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Michael K. Farrell, executive vice president, distribution, for MetLife, Inc. (NYSE: MET), will present at the Keefe, Bruyette & Woods 2009 Insurance Conference on Wednesday, September 9, 2009 at approximately 8:45 a.m. (ET).

A live audio Webcast of the presentation will be available over the Internet at http://cc.talkpoint.com/keef001/090909a_rl/. Those who want to listen via the Internet should go to the Web site at least fifteen minutes prior to the presentation to download and install any necessary software. A replay of the presentation will be available for seven days after the event at the same Web site beginning shortly after the presentation.

Materials for Farrell’s presentation will be available over the Internet at www.metlife.com (through a link on the Investor Relations page).

MetLife, Inc. is a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.

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Aon Benfield Analytics, the research and analytics division of Aon Benfield, the reinsurance intermediary and capital advisor, today announces the launch of a groundbreaking Solvency II solution for the re/insurance industry.

The new tool, S2MetricaSM, is based on the architecture of Aon Benfield’s award-winning and widely used dynamic financial analysis product, ReMetricaTM.

S2Metrica assists re/insurers to prepare and adapt their business models for the forthcoming Solvency II regime – a risk-based supervisory framework for European Union (EU) reinsurers, which is scheduled to be introduced across the EU in 2012.

The automated solution converts an insurer’s Quantitative Impact Study (QIS4) spreadsheet – the latest Solvency II field-testing exercise conducted by the European Commission – into a Solvency II-compliant internal model.

Using S2Metrica, Solvency II output can be achieved within just one day, compared to the hundreds of development hours that the process would take without a dedicated tool, allowing the user to concentrate on important business processes such as model parameterisation, and sensitivity testing of the model output.

Bryon Ehrhart, Chief Executive Officer of Aon Benfield Analytics, said: “We recognize the importance of the Solvency II regime and the impact it will have on European Union insurers. Developing an appropriate internal model is a time-consuming and expensive process. S2Metrica is an easy-to-use and cost effective tool that provides our clients with the type of financial analysis required by EU regulators under the Solvency II protocol. The tool will help insurers to compute Solvency II capital requirements, optimize their capital sources related to the Solvency II standards, and position them well for a period of continued evolution of capital models, as the lessons of the credit and liquidity crisis are moulded into new capital and leverage rules.”

S2Metrica can operate either as a standalone product with a ReMetrica engine in the background, or within the ReMetrica environment. Its flexibility and ease of use negates the requirement for extensive ongoing training and support.

A demonstration and question and answer session regarding the capabilities of S2Metrica will take place at the Monte Carlo Rendez-Vous on Monday, 7 September at 9am in the Jardin d’Hiver room at the Hotel Hermitage. If you would like to attend, please call/email David Bogg or Andrew Wragg using the contact details below.

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    Guy Carpenter & Company won the “Reinsurance Broking Team of the Year” award at The Review magazine’sWorldwide Reinsurance Awards 2009, presented last night at The Dorchester Hotel in London. This year’s victory represents the third consecutive year – and the fifth time in six years – that Guy Carpenter has been awarded the “Reinsurance Broking Team of the Year” honor.

    Guy Carpenter’s Credit, Bond, and Political Risk Team was hailed by the judging panel “for leading the market with new-thinking solutions.”

    The Review Worldwide Reinsurance Awards, now in their 16th year, annually recognize the leading performers in the global reinsurance industry. The Reinsurance Broking Team of the Year award recognizes the winning team “for generating creative solutions and added value in the risk financing process.” Award winners are selected by a distinguished judging panel of industry chief executives.

    Peter Zaffino, President and CEO, Guy Carpenter : “It is extremely gratifying that a team from Guy Carpenter has won this award for the third consecutive year. The Credit, Bond and Political Risk Teamhas done an outstanding job and epitomizes our firm-wide approach of providing innovative and value-added solutions to our clients. I am delighted that the team’s efforts have been recognized through receipt of this award.”

    Greg Dobie, Editor, The Review : “Due diligence produced a host of glowing testimonials from the market for the Guy Carpenter team, particularly concerning the excellence of its day-to-day service provision.”


