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Fitch Ratings has upgraded VTB Insurance insurer financial strength (IFS) rating to ‘BBB-‘ from ‘BB’ and National IFS Rating to ‘AA+(rus)’ from ‘AA-(rus)’. The outlook is stable.

The upgrade reflects Fitch’s view of the increased strategic importance of VTBI to its 100% parent Bank VTB (‘BBB’/Stable). Fitch has raised VTBI’s status to ‘Very Important’ from ‘Important’ and concluded that a one-notch difference between the parent and the subsidiary is appropriate, as per the agency’s group rating methodology.

Assignment of ‘Very Important’ status reflects improved levels of synergy between the group’s banking and insurance operations, strengthening of VTBI’s stand-alone financial profile and crystallisation of VTBI’s medium-term strategic focus, which is largely on bancassurance rather than on dynamic growth in the open market.

The one notch difference between VTBI’s and Bank VTB’s ratings reflects the insurer’s relative small size in terms of assets and profit contribution for the group, as well as good prospects for greater synergies, particularly taking into account the acquisitions recently made by Bank VTB in the Russian banking sector.

VTBI has recorded a second consecutive year of strong operating performance, with return on adjusted equity (ROAE) rising to 72% in 2010 from 57% in 2009 with the underwriting result being the key driver of strong results in both years. Fitch understands that this is a result of Bank VTB’s deliberate decision to allow the insurer to write profitable business at low acquisition costs through its bancassurance channel and thus retain profit at the insurer’s level. This profit can be repatriated to the parent level in the form of dividends later, although Fitch has been advised that Bank VTB does not plan to withdraw dividends, at least in the near term. Meanwhile, VTBI has scheduled a share capital increase through the retained profits to RUB1.5bn from RUB0.5bn by end- 2011.

Bank VTB has recently acquired a significant minority stake and operational control in Insurance Group MSK (IG MSK; ‘BB’/RWN). This transaction formed part of a larger deal when Bank VTB acquired a 46.48% stake in the Bank of Moscow (‘BBB-‘/RWN) from the City of Moscow at the end of February. IG MSK was of interest to Bank VTB due to its cross-holding with Bank of Moscow. Bank VTB expects to increase its participation in IG MSK to a majority one in the near term.

IG MSK was three times larger than VTBI by premiums written in 2010, but significantly weaker in terms of underwriting performance, primarily due to the higher exposure to the motor business and execution risks related to the two mergers conducted by IG MSK in Q110 and Q211. At present, Bank VTB is in the process of scrutinising IG MSK’s insurance portfolio and balance sheet and plans to announce its strategic decision on the insurer’s development in the next few months. Fitch understands that a merger between VTBI and IG MSK is unlikely in the near to medium term, at least until IG MSK restores profitability. Fitch believes that VTBI retains a higher strategic importance among Bank VTB’s insurance holdings despite its smaller size due to the shared brand name, achieved integration with the group banking operations and strong stand-alone operating performance.

VTBI’s ratings are likely to move in line with the parent’s ratings. However, the ratings linkage with the parent could change if Fitch believes that VTBI no longer has ‘Very Important’ status for Bank VTB, under the agency’s group rating methodology. This could happen, for example, if VTBI were to focus on aggressive growth in the open market and failed to meet profitability targets set by the parent.

VTBI’s ratings could be fully aligned with the parent’s ratings if VTBI achieves materiality in size relative to the parent’s gross assets or net income, and/or achieves greater synergies with the group’s banking operations. Fitch believes this is unlikely to be achieved in the near to medium term, but is a realistic expectation in the longer term.

VTBI is a medium-sized Russian non-life insurer with gross premiums written of RUB5.6bn in 2010 and gross assets of RUB4.5bn at end-2010.

Source : Fitch Ratings

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Spanish banking giant Santander reported a slump in first-half net profits after setting up a special fund to handle insurance claims in Britain, where a stock flotation was postponed.   

Profits tumbled 21.2 per cent from the same period last year to 3.501 billion Euros ($5.075 billion) largely owing to the effect of the 620-million-Euro fund, an element that the market had not expected.

Without this special provision, profits would still have fallen 7.0 per cent to 4.121 billion.

“The fund covers potential claims for payment protection insurance sold in the U.K.,” the group said.    Britain’s banks are allocating billions of pounds to compensate clients who were mis-sold credit insurance.

“The whole of the British banking sector made provisions of more than 6.0 billion pounds (6.8 billion Euros),” said managing director Alfredo Saenz. “As we have 10 per cent of the market, we must put aside 10 per cent” of the total.    “There will be an avalanche of claims” and “that can have an very strong economic impact.”    Saenz also announced that plans for an initial public offering of its British and Argentine units have been suspended, citing difficult market conditions.

