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Following its recent announcements to focus on the UK at-retirement market as a key strategic priority, Aegon today announces the launch of a secure income option on its Investment Control bond.

The secure income option on the Investment Control bond provides customers with the security of a guaranteed income of 5% of their original investment over 20 years, no matter what happens to investment performance. It also provides the potential for capital growth. Each year on the bond anniversary, if the value of the bond grows to more than the original investment, the growth is locked in and returned to the customer at the end of the term. The growth is taxed at the customer’s marginal rate.

In addition, the Investment Control with secure income option allows customers to cover their own life and up to three other people, by offering a valuable inheritance benefit of the highest of 100.1% of the cash-in value, the original investment less any income taken, or the highest recorded fund value (recorded on the anniversary) less any income taken. In order to help reduce any future inheritance tax liability, the bond can also be placed in trust.

David Aaron, Individual Marketing Communications Manager at Aegon said: ‘The UK at retirement market is core to the future business strategy of Aegon. With the new secure income option on our Investment Control bond we are meeting the needs of our customers who are looking for security and peace of mind with their investment. Recent market volatility is likely to make investors even more cautious, especially those approaching or in retirement, and therefore make them even more likely to look for products offering guaranteed levels of income.’

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If you’re a baby boomer, the odds are high you’ll exhaust your retirement savings after 10 or 20 years of retirement, according to the latest Retirement Readiness Rating report released last week by the Employee Benefit Research Institute.

Nearly half of older boomers _ those now aged 56 to 62 _ and some 44 percent of younger boomers_aged 46 to 55 now_are at risk of not having sufficient income to pay for basic retirement expenses and uninsured medical expenses, according to the study.

The study, which assumed that boomers would retire at age 65, also found that lower-income retirees are most likely to run out of money after 10 and certainly 20 years of retirement, while higher-income retirees are least likely to run out of money.

To wit: 41 percent of those in those lowest income quartile are likely to run short of money after 10 years of retirement, and 57 percent after 20 years. Meanwhile, just 5 percent of those in the highest income quartile will run out of money after 10 years, and 13 percent after 20 years.

So, what to make of this study?

In reality, most Americans don’t run out of money; they run out of lifestyle. As they age and spend down their assets, they typically reduce their living standard. “For the most part, people do not completely run out of money when our software says they will,” said Stephen L. Deschenes, senior vice president and general manager for the annuities division of Sun Life Financial’s U.S. operation. “They do not run full-speed like Wile E. Coyote off the cliff and only then realize that they are out of terra firma. Rather, they take action either to spend less or work more or some combination to forestall running out,” he said.

Other research finds a high likelihood that Americans will be forced to spend less. After factoring in health-care and long-term-care costs, the National Retirement Risk Index, produced by Boston College’s Center for Retirement Research, finds that some 65 percent of American households are at risk of not having enough money to maintain their living standard in retirement, according to the index.

A point to consider about the retirement readiness study: It assumes boomers will retire at age 65. That’s not likely to happen. Most boomers, assuming good health, likely will work past age 65, according to Sun Life Financial’s Unretirement Index.

work longer, economic crisis,

There was also a sharp rise in workers who said they will need to work longer than planned because of the economic crisis, according to Sun Life. Sixty-five percent said they will have to work more than one year longer, compared to 54 percent in the last index. And 27 percent said they will have to work more than five years longer, compared to 24 percent in the last index.

Why are they working longer? To earn enough money to live well and maintain their standard of living, according to Sun Life.

But the bottom line from all these studies: Saving more and perhaps reducing your standard of living now might be the only way to be reasonably certain you’ll enjoy any standard of living later on.

According to the Employee Benefit Research Institute, to improve the chances of being one of the nine in 10 households that maintains its standard of living in retirement, younger boomers in the lowest income quartiles will have to save, on top of what they already save, an additional 25 percent of compensation every year, while those in the in the third income quartile will have to save an additional 15 percent per year. Those in the highest income quartile catch a break and don’t have to save any more than they already do.

The story is a little better for older boomers, but not much. Those in the lowest income quartile have to save an additional 25 percent per year, while those in the second income quartile need only save 15 percent more and those in the third income quartile need save just under 5 percent more. As with early boomers, late boomers in the highest income quartile catch a break again. They don’t have to up their savings to have a 90 percent probability of maintain their standard of living in retirement.

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US insurance giant AIG has agreed to pay 725 million dollars to settle allegations of market fraud brought by three Ohio pension funds, the state’s attorney general said Friday.

“The settlement resolves allegations of AIG’s wide-ranging fraud from October 1999 to April 2005 involving anti-competitive market division, accounting violations and stock price manipulation,” the office of attorney general Richard Cordray said in a statement.

Cordray declared the class-action settlement a victory for the “teachers, firefighters, police officers, and public employees,” who were “harmed by AIG’s misconduct.”

The company was accused of accounting fraud designed to boost AIG’s reserves to cover claims, a bid-rigging scheme with insurance brokers and executives ordering traders to inflate AIG’s stock price.

Cordray said it was the 10th-largest securities class-action settlement in US history. It is the latest blow to the beleaguered firm, which needed nearly 70 billion dollars in government bailouts to stay afloat after the subprime mortgage crisis.

Earlier this week Harvey Golub resigned as chairman of the board, amid rumors about discord among top executives at the firm.

If the fine wins court approval it will mean AIG investors are entitled to slightly more than one billion dollars in compensation, including settlements with AIG partners General Re — owned by billionaire Warren Buffett — PricewaterhouseCoopers and former AIG chief executive Maurice “Hank” Greenberg, the statement said.