    The full roll of honour was:

    • Reinsurance Company of The Year – Munich Re
    • Lifetime Achievement – Tony Holt, Amlin
    • Industry Personality of the Year – Eric Dinallo
    • Reinsurance Broking Team of the Year – The Credit, Bond and Political Risk Team, Guy Carpenter
    • Life Reinsurance Company of the Year – Reinsurance Group of America
    • Company Launch of the Year – Aon Benfield
    • Analyst/Researcher of the Year – Willis Research Network
    • Future Industry Leader – Maamoun J Rajeh, Arch Re
    • Re/Insurance Initiative of the Year – Solvency II
    • Professional Service Provider of the Year – AIR Worldwide

    The view the full Worldwide Reinsurance Awards winners click here

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    Nick Powell has been appointed to the Board of Whittington Group Pte Limited, the Singapore–based holding company for the international insurance investment and service business, with immediate effect.

    He replaces Geoffrey Spender on the Whittington board. Mr Spender has stepped down as Managing Director of GEMS, the Hong Kong private equity fund manager which has a significant shareholding in Whittington.

    Nick Powell is a founding director of GEMS along with Simon Murray.  He joined GEMS in 1998 and previously accumulated more than 10 years of experience in Asian investment banking.

    After beginning his career with Jardine Matheson, he spent three years with the corporate finance division of Nomura International, involved primarily in their underwriting and IPO business.  He subsequently moved to Robert Fleming as an Asian specialist in institutional sales and corporate broking.

    Whittington’s Group Chief Executive, Tony Hobrow, said: “Geoff Spender will be missed by Whittington and I would like to thank him for the robust contributions, support and advice he gave us during his time as a director.

    “In Geoff’s place I would like to welcome Nick Powell.  He serves on the GEMS investment Committee and so was involved in the initial GEMS’ decision to invest in Whittington. We look forward to working with Nick as we further develop the Whittington business in Asia and beyond.”

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    The AXA Group announces the appointment of Jacques Maire as Chief Executive Officer of AXA Hungary. He replaces Tibor Szekeres who will retire on January 1st, 2010.

    Jacques Maire will report to Cyrille de Montgolfier, Central & Eastern Europe Region CEO (Czech Republic, Hungary, Poland, Slovakia and Ukraine).

    Jacques Maire joined the AXA Group in 2002, as AXA France Director of Labor Affairs. Since 2005, he was Senior Vice-President, European and Public Affairs, and was appointed in 2007 Senior Vice-President, BSD (business support and development) for the Mediterranean and Latin America Region in addition to his other functions. He had previously worked for 13 years in various French public affairs positions, notably as minister’s chief of staff and director. Jacques Maire is a graduate of the Ecole nationale d’administration (French general public management school) and the Institut d’études politiques de Paris, and has a master in Finance.

    AXA Hungary

    The Hungarian insurance market is a young and expanding market, with a penetration rate of 3.1% in 2008 (9.2% in France) and high growth perspectives. For half year 2009, new business APE and net banking revenues grew respectively by 16% and 20% despite a difficult economic environment.

    • 1110 employees and proprietary distributors
    • 444 000 clients

    Market positions (share)

    • Pension funds: 5th (7%)
    • Life: 10th (3%)
    • Bank: 11th (4%)

    History

    • December 2006: AXA acquires Winterthur and enters the Hungarian market
    • March 2007: acquisition of Ella Bank

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      A new survey by AXA Insurance[1] reveals what makes up the average schoolbag and how loss, damage and theft of its contents affect one in three.

      As children head back to school over the next week, parents have to be advised, to count the cost of their children’s schoolbags and make sure they protect their possessions away from home.

      Loss, damage and theft

      According to the company’s research nearly 30% of children have lost or broken at least one item from their schoolbag with sports kit topping the list, closely followed by pencil cases then dinner money, mobile phones and trainers or football boots.

      Up to twenty per cent of schoolchildren have had at least one item from their school bag stolen either at or on the way to and from school leaving parents forking out an average of £163 to replace lost, broken or stolen items. Perhaps surprisingly, the most stolen item on the journey to or from school is a musical instrument.

