Wednesday, November 27, 2024
Home Authors Posts by Barbara karouski

Barbara karouski

Profile photo of Barbara karouski
1629 POSTS 0 COMMENTS

0 0

Since the beginning of the credit crisis in 2007, the European structured credit sector has experienced significant rating migration and actual realised losses stand at 1%, which is higher than most other European structured finance sectors. The investor base has changed considerably, issuance volumes have decreased and new regulations are providing increasing challenges in the near term.

That said; there are some sub-sectors of European structured credit such as SME- and Leveraged Loan CLOs which have performed well over the last four years, in some cases better than expected.
With that in mind Fitch Ratings cordially invites you to its European Structured Credit conference on Thursday 10 November in London where senior Fitch analysts and leading market participants will discuss the ongoing performance of and challenges facing the sector.

Venue : Fitch Ratings offices, 30 North Colonnade, London E14 5GN

Featured Topics

– European Structured credit issuance, performance & outlook by sub-sector;

– Evolution of Rating methodology since the start of the crisis;

– Funding European SMEs – Structured Finance or Covered Bonds?

– Leveraged Loan CLOs – Amend and extend to be continued?

View Event Agenda / Register

Featured speakers :

Marjan van der Weijden, Managing Director

Matthias Neugebauer, Senior Director

Edward Eyerman, Managing Director

Laurent Chane-Kon, Director

Selena Dewitya, Director

Galen Moloney, Senior Director

0 1

DWF partner Claire Bowler was rewarded with the insurance category 2011 Women in the City Woman Achievement Award. Claire has received her award at the gala evening sponsored by Lusso in the Museum of London Docklands.

Claire Bowler said; “I am honoured and proud to be the insurance category winner in the 2011 Women in the City, Woman of Achievement Awards.  This means such a lot to me and reflects the immense support I have received throughout my career from my insurance clients, both in the UK and overseas.  In working for DWF, a firm which supports female initiatives, I have been able to spend time developing female talent across the business and supporting female charitable initiatives in the community.  I look forward to doing all I can to support women in business in the years to come”.

The Insurance category is sponsored by Bluefin and endorsed by the Chartered Insurance Institute (CII).  As a category endorser the CII helps to; promote the awards, provide a Judging Panel, select the Category Winner, and presents the Award Certificates.  On presenting the award last night, Martin Reid, Head of Membership, CII, commented;  “Claire Bowler is a perfect role model for women working in the insurance sector. She is recognised by insurers and fellow professionals as one of the UK’s leading insurance lawyers. At just 31 she was made a Partner at a City law firm and by 35 was a full Equity Partner.

“Her ability to harness women’s talent and ambition is remarkable – with 4 out of 5 of her direct reports being women. Claire spearheaded a campaign with the Dress for Success female community charity initiative and was also a founding member of the DWF Women in Business Network. The judges had no hesitation in deciding that Claire Bowler would be awarded the insurance category Women in the City award for 2011.”

The overarching aim of the Women in the City Woman of Achievement Award is to highlight and formally recognise the outstanding contribution these women make to the City and in particular to identify those who are actively promoting and encouraging the progress of women above and beyond their everyday job.  The Award identifies excellence and celebrates the achievements of senior and partner-level professionals working in London’s business hubs.  Now in its fifth year the Award draws over 350 women to the Annual Women in the City Celebration Lunch in November when the 2011 Woman of Achievement Award Winner is announced.

Source : DWF

0 0

On Saturday, November 5, (22:53 local time) a moderate moment magnitude Mw5.6 earthquake occurred in central Oklahoma. The USGS have reported a depth of 3.1 miles and an epicentral location in southeast Lincoln County, Oklahoma, approximately 21 miles north-northeast of Shawnee (in Pottawatomie County),Oklahoma; 44 miles east-northeast of that state capital Oklahoma City. This earthquake was felt as far away as Cleveland, Ohio and Coraopolis, Pennsylvania, located approximately 915 miles and 965 miles northeast of the epicenter respectively.

According to the Oklahoma Geological Survey (OGS), a foreshock of magnitude Mw4.7 occurred earlier on Saturday,  November 5, at 07:12 UTC (02:12 local time). It is believed that this earthquake occurred on the Wilzetta fault, otherwise known as the Seminole uplift.

According to the USGS ShakeMap, the maximum intensity ground shaking in the vicinity of the epicenter was VIII (‘severe‘) on the Modified Mercalli Intensity (MMI) scale. This level of ground shaking could be expected to cause moderate/heavy damage to resistant structures and heavy damage to vulnerable structures, however according to the USGS PAGER, only 3,000 people were exposed to this level of shaking. Over 2.6 million people were exposed to intensity V or stronger shaking, where damage to structures can begin to occur. The city of Prague (population 2,000) experienced intensity VIII shaking, with the city of Shawnee (population 26,000) experienced intensity VI. The larger cities of Oklahoma City and Tulsa (population 533,000 and 393,000 respectively) experienced intensity V shaking.

Information from Lincoln County Emergency Management (as of 09:00UTC Monday, November 7) is that 12 homes, in the Prague area (in the southeast of the state) have sustained significant damage. Some structural damage, including a roof collapse and a damaged ventilation system has been reported to a municipal building and three sections of U.S. Route 62 have buckled.