“We are going to list on the British stock market, that has not changed,” he said. “In the second half (of the year) we will be ready” and “it will probably be in 2012.”

On the Madrid stock market Santander shares fell by 3.14 per cent to 7.344 Euros following the news, in a market that was down 1.43 per cent.    For the second quarter alone, net profits were 1.393 billion Euros, a sharp fall of 37.5 per cent from the figure 12 months earlier.

Net interest income — the difference between interest paid out on deposits and interest earned on lending — was up 3.5 per cent at 7.638 billion in the second quarter, and 4.5 per cent over the six-month period at 15.152 billion Euros. Its bad loans as a proportion of total lending, a key indicator of financial health, climbed 3.78 per cent from 3.37 per cent a year earlier.

“Our strong capacity to generate revenues will enable us to close 2011 with a recurrent profit in line with last years and to keep our dividend at 0.60 Euros per share,” Santander chairman Emilio Botin said in a statement.

Growth continued to be driven by activities in Latin America where net profit for the first half rose by 16.0 per cent to 2.457 billion Euros and  accounted for 44 per cent of the overall outcome of which 25 per cent alone came  from business in Brazil.

Madrid, July 27, 2011 (AFP)

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Japanese women remained the world’s longest-living last year, although their average life expectancy edged down slightly to 86.39 years, the government said Wednesday.   

The fall of 0.05 years was the first decline in five years, falling from a  record 86.44 registered in 2009, the Ministry of Health, Labour and Welfare  said.

“Last year’s heat wave probably led to an increase in deaths resulting from heat stroke and heart trouble,” a ministry official said.

Deaths from heat stroke reached a record high of 1,718, with 80 percent of those people aged 65 and older, he said.

Among countries and areas across the world, Japan ranked first for women’s longevity, followed by Hong Kong at 85.9 years and France at 84.8 years, the  ministry said.

The average life expectancy of Japanese men hit a new high for the fifth straight year in 2010, rising 0.05 to 79.64 years, the ministry said.

Japan ranked fourth in men’s longevity below Hong Kong at 80.0 years,  Switzerland at 79.8 years and Israel at 79.7 years.

Tokyo, July 27, 2011 (AFP)

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A US government review of scientific studies has shown no proof that exposure to the dust and rubble from the World  Trade Center after the attacks of September 11, 2001 caused cancer.   

The review of peer-reviewed medical and scientific literature sparked anger among some firefighters, police and other first responders who said they have  seen too many colleagues suffer from cancer to believe that there was no link.

“Insufficient evidence exists at this time to propose a rule to add cancer,  or a certain type of cancer, to the list of WTC-related health conditions,”  said the review released Tuesday by John Howard, a doctor who heads the US  government’s World Trade Center Health Program.

Howard said his 93-page review was only preliminary and that more  information would follow in early to mid 2012 to include the latest data.

“It is important to point out that the current absence of published  scientific and medical findings demonstrating a causal association between the  exposures resulting from the September 11, 2001, terrorist attacks and the  occurrence of cancer in responders and survivors does not indicate evidence of  the absence of a causal association,” he wrote.    The next review should “capture any emerging findings about exposures and  cancer in responders and survivors affected by the September 11, 2001,  terrorist attacks.”

His findings mean that cancer treatment will not be covered by health care  legislation signed this year to help thousands of first responders struggling  to pay for medical care due to illnesses they believe are linked to WTC  cleanup.

“The collapse of the Trade Center towers released a cloud of poisons,  including carcinogens, throughout lower Manhattan and we fully expect that  cancers will be covered under our legislation,” said a statement by US  lawmakers Carolyn Maloney, Jerrold Nadler, and Peter King. The trio authored the James Zadroga 9/11 Health and Compensation Act, named  for a NYC police officer who died of lung disease at age 34 after helping in  the recovery effort.

“This is disappointing news for 9/11 responders and survivors who  tragically have been diagnosed with cancer since the attacks and are suffering  day-to-day and awaiting help,” their statement said.    “Thankfully, we know that today’s announcement is not the last word on the  inclusion of cancers in the program.”

John Feal, a construction worker who was among thousands who helped at the  massive rubble pile at Ground Zero and who has since become a leading advocate  for those who have fallen ill, contended that there is no doubt about a link.

“As we have seen countless of our brethren fall to a form of this horrible  disease time and again following 9/11, we know in our hearts, having breathed  in those noxious fumes and having spent hour after hour in that undeniably  toxic air, that many forms of cancer are due to our exposure at the site,” he  said in a statement.