      Counting the cost

      The average cost of a secondary school child’s school bag comes to £244.50 based on average contents regularly taken to school including:[2]

      • Mobile phone valued at £50
      • Trainers/football boots valued at £40
      • Sports kit (tracksuit, shorts and t-shirt) valued at £70
      • Reading book valued at £7
      • Text books x 3 valued at £20
      • Pencil case and contents valued at £25
      • Dinner money (weekly) valued at £10
      • The bag itself with an average value of £22.50

      The value of schoolbags increases further when you consider other items carried by many such as iPods, electronic games or musical instruments, which are often one of the most valuable items taken to and from school.

      A third of children (32%) play a musical instrument with the average cost of the instrument being £128 – although some can cost thousands of pounds.  The most popular instrument is the guitar followed by the recorder.

      Steve Hardy, Managing Director of AXA Direct says: “We all know children can be expensive, but it’s surprising just how much a schoolbag and its contents can add up to. And as children increase their interest in using gadgets such as iPods, mobile phones and electronic games, so too will the value of their schoolbag and unfortunately the appeal to thieves go up.  Despite this, only about 50% of people actually have insurance that will cover these items outside of the home.

      “AXA customers can, with personal possessions cover added to their home insurance, protect for loss, damage and theft of schoolbags, even musical instruments borrowed from school for personal use.  So if the worst should happen, parents won’t be faced with yet another hefty bill.”
      Regional schoolbags – top of the costs

      AXA’s research revealed that on average children in London carry contents worth the most in their school bags3 while those in the North West carry the least.

      • Regional schoolbags – top of the costs

      AXA’s research revealed that on average children in London carry contents worth the most in their school bags[3] while those in the North West carry the least.

      1. London
      2. East Midlands
      3. South East
      4. South West
      5. Northern Ireland
      6. East Anglia
      7. North East
      8. Scotland
      9. West Midlands
      10. Wales
      11. Yorkshire & Humberside
      12. North West
      • Schoolbag theft

      Children in London are also most likely to have had possessions stolen, whereas children in Northern Ireland are the least likely to be a victim of such crimes.  However, in Wales more musical instruments are stolen than anywhere else, probably reflecting the fact that more children play instruments in this region than elsewhere.

      Theft from school Theft on the way to/from school
      1. London 1. London
      2. Scotland 2. West Midlands
      3. West Midlands 3. Scotland
      4. East Midlands 4. Northwest
      5. North West 5. East Midlands
      6. East Anglia 6. East Anglia
      7. North East 7. North East
      8. Wales 8. Yorkshire and Humberside
      9. South West 9. South West
      10. South East 10. Wales
      11. Yorkshire and Humberside 11. South East
      12. Northern Ireland 12. Northern Ireland

      [1] The research was conducted by OnePoll on behalf of AXA Insurance. The survey was completed by 2000 UK adults between 25-26 August 2009.

      [2] Regularly was classified as once a week or more and average was items that over 50% of research respondents included.

      [3] Ranking based on percentages of children carrying each item researched to school

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      Thunderhead, which provides document automation and multi-channel communications solutions, today announced that Allianz Worldwide Care has selected the Thunderhead NOW platform to create, produce and manage its multi-channel client communications.

      As a wholly owned subsidiary of the Allianz Group, Allianz Worldwide Care specialises in providing international health insurance to employees, individuals and their dependants, wherever they are in the world.  Clients are provided with a flexible range of health insurance products, market-leading service levels and medical support from its team of in-house and regionally based doctors and nurses.

      Allianz Worldwide Care selected Thunderhead to replace its existing in-house system in part due to Thunderhead’s unique business user control and its proven track record in the market.  With Allianz Worldwide Care’s commitment to ensuring high levels of customer satisfaction, Thunderhead will enable the company to maintain its ability to deliver superior customer service by providing a flexible, scalable multi-channel customer communications solution for creating and delivering customer correspondence in a more seamless and efficient manner. For a company which currently provides policy documents and supporting correspondence in English, German, French, Spanish and Italian, with additional languages planned in the near future, this is an important tool.