No fatalities have been reported as a result of the earthquake. Oklahoma State Department of Health has reported two instances of minor injuries.

The Mw5.6 earthquake is the largest earthquake to occur in the state of Oklahoma, according to the OGS. The previous record was set in 1952 when a magnitude 5.5 earthquake occurred in El Reno City. Oklahoma appears to have had a phase of heightened seismic activity since 2009 in terms of the frequency of earthquakes recorded in the state, as indicated by the OGS, however the intensity of these tremors is in line with what is deemed normal seismic activity.

RMS will continue to monitor the situation and update accordingly.

Source : RMS Press Release

0 0

Insurer financial strength of the major insurance entities of Coface has been affirmed by Fitch Ratings at ‘AA-‘. The head entity of the group, Coface S.A., has a long term issuer default rating affirmed at ‘A+’, and the outlook on all ratings are stable. The agency has also affirmed Coface S.A.’s and Coface Kreditversicherung AG’s, the German insurance subsidiary of Coface, Short-term IFS ratings at ‘F1+’.

The affirmations reflect Coface’s improved financial profile, as evidenced by its strong overall financial results posted since 2010. This is a result of the stricter underwriting discipline in place since 2009; its solid global positioning; and its strong capital levels commensurate with its current rating.

The Stable Outlook indicates the agency’s expectations that Coface’s credit profile will remain broadly unchanged in the next 12-18 months. Additionally, Fitch believes that although Coface’s strategic importance to its parent company Natixis (‘A+’/Stable) is limited, support is expected to be provided should the need arise.

Since mid-2011, Coface has introduced increasingly selective underwriting measures in anticipation of a significant economic slowdown. As a result, Fitch expects profitability to remain solid, underpinned by prudent underwriting discipline, manageable development of insolvent companies and the quality of Coface’s management team, whose strategy is focused on its core credit insurance business.

The company’s improved financial profile has been supported by the measures taken in response to 2008-2009’s financial crisis, which included tighter policy terms and conditions and tariff increases; and a rise in new business. Consequently, the loss ratio decreased to 52% at end-2010 and 51% in HY2011 compared to 97% in 2009, according to Fitch’s calculations.

Although unlikely in the medium term, factors that could trigger an upgrade include a new, and financially stronger, shareholding structure in which Coface’s strategic importance increases at the same time as the group’s stand-alone financial profile remains strong.

Conversely, the ratings could be downgraded if a new shareholding structure proved to be less supportive of the group’s current ratings or the group’s standalone profile deteriorated.

Coface is the third-largest international credit insurer, with an estimated 20% global market share and gross written premiums of EUR685m at HY2011. It holds strong positions in Europe, built both through acquisitions and organic growth. The group’s competitive advantages are its strong franchise, consistent strategy and IT systems that facilitate streamlined underwriting under strict guidelines. Coface has a strong standing in the complementary businesses of credit information, factoring and debt collection, although those activities are no longer core to the group.

Source : Fitch Ratings

0 0

In the US this year already 87 banks have been closed by regulators. On Friday November 4 two more banks have been closed, one in Nebraska and one in Utah.

The Federal Deposit Insurance Corporation (FDIC) said the SunFirst Bank of Saint George, Utah, has been closed. It said the three branches of SunFirst Bank will reopen as branches of Cache Valley Bank on Saturday.

SunFirst Bank had about $198.1 million in total assets and $169.1 million in total deposits as of September 30, 2011.

The FDIC also said that Mid City Bank, Inc in Omaha, Nebraska, was shuttered, with the deposits being assumed by Purdum State Bank in Purdum, Nebraska.

Purdum State Bank will change its name to Premier Bank on Saturday, when the five Mid City Bank branches will reopen under the new name.

As of September 30, 2011, Mid City Bank, Inc. had about $106.1 million in total assets and $105.5 million in total deposits.

Most of the banks that have failed so far this year had less than $1 billion in assets, illustrating the problems facing small banks.

Many of community banks continue to be hit hard by the sluggish economy and their exposure to the troubled commercial real estate market.

At the current pace, however, there will be fewer failures this year than in 2010 when 157 banks were closed.

Source : Reuters  

0 0

Standard & Poor’s has affirmed its ‘A’ long termfinancial strength rating for Scor Reinsurance Ireland with a stable outlook.

S&P has also removed all ratings on SIRI from CreditWatch with negative implications, where they were originally placed on April 27, 2011. The ‘A/A-1’ long- and short-term counterparty credit ratings on SIRI have also been removed.

The affirmation, removal of the CreditWatch placement, and the withdrawal of the counterparty credit ratings follow the provision of a guarantee from parent French reinsurer SCOR SE on SIRI’s reinsurance obligations. The guarantee is now effective and meets Standard & Poor’s criteria for guaranteed companies. The insurer financial strength rating on SIRI is based on the application of the criteria, under which S&P equalizes the rating on the issuer with that on its guarantor.

Source : S&P

0 0

Finland’s biggest insurance group Sampo saw its net profit plummet by more than half to 125 million euros ($172 million) in the third quarter due to restructuring.   

Net profit for the same period last year reached 284 million euros.  The results followed a profit warning issued in October, in which Sampo warned that restructuring changes in the majority-owned Swedish bank Nordea would affect its performance.