Washington, July 27, 2011 (AFP)

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Israeli Prime Minister Benjamin Netanyahu unveiled reforms to address a massive housing crisis which has sparked the biggest social protests seen in the Jewish state since the 1970s. But activists rejected his proposals and vowed to carry on demonstrating.   

Over the past 12 days, tens of thousands of Israelis have camped out on the streets in tent protests across the country, reaching the gates of the  Knesset, or parliament, in Jerusalem on Sunday.

Such widespread social upheaval has not been seen in Israel since the early 1970s when thousands of people, led by a group called the Black Panthers, took  to the streets to protest against racial discrimination suffered by Mizrahi Jews of Middle Eastern descent.

As tens of thousands rallied in Tel Aviv over the weekend, and hundreds  more set up fresh tent camps and blocked roads on Sunday and Monday, Netanyahu  cancelled a one-day trip to Poland in an effort to tackle the unrest.

“The housing crisis in Israel is a real problem,” he said in Tuesday speech broadcast live on the main television and radio stations.

Netanyahu criticised “the monopoly” on construction on land held by the Israel Lands Administration (ILA), which controls some 90 percent of the territory. And he unveiled a plan to reduce the cost of such land, and to attack the cumbersome bureaucracy that has delayed housing starts.

He said some 50,000 homes would be built and put on the market in the next 18 months, and pledged to build 10,000 dormitory places for university and college students, who would also benefit from subsidised public transport.

The plan would be put before parliament for a vote next week, he said. But protest leaders were unimpressed, with the students’ union saying that the incentives to its members were an attempt to drive a wedge between students and other campaigners.

“We are continuing the struggle: the students are a part of the wider social struggle for affordable housing,” the union said in a statement.

“The prime minister is offering students an unprecedented benefits package and this is appreciated. However the students are fighting for all Israeli society and not only for themselves,” it said.

“Netanyahu is saying, ‘free land’,” housing activist Stav Shafir told an open-air news conference in Tel Aviv.    “Who will get it, the needy of Israel? No way, the ones who will get (the land) are the contractors, and the rest of his wealthy friends who will be able to build on free land,” she said in remarks broadcast by public radio.

The crisis has put huge pressure on Netanyahu, and a poll published in the Haaretz newspaper on Tuesday showed the housing protest was backed by 87 per cent of Israelis and was costing him political support.

It indicated that if an election were called today, the opposition Labour party would double the eight seats it currently holds, at the expense of Netanyahu’s Likud and the centrist Kadima, each of which would lose four.

Labour strongly condemned Netanyahu’s Tuesday speech as “lacking content” and an “apparent attempt to bribe” the protesters.

“Netanyahu’s speech did not provide real and sustainable solutions and his proposals put a sticking-plaster on a fundamental and deep problem which has suffered years of neglect,” party chairman Micha Harish said in a statement.    In recent days protesters have rallied in the streets, blocking traffic in Jerusalem, Tel Aviv and the southern city of Beersheva under the slogan: “We are fighting for a roof.” On Saturday, tens of thousand of people held a mass rally in Tel Aviv, while on Sunday, more than 1,000 protesters gathered outside the Knesset.

Netanyahu is also facing pressure from a long-running doctors’ strike over pay and conditions, with medics announcing plans to step up their protest with a series of wildcat strikes in public hospitals, the Maariv newspaper reported.

As part of the campaign, Israel Medical Association chief Dr Leonid Eidelman began an open-ended hunger strike to demand that Netanyahu, who also  holds the health portfolio, take action.

“One hundred and twenty-eight days of struggle and we ask: where is prime minister and health minister Netanyahu?” Eidelman said on Monday in comments  carried by Maariv.    “The deterioration in the health care system has been going on for two  years, but under your watch, it has become intolerable.”

Jerusalem, July 26, 2011 (AFP)

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An E.coli outbreak in Germany that killed  more than 50 people this year has ended, according to health authorities.   

The Robert Koch Institute, Germany’s national disease control centre, said that the last new case of enterohaemorrhagic E. coli (EHEC) was recorded three weeks ago, which covers the illness’s incubation period.

“As the RKI has not had any new infections linked to this outbreak reported since then, the RKI considers the outbreak to be over,” it said in a statement.

It said it would continue surveillance for the highly virulent bacteria strain which claimed the lives of 52 people, all but two in Germany, and  sickened more than 4,000 people.    The outbreak peaked in late May.

The European Food Safety Agency this month slapped a temporary ban on all seeds and beans from Egypt after it blamed a batch of contaminated fenugreek seeds imported to Germany and then distributed elsewhere for the infections.

The seeds were later used to grow salad sprouts, which most victims had  eaten before falling ill.