      “To support our continuing focus on delivering service excellence, we believe that Thunderhead NOW is the solution best placed to meet the needs of our business today and in the future,” stated James Carroll, CIO, Allianz Worldwide Care.  “The Thunderhead NOW platform will provide our business users with a communications tool that is quick, easy to use and very flexible, enabling them to take ownership of the end-to-end client communications process without having to rely on IT to change and manage document content.  This will help to make us more efficient as an organisation, remove resource bottlenecks and enable our IT staff to focus on core strategic projects.”

      “We are delighted that Allianz Worldwide Care has selected Thunderhead to improve its customer communications process,” commented Thunderhead CEO, Glen Manchester.  “As an XML-based solution designed around the needs of business users, Thunderhead NOW is inherently able to produce highly personalised and accurate customer communications for any delivery channel and will help Allianz Worldwide Care move towards a more paperless communications process in order to deliver a fast, efficient and personal service to their customer base.”

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      Insurance premiums are predicted to remain flat for offshore energy business for October’s renewals, dependent on location, loss history and limit sought according to Aon, the world’s leading insurance broker and risk management firm.

      This is a very different position from the beginning of 2009 when rates were expected to rise between 15% and 20%.

      For companies looking to insure large and/or complex risks, insurers are still trying to extract rate rises, as they seek to claw back profits from a sector that has been battered by catastrophic losses such as Hurricanes Katrina and Ike. However many insurers are looking to retain market share so there are still good deals to be made.

      Large rate rises in the energy sector for medium-sized risks have failed to materialise so far in 2009 because:

      • although there have been a steady string of losses so far this year, none have been considered ‘market-changing’, so losses have not eroded the returns insurers have been able to make on the risks they have underwritten.

      • capacity in the insurance market has remained relatively stable despite fears many insurers would withdraw from the market.

      • confidence in the economy has begun to increase, and the ‘financial Armageddon’ feared in late 2008 and early 2009 did not materialise.

      • as more energy risks are being underwritten locally, London based insurers increasingly need to offer competitive rates to secure new business.

      William Lynch, Head of Energy – UK at Aon, commented: “We continue to see strong resistance from buyers to attempts to increase rates in the UK market, at least for mid-sized risks. Insurers, though, are under pressure to maintain and increase profitability in this sector, so whilst capacity remains relatively stable it is becoming harder to place complex and large risks, particularly if business interruption is a factor. In other words, highly complex or catastrophe exposed risks are paying the price for a poor claims history fuelled by hurricane losses.

      “Aon maintains that although rate rises will be sought by insurers, they will be nothing on the scale predicted at the beginning of this year, or anything like the ones seen after Hurricanes Katrina and Ike.

      “However, the energy insurance market is beholden to the way the wind blows. One large storm in just the wrong place or time could change the market completely. In the meantime there is definitely an opportunity for businesses to secure very competitive rates in Q3 and Q4 so long as they have strong risk management practices in place.”

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      Increasing numbers of home insurance claims are still arising due to incidences of fire, according to the Association of British Insurers (ABI).

      The Financial Times reports that the ABI has seen a continual increase in fire claims against both home insurance and commercial insurance policies.

      Some of these are believed to be fraudulent as owners of both residential and commercial property look to their insurance policies for a payout during the recession.

      The ABI comments: “We do know that there are some crimes that are linked to the underlying economic climate – fraud being one of them,” reports the Financial Times.

      Arson fraud is said to be an area which is particularly linked to the performance of the economy by the ABI.

      Nick Starling, director of general insurance and health at the ABI, said earlier in the year that fire insurance remains important as more large-scale fires are reported, putting the safety of inhabitants at risk.

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        A massive wildfire roaring through mountains north of Los Angeles forced some firefighters to retreat on Monday as the toll of engulfed homes rose sharply and flames menaced Mount Wilson, a broadcasting hub and site of a historic observatory.

        Fire officials said at least 71 dwellings had been destroyed since the blaze erupted last Wednesday — 53 clustered in the foothill community of La Crescenta on the northern fringe of suburban Los Angeles and 18 others first reported as lost on Sunday.

        As of Monday evening, a total of 6,300 homes throughout the fire zone were under evacuation orders, authorities said.

        The so-called Station Fire more than doubled in size as it burned out of control for a sixth day, charring 105,000 acres, up from 42,000 acres late on Sunday, and sending up towering palls of smoke that fouled the air for miles (km) around.