“In the third quarter, Sampo’s performance was well in line with our expectations. The (pre-tax) result of 906 million euros (for the first three quarters) was only five per cent below the same period the previous year,” group president and chief executive Kari Stadigh commented in a webcast press conference.

“With the impairments that affected it, it was still a very good result,” he said.

In 2010, Sampo’s stake in Nordea, now 21.3 per cent, shifted from being considered an equity investment to an associate company, immediately boosting Sampo’s reported profits for every subsequent quarter and the year.

The group’s share of equity in Nordea continued to have a major impact on Sampo’s performance, with its share of Nordea’s third quarter net profit amounting to 80 million euros, down from 140 million euros in the same period last year.

Additionally, a lower quarterly net profit and one-off restructuring costs affected the Nordea contribution to Sampo’s profitability.

The company’s insurance business was also hit by significant claims and equity market turbulence, which resulted in the devaluation of some of its equity holdings.

“Currently the debt crisis continues to be an external uncertainty factor which, in addition to creating volatility in the financial markets, can potentially generate abrupt structural changes in markets,” the company said in a statement.

“The crisis has been aggravated by inability and slowness in political decision making, increasing uncertainty and spreading the problems to the banking sector,” it added.

Helsinki, Nov 2, 2011 (AFP) 

0 0

Greek Finance Minister Evangelos Venizelos was released from hospital on Wednesday after a one-day stay over an inflamed appendix, a finance ministry source told AFP.   

But it was not immediately clear if he was well enough to accompany Prime  Minister George Papandreou to a G20 summit in Cannes.

Papandreou is expected to face tough questions from fellow European and  eurozone leaders over a controversial referendum on a hard-fought EU debt deal agreed last week.

“The minister has returned home to rest, we do not currently know whether  he will go to Cannes,” the finance ministry source said.

Papandreou is facing an internal party revolt and is battling for his  political survival after securing his cabinet’s backing for the referendum  plan ahead of a confidence vote in parliament on Friday.

A number of ruling party lawmakers have threatened to oppose the referendum  — on the grounds that it undermines Greece’s rescue efforts — and one  defected on Tuesday, reducing the government’s parliamentary strength to 152  deputies in the 300-seat chamber.

Athens, Nov 2, 2011 (AFP)

0 0

Fitch Ratings says it expects the US solvency regime for insurers to achieve equivalence with the European Union’s Solvency II requirements, despite the fact that the US was not included in the first wave of third-country assessments announced last week.

The US has a long-standing, risk-based solvency regime. If it is seen to give policyholders the same protection as Solvency II, despite fundamental differences in the underlying methodologies, we expect this to result in equivalence recognition from the EU.

Equivalence would be mutually beneficial for both markets. It would help European insurers and reinsurers with US operations, which would otherwise face the same capital requirements in the US as locally-owned companies plus the extra capital requirements of Solvency II – a competitive disadvantage when pricing products. The US insurance market would gain the capital and investment that European companies bring via their US subsidiaries.

Beneficiaries of regulatory equivalence are European companies that have large subsidiaries regulated in the US, US companies selling reinsurance to EU companies, and US groups with subsidiaries in Europe.

Losers are likely to be local competitors of EU-owned subsidiaries that would otherwise have benefited from reduced competition and possible acquisitions as well as EU reinsurers that may have picked up extra business.

In reaction to Solvency II, the US started the “Solvency Modernisation Initiative” (SMI) in 2008. The SMI will bring in better risk assessment with the “Own Risk and Solvency Assessment” (ORSA), and possibly group supervision, both of which are required under Solvency II, but it is not yet clear what form they will take.

Co-operation has recently increased between the US and Europe on reinsurance written in the US by European companies. Previously harsh collateral requirements have been dropped in a number of US states. Fitch sees this as a positive sign that co-operation will lead to an agreement on equivalence.

If there is no ruling on US equivalence by the European Commission, then each member country can make its own determination.

Last week, the European Insurance and Occupational Pensions Authority (EIOPA) published its final advice to the European Commission regarding its assessment of the Solvency II equivalence of supervisory systems in Switzerland, Bermuda and Japan. EIOPA said that Switzerland meets the criteria set out in its equivalent assessments, with some caveats, as does Bermuda for certain categories of insurer. Japan meets the criteria, with certain caveats, under Article 172 of the Solvency II directive, which deals with insurers from the European Economic Area purchasing reinsurance outside the zone.

Although it was not included in the first assessments, Fitch thinks the US will likely be covered by transitional measures for a limited time, if necessary.

Source : Fitch Ratings Press Release

0 0

Following the High Court’s Judgment in the case of Brown-Quinn & Webster Dixon -v- Equity Syndicate Management last week, ARAG Legal Services has issued its reaction to the decision.

The Bristol-based legal expenses specialist warned that the court’s decision was not a positive one and, without any evidence to suggest that non-panel law firms offer higher standards of representation, the main beneficiary of the ruling would be the non-panel law firms themselves. The court’s decision could also result in higher legal expenses premiums.

ARAG’s Managing Director Tony Buss commented: “With no evidence to suggest non-panel firms deliver a heightened level of service to the policyholder, those firms may well be the only long-term beneficiaries from the Judgment. At a time when, the take-up of BTE is being encouraged, this cannot be a positive development overall.”