German authorities had initially pointed to Spanish cucumbers in error, dealing a stinging blow to the country’s farming industry at the height of the fresh vegetable season and straining ties between the two countries.

Berlin, July 26, 2011 (AFP)

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The way patients lack responsibility for their own health has triggered the concern of GP’s according to recent research from Aviva.

Aviva’s bi-annual Health of the Nation study reveals that GPs spend nearly three quarters of their time (74%) with patients.However,one in four (23%) say that only around a quarter of this time is spent dealing with medical issues that require a GP’s attention.

Most GPs (93%) say that they spend up to a quarter of their time dealing with medical issues that a practice nurse could address. 88% of GPs say that a similar amount of time is spent dealing with minor medical issues that don’t even need to be seen by a GP or nurse.

Moreover, Aviva’s research reveals that nearly half of GPs (48%) feel that a significant amount of their time is spent dealing with patients who do not look after themselves. Over three quarters (78%) are concerned that their patients have unrealistic expectations in relation to their own health and the support available from their GP.

Even when the GP is the most appropriate person to help, the research reveals that they still have difficulties making referrals in many cases. Worryingly, 42% of GPs haven’t been able to refer patients for some treatments because they aren’t available to them in their area.

This is particularly true in the case of complex medical conditions such as work related stress (53%), chronic fatigue syndrome (60%), eating disorders (53%) and food allergies (56%).

What do GPs think can be done to help?
The top things that GPs feel would improve patients’ experience of the health service are:

– Longer appointments (76%)

– Faster diagnostic services (63%)

– Shorter waiting lists (48%)

– Improvements in the quality of clinical care (45%)

Nearly half (46%) of GPs believe that better health education (for individuals and employers) will improve the individual’s experience of the health service. In fact the research reveals that many people are already turning to self education about their condition. If used in the right way, 76% of GPs think that this will help improve the quality of decisions made about their healthcare and benefit patient health.

Dr Doug Wright, head of clinical development, Aviva UK Health says: “Our research clearly demonstrates that GPs want to do the best for their patients by giving them the time and treatment they require. Yet this is an increasing challenge in the current environment.

“By working together, GPs, individuals, employers and private healthcare providers such as Aviva can do a great deal to help improve the service we all receive from the NHS.

“While it’s important to stress that people should always seek help if they are concerned about their health, they need to be educated to make informed choices about who they turn to for support.

“Similarly, promoting a better understanding of healthy living and encouraging individuals to manage their own health could go a long way to address some of the challenges identified in our Health of the Nation report. This would help free up GPs’ time to allow them to offer the best quality of care to the individuals that really need their help.”

Aviva’s Health of the Nation research reveals that nearly eight in 10 (79%) GPs believe that they don’t have enough time to spend with their patients. Worryingly over half (56%) feel that taking part in commissioning of NHS services will shift their focus from patient care onto administration. Similarly, 48% feel that they will find it harder to devote time to their patients.

The bi-annual study canvassed the views of over 200 GPs on issues relating to their working practice and patient care. The results are thought provoking and provide an incisive commentary on the position of healthcare at this moment in time, as well as an insight into GPs thoughts about the future.

Source : Aviva

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Allianz Engineering has created three new Account Development Manager (Technical) roles. These have been created to give clients a single dedicated point of contact for specialised technical advice

Peter Hildreth, Keith Hackney and Steve Glover are responsible for consulting on the technical aspects of Allianz’s products and services to suit clients’ business needs, whilst also providing realistic solutions to any technical and compliance challenges.

The ADMTs also specialise in the company’s energy service products and the impact of the new role has already played a part in major new business wins in the first quarter of 2011, including SIG Plc, Specialist Hire Group and Kone.

Working closely with Allianz Engineering’s development and operations teams, the ADMTs are actively involved with all major inspection enquiries to ensure that the business has the capabilities to deliver outstanding customer service.

Phil Godwin, business manager, Allianz Engineering, said: “We identified the need for a highly specialised and technically focused role, in order to offer the best customer service possible. The new structure has been very well received among our client base and we will continue to look at ways in which we can improve and modernise our processes and enhance performance.”

Peter Hildreth, ADMT at Allianz Engineering, said: “The introduction of a technically focused role has allowed us to establish a best practice approach to dealing with our clients’ technical and compliance challenges, which ultimately, will enhance the customer experience. As a result we have retained major inspection contracts this year and strengthened our client relationships by building long term inspection strategies to suit changing business needs.”

Source : Allianz

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Liberty International Underwriters in Europe (LIU Europe), a member of Liberty Mutual Group, has appointed Audrey Mondin as Environmental Impairment Liability Underwriter in its Paris Office, as the business looks to respond to a growing market for environmental impairment liability (EIL) insurance in France.