AIG will have to pay 175 million dollars of the settlement within 10 days of court approval. A further 550 million dollars must be paid from the proceeds of one or more stock offerings.

Shares in AIG fell 4.65 percent on Friday, amid a wider stock market sell-off. In after-hours trading they pared some of the losses.

It is the latest in a string of settlements agreed by the firm.

In 2008 AIG and four of its former senior executives agreed to pay 115 million dollars to settle fraud claims from the Teachers’ Retirement System of Louisiana.

In 2006 AIG agreed to pay 1.6 billion dollars to settle a probe into allegations that it used misleading accounting to inflate its results.

That settlement, reached between the insurance giant and New York state Attorney General Eliot Spitzer, the Securities and Exchange Commission and the New York State Insurance Department, was at the time one of the largest corporate penalties ever.

Washington, July 16, 2010 (AFP)

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A majority of members of a key advisory committee recommended Wednesday that the US government allow diabetes drug Avandia to stay on the market with greater restrictions on its sale.

A majority of the panel’s members agreed that the drug does increase the risk of heart problems, but only 12 members of the 33-member expert panel voted to remove GlaxoSmithKline’s one-time blockbuster medication from the market.

A bloc of 20 members voted that the drug should stay on the market, with 17 urging greater restrictions such as revisions to the label, special warnings for at-risk patients or requirements for additional physician and patient education. One expert abstained from the vote.

The vote came at the end of a second day of hearings about the side-effects associated with the drug, which generated some 1.2 billion dollars in 2009 for Britain’s largest pharmaceutical firm.

Avandia has long been associated with an increased risk of heart attack and stroke, and a 2007 Food and Drug Administration study linking the medication to serious health concerns prompted authorities to slap a warning on it.

The panel voting Wednesday was convened at the FDA’s request, but can offer only an advisory opinion that the US regulatory agency is not bound to follow. “We look at the (vote) numbers but it’s not the only thing that the FDA is taking into account,” FDA spokeswoman Karen Riley told AFP.

Earlier Wednesday, the panel voted on a series of propositions about Avandia, including whether it was linked to heart problems and whether it was more likely to produce cardiovascular ailments than other similar drugs on the market.

Nineteen members of the panel endorsed a finding that the drug, which helps diabetics control their blood sugar, does increase the risk of heart attack or stroke in users.

Washington, July 14, 2010 (AFP)

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American International Group Inc named director Robert “Steve” Miller as its new chairman, after Harvey Golub resigned amid tensions with Chief Executive Robert Benmosche.

Benmosche told the board that he “believes our working relationship as Chairman and CEO to be ineffective and unsustainable,” Golub wrote in a letter to AIG director George Miles. “At this point, I view asking the board to choose between us would be an abdication of my responsibility to lead,” Golub said. “Consequently, I’m resigning for the simple reason I believe it is easier to replace a chairman than a CEO.”

Miller, 68, was elected to the board in June last year. Miller is chairman of MidOcean Partners. He retired as executive chairman of Delphi Corp in 2009.

Separately, AIG decided it will proceed with a plan to take its Asian life insurance business public later this year, the Wall Street Journal reported.

AIG’s board was scheduled to meet on Wednesday to consider the future of the unit, American International Assurance, and a public float was seen as the most likely outcome, sources told Reuters previously. The Journal said AIG directors discussed the next steps for a Hong Kong listing of the unit.

AIG declined to comment on the Journal report.

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Health Secretary Kathleen Sebelius, who has bashed insurers over rate increases, is seeking their help in making medical coverage accessible for more patients in the years before major reforms take effect.

Sebelius, in an interview with Reuters, said she is pushing companies to help people gain insurance in the gap between now and 2014. That is when the healthcare law President Barack Obama signed in March mandates extensive changes. Sebelius struck a cooperative tone after publicly chastising insurers for high rate hikes and after repeatedly calling them to the White House for highly publicized talks.

A more congenial relationship with insurers could help keep the major overhaul of the healthcare system on track and loosen strained relations between Democrats and big business ahead of the November midterm elections.

The goal in the next few years is to “stabilize the private sector to not only encourage those who have insurance today to keep it, but to hopefully bring additional folks back into the market,” Sebelius said earlier this week. She talked with Reuters after speaking at a discussion on drug development.

Health insurers, which include WellPoint Inc, UnitedHealth Group Inc, Cigna Corp and Aetna Inc, fought the healthcare law, which hits the industry with tighter regulation, higher taxes and caps on profits.

Now, the Obama administration is promising to keep a close eye on rates but also seeking to work with insurers to make the law successful. Sebelius, a former insurance commissioner and governor of Kansas, said her approach is gaining traction. She said one insurer recently reached out to small businesses and signed up 500 new customers from companies that had not been aware they were eligible for tax credits. “That’s exactly the kind of strategy I’m hoping will take hold,” she said.

Sebelius said she has argued to insurers in recent weeks that practices that shut out patients or businesses with high rates are harmful to consumers as well as the companies. “Some of those strategies I think are not particularly good business models. If they lose more and more market share as we move toward 2014, it’s not really good for them,” she said.

Roughly 46 million people in the United States lacked health insurance in 2008, according to the U.S. Census Bureau. Experts say many have lost coverage since then in the economic recession. The new healthcare law includes measures aimed at “stopping the erosion of the private market” before 2014, Sebelius said.

Employers can get financial help to keep early retirees covered, and small businesses can receive tax credits to defray insurance costs, she said. People denied coverage for serious medical problems can enroll in high-risk insurance pools set up as a temporary option.

