test e-Accounts using Brokasure from Xchanging.

Provided that the early successes during the pilot translate into a live setting, Lockton will potentially roll out e-Accounts to other divisions in the coming months.

With phase one of e-Accounts now fully operational, the London market has realised its ambition to smooth the passage of global trading with brokers.  Based on ACORD messaging, the back office account settlement initiative improves a key link in the premium processing chain. This removes the work currently required to pre-validate submissions. Operational efficiency is also enhanced, reducing errors which can improve cash flow to carriers. Currently delays of this kind cost insurers around £3.5m per annum in lost investment income.

Lockton Chief Operating Officer Simon Coleman said: “e-Accounts is an important step in harnessing technology to bring greater efficiency to our business and the wider market. While this is more evolution than revolution and things are still at an early stage, the initial indications from the test phase are very positive. If use in a live setting validates these successes, Lockton will be in a prime position to capitalise on the benefits to be had from e-Accounts. We see e-Accounts as another step in the market modernisation work which aligns with Lockton’s commitment to improved client service.”

Xchanging Insurance Sector Managing Director Max Pell added: “e-Accounts is a much heralded ambition by the London market to ease trading by removing brokers’ administrative and frictional costs. With e-Accounts live that ambition has become a reality as the London market is now open for electronic account trading.”

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A private firm in Britain was given the green light Thursday to take over the management of a debt-ridden state hospital, in the country’s first such deal. 

Healthcare provider Circle, listed on the London Stock Exchange, has signed a 10-year contract worth £1 billion ($1.59 billion, 1.17 billion euros) to run Hinchingbrooke hospital in Huntingdon, eastern England.

The local state health authority, Hinchingbrooke Health Care National Health Service (NHS) Trust, has racked up a £39 million debt.

Although some public health services in Britain — such as hip replacement centres — are already managed by private companies, this is the first time a non-state provider has taken on the full range of hospital services.  The takeover will be seen by critics as a further step towards privatisation of British health services.  Circle, which describes itself as Europe’s biggest healthcare partnership, takes over in February and will be responsible for ensuring the hospital’s financial viability.

Hinchingbrooke hospital opened in 1983 and caters for more than 161,000 people in the local area.  Doctor Stephen Dunn, policy and strategy director at the NHS Midlands and East health authority cluster, said: “This is not privatisation… this is a change in management — not a change in services.”

Circle chief executive Ali Parsa said they hoped to show “how clinician and staff control can provide a more sustainable alternative” to simply closing struggling small hospitals.  Unison, Britain’s largest trade union, said the takeover was “an accident waiting to happen”.

“Privatisation, which brings in the profit motive, will damage our NHS,” said head of health Christina McAnea.  “The hospital could have been kept running for the benefit of patients, rather than profiteers. This must not become a precedent for the NHS, or millions more staff and patients will be put at risk.”

London, Nov 10, 2011 (AFP)

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In the second quarter of 2012, Friends Life will launch a new asset management business : Friends Life Investments. The new business will be run by Mark Versey, Chief Investment Officer, and will be a fully owned subsidiary of Friends life Group.

The creation of Friends Life Investments (FLI) will enable the business to leverage its existing investment capability, in investment strategy and Asset liability management. The intention is for the initial focus of FLI to be on fixed income assets in respect of annuity liabilities, shareholder assets and assets backing other non profit liabilities.

Further investment classes will be considered as the business grows. The business will use an outsourced model with investment operations managed by a third party administrator.

Andy Briggs, chief executive officer of Friends Life said: “The launch of Friends Life Investments marks a significant development for our business. Together with the partnership with Diligenta to outsource IT and customer service, we have today demonstrated a significant reduction in our cost base and a clear strategic commitment to our core markets in the UK. The intention is for this new company to build on existing expertise across our business and is further evidence of our strategic focus in the UK.”

The existing Friends Life Asset and Liability Management team will continue to have oversight and control over non unit linked asset management suppliers including: governance of suppliers, investment policy, strategic asset allocation and management of exposure to financial risk from the asset portfolio.

Source : Friends Life

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The Successor X catastrophe bond programme, covering North Atlantic hurricane and European windstorm, has allowed Swiss Re to obtain a further $130 million in protection. This is the fifth time Swiss Re has used the Successor X programme to transfer risks into the capital market.

Swiss Re has entered into a transaction with Successor X to receive up to $130 million of payments in the event of European windstorms and of North Atlantic hurricanes of a certain magnitude. The flexible structure of the Successor X programme enables Swiss Re to move quickly in response to market conditions, securing multi-year protection at terms which are attractive to the company and investors.

Covering a four-year period, ending in November 2015, the transaction follows four previous take-downs from the Successor X programme, after a first for $150 million in December 2009, a second for USD 120 million in May 2010, a third for $170 million in December 2010 and a fourth for USD 305 million in February 2011.

Martin Bisping, Swiss Re’s Head of Non-Life Risk Transformation, says: “After a brief dip in returns in the wake of the Japan earthquake, the ILS marketplace has rebounded, demonstrating the commitment that investors have to catastrophe bonds. Successor X allows us to seize opportunities to transfer risk at favourable terms and to support growing demand for natural catastrophe capacity from our clients.”

This transaction combined with prior Successor programmes has allowed Swiss Re to obtain 2.39 billion of protection against natural catastrophe events.

“Insurance-linked securities remain a cornerstone of our hedging strategy, giving us a competitive advantage by allowing us to manage peak catastrophe risk more effectively,” says Matthias Weber, Swiss Re’s Head of the Property and Specialty Division.

The Successor X notes were sold in a private placement pursuant to Rule 144A of the U.S. Securities Act of 1933, as amended, (the “Securities Act”) and have not been, and will not be, registered under the Securities Act or any state securities laws; they may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Source : Swiss Re

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Sterling Insurance Group’s Personal Lines, Commercial Underwriting and Claims divisions have received Chartered Insurer status from the Chartered Insurance Institute (CII).

The award also demonstrates that these divisions have exceeded the strict standards set down by the CII in areas such as insurance qualifications, competency and ethical integrity.

At present, 11% of Sterling’s customer-facing staff in underwriting and claims hold the equivalent of an ACII (associate membership) qualification or above. The company is also on target to ensure that 25% of all customer-facing staff hold the CII’s Certificate in Insurance or higher.

Sterling has always promoted staff development through its commitment to CII examinations. Personal performance reviews are closely linked to professional development and internal training and development courses are a regular feature of Sterling’s staff personal development plans. In addition, Sterling has an active graduate recruitment plan which is now in its third successful year.

John Blundell, managing director of Sterling, said:

“We are delighted to receive the CII’s recognition of chartered status and this reflects our commitment to developing the highest level of technical skills and expertise .

“We have always been dedicated to promoting high standards of professionalism and integrity, which is why we were also pleased to sign up to the CII’s Aldermanbury Declaration earlier this year.

“The contribution the CII will now offer through its annual evaluation and ongoing quality monitoring will enable us to continue to demonstrate our expertise and our ongoing commitment to staff and customers.”

Sandy Scott, chief executive officer of the CII, said:

“The public know and trust the Chartered brand. What’s more, our research shows that it is consistent with the public mood on the need for trust in financial services. As such, it is more relevant than ever in today’s turbulent times.

“We are delighted that Sterling Insurance has chosen to embrace the challenge of becoming a Chartered Insurer. They represent a small group of firms who have achieved what is truly the ‘pinnacle of the profession’. Few symbols have lasted as long, or offer the opportunity to engender trust in our profession.”

Source : Sterling Insurance