        Most of the large fires with significant property damage have occurred in California, where some of the fastest developing counties are in forest areas.

        Nine of the ten largest wildfires, in terms of insured property losses, occurred prior to 2007, according to ISO data. A 1991 wildfire in Oakland, California tops the list with $ $2,687 in insured losses in 2008 dollars. In October 2007 a series of wildfires broke out across Southern California, damaging thousands of homes and causing widespread evacuations. The largest of these fires, the October 21 Witch fire, resulted in $1.4 billion in insured losses and was the second most damaging wildfire since 1970, in 2008 dollars. In 2008, there were no wildfires that met ISO’s catastrophe criteria in terms of the number of policyholders and insurers affected.

        Ten most costly wildland fires in the United States

        TEN MOST COSTLY WILDLAND FIRES IN THE UNITED STATES


        Top ten catastrophic wildland fires in California

        Top ten catastrophic wildland fires in California

        In the last year, some big insurance companies have won approvals from regulators for premium hikes ranging from 4% to 7%. And a round of requests for similar increases has been submitted to the state insurance commissioner.

        In a state parched by a three-year drought, wildfires are at least partly to blame for the price increases, industry officials and even some consumer advocates agree.

        “We seem to be having year after year of [major wildfire] events, when before they occurred every six or seven years,” said Sam Sorich, president of the California Assn. of Insurance Cos., a lobbying group in Sacramento.

        But Amy Bach, executive director of the San Francisco-based consumer group United Policyholders, said she was more concerned about the quality of the coverage than its cost. She said more fire victims could find that they didn’t have enough coverage to pay the entire cost of rebuilding their homes.

        “My big concern is that the insurance companies are going to use these fires as an excuse to increase their rates, and the underinsurance problem is going to be the same as it ever was,” Bach said. “People are going to be paying more for less.”

        With an estimated 15 million homes statewide, even a tremendously destructive wildfire like the blaze that destroyed 3,000 San Diego homes in 2003 shouldn’t cause a massive surge in the cost of insuring a home, experts say.


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        Aon Consulting, the global human capital consulting organization of Aon Corporation (NYSE: AOC), today announced that 20-year industry veteran Anand Shankar has joined the firm in the newly created position of Chief Commercial Officer, Asia Pacific in Singapore.

        Shankar will lead sales strategy and efforts across practices and markets in Asia Pacific for Aon Consulting, working closely with the regional leadership team and colleagues globally.

        “We welcome Anand to Aon Consulting,” said Edouard Merette, CEO for Aon Consulting, Asia Pacific. “I look forward to working with Anand, who has a wealth of industry experience in Asia Pacific. Anand also has an excellent track record of developing solutions for multinational and local clients, which is aligned with our goal of providing clients with distinctive value through our people. We are confident that under his leadership, Aon’s foothold in the region will strengthen.”

        Shankar brings two decades of experience in people management to Aon Consulting, and he is a well-known strategist in the professional services and human resources industry. Shankar previously held senior positions in other consulting firms, most recently with Talent as Group Corporate Director leading strategic growth through organic and inorganic strategies across multiple businesses. He spent more than a decade with Hewitt Associates in India, Hong Kong and Singapore consecutively, and most recently held the position of head of business development and line functions for consulting and outsourcing.

        On his new role, Shankar said: “I look forward to being part of Aon, which has a track record of high performing organizational talent strategies and sound implementation processes. I share in the firm’s belief that Asia Pacific is an important market with tremendous growth opportunities for HR consulting and outsourcing needs.”

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        Brit Insurance Holdings PLC, the international general insurance and reinsurance group, today announces the appointment of Steve Richardson as Group Claims Director. Steve takes up his new position in late September 2009 and will report directly to Group CEO Dane Douetil.

        In his new role, Steve will devise, implement and lead Brit Insurance’s claims strategy throughout the Group’s three strategic business units – Brit UK, Brit Reinsurance and Brit Global Markets. He will hold overall responsibility for the Group’s claims function.