Reporting to Daniel Ktorza, Head of Casualty/General Liability for France, Audrey Mondin, who has a broking background in specialty casualty, will also write general liability business in addition to EIL cover.

Commenting on the announcement, Marcus Drew, European Manager -Environmental said: “This is the first time that our French operation has appointed a dedicated EIL underwriter and the move reflects the increasing demand from French businesses for insurance protection when it comes to environmental impairment risks.

Europe-wide we are continuing to grow our EIL capabilities and the appointment of Audrey follows hard on the heels of Gordon Smith’s appointment in March to set up an EIL team in Spain.”

Source : Liberty International Underwriters Europe

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French reinsurance company SCOR has recorded a 22 per cent growth in non-life reinsurance policy renewals. These expire mid year in June-July, and an average rate increase of 2 per cent has been announced.

The mid-year renewals were based on a total of EUR 320 million of premiums expiring at mid-year, based on a constant change rate.

The rise is supported by specialty contracts, which show an increase of 35 per cent. SCOR clarifies that one third of this progression is due to a major hike of one client’s business.

In the non-life reinsurance market, the growth was of 14.8 per cent, pulled by Asia, which shows a 23 per cent hike in premiums.

Concerning pricing, Scor notes that the dynamic pricing has increased beyond the markets most affected by disasters and began to spread to the damage branches without disaster.

This could be the sign of a toughening of general pricing conditions of the market, after a period of stagnation, or a lowering of prices, due to an over capacity of the reinsurance markets and from a drop of demand from insurers.

This has been favoured by natural events occurring in early 2011, mainly to the earthquake and tsunami in Japan, the cyclone and floods in Australia and the earthquake in New Zealand.

In this environment that is still evolving, the rise in prices for American contracts is linked to natural catastrophes, and has been comprised between 10 and 15 per cent in July. Scor will publish its mid-year results Thursday 28 July 2011.

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ING has reached an agreement to the selling of its Latin American pensions, life insurance and investment management operations to Grupo de Inversiones Suramericana (Gruposura). The transaction should amount to EUR 2.68 billion, and marks the financial disengagement of ING’s insurance and investment management activities.

Under the terms of the agreement, ING will receive approximately EUR 2,615 million in cash and GRUPOSURA will assume EUR 65 million in debt. In addition, earnings until closing will remain with ING. The transaction values the Latin American insurance and investment management operations business at 16x estimated 2011 earnings and 1.8x book value at closing estimated at EUR 1.490 billion, both on an IFRS basis. On a pro-forma local GAAP basis the transaction is valued at 18x estimated earnings.

“Over the years we have built a first rate Latin American franchise with a terrific management team and leading market positions in most countries we operate in. I am pleased that we have found in GRUPOSURA a very solid and complementary owner with the ambition to further build on the success of this leading Latin American pensions and insurance provider, in the interests of both our customers and our employees,” said Jan Hommen, CEO of ING Group. “Going forward, we continue to prepare our remaining Insurance and Investment Management businesses for our base case of two IPOs – one for the U.S. businesses and one for the European and Asian businesses – so that we will be ready to proceed when markets are favourable.”

The deal, subject to regulatory approval, is expected to close by the end of the year, and could deliver a net transaction result of EUR 1 billion to ING. The transaction, including cash proceeds, debt reduction in Latin America, and the extraction of excess capital prior to closing, is expected to reduce the leverage in ING Insurance by approximately EUR 2.8 billion.

Included in the transaction are the mandatory pension and voluntary savings businesses in Chile, Colombia, Mexico, Uruguay and ING’s 80% stake in AFP Integra S.A. in Peru; the life insurance businesses in Chile and Peru; including ING’s 33.7% stake in InVita Seguros de Vida S.A. in Peru. The transaction also includes the local investment management capabilities in these five countries. These businesses combined serve over 10 million clients through approximately 7,000 employees, have assets under management of EUR 49 billion and leadership positions in all of the countries and markets in which they operate. In 2010, these businesses earned EUR 192 million in net income, on approximately EUR 670 million in revenues on an IFRS basis, helped by their leading position in retirement services and the outperformance of the investment management capabilities.

The new combination will be a leading Latin American savings and investments group with approximately USD 120 billion in assets under management. The combined businesses will serve over 25 million customers across 8 countries in North, Central, and South America.

Not included in the transaction is ING’s 36% in leading Brazilian insurer Sul America SA which ING will also seek to divest separately.

ING’s Commercial Banking activities in Mexico, Brazil and Argentina are not affected by today’s announcement. ING’s Mortgage and ING’s Leasing businesses in Mexico are not part of today’s transaction.