Broader changes in 2014 are expected to extend coverage to more than 30 million Americans.

In past months Sebelius attacked big premium increases, and Obama warned companies not to impose unjustifiable rate hikes, adding to friction between the administration and industry. Sebelius said she now hopes insurers will work with the administration. “I’m optimistic there is a real potential to do some important work over the next couple years in a collaborative fashion,” she said.

Insurers said despite past opposition they are now committed to making the healthcare law successful. “We are totally focused on implementation and making the legislation work,” Karen Ignagni, head of the industry group America’s Health Insurance Plans, told reporters.

Companies are aiming to boost coverage during the transition period but are pressing for more efforts to control rising medical costs that push premiums higher, said Robert Zirkelbach, a spokesman for the industry group.

State insurance commissioners also are advocating a gradual shift to a requirement that companies spend more of each dollar in premiums for the benefit of patients, he said. Otherwise, they worry insurers will leave the individual market.

“It’s important that new requirements be structured in a way that doesn’t cause significant disruption for people purchasing coverage on their own, particularly in the years leading up to 2014,” Zirkelbach said.

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The European Parliament sounded the death knell for unrestricted bonuses for some bankers and traders in Europe on Wednesday when it approved limits due to come into force in January.

The action was a response to public outrage in the face of bonuses widely seen as excessive during the global financial crisis. But the banking industry has warned that the restrictions could hurt Europe’s competitiveness to the benefit of rival financial centres from Wall Street to Hong Kong.

Pascal Canfin, a Green MP from France, said that the caps on bonuses imposed by the European Parliament were “the most ambitious in the world” and would end “extravagant bonuses synonymous with extravagant risks.”

The new EU rules will mean a far lower proportion of cash in the bonus, which would be much less payable upfront. Remaining sums would be “contingent” on subsequent company performance as well as directly linked to salaries.

From January 2011, 60 percent of bonuses should be variable and for future payment only, with at least 40 percent of such revenue locked away for three years, according to the legislative text.
Cash payments are capped at up to 30 percent of the total bonus.

The European Parliament voted 594-24 in favour of the legislation, which followed a deal between EU members states and lawmakers on June 30. “Financial experts agree that a high-risk, short-term bonus culture, combined with a lack of capital, were at the heart of the global financial  crisis in 2008,” said British Labour European MP Arlene McCarthy. “Despite claims by the banks that they have learned lessons, they have actually increased salaries and bonuses as a proportion of revenues,” she said. “When governments are cutting budgets and people suffer reduced services and support, we cannot accept a banking culture that puts pay and perks above sustaining capital and credit for Europe’s economic recovery.”

But the banking community has warned that the measures could reduce the competitiveness of the European financial sector. “We believe the agreement goes too far, because at the international level, there are already some principles” in the form of recommendations made by the Financial Stability Board, Guido Ravoet, secretary-general of the European Banking Federation, said recently. “We believe that this is not up to public authorities to put in place figures, percentages,” said Ravoet, who advocates self-regulation by banks. “If the recommendations aren’t followed at the international level, financial centres like New York, Singapore and Hong Kong will benefit.”

The EU move follows a series of national initiatives targeting financial sector pay.

In Britain, a newly-introduced 50-percent tax rate already applies to all bank employee bonuses above 25,000 pounds (30,000 euros, 37,800 dollars). Chief executives at Britain’s five biggest banks — Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered — said in March they had spurned bonuses for last year worth millions of pounds.

Top managers at Dutch banks and insurance companies may also soon become liable to pay back “unreasonable” bonuses under legal amendments proposed by the government.

Across the Atlantic, US authorities last month issued new banking guidelines — though no specific caps — aimed at countering excessive pay and bonus practices.

Strasbourg, July 7, 2010 (AFP)

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The Committee of Insurance and Occupational Pensions Supervisors (CEIOPS) held elections last friday to appoint two new Managing Board members and is pleased to announce that the following persons have been elected: Bill Galvin (United Kingdom, TPR) and Damian Jaworski (Poland, KNF).

On the same occasion, Joanne Kellermann (Netherlands, DNB) was elected as CEIOPS Vice-Chair for the remaining duration of her mandate.

Following these elections, the composition of CEIOPS Managing Board is now as follows:
– Gabriel Bernardino, Chair (Portugal, ISP)
– Joanne Kellermann , Vice-Chair (Netherlands, DNB)
– Bill Galvin (United Kingdom, TPR)
– Damian Jaworski (Poland, KNF)
– Flavia Mazzarella (Italy, ISVAP)
– Kaido Tropp (Estonia, FSA)

CEIOPS Managing Board is responsible, among other things, for implementing the resolutions taken by insurance and occupational pensions supervisors; preparing the budget for each accounting year; delivering the Annual Report and reporting to the EU political institutions.

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President Barack Obama’s new health coverage for uninsured Americans with health problems won’t be cheap, premiums averaging $300 to $600 a month in the largest states, according to a government website that went live Thursday.

From cheaper to most expensive, premiums will range from a $140 a month to as much as $900, Richard Popper, deputy director of a new insurance office at the federal Health and Human Services department, said Wednesday. The range is so wide because premiums will be keyed to standard individual health insurance rates in each state, which can differ dramatically because of medical costs and the scope of coverage. Also, older people will pay more. “There are going to be meaningful premiums that are going to be required to stay in this plan … in the hundreds of dollars,” said Popper, with the Office of Consumer Information and Insurance Oversight.