        Steve joins Brit Insurance from PricewaterhouseCoopers (PwC) where, as a Director, he oversaw insurance and claims advisory services for a wide range of clients. Before joining PwC in 2007, he spent eight years at Equitas as Head of Reinsurance – Assumed Claims, managing a large department responsible for global claims worth billions of dollars in a variety of classes. Prior to Equitas, he spent six years at KWELM as Head of Reinsurance – Ceded Claims. Steve is also a member of the Institute of Chartered Accountants and is a US accredited arbitrator (ARIAS).

        Dane Douetil, Chief Executive Officer at Brit Insurance, commented:

        “Brit Insurance has consistently been recognised as having an industry-leading and innovative claims function, providing a local service backed by a global platform. Steve’s experience in overseeing claims on a worldwide basis makes him the ideal choice to lead our claims operation as it becomes increasingly global.”

        Brit Insurance announced its claims hubs initiative in late 2008, the first UK-based and Lloyd’s insurer to roll out this model. Each hub provide a comprehensive suite of local claims services to brokers, coverholders and customers. In addition to the existing sites in Cardiff and Atlanta, Brit Insurance plans to launch hubs in Europe and South East Asia in due course.

        The post of Group Claims Director was previously held by Bob Foster, who has recently retired.

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        Hannover Re has for the first time placed a facultative risk portfolio as part of its extended Insurance-Linked Securities (ILS) activities. Worldwide individual risks of selected clients are pooled and transferred as a programme to the capital market. Hannover Re’s interest here is not in protecting its own portfolio, but rather in transferring the business of its clients directly to the capital market.

        “With this type of pooling and transformer role we enable cedants to access the capital market for risks that would not otherwise lend themselves to this purpose on a stand-alone basis”, Chief Executive Officer Ulrich Wallin explained. “We make reinsurance capacity available and give investors an opportunity to share in the currently prevailing attractive market conditions”, Mr. Wallin added. The contracts mediated by the reinsurance intermediary Aon Benfield are written by Hannover Re and placed in the capital market in conjunction with Execution Limited.

        The Fac Pool Re transaction consists of a quota share cession and two risk tranches. The total amount of capital provided stands at USD 60 million, with Hannover Re keeping a share of approximately USD 5 million and additionally assuming losses that exceed the capacity of Fac Pool Re. The term of the transaction is two and a half years.

        Fac Pool Re is the second transaction to be completed by the Insurance-Linked Securities unit, set up at the beginning of 2008. In this context Hannover Re cooperates with international reinsurance brokers and partners.

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        Chaucer’s first half pretax profits more than doubled, rising to £17m from £3.9m in the first half of last year.

        Financial highlights

        • Profit before tax and foreign exchange adjustments on non-monetary items1 of £52.6m (30 June 2008: £3.4m)
        • Profit before tax of £17.0m (30 June 2008: £3.9m)
        • Gross written premiums up 38.2% to £491.0m2 (30 June 2008: £355.3m)
        • On a constant currency basis, gross written premiums up 18.4%
        • Successful defensive rebalancing of the investment portfolio, generating return of £34.6m (30 June 2008: £1.5m), a return on average funds of 2.7% (30 June 2008: 0.2%)
        • Interim dividend of 1.3p declared (30 June 2008: 1.8p)
        • Post-tax annualised return on equity of 8.6% (30 June 2008: 1.9%) Underwriting highlights
        • Strong underwriting performance, generating £28.6m of profit before investment income and the impact of foreign exchange on non-monetary items1 (30 June 2008: £6.6m)
        • An average premium rate increase of 5.9% achieved across underwriting portfolio
        • Combined ratio improved to 91.3%2 (30 June 2008: 97.2%) supported by more stable claims environment
        • Syndicate 1084 capacity increased by 42.5% to £634m for 2009 (2008: £445m)
        • Contribution of £2.6m from syndicate participation and management activities (30 June 2008: £2.4m)

        Commenting on the results, Ewen Gilmour, Chief Executive Officer, said:

        “I am pleased to report an excellent start to 2009. The £52.6m profit generated in the first half, before the impact of non-monetary items, was largely the function of an excellent underwriting result and a healthy contribution from our investments as the defensive repositioning of our portfolio realised significant gains. The outlook for the second half of the year and 2010 is also positive, with conditions improving in the majority of our markets. We are well-placed, with our strong underwriting focus and diverse business mix, to benefit from this.” We are holding an analysts’ meeting at our Head Office at Plantation Place, 30 Fenchurch Street, London at 9:30am today.