Many legal insurance providers will now consider their policy wordings and whether they are consistent with the judgment, especially where they have chosen to expressly limit the costs payable to those which their panel lawyers charge.

ARAG’s policies fully comply with the decision. In addition, legal insurance providers will need to be sure that their approach in practice complies with what their wordings actually say. It seems in this case that the defendants’ approach was at odds with the policy wording and also perhaps the result of too ambitious an interpretation of The Insurance Companies (Legal Expenses Insurance) Regulations 1990.

Even with cases handled by its panel, ARAG does not take a “one size fits all” approach, and has arrangements for higher remuneration rates for more senior lawyers when circumstances demand it. This also extends to how we contract with non-panel solicitors, where again, we will, where appropriate, agree a higher rate, be that an aggregate hourly rate, or a variety of rates.

That is not to say that ARAG embrace the appointment of non-panel firms. Unless the complexities of the case warrant the appointment of a non-panel firm, we are confident that our policyholders receive at least as high a level of service from our panel firms as they would their chosen lawyer, but at a fraction of the cost. That cost, as the Judgment recognises, is reflected in the very modest premiums policyholders currently pay for before-the-event (BTE) legal insurance. The obvious danger therefore arising from this Judgment is that policyholders wanting to use their own solicitor will see their financial position strengthened when looking to insist on their own solicitor acting. The consequence of this is increased exposure to the insurer which is likely to be passed on to policyholders in the form of higher premiums.

Source : ARAG Press Release

0 1

New research from Aviva shows that the average household with two or more cars do not park them in their garage because these are too full of other belongings.

The survey also showed the average household has around £3,429 worth of items in their garage, yet keeps vehicles worth almost four times as much (£13,487) on the road or driveway. A quarter of those polled admitted they park a car that’s worth, on average, £20,000 on their drive, even though more than two fifths (41%) said they were worried that their cars could be broken into, stolen or vandalised when parked on the drive or road.

Interestingly a quarter (25.5%) confessed that it was too much effort to park their vehicles in the garage.

Aviva’s ‘Garage Gridlock’ study also revealed:

– 90% of those polled would only be spurred into parking their vehicles in the garage should theft or vandalism happen

– While the value of contents in the average garage was £3,429, a third estimated the contents of their garage was worth just £500 to £1,000

– The men of the household were cited as the main culprits for taking up space in the garage with 68% storing items such as DIY materials, tools or gardening equipment

– Nearly a fifth of the UK households polled still stored unwanted boxes from their last house move.

This gridlock in British garages is forcing car owners to look elsewhere to park, with a third of those polled saying they find it difficult to find on-street parking, and a further 30% say they struggle to fit all the cars in their household on the drive.

Yet almost two fifths (38%) said they would only clear out their garage once a year and one in ten said they would never clear it out.

Oliver Heath, celebrity architectural designer said; “The Aviva survey results don’t surprise me at all. It’s clear that we’re all short on time, and with the increased pressure on space in the home and a higher turnover of household possessions than ever before, it really can be tricky to know what to do with all that “stuff”. But it seems ludicrous that we favour unwanted bits and pieces for what is, for all intents and purposes, the second largest purchase of our lives – our cars. Will it really take vandalism or theft of our cars for the nation to wake up to the fact that they are safer stored in our garages than left on the road?”

Heather Smith, director of marketing for Aviva’s MultiCar insurance, said: “We understand that householders are busy, but if they gave their garage a bit of a clear out once in a while and parked one or more of their cars in it, they would have the peace of mind that one of their most valuable possessions is being fully protected – and they are likely to save on their car insurance too.

“Following the findings from Aviva’s research, we are urging garage owners to make use of their garage space wisely to help keep their most valued possessions safe and secure.”

Source : Aviva

0 0

A powerful early season storm produced heavy snow and gusty winds on October 29 and October 30 as it moved up the Eastern Seaboard of the U.S, affecting Northeast and Mid-Atlantic states and prompting states of emergency in New York, New Jersey, Connecticut, and Massachusetts. The snowstorm caused at least three deaths, severely affected transport networks in the region, and caused widespread power outages – 4 million people across 5 states lost power.

The National Weather Service (NWS) reported that the Nor’Easter produced storm total snowfalls of 2.9inches in Central Park, New York; 16inches in Harrison, New York and 15 inches in West Milford, New Jersey. The NWS is reporting that cities in West Virginia, Pennsylvania, and Maryland saw more than 9 inches of snow within 24 hours over the weekend.

As of 09:00 UTC Monday, October 31, no weather warnings are the place for the region.

NB – NOAA’s 2011-2012 Winter Season Outlook states an equal chance for above, near or below temperatures and precipitation for the Northeast and Mid-Atlantic.

Source : RMS Press Release

0 0

AIR Worldwide has released a Multiple Peril Crop Insurance (MPCI) model for China. The new model provides a fully probabilistic approach for determining the likelihood of losses to the country’s major crops: corn, cotton, rapeseed, rice, soybeans, and wheat. The model captures the significant effects that weather-related perils have on each crop during the growth stage. This detailed information will help companies better prepare for and understand the exposure they carry based on China’s specific insurance programs, which tend to vary by province. 