Estimates on HealthCare.gov show premiums for a 50-year-old in Florida will be $552 to $675 a month; in New York the cost will average from $400 to $600; in Texas it’s $491 to $600, and in Pennsylvania $283 on average. In many states, consumers can start enrolling immediately. Despite the cost, consumer advocates are urging uninsured people with health problems to sign up soon, because they cannot be turned away for medical reasons. Family members may be able to help with premiums, which are competitive with rates paid by people who buy their coverage directly from an insurance company.

The Pre-Existing Condition Insurance Plan will start taking applications in every state by the end of the month. Coverage will be available as early as August 1.

Consumers can go to the website to find out about the program, as well as other coverage options in their state, including government plans such as Medicaid, and private insurance. Starting this fall, the site will feature easy price and coverage comparisons among private plans. The new health care law called for the site, as a way to offer Americans one-stop shopping for coverage.

Twenty-nine states and Washington, D.C., will administer their own plans for people with pre-existing conditions. The federal government will run the program in the remaining 21 states.

The coverage is a stopgap for vulnerable people locked out of the private insurance market because of medical problems. It’s intended to remain available until 2014, when core health care overhaul provisions take effect. At that time, insurers will be barred from turning away people in poor health, low- and middle-income households will get subsidized coverage, and most Americans will for the first time be required to carry health insurance.

To qualify for the pre-existing condition plan, people must be uninsured for at least six months and have been turned down for coverage by a private insurer because of a medical problem. U.S. citizens and legal residents are eligible.

The biggest question hanging over the program is whether the $5 billion allocated will be enough. Millions of people meet the basic qualifications for coverage, and technical experts who advise Congress and the administration have warned the funds could be exhausted as early as the end of 2011.

HHS officials sidestepped questions about what would happen if the money runs out. One option is for the government to limit enrollment.
Popper estimated about 200,000 people would be enrolled in the program at any one time, but other HHS experts estimated that 375,000 would sign up this year, and the Congressional Budget Office says the total could reach 700,000 in 2013.

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    moneysupermarket.com, Britain’s number one comparison site, has conducted analysis into the wide range of transactions treated as a cash withdrawal by credit card providers.

    The analysis shows that all of the UK’s major credit card providers treat any form of gambling activity on a credit card as a cash withdrawal. This means that when using their card for gambling, credit card users may face higher APRs than they expect. Consumers may find themselves charged around 11 per cent higher than their advertised APR when using their credit card as cash.
    There are even more scenarios where consumers may be caught out. Transactions including purchasing foreign currency, electronic money transfers, postal orders and the purchase of traveller’s cheques may also be treated as cash withdrawals, so will come with a hefty interest rate.

    Kevin Mountford, head of banking at moneysupermarket.com said: “Credit card users have to be careful how and where they use their card. The vast majority of consumers are aware that withdrawing cash on a credit card can be a costly exercise and should be avoided. However, many people do not understand where else their provider will treat purchases as cash withdrawals and can be fooled into making a pricey mistake.

    “The growth of online gambling makes it more likely that people will use their credit cards when placing a bet. Our analysis show this might narrow your odds significantly, as the cost of using a credit card for online gambling can almost double the standard APR you are charged elsewhere.

    “In addition to this any form of money transfer or travel money purchase will be charged on your credit card in the same way as a cash withdrawal. Credit card users should be careful to ensure they don’t expose themselves to higher charges by knowing exactly when and where their credit card transactions will be more expensive.”

      0 2

      Nearly 1.5 million homeowners are putting their homes at risk with inadequate cover according to a new survey by Britain’s number one comparison site, moneysupermarket.com.

      –> 250,000 homeowners have no insurance at all for their homes
      –> London and the South-East are least protected areas

      One in 16 UK homeowners (6 per cent) admit they are missing out on some form of insurance and only have either buildings or contents insurance – not both – this doubles to one in eight (12 per cent) of younger homeowners aged between 18-34.

      Half a million homeowners admit to only covering contents, while 750,000 have buildings insurance only; a quarter of a million homeowners admit to having no cover at all**. The survey also reveals that 11 per cent of homeowners in London and the South East are putting themselves at risk of costly payouts.

      Julie Owens, head of home insurance at moneysupermarket.com said: “Inadequate cover is a serious problem for many homeowners, and is a very dangerous position to be in.

      “Homeowners seem to be taking the ‘either/or’ approach by foregoing some part of their home insurance, but having both buildings and contents cover is important and not as costly as many may think. Common incidents such as accidental damage, burglary or loss of possessions away from the home can lead to very expensive bills without contents insurance to protect you, and most mortgage providers will insist you have buildings cover before they lend to you.

      “Those quarter of a million homeowners with no cover at all are taking a huge unnecessary risk, problems such as subsidence, burst pipes, personal liability and even boiler breakdown in some cases could land you with a bill well into the thousands of pounds.

      “Giving yourself peace of mind by having appropriate buildings and contents insurance is well worth it and doesn’t have to cost a lot. I would recommend shopping around for the best deal to suit your needs, buildings and contents insurance is available from as little as £169 a year. (See table below)

      “As well as shopping around, opting to pay for the cost of your home insurance by month is a good way of keeping your initial outlay for home cover down, splitting the cost in to smaller payment amounts can also make things easier and there are some home insurance providers who do not charge an APR for opting to pay in monthly instalments.”

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        In a first for the insurance sector, Groupama Insurances is offering Tradesman cover for part-time workers at a reduced per capita rating through its Optima Trade Plus policy. This, combined with Groupama’s variable commission option creates a powerful combination for brokers targeting the UK’s sole traders, partnerships and small limited companies. The development comes as the ONS recently revealed an upturn in part-time positions as businesses have cut back on full-time workers to reduce costs during the recession.