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        the Netherlands-based insurer, reported a loss for the second quarter, reflecting primarily a one-time loss related to the sale of Taiwanese life insurance business as well as impairment charges.

        Key highlights for AEGON UK include:

        • Value of New Business (VNB), a key measure of profitability, was £39.3m in Q2 taking the total for the first half to £91m, in line with first half of 2008.
        • Underlying IFRS earnings for the UK business for quarter 2 were lower than the same period in 2008 by 54% at £17m, and for the first half by 67% at £24m.
        • Sales of new life and pensions business were £512m (API) in the first half, down 19% compared with the same period in 2008. This includes sales of variable annuities of £24m (API).
        • In Q2, sales of new life and pensions business was £238m (API), down 30% on Q2 2008, which was a record quarter for AEGON UK, boosted by a large pension scheme and a short term distribution deal that boosted investment bond sales during the period. This includes sales of variable annuities of £15m (API).
        • AEGON maintained its market share in the UK life and pensions market, currently 10.4%.
        • Withdrawal from the group risk market in June, freeing up £47m of capital over the next 3 years, in line with strategy to reallocate capital to more profitable areas of the businesses.
        • Five-year sponsorship of British Tennis began, part of AEGON’s strategy to invest in its brand development in the UK market.

        Commenting on the UK results, AEGON UK chief executive Otto Thoresen said

        “This is a resilient performance, achieved in some of the most challenging market conditions we have ever experienced. Despite a fall in sales amounts, which was to be expected given the lower stock market levels, value of new business, a key profitability measure, is in line with the first half of 2008, itself a very strong reporting period.

        “The recession has meant that some people have put ther retirement savings plans on hold, and lower market levels mean pension pots are lower, but we must look for ways to help people take the right financial decisions and act on them once the storm passes.

        “Guarantees will become increasingly important to people. This year AEGON has continued to lead the way in guaranteed retirement income solutions with our variable annuity product development, launching our Secure Lifetime Income product, which is marketed alongside our traditional annuity offering. We are also looking at how we might develop our SIPP proposition, where we are already a strong player in the market.

        “Our investment in building our brand through our sponsorship with British tennis is allowing us to reach new audiences, with over 7 million people watching televised coverage of the AEGON Championships during June.

        “AEGON remains one of the leading life and pensions players in the UK market and we intend to stay at the forefront through these challenging times.”

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          HSBC Life Insurance Company Limited, a joint venture set up by HSBC and the Beijing-based National Trust, opened for business in Shanghai Thursday, marking the global financial giant’s entrance into one of the world’s fastest-growing life insurance markets.

          The joint venture, headquartered in Shanghai, has registered capital of 500 million yuan (73.2 million U.S. dollars). HSBC and the National Trust each hold a 50 percent stake.

          The company will focus on the sector of China’s population that has rapidly-growing discretionary income and will offer life, pension and medical insurance products.

          “China is the focus of HSBC’s strategy in emerging markets,” said Zheng Haiquan, chairman of HSBC Asia Pacific. “If HSBC has no insurance business in China, we could not be called one of the world’s largest insurance companies and China’s largest foreign bank.”

          China’s total life insurance premiums amounted to 733.8 billion yuan in 2008, up 48 percent from the previous year, the second in scale in Asia after Japan. But its insurance penetration, or premiums as a percentage of the economy, was low at 3.3 percent, said David Fried, board chairman of the joint venture and chief executive officer of HSBC Insurance for Asia Pacific.

          China’s large population, low insurance penetration and ongoing economic reforms make for confidence in the important role the Chinese market would play for HSBC insurance’s global expansion, he said.

          HSBC also holds 16.78 percent of Ping An Insurance (Group) Co. of China, the country’s second largest life insurer.HSBC enters China’s life insurance market

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            Monitoring of outbreaks from different parts of the world provides sufficient information to make some tentative conclusions about how the influenza pandemic might evolve in the coming months.