“China is a growing agriculture market with premiums second only to the U.S.,” said Dave Wolfe, executive vice president of global reinsurance at AXIS. “AIR’s China crop model captures the impact of weather on individual crops and insurance programs that vary by province. The fully probabilistic model is scientifically advanced and accounts for the unique challenges of modeling agricultural risk in China.”

Because traditional methods have proven unreliable in quantifying and managing this complex risk, AIR has leveraged its considerable experience and success in modeling MPCI portfolios in the United States to develop a model for China. The AIR MPCI Model for China employs AIR’s advanced Agricultural Weather Index™ (AWI) to accurately capture the severity, frequency, and location of adverse weather events, while also correctly preserving the timing of events during the season. The AWI takes into account weather variables (such as precipitation and temperature), soil conditions (such as available water capacity, surface moisture, and runoff), and crop-specific parameters (such as requirements at critical stages of crop growth, planting and harvesting dates, and resiliency to adverse weather conditions). The model explicitly models damages resulting from various weather perils, including drought, floods, and typhoons, which are the leading causes of loss in China.

The model was developed using data from various local agencies, including the China Meteorological Administration and the Shanghai Typhoon Institute. Furthermore, each crop has a different growing season and a different vulnerability to adverse weather conditions. To capture the full range of potential damaging events that could occur in a growing season, AIR uses detailed crop-specific information, weather data, and soil information at county-level resolution to develop fully probabilistic loss estimates based on a company’s crop-specific exposures at the county or province level.

“In the past, estimating the likelihood and magnitude of future crop losses presented significant challenges,” said Dr. Gerhard Zuba, senior principal scientist at AIR Worldwide. “Traditional approaches rely largely on historical losses, but the usefulness of such data is limited — in part because high-quality historical claims data is scarce. Furthermore, in China, the crop insurance landscape is constantly evolving: insurance penetration is growing rapidly, policy conditions and premiums are changing, and new technologies are being introduced to improve crop yields.”

 

The AIR MPCI Model for China also:

– Provides the industry’s first fully probabilistic approach for determining the likelihood of losses arising from the perils covered under the current Chinese crop insurance program

– Accommodates complex policy conditions (Insurance policy conditions in China are dependent on the crop’s stage of development. Policy conditions and programs also vary depending on crop type, peril, and province.)

– Leverages the AIR Northwest-Pacific Basinwide Typhoon Model to capture damage to crops and the resulting monetary losses caused by typhoon wind and precipitation

– Enables user input of crop-specific exposures at the county or province level

The AIR Multiple Peril Crop Insurance Model for China is currently available in CATRADER® , the industry standard application for analyzing catastrophe reinsurance and insurance-linked securities, and can also be used to assess a portfolio of crop insurance programs and assess combined risk to property exposed to typhoons.

Source : AIR Worldwide Press Release

0 0

Brazil’s popular ex-president Luiz Inacio Lula da Silva, the South American country’s first elected leftist leader, has been diagnosed with throat cancer, the hospital treating him said Saturday. 

Following a series of tests, the 66-year-old Lula “was diagnosed with a tumour located in his larynx” and will receive outpatient chemotherapy treatment, the Sirio-Libanes Hospital of Sao Paulo said in a statement.  Late in the afternoon, he left the hospital and walked out to his car, and it was not immediately known how many sessions of chemotherapy Lula would undergo, a hospital spokesman said.

Local media reports however cited unnamed medical sources as saying that Lula would undergo three rounds of treatment at 20-day intervals. Lula “is in great spirits,” Finance Minister Guido Mantega told reporters after visiting with him at the hospital.

“It is a problem that can be cured with chemotherapy and was caught early. The outlook is good.”

The news still came as a shock to Brazilians, who adore the former metal worker. Lula’s social programs helped lift 29 million Brazilians out of poverty, and his foreign policy helped turn Brazil into a global power player.

President Dilma Rousseff, a Lula protege and his successor, warmly wished her former boss a speedy recovery. “Thanks to preventative exams, the tumor was discovered at a stage that allows it to be treated and cured,” she said. “With his strength, determination and capacity to overcome all types of adversity,” Lula “will also overcome this challenge,” Rousseff said.

Lula left power with a soaring 80 per cent approval rating after two consecutive terms from January 2003 to December 2010.

Brazil’s constitution prohibits a third consecutive term. Jose Crispiniano, a spokesman for the Citizenship Institute that Lula created after leaving office, said the ex-president — a former smoker — went to the hospital on Friday complaining of throat pain.  Lula, who is known for his raspy voice, was “even more hoarse than usual,” he said.

The former Brazilian leader will have his first chemotherapy session on Monday, Crispiniano said. Since leaving office, Lula has often traveled abroad, and has been busy with his activities as head of the governing Worker’s Party. He celebrated his 66th birthday only a few days ago.  “I am proud to have dedicated more than half of my 66 years to the struggle for the victory of democracy in this country,” Lula said in a video message posted on his institute’s website in response to birthday well-wishers.  The Sirio-Libanes Hospital, which specializes in cancer treatment, treated Lula’s former vice-president, Jose Alencar, who died in March following cancer in his abdominal area.

Rousseff was diagnosed with lymphatic cancer in 2009, before she was elected to Brazil’s top office, and was treated in September of that year at the hospital. Doctors say she is currently cancer-free.