        At the same time, Groupama has increased the maximum number of employees to 12 for Contracting trades and 20 for Professional trades without referral and can now cover contract works for speculative builders. In addition, brokers can take advantage of a new online premium negotiation facility for preferred contracting and professional trades, helping them to secure business on the spot.

        Malcolm Smith, Commercial Lines Director for Groupama Insurances said: “Firms with less than 9 employees represent 89% of all UK businesses. It’s a substantial sector of our economy yet it’s also the most vulnerable and many are struggling to meet their costs. These developments to Optima Trade Plus are as a direct result of broker feedback and will provide fairer premiums to these businesses whilst providing brokers with a real competitive edge.

        The part-time cover is particularly suitable for firms such as cleaning businesses who have a high proportion staff working 10-15 hours a week. This, along with variable commission and the online negotiation facility offers brokers much more flexibility over the premium they can offer their small business customers.” The part-time cover is available for employees working less than 16 hours in one week and calculated on a per capita basis but at a lower rate than full time employees. Optima Trade Plus per capita rated policies cover public liability, employers’ liability, tools, trade contents, contract works, business interruption and personal accident.

        Malcolm Smith concludes: “These changes are a further example of Groupama Insurances innovating and responding quickly to market dynamics and the needs identified by our brokers. Optima Trade Plus is already a highly popular product and these latest enhancements will keep it front of mind for brokers targeting the millions of businesses in this important segment of the UK’s SME community.”

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          Recognising that the media industry is one of the fastest growing sectors in the UK Aviva has launched a specialist media insurance, which covers the industry’s specific insurance needs.

          A range of businesses, including on and offline publishers, marketing and advertising companies, photographers, broadcasters and local media, can now benefit from tailored protection against the many risks faced by those working within the media.

          Aviva’s new media product provides specialist protection for expensive recording, editing and broadcasting equipment should it break down or be damaged. It also provides the right breadth of business interruption cover on the understanding of how disruptive loosing such sophisticated equipment can be, especially part way through a job.
          The cover also includes important options such as legal protection and essential liability, tailored to the client’s needs using a combination of Aviva’s self employed office package and the bespoke media policy. This provides solutions for larger media businesses including property damage, business interruption, theft, employers, public and products liability and commercial legal protection.

          Likely claims within the media industry may include accidental damage to recording or photography equipment, the loss of important images and copy, theft of valuable property and equipment and the costs to re-shoot material after an accident or loss of footage.
          For production companies, particularly those dealing with film, video, post production and animation, Aviva offers a range of specialist media covers such as multimedia, producers and post producers indemnity.

          Keith Sully, commercial underwriting manager, Aviva, says: “We have put together our media cover to meet the many and varied requirements of this specialised industry.”
          “The media industry relies heavily on technology, with the evolution of multimedia technologies changing the landscape in this sector beyond recognition over the last 20 years.
          “As an industry particularly dependent on specialised equipment it is essential to have an insurance policy that meets those specific needs. However, it is also important to remember that many businesses will need additional areas of protection such as: business interruption, professional indemnity or even directors and officers cover.”

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          Aviva, the UK’s largest insurer, has reduced the average time it takes to accept a protection application by 40% from 11 days to 6.5 through service improvements. As a result the time taken for advisers to start a policy has reduced by over 50%, meaning customers get their cover and advisers are paid faster.

          A further effect of the efficiencies introduced by Aviva mean that more proposals received through advisers and business partners now turn into policies.
          Aviva has improved service by making changes across the end to end journey. These include:
          – Improved underwriting which sees more applications accepted at point of sale
          – Dedicated teams for large cases and business protection and a pre sales free phone underwriting helpline*
          – Improved adviser information including preferred contact method
          – Update to advisers in less than two days when information is missing from an application.

          Peter Chadborn, Partner of CBK (Colchester), said: “Improved service levels are always welcome, particularly when they relate to underwriting because inefficient processes can reflect badly on our judgement when recommending where to place business. I am pleased to see a pre sales underwriting helpline because this can help us manage our client’s expectations.”
          Richard Verdin, director of protection, at Aviva, said: “The protection market is often seen to be measured only on price, however advisers constantly tell us the importance of service when choosing a provider. At Aviva we have made significant improvements to offer a slicker, faster more efficient service. This is not only a win for customers who are satisfied by a quick service, but also a win for the adviser who has quickly delivered peace of mind for their customer.”

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            A poll of a thousand people by online car insurance company swiftcover.com found that:
            47% of women get impatient with untidy partners compared with just 25% of men
            30% of women get impatient with partners that do not help out around the house, compared with only 10% of men
            And while an equal number of men and women (37%) admit to being more impatient than three years ago, swiftcover.com found that 55% of women say their impatience has made them anxious, stressed or tearful, compared with just 33% of men. Coping strategies also differ between the sexes. swiftcover.com found:
            33% of women admit feeling impatient has caused them to comfort eat, as opposed to just 18% of men
            17% of men say impatience has led them to drink too much, compared with 14% of women
            16% women say they intend to talk more to solve issues that make them impatient, compared to only 13% of men
            12% of women have resolved to be nicer to other people, compared with just 9% of men
            7% of women plan to take up meditation or yoga to tackle their impatience, whilst only 3% of men say they would do the same

            Tina Shortle, marketing director of swiftcover.com, says: “It’s clear that many of us are getting more impatient than we used to, but it’s interesting to see that it has a greater impact on women. That’s why swiftcover.com has developed a series of de-stress tips to help people chill out more – whether you are male or female.”
            Laugh in the face of impatience: 7% of women told swiftcover.com they intended to take up yoga, but why not combine the Eastern exercise with a good laugh? Check out www.laughteryoga.co.uk – yoga and meditation are proven ways to de-stress, helping to lower the heart rate, improve sleep and increase a sense of calm and well being.