GRUPOSURA is a financial holding company listed on the Colombian stock exchange, and is registered in the ADR- Level 1 program in the United States and on Latibex, the Euro Market for Latin American Stocks. The company has investments in leading Colombian companies, including Colombia’s biggest insurance company and number one bank, and also holds significant stakes in companies in other countries throughout the Americas.

In line with IFRS requirements, and starting with the publication of ING’s second-quarter results on 4 August 2011, ING will report the results of the Latin American insurance and investment management operations included in this transaction as results from discontinued operations and categorize these businesses on the balance sheet as “Non Current Assets Held for Sale.” These reporting changes will be implemented in the disclosure for second quarter results, on 4 August 2011, and relevant historical data will be restated accordingly.

Source : Reuters   

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Standard & Poor’s Ratings Services has lowered its insurer financial strength rating on Investors Insurance Corp. (IIC) to ‘BBB-‘ from ‘A’. The outlook is negative.

At the same time, they withdrew the rating on IIC at the company’s request.

The downgrade follows SCOR’s announcement that it has completed the sale of IIC to Athene for US$55 million. We previously rated IIC on the basis of a guarantee issued by SCOR SE covering IIC’s insurance and reinsurance liabilities, in accordance with our group methodology criteria. Following the sale, we understand that the guarantee ceases to be applicable for new business written by IIC under its new ownership and therefore the ‘BBB-‘ rating includes no support from SCOR.

At the time of the withdrawal, the outlook was negative, since IIC’s financial and business strategy following the acquisition by Athene is unclear to us.

Source : Standard & Poor’s

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Grandparents can now help protect the health of their grandchildren by purchasing insurance specially designed and tailored to children and their more common ailments.

The move by Aviva to allow grandparents to take out specialist health insurance for their grandchildren comes following evidence of the increased role they are taking in the lives and care of their children’s children.

Recent research from Aviva has shown that over half of grandparents (51%) now look after their grandchildren with the vast majority (88%) saying this extra time has brought them closer together. The majority of grandparents have a genuine stake in the wellbeing of their grandchildren; over a third (34%) say they help teach them hobbies and life skills and almost a quarter help with homework (23%).

Aviva is now offering grandparents the ability to purchase Child Health Solutions, giving their grandchildren access to diagnosis and cover for treatment at private facilities for an affordable, fixed premium. The scheme also includes benefits such as dentistry, physiotherapy and speech therapy that have been specially chosen to complement the paediatric services available on the NHS. Assistance to help parents finance sundries such as travel expenses and parking costs if their child has to stay in hospital is also available.

Source : Aviva

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The AXA Wealth International distribution function is being aligned to the wider AXA Wealth structure to streamline the service and support offered to IFAs.

Earlier this year, AXA Wealth announced it was bringing its on and off platform distribution together, in order to simplify the distribution strategy, and provide IFAs with a more cohesive and comprehensive advisory support and sales service. This decision followed feedback from advisers that they would like fewer contact points with the business.

As part of this strategy, the AXA Wealth International sales team led by Richard Leeson has now also been aligned with the main AXA Wealth Distribution team, under Managing Director, David Thompson.

At the same time it has been agreed to combine the roles of chief executive officer and chief operating officer roles on the Isle of Man into one new managing director role. Mike Foy has been appointed to this role. As a result, Kevin Dean has stepped aside from his role as CEO, AXA Wealth International.

Commenting on the changes, David Thompson, Managing Director, AXA Wealth UK Distributors, said: “Combining the main distribution businesses under a single structure completes the next stage of AXA Wealth’s programme to enhance our IFA service and support model. Our approach is to work in partnership with IFAs, and our objective reflects our aim to be as easy as possible for IFAs to work with.”

Source : AXA Wealth

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British holidaymakers risk running up over £422 million in stealth charges just for using their debit or credit card abroad, according to uSwitch.com, the independent price comparison and switching service. While a fifth of holidaying Brits (21%) intend to take money out of foreign cash machines using their debit card, one in four (38%) will risk being stung by fees by using their credit cards to pay for things on holiday.

However more than one in ten (11%) Brits don’t understand the costs involved and that they vary between cards, while only a third (35%) research the best credit card to use abroad and make sure it’s in their wallet. Credit cards have the convenience factor, but paying on plastic could see holidaying Brits handing over an eye-watering £186 million in fees and charges to credit card companies.

Even those who avoid expensive credit and debit cards may still be left short-changed. Over two thirds of Brits (68%) will be paying for this year’s holiday expenses with cash they changed up before they went. However, 13% are unlikely to benefit from the best exchange rate – leaving it to the last minute to change their money. In fact 16% rarely or never check to make sure they’re getting the best rate – and less than half (47%) ensure they get the best deal every time.  Getting the best exchange rate is a top priority for only three in ten Brits (30%) – a fifth (16%) chose convenience.