Paraguayan President Fernando Lugo, 60, was diagnosed with lymphatic cancer in August 2010 and also treated at Sirio-Libanes Hospital as well as in Asuncion. In December, doctors said he was cancer-free.  Brazil’s foreign minister suggested in July that Hugo Chavez could have his cancer treated in Brazil, but the Venezuelan leader instead opted for medical care in Cuba. Chavez recently said his doctors told him that he is cancer-free.

Sao Paulo, Oct 29, 2011 (AFP)

0 1

Standard & Poor’s raised long term counterparty credit and insurer financial strength rating for Swiss Reinsurance and its core subsidiaries to ‘AA-’ from ‘A+’.

The upgrade to ‘AA-‘ reflects the rating agency’s view that Swiss Re has met expectations for an upgrade since the last full review, namely by improving its financial profile, repaying the convertible perpetual capital instrument (CPCI) with Berkshire Hathaway, and continuing to generate strong operating performance characterized by strong underlying performance and improved net income.

The ratings on Swiss Re reflect the group’s very strong competitive position, very strong capitalization, and very strong non-life operating performance. They are constrained by S&P’s view that Swiss Re has yet to fully restore its financial flexibility and that the group’s life operating performance has exhibited some volatility and has not contributed to group profitability on the same scale as the non-life segment.

The legacy portfolio has been successfully reduced such that the net notional exposure is considered manageable. Swiss Re reduced this exposure by over 80% during 2010 and first-quarter 2011 to below $4 billion. The group has maintained capital adequacy significantly redundant to the ‘AAA’ confidence level despite repaying the CPCI at year-end 2010, large catastrophe losses in the first half of 2011, and widening credit spreads and equity market volatility in 2011. Swiss Re has reduced its exposure to market risk substantially by taking a more duration-matched position and keeping its equity exposure at low levels relative to other asset classes. At the same time, it has maintained very strong liquidity and high levels of cash.

2011 net income is expected to be strong and stable. At least $2.6 billion in catastrophe losses will impede 2011 net income, although about $800 million in reserve releases could partially boost this figure. Underlying operating metrics are very strong on the non-life side, but somewhat less so on the life reinsurance side in 2010 and thus far in 2011. The non-life reinsurance combined ratio for 2011 is expected to be significantly below expectations for the reinsurance market of 105%-110%. The combined ratio, excluding catastrophe losses and reserve releases, and return on equity (ROE) for the group through the first half of the year were 92.4% and 11%, respectively.

The rated entities under the two new business units, Corporate Solutions and Admin Re, created as part of the previously announced corporate restructuring, are viewed as “core” to the group rating under S&P’s group methodology criteria (see “Group Methodology,” published April 22, 2009). S&P’s view is supported by each of these units, on their own standing, being a material and integral part of the group’s existing and future operations. In addition, they share the Swiss Re brand, are heavily integrated into the group management and operational structure, contribute a material and beneficial portion of group earnings and capital, and provide a solid platform for growth and diversification for the group.

Swiss Re is expected to maintain its very strong competitive position in the life and non-life reinsurance and ILS markets. The group should maintain prudent cycle management in the current soft rating environment in the non-life space and to react quickly to exploit any material improvement in pricing. The Corporate Solutions direct non-life insurance segment will be a more prominent contributor to group earnings and premium over the next few years.

Lower reinvestment yields and non-life underwriting margins are likely to strain operating profits over the rating horizon. Non-life operating performance should remain very strong, with strong and stable net income, and a combined ratio significantly below expectations of 105%-110% for the reinsurance market. Return on revenue (ROR) and ROE should be in the high single digits for the full-year 2011, and net income should stabilize above $2.0 billion from 2012 and ROR and ROE to be above 12% and 10%, respectively, over the same period. S&P expects life operating margins to remain lower in 2011, but for ROR to be at 5% or above. More stability is expected in the life segment (including Admin Re) EVM (economic value management) income, new business to contribute $350 million per year, and for no major negative developments on previous years’ business.

The group’s capitalization should be resilient to asset-driven volatility without falling below the ‘AA’ level. Material changes to the asset allocation strategy over the rating horizon is not expected.

Positive rating action over the next 12-24 months is unlikely according to S&P. This is due to the rating agency’s view of increasing industry risk, including a challenging pricing environment in non-life lines, a low interest rate environment, and an inability to convert very strong competitive position to what is considered to be very strong operating performance. Negative rating action is also unlikely over the same time horizon. However, the ratings on Swiss Re could come under pressure if there were a material shift in the asset allocation, effectively “re-risking” to levels seen before the financial crisis, or if the group were hit by large losses that were outside its risk tolerance, thus impeding earnings and bringing its risk framework into question.

Source : Standard & Poor’s Press Release

0 0

Fitch Ratings says an EU invitation to private investors in Greek government debt to exchange their bonds for new debt with a 50% lower notional value would likely result in a post-default rating in the ‘B’ category or lower depending on private creditor participation.

Greece would still have a large amount of debt outstanding, its growth prospects are weak and its willingness to implement structural reforms may dissipate. That would restrict the potential for economic transformation and could undermine future public debt sustainability.

The exact amount of public debt Greece would have after a voluntary bond exchange will depend on the details of the debt exchange, creditors’ participation rate and any contingent liabilities in both the Greek financial and non-financial public sector.