            Eat yourself calm: swiftcover.com’s survey discovered that feelings of impatience have lead more than a quarter of all people (28%) to comfort eat. However, a poor diet can actually help increase stress rather than alleviate it. Good nutrition and cutting back on junk food and caffeine will help you feel better and increase your energy levels.

            Mess=Stress: Cleaning up and de-cluttering your house and work space will make you feel more relaxed and more able to work and function effectively – especially if your partner helps!
            Work it out: 18% of people surveyed are planning to take up exercise, which is a great physical and physiological release from stress. It can be easy to incorporate into everyday life, for example cycling to the shops will help you get fit and can also be quicker than going by car, and exercising releases endorphins which make you feel better and more energetic.

            Choose a chill out tune: Music can help boost energy and calm us down when we are feeling stressed. Listening to music can accompany your daily activities meaning it doesn’t take any time away from your day, but can help improve it.
            Sleep it off: Feeling stressed and impatient led to problems sleeping for 36% of those surveyed by car insurance company swiftcover.com, and feeling over-tired can increase that stressful feeling. To break the cycle eating healthily, as well as exercising and reading can help bring on the ZZZs.

            Sex it up: A study from Arizona State University found that people who had had sex the previous night were in a better mood and less stressed the next day!
            Look into my eyes: Self-hypnosis can be a great stress management tool. Hypnosis helps get you into a deeply relaxed frame of mind and it can also be used to help you make lifestyle choices, like eating healthier or overcoming negative habits. For more info visit: http://stress.about.com/od/lowstresslifestyle/ht/Howtoselfhyp.htm
            Eat Chocolate (but not too much): An Australian study discovered that the fat and sugar in chocolate can help combat stress and anxiety. http://timesofindia.indiatimes.com/life/health-fitness/health/Chocolates-can-reduce-stress/articleshow/5266992.cms
            Use your iPhone: Now you don’t even need a stress ball to keep calm as a new iPhone app allows you to shake your stress out on your phone or iPod. Check out http://appshopper.com/medical/antistress for details.

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              Aviva UK Health today announced that it is enhancing its group risk proposition with a new group critical illness product. This addition and its ability to offer health and wellbeing products means that Aviva now offers one of the widest breadth of product offerings amongst the top four group risk providers.

              The group critical illness market has experienced the fastest annual premium income growth out of all group risk products over the past few years. Aviva’s competitively priced product has been introduced in direct response to an increased customer demand for lower cost employee benefits to include as part of a flexible benefits scheme. The product can also be purchased on a voluntary or company paid basis.

              Customers can choose from two levels of cover. Either a standard list of illnesses and procedures, or alternatively they can opt for an extended list. Benefit is paid up to five times the employee’s salary, subject to a maximum of £500,000 (gross).

              To reduce administration and simplify the application process a pre-existing condition exclusion applies to the product. This removes the need for full medical underwriting.

              Steve Bridger, head of group risk, Aviva UK Health said: “As a business, we’re committed to the group risk market and our recent product and service enhancements mean that we now offer some of the most competitive group income protection and group life terms in the market. Our entry to the group CI market is a natural move which will give intermediaries a wider choice of provider.

              “The addition of group critical illness means that we believe we now offer the widest choice of products amongst the key group risk providers. With this range of services also comes a breadth of knowledge and we’re already applying best practice learnings across business areas.

              “For example, we’re using clinical knowledge from our specialist private health insurance claims teams to assist our group income protection business. Similarly, tele-interviewing was an approach we took from our individual income protection business and applied it to group risk. We recognise that employers need an integrated service that responds to their individual business needs and I believe that this expert knowledge and broad choice of products means that Aviva is now best placed to offer exactly this.”

              Aviva’s group critical illness is designed to pay employees a cash lump sum on diagnosis of a pre-defined list of critical illnesses or after the employee has undergone one of a list of surgical procedures and then survives for at least 14 days. The money can then be used however the employee sees fit, for example to help cover a mortgage or bills, to help pay for treatment or make adjustments to their home.

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              Allstate Insurance Company announced today it will be giving away a custom motorcycle designed by legendary bike builder Dave Perewitz during its “Allstate Pro Street Sweepstakes.”

              Allstate and Perewitz will unveil the bike at the 2010 Chicago International Motorcycle Show on Feb. 19. The Pro Street style bike – known for its stretched frame, low to the ground body and wide rear tire – will feature a custom paint job, the very element that has made Perewitz an industry icon.

              “Lots of pride and hard work goes into every bike I create,” said Perewitz. “And thanks to the folks at Allstate, one lucky person will be able to enjoy this custom bike creation.”

              Allstate has also invited Perewitz to join the Allstate Mobile Garage Tour at major rallies across the country. He will work with the insurer to help promote motorcycle safety awareness through the company’s “Once is Never Enough” (ONE) program.

              “Allstate is proud of our commitment to motorcycle safety awareness, and this giveaway represents a way for us to reward a consumer and get our safety message across to everyone on the road at the same time,” said Lisa Cochrane, vice president of marketing for Allstate.