Even on holiday, one in ten Brits (11%) will be watching the pennies, choosing a payment method that will allow them to keep a closer tab on their spending. Just a fifth of Brits (20%) don’t budget their holiday spending, but even those who do aren’t always successful as 14% still manage to overspend.

Stefan Maryniak, personal finance expert at uSwitch.com, comments: “Sorting out your spending money is often the last thing on a holidaymaker’s list, but if you don’t do it or leave it to the last minute it can cost you dear. Fees from using your credit or debit card abroad can be the holiday souvenir from hell, but there are a number of ways to avoid them. If you plan ahead you’ll end up with more money in your pocket.

“The best way of tackling holiday finances is to start thinking about your spending money when you book the holiday. If you like the convenience and security of paying on plastic, check with your current credit and debit card supplier to see what their foreign usage fees are, and shop around to see if you can get a credit card with low or no travel fees. If you do have to withdraw cash, use your debit card as credit cards often carry higher fees, and you’ll be charged interest straight away. Alternatively get a pre-paid currency card which allows you to top up foreign currency some with no commission charges and can be used like a standard credit card abroad. The best thing about currency cards is you only spend what you load on them so you are guaranteed not to overspend.

“If you’d prefer to pay with cash, make sure you get the best rate on your money. This will normally involve pre-ordering your currency and collecting it before you travel. Avoid changing currency at the airport or straight from your debit card as commission fees could cost you that well-earned poolside drink.”

Source : uSwitch.com

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Britain’s financial watchdog on Thursday said it had fined British insurance broker Willis Limited nearly £7.0 million for  failing to ensure payments to overseas third parties were not used for corrupt  purposes.    

The Financial Services Authority said it had fined the company, a unit of the world’s third-biggest insurance broker Willis Group Holdings, £6.895 million (7.9 million euros, $11.14 million) “for failings in its anti-bribery  and corruption systems and controls.”

It added in a statement: “This is the biggest fine imposed by the FSA in  relation to financial crime systems and controls to date.”

The announcement comes after Britain earlier this month implemented new bribery laws.

The FSA said that the failings of Willis Limited created an “unacceptable  risk” that payments made to overseas third parties could be used for corrupt  purposes.

According to the watchdog, Willis Limited had between 2005 and 2009 made  payments of £27 million to overseas third parties who had assisted the company in gaining business.

The FSA said Willis failed to establish and record an adequate commercial  rationale to support the payments, nor did it ensure due diligence was carried  out with foreign clients, or evaluate the risks of doing business with them.

During the FSA investigation, Willis Limited identified as suspicious a  number of payments totalling $227,000 which it made to two overseas third  parties in respect of business carried out in Egypt and Russia.

Tracey McDermott, the FSA’s acting director of enforcement and financial  crime, said “the involvement of UK financial institutions in corrupt or potentially corrupt practices overseas undermines the integrity of the UK  financial services sector.”

Willis co-operated with the FSA and agreed to settle at an early stage in the investigation, allowing the group to qualify for a thirty percent discount on the original fine of £9.85 million.

“When we discovered some of our businesses had not got that right in the past, we were swift to engage with the FSA towards today’s regulatory resolution,” said Willis Limited chief executive Brendan Macmanus.

“Our close co-operation has been recognised by the FSA and we are grateful to them for that. It goes without saying that our compliance framework and its application across the business are now very robust and central to the  leadership of the company. We can now move forward, stronger as a result,” he  added.    Britain’s new Bribery Act, which updates its decades-old laws on corruption, creates new offences of offering or receiving a bribe, bribing  foreign public officials or failing to prevent a bribe being paid on behalf of an organisation.

British-based companies can be prosecuted under the new law regardless of where the offences occurred. Foreign firms with a listing in London are not automatically brought into the law’s reach, however, as the question of  jurisdiction is left to the British courts to decide.

London, July 21, 2011 (AFP)

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Fitch Ratings will be touring the Alpine countries this year and cordially invites you to join our upcoming seminar in Zurich.

The event includes presentations on key current and future credit issues by teams from Fitch’s Sovereign, Financial Institutions, Covered Bonds, Insurance and Corporate groups. Speakers will analyse global and regional macro trends as well as sectoral developments and explain Fitch’s view on how these affect credit profiles.

Registration will commence at 09:00am the conference will run from 09:30am – 1:00pm, followed by a lunch.