Yesterday’s EU communique states that an ambitious reform programme coupled with deeper private-sector involvement should secure a reduction in Greece’s public debt/GDP ratio to 120% by 2020. Based on a preliminary analysis, we believe that this reduction in Greek public debt implies a participation rate of about 85% on an estimated EUR210bn of private holdings of Greek government bonds (GGB).

There are a number of reasons why a 50% write down of GGBs will not translate into a comparable reduction in the overall public debt stock. Official creditors – other euro area member states (EAMS), the IMF and the ECB – currently hold over one-third of Greek public debt and are not expected to participate in the debt exchange. The EU communique makes no mention of how ECB holdings of GGBs will be treated. However, we think these are excluded from eurozone estimates of the impact of a 50% write down of GGBs.

Offsetting the benefits of debt reduction would be the escalation in potential contingent liabilities for the government: Greek bank and non-bank institutions are heavily exposed to the sovereign (EUR84bn) and would sustain substantial losses on a 50% debt write down. The IMF’s Fourth Review of the Greek adjustment programme in July factored in additional funding needs of EUR30bn (13% of GDP) in 2011 to cover the costs of bank recapitalisation and other stock-flow adjustments.

Fitch estimates that after the debt exchange, Greece’s public debt/GDP ratio would peak at 142% of GDP in 2013, still by far the highest in the eurozone, before declining to 120% by 2020. The EU communique makes reference to the potential contribution of privatisation receipts: these could deliver a material reduction in the debt/GDP ratio, providing that the programme was fully implemented. However, Fitch views with some caution the apparent commitment to increase the Greek privatisation programme by an additional EUR15bn, given the already ambitious nature of the existing EUR50bn programme.

Source : Fitch Ratings

0 3

An 87% rise in platform sales on Elevate bring total platform assets under administration at the end of Q3 2011 to £3.1bn. Platform business represents 41% of all sales, up from 23% over the same period 2010.

AXA Wealth grew total assets under management from £16.7bn to £18.3bn. Total AXA Wealth sales grew to £2.8bn following strong results from not only its wrap platform, Elevate, but also Architas, AXA Wealth’s specialist investment company, with total assets up 33% to £8.7bn.

Additionally, funds under management for individual off-platform pension products grew from £4.4bn to £4.5bn and funds under management for Corporate Investment Services remain unchanged at £2.4bn.

Strong bancassurance partnerships with Clydesdale and Yorkshire Banks and Britannia Building Society also helped grow volumes by 23% to £293m. In July, AXA Wealth won a new seven-year bancassurance contract to provide a new financial advice service to Co-operative bank’s five million retail banking customers. The new service goes live November 1 2011.

Sales of offshore bonds via its AXA Wealth International offshore businesses, based in both the Isle of Man and Dublin, were down 12% to £796m.

Results highlights:

– Elevate total sales up 87% to £1.13bn

– Bancassurance volumes up 23% to £293m in 2011

– Mutual Fund premiums up 59% to £770m

– In particular, ISA business up 95% to £452m

– Architas total assets up 33% to £8.7bn.

Mike Kellard, CEO, AXA Wealth, says: “Like other companies, the equity markets over the summer have had an impact on our overall assets, which would have been even higher if we had not experienced the market volatility. AXA Wealth is however still firmly on track to grow assets to £45bn by 2015, which it will do around a clear strategy built on the three pillars of platform, customer experience and specialist expertise.

Many wrap providers are behind the curve with regards platform usability, partly owing to them still having a hill to climb to get them RDR-ready. As AXA Wealth is already prepared for RDR, in 2012 we are able to focus on making make Elevate not only a comprehensive online business solution for advisers, with rich and ‘RDR-ready’ capability, but also a new platform user interface that is intuitive and simple to use.

“Improving the AXA Wealth’s overall customer experience is also key part of our strategy, to help set the company apart from other brands operating in its market. A new brand identity has been introduced across all media, which is designed to ensure that our customer communications are instinctive, consistent and easy to understand and navigate.

“Finally, a key USP to help fuel AXA Wealth’s growth next year is our recognised specialist expertise, in areas such as product innovation, with offers such as our Family Sun Trust group SIPP, and our consultancy support, in particular the new Professional Edge programme. This programme has moved the business away from a traditional sales approach over recent years. Our plan is to build on our people expertise, by continuing to develop talent from inside the company, and to attract, retain and nurture new people with imagination from within the wider industry and from outside.”

Source : Axa

0 0

The London market’s ambition to enable brokers globally to trade with it more easily has taken a significant step closer with phase one of e-Accounts now operational.

With e-Accounts now live, brokers can send and receive ACORD accounting and settlement messages, thereby dramatically improving a key link in the premium processing chain.

The initiative, part of the wider London market modernisation effort, was designed and implemented by Xchanging in partnership with the LMG. It enhances the electronic submission of accounting entries for brokers via the bureau on a global basis. 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.

Additionally, following the planned enhancements in 2012, brokers will be able to further simplify their accounting and settlement processes with Lloyd’s and London Market carriers, thereby reducing administration costs. This will be achieved by transferring responsibility for identification and processing of underwriters’ tax and regulatory reporting data to outsource specialist Xchanging, which is administering the project.

Brokers Miller, Aon, Guy Carpenter, Price Forbes, Lockton, Towers Watson and UIB are all now using e-Accounts with other major brokers committed to joining during Q4.