              The sweepstakes will run from Feb. 19, 2010 through Feb. 28, 2011, and participants can register for the sweepstakes online at AllstateGarage.com or by visiting the Allstate Garage Tour at some of the biggest motorcycle rallies in the country, including:

              Daytona Bike Week, Daytona Beach, Fla.: Feb. 26-March 7
              Laughlin River Run, Laughlin, Nev.: April 21-24
              Laconia Motorcycle Week, Laconia, N. H.: June 12-20
              Sturgis Rally, Sturgis, S. D.: Aug. 9-15
              Biketoberfest, Daytona Beach, Fla: Oct. 14-17
              Lone Star Rally, Galveston, Texas: Nov. 4-7
              ONE was created to encourage everyone on the road to always look left, right and then left again for riders before crossing an intersection – the most common site for motorcycle-related crashes. Fatality Analysis Reporting System statistics from 2004 to 2008 showed that 44 percent of motorcycle fatalities resulted from intersection crashes.

              For complete details about the Allstate Pro Street Sweeps or to find out more about the Mobile Garage Tour, please visit AllstateGarage.com.

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              As part of continuing efforts to help consumers find long-term care (LTC) insurance solutions that best meet their diverse needs, MetLife today announced that it has introduced Tiered SolutionSM, a graded automatic inflation protection rider available with MetLife LTC LifeStage AdvantageSM.

              “According to the MetLife Mature Market Institute, the average annual rate for a home health aide is $27,000 and the average annual semi-private nursing home rate is more than $72,000, and these costs will likely continue to climb,” said Jodi Anatole, vice president, Long Term Care Product Management for MetLife. “MetLife’s Tiered Solution rider is an innovative, more affordable alternative to traditional automatic compound inflation riders that helps address purchasers’ concerns over the likely rising cost of care.”

              For example, when purchased before age 61, MetLife’s Tiered Solution rider automatically provides a 5% increase in the total benefit and the monthly benefit amount. Beginning at age 61, the total benefit and the monthly benefit amount increases by 3%. These increases are compounded annually up to age 76 with no rise in premium as a result of the benefit increases provided by this rider. This graduated approach provides consumers with a lower cost alternative to traditional automatic compound inflation riders.

              Tiered Solution is currently available in 31 states.

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                The primary reason for the improvement was a $3.8 billion increase in the value of the property-casualty (P-C) companies’ unaffiliated stock portfolio (net of deferred tax). The increase comes after a $10.4 billion decrease in net worth a year ago. In spite of the 2008 decline, the State Farm group’s net worth is 27 percent higher than it was at the beginning of the decade.

                The P-C companies reported a $3.7 billion underwriting loss in 2009, a $2.6 billion improvement from 2008.

                “The year 2009 marked the end of a turbulent decade that included an unparalleled series of major hurricanes and a major economic recession fueled by an extraordinary credit crisis,” said State Farm Senior Vice President & Treasurer Paul Smith. “In the face of all of that, State Farm remained financially strong, thanks to our unwavering focus on the customer and the fundamentals of our business.”

                State Farm reported $777 million in after-tax net income in 2009, compared with a $542 million net loss in 2008. The improvement in after-tax net income in 2009 was driven by the P-C companies’ improved underwriting results.

                “We strive to achieve financial results that allow us to maintain a level of financial strength that ensures long-term sustainability,” said Smith. “We resist the temptation to attribute too much significance to short-term operating results without first considering the level of financial strength.”

                The P-C companies reported a pre-tax operating gain of $393 million in 2009, which includes the underwriting loss of $3.7 billion, offset by investment and other income of $4.1 billion. This compares with a pre-tax operating loss of $2.1 billion in 2008, which included 2
                investment and other income of $4.2 billion and an underwriting loss of $6.3 billion. The State Farm group’s net worth is also affected by the results of operations of non-P-C affiliates, which resulted in a gain in 2009 of $622 million.

                Total revenue, which includes premium revenue, earned investment income and realized capital gains (losses), was $61.5 billion for 2009 compared with the 2008 figure of $61.3 billion.

                State Farm’s insurance operations consist of eight P-C insurers and three life insurers. The P-C insurers are primarily engaged in automobile, health, homeowners and commercial multiple peril (CMP) lines of business. The net results of State Farm Mutual Automobile Insurance Company, State Farm Indemnity Company, State Farm Guaranty Insurance Company and State Farm County Mutual Insurance Company of Texas include the Auto business as well as the Health and reinsurance lines written by State Farm Mutual. The net results of State Farm Fire and Casualty Company, State Farm Lloyds, State Farm General Insurance Company and State Farm Florida Insurance Company reflect the Homeowners, CMP and other P-C lines of business. State Farm Life Insurance Company, State Farm International Life Insurance Company Ltd. and State Farm Life and Accident Assurance Company write the Life and Annuity business. The State Farm group also provides banking products and mutual funds through affiliated companies. State Farm provides insurance and financial services products through more than 81 million policies and accounts.

                Auto – State Farm’s auto insurance business represents 62 percent of the P-C companies’ combined net written premium. Earned premium was $30.9 billion, an increase of 2.1 percent from 2008. Incurred claims and loss adjustment expenses were $26.2 billion. The underwriting loss was $2.7 billion.

                Comparable 2008 figures were: earned premium, $30.3 billion; incurred claims and loss adjustment expenses, $25.6 billion; underwriting loss, $2.7 billion.

                Homeowners, CMP, Other – The net written premium for State Farm Fire and Casualty Company, State Farm Lloyds, State Farm General Insurance Company and State Farm Florida Insurance Company represents 34 percent of the P-C companies’ combined net written premium. Earned premium was $16.3 billion, an increase of 1.9 percent from 2008. Incurred claims and loss adjustment expenses were $12.9 billion. The result was an underwriting loss of $1.5 billion.