The event will take place :

Widder Hotel
Rennweg 7
Zurich 8001 Switzerland
September 21, 2011
9:00am – 2:00pm

Although attendance is complimentary, pre-registration is required.

Featured Topics :

– European Sovereign Review

– Major European Banks

– Sovereign Bank Risk in Covered Bonds

– European Insurance

– European Corporates

Speakers :

 -Jens Schmidt-Buergel, Managing Director

– Paul Rawkins, Senior Director

– Christian Kuendig, Director

– Rebecca Holter, Director

– Dr. Stephan Kalb, Senior Director

– Alex Griffiths, Senior Director

To register please click here.  

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Fitch Ratings will be touring the Alpine countries this year and cordially invites you to join our upcoming seminar in Vienna.

The event includes presentations on key current and future credit issues by teams from Fitch’s Sovereign, Financial Institutions, Covered Bonds, Insurance and Corporate groups. Speakers will analyse global and regional macro trends as well as sectoral developments and explain Fitch’s view on how these affect credit profiles.

Registration will commence at 09:00am the conference will run from 09:30am – 1:00pm, followed by a lunch.

 

The event will take place :

MOYA – Museum of Young Art, Palais Schönborn
Renngasse 4
Vienna 1010 Austria
September 22, 2011
9:00am – 2:00pm

Although attendance is complimentary, pre-registration is required.

 

Featured Topics :

– European Sovereign Review

– Major European Banks

– Sovereign Bank Risk in Covered Bonds

– European Insurance

– European Corporates
Speakers :

– Jens Schmidt-Buergel, Managing Director

– Paul Rawkins, Senior Director

– Christian Kuendig, Director

– Rebecca Holter, Director

– Dr. Stephan Kalb, Senior Director

– Alex Griffiths, Senior Director

 

To register please click here.

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The Financial Services Authority (FSA) has imposed prohibitions on Paul Banfield and Anthony Moss, former directors of Best Advice Financial Planning Limited (Best Advice), a small independent financial advice firm which was based in Surrey. Best Advice was dissolved on 20 July 2011. 

The FSA found that weaknesses in the firm’s systems and controls had resulted in customers being exposed to the risk of receiving unsuitable advice.

Both Banfield and Moss have been prohibited from holding any significant influence function (SIF), while Banfield has also been prohibited from being an investment advisor and fined £15,000. Moss would have been fined £20,000 but this was not enforced as he was able to provide evidence of financial hardship.

As Moss and Banfield were directors at the firm it was their responsibility to ensure systems and controls met FSA standards. However, the FSA found that at least 22 customers were advised to invest in unregulated collective investment schemes (UCIS) but found no evidence that the firm either understood the regulatory requirements relating to the promotion of these investments or took reasonable care to ensure customers received suitable advice.

In one instance, a customer (Mrs A) was advised to cash in a number of existing investments and reinvest in several UCIS through an offshore bond. Best Advice failed to consider whether Mrs A was eligible to invest in a UCIS or adequately assess her attitude to risk. It also failed to assess her existing investments before making a recommendation, despite Mrs A specifically requesting such an assessment. Mrs A was 87 at the time and more than 80 per cent of her funds were reinvested in UCIS.

During its investigation both Moss and Banfield admitted to the FSA that they did not fully understand the regulatory restrictions on UCIS despite their firm recommending them to customers.

Although UCIS are not authorised schemes there are regulations surrounding their promotion. Therefore people carrying on regulated activities in relation to them, such as giving a personal recommendation, are subject to FSA regulation.

Tom Spender, head of retail enforcement at the FSA, said:

“Last year we published the findings of a thematic review that looked at the sale of UCIS by small firms.  In it we set out our concerns that firms lacked awareness of the regulatory requirements, lacked understanding of the market and the risks involved, and were promoting and recommending UCIS to customers who were not eligible for them. This case firmly fits in with those findings.

“UCIS are rarely suitable for retail investors. Many are characterised by a high degree of volatility, illiquidity or both – and are therefore usually regarded as speculative investments. Even when they are recommended they are unsuitable for anything more than a small share of a portfolio.

“We want firms to read the details of this case, along with the findings of our review and other recent publications on UCIS, and learn from them. We’ve seen a proliferation of firms offering UCIS so it is absolutely vital they do their homework before recommending these schemes to investors.”

As well as both being directors of Best Advice, Moss was also the firm’s compliance officer, while Banfield was also its investment adviser.

Prior to its dissolution, the liquidator of Best Advice contacted a number of customers that the FSA had identified as potentially having been advised to invest in UCIS. These customers were advised to contact an independent financial advisor and/or the Financial Services Compensation Scheme if they had concerns about the advice they received.

Source : FSA Press Release

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