Steve Spicer, Head of Business Change for Miller said: “Inevitably migrating processes to being based on data messaging rather than paper requires nerve but I am pleased to say we are already being rewarded with worthwhile benefits from e-Accounts. We look forward to next year when the planned enhancements promise to bring greater benefits by increasing the scope of what we can process.”

Managing director of Xchanging Insurance Sector Max Pell said: “e-Accounts has been a much-heralded ambition of the London market to ease global trading by reducing brokers’ administrative and frictional costs. With e-Accounts that ambition is becoming a reality and the London market is now open for electronic account trading.”

Source : Xchanging

0 0

Heavy rainfall caused widespread disruption and damage on both sides of the Irish Sea, the Dublin area has been the hardest hit.

The flooding was triggered by an active frontal wave moving north to south through eastern Ireland. Floodwaters have inundated Dublin and surrounding counties, forcing the evacuation of hundreds of homes and businesses. Sandbags were deployed in coastal regions, as there were fears a late high tide would penetrate low-lying areas. Flooding backed up drainage systems and caused transportation disruptions in the southwest of England, as well— an area still recovering from significant flooding last year.

According to AIR, the flooding was triggered by an active frontal wave moving north to south through eastern Ireland. This marked the boundary between warm and humid air from southern Europe, and colder air from the Atlantic Ocean. This frontal rainband moved northwards, bringing copious amounts of precipitation in a short period of time. Areas in Dublin were reporting precipitation totals between 50mm and 100mm in just three hours on Monday, as much as was recorded in the entire preceding month for the region.

According to the Irish Meteorological Agency, a precipitation station near the Dublin Airport recorded 69.1 mm and a station near the Casement Aerodome recorded 82.2 mm. In Ireland, the Camac, the Poddle, and the Sland rivers topped their banks. Flood alerts are in effect for Cornwall and Devon in the southwest of England, the northeast of Scotland around Dundee and Aberdeen, throughout Wales.

Hundreds of residential properties have been flooded throughout Dublin with the southern part of the city the most extensively impacted. Dundrum Town Centre, a major shopping area located in South Dublin, has been submerged under water. Dublin’s infrastructure has also been severely impacted. Power outages and rising water levels have caused large scale disruption to transportation with rail transport systems experiencing severe delays and line closures. Road closures were also widespread throughout the city and many of the main routes into and out of the city were submerged under feet of water

Elsewhere, county Tyrone was hard hit with significant flooding to residential properties, forcing the evacuation of people from their homes.  Parts of Belfast were also impacted by localized flooding and major transport links experienced disruption. In the village of Par in Cornwall, flooding overflowed a drainage system, causing a back-up into the streets. This is the same area that was impacted by a significant flooding event in 2010. Nearby, in Devon, there were numerous road closures and the seafront area was under high alert as strong onshore winds and a high tide compounded the already soggy conditions.

According to AIR, the band of heavy rainfall currently spreading from northwestern France is expected to move north-northeast over the UK during the next few days. There is some concern that this precipitation shield will cause additional flooding, particularly in the south-southwest where the soil is already wet.

The current flood event has primarily impacted the Dublin area. AIR will continue to monitor the situation and will provide updates as warranted.

Source : AIR Worldwide

0 0

XL group has announced the appointment of Suzanne B. Labarge to the company’s board of directors.

Ms. Labarge is a former Vice Chairman and Chief Risk Officer of Royal Bank of Canada (RBC Financial Group) where she was responsible for the management of enterprise-wide risk and served on the executive management committee, providing leadership for the overall strategic direction of RBC Financial Group.

During her 25 years with Royal Bank of Canada, Ms. Labarge held a variety of roles within commercial and corporate lending, internal audit, and corporate treasury before assuming responsibility for risk management.

During her career, Ms. Labarge has also served the Canadian government as an assistant auditor-general and as deputy superintendent of the Office of the Superintendent of Financial Institutions Canada.

Ms. Labarge has a Bachelor of Arts degree in economics from McMaster University and a Master of Business Administration degree from the Harvard Business School. In addition to serving on the Board of Governors for McMaster University and as a member of the Supervisory Board of Deutsche Bank AG, a global investment bank, she also served as a director and chair of the audit committee for Novelis, Inc., a Canadian producer of aluminum products until May 2007. From 2007, Ms. Labarge has served on the board, and currently chairs the audit committee, of Coca-Cola Enterprises, Inc.

Commenting on the appointment, XL’s Chairman, Robert Glauber, said: “We are delighted to have Suzanne join the XL Board. She not only possesses a wealth of knowledge and experience in enterprise risk and financial management, she also has a deep knowledge of compliance best practices. We look forward to Suzanne’s future contributions to our Board given the breadth and depth of her experience.”

Source : XL Group

Prev1...242526...82Next Page 25 of 82

POPULAR POST

Seroni Interactive is an independent publisher of information BtoC and BtoB sites in banking and insurance & specialist digital content. Our productions of brand content possible to affirm your image, positioning, demonstrate your expertise and create a traffic or a hearing and therefore advertising exposure for your brand.
Contact us: contact@news-insurances.com

SOCIAL

34FansLike
6Subscribers+1
965FollowersFollow

Popular category

© Seroni Interactive