                Comparable 2008 figures were: earned premium, $16.0 billion; incurred claims and loss adjustment expenses, $15.1 billion; underwriting loss, $3.9 billion.

                Health – The individual health insurance operations for State Farm Mutual reported an underwriting loss of $29 million. Net written premium was $717 million. Comparable figures for 2008 were: underwriting loss, $14 million; net written premium, $744 million.

                Property-Casualty (P-C) – The combined underwriting loss was $3.7 billion on earned premium of $48.9 billion. This includes results from Auto, Homeowners, Health and other lines. These results, combined with investment and other income of $4.1 billion, resulted in a pre-tax operating gain of $393 million. The after-tax net income for the P-C companies was $384 million.
                Comparable 2008 figures were: earned premium, $48.1 billion; underwriting loss, $6.3 billion; investment and other income, $4.2 billion; pre-tax operating loss, $2.1 billion; net loss, $673 million.

                Life – State Farm’s life affiliates – State Farm Life Insurance Company, State Farm International Life Insurance Company Ltd. and State Farm Life and Accident Assurance Company – added $24 billion of total life insurance in force during the year, bringing the companies’ total insurance in force to $737 billion on Dec. 31, 2009.

                The life affiliates reported premium income of $4.6 billion in 2009, compared with $4.9 billion in 2008. In 2009, after-tax net income was $454 million. Net income was $185 million in 2008 ($315 million when excluding $129 million in write-downs for impairment of invested assets). Results for 2009 included $645 million in dividends to policyholders, compared with dividends of $626 million in 2008.

                Bank – Total assets for State Farm Bank®, F.S.B. were $16.2 billion as of year-end 2009, compared with $16.7 billion at the end of 2008. The Bank reported an after-tax net loss of $158 million in 2009, compared with a 2008 loss of $159 million. The 2009 results were significantly impacted by a high provision for loan losses related to the economic recession. Nonetheless, Bank revenues increased 19 percent in 2009, following a 23 percent increase in 2008.

                Mutual Funds – Total assets under management for the retail Mutual Fund operations at the end of 2009 were $4.5 billion, compared with $3.5 billion at the beginning of the year. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined after-tax net loss of $21 million in 2009, following a $21 million loss in 2008.

                  0 1

                  Building on its IIP Gold accreditation, Groupama Insurances is implementing a 3 year talent plan and has appointed Jordan O’Connor in the newly created role of Talent and Resourcing Manager to drive this important corporate initiative. Reporting to Groupama’s HR Director, Paul Cann, Jordan will be responsible for talent management, people development and resourcing throughout the company. She will be based at Groupama’s London Head Office.

                  An HR and talent management specialist, with almost 10 years experience, Jordan joins Groupama Insurances from Chiumento, the HR consultancy where she was Principal Consultant,-Talent Management. Prior to this she was an Assessment Analyst at BP. A qualified organisational psychologist and SHL accredited, Jordan will play a key role in ensuring Groupama’s people needs are met across the business – from leadership and management programmes through to development of the company’s successful talent identification initiative, ‘Springboard’.

                  Paul Cann, HR Director said: “Achieving the IIP Gold Accreditation last year created a perfect platform for us to launch our 3 year talent plan and Jordan brings the skills and experience to really drive this forward. In essence, she will ensure we have the right people with the right skills in the right roles across the business.

                  “From directors and managers through to people in more junior roles, every individual in Groupama is being given the opportunity to develop and hone their skills. The impact motivated employees have on service and efficiency levels are well documented and this is all part of our commitment to make Groupama a great place to work.”
                  Jordan O’Connor commented: “Groupama Insurances has proven itself as an organisation with a very forward-thinking approach to talent management and has a real appreciation of the value this can bring to the business. It is an approach that is embedded in the vision and values of the company and I am delighted to have the opportunity to spearhead the implementation of the 3 year plan and to drive our talent management programme to help support our corporate resourcing requirements.”

                  Notes to editors
                  Groupama Insurances is one of the UK’s leading general insurers. The UK group offers motor, home and health insurance and also provides insurance protection to a growing number of smaller UK businesses. The company employs over 800 staff in 6 centres and is an accredited ‘Investor in People’.

                  Award winning

                  Groupama’s Broker Trading Team won the Manchester CII Underwriting Initiative of the Year Award in 2008. Groupama Insurances was also winner of the ‘Claims Initiative of the Year’ Award in the 2007 British Insurance Awards, ‘Company of the Year’ Award in the Insurance Day Awards 2005, winner of the ‘E-Business Award’ in the British Insurance Awards 2005 and in both 2005 and 2006 was ‘Highly Commended’ in category for ‘General Insurer of the Year’. Groupama Healthcare won the “Most Innovative New Product” Award at the 2006 Health Insurance

                  Awards

                  Groupama is also a previous winner of the ‘Underwriter of the Year’ award in the British Insurance Awards and has twice been voted ‘Underwriting Team of the Year’ at the Insurance Day Awards. In addition, the UK Group has been awarded ‘Insurer of the Year’ at the Bodyshop Magazine Awards and was ‘Highly Commended’ in the National Business Awards 2005 in the Best Use of Technology category.

                  An impressive pedigree

                  Groupama Insurances is part of European financial services giant Groupama, an international business that generates annual revenues in excess of €14billion.

                  Groupama is one of Europe’s largest mutuals, the second insurer in France for motor marine and transport and the country’s number one agricultural and individual health insurer.

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