            World Health Organisation (WHO) is advising countries in the northern hemisphere to prepare for a second wave of pandemic spread. Countries with tropical climates, where the pandemic virus arrived later than elsewhere, also need to prepare for an increasing number of cases.

            Countries in temperate parts of the southern hemisphere should remain vigilant. As experience has shown, localized “hot spots” of increasing transmission can continue to occur even when the pandemic has peaked at the national level.

            H1N1 now the dominant virus strain

            Evidence from multiple outbreak sites demonstrates that the H1N1 pandemic virus has rapidly established itself and is now the dominant influenza strain in most parts of the world. The pandemic will persist in the coming months as the virus continues to move through susceptible populations.

            Close monitoring of viruses by a WHO network of laboratories shows that viruses from all outbreaks remain virtually identical. Studies have detected no signs that the virus has mutated to a more virulent or lethal form.

            Likewise, the clinical picture of pandemic influenza is largely consistent across all countries. The overwhelming majority of patients continue to experience mild illness. Although the virus can cause very severe and fatal illness, also in young and healthy people, the number of such cases remains small.

            Large populations susceptible to infection

            While these trends are encouraging, large numbers of people in all countries remain susceptible to infection. Even if the current pattern of usually mild illness continues, the impact of the pandemic during the second wave could worsen as larger numbers of people become infected.

            Larger numbers of severely ill patients requiring intensive care are likely to be the most urgent burden on health services, creating pressures that could overwhelm intensive care units and possibly disrupt the provision of care for other diseases.

            Monitoring for drug resistance

            At present, only a handful of pandemic viruses resistant to oseltamivir have been detected worldwide, despite the administration of many millions of treatment courses of antiviral drugs. All of these cases have been extensively investigated, and no instances of onward transmission of drug-resistant virus have been documented to date. Intense monitoring continues, also through the WHO network of laboratories.

            Not the same as seasonal influenza

            Current evidence points to some important differences between patterns of illness reported during the pandemic and those seen during seasonal epidemics of influenza.

            The age groups affected by the pandemic are generally younger. This is true for those most frequently infected, and especially so for those experiencing severe or fatal illness.

            To date, most severe cases and deaths have occurred in adults under the age of 50 years, with deaths in the elderly comparatively rare. This age distribution is in stark contrast with seasonal influenza, where around 90% of severe and fatal cases occur in people 65 years of age or older.

            Severe respiratory failure

            Perhaps most significantly, clinicians from around the world are reporting a very severe form of disease, also in young and otherwise healthy people, which is rarely seen during seasonal influenza infections. In these patients, the virus directly infects the lung, causing severe respiratory failure. Saving these lives depends on highly specialized and demanding care in intensive care units, usually with long and costly stays.

            During the winter season in the southern hemisphere, several countries have viewed the need for intensive care as the greatest burden on health services. Some cities in these countries report that nearly 15 percent of hospitalized cases have required intensive care.

            Preparedness measures need to anticipate this increased demand on intensive care units, which could be overwhelmed by a sudden surge in the number of severe cases.

            Vulnerable groups

            An increased risk during pregnancy is now consistently well-documented across countries. This risk takes on added significance for a virus, like this one, that preferentially infects younger people.

            Data continue to show that certain medical conditions increase the risk of severe and fatal illness. These include respiratory disease, notably asthma, cardiovascular disease, diabetes and immunosuppression.

            When anticipating the impact of the pandemic as more people become infected, health officials need to be aware that many of these predisposing conditions have become much more widespread in recent decades, thus increasing the pool of vulnerable people.

            Obesity, which is frequently present in severe and fatal cases, is now a global epidemic. WHO estimates that, worldwide, more than 230 million people suffer from asthma, and more than 220 million people have diabetes.

            Moreover, conditions such as asthma and diabetes are not usually considered killer diseases, especially in children and young adults. Young deaths from such conditions, precipitated by infection with the H1N1 virus, can be another dimension of the pandemic’s impact.

            Higher risk of hospitalization and death

            Several early studies show a higher risk of hospitalization and death among certain subgroups, including minority groups and indigenous populations. In some studies, the risk in these groups is four to five times higher than in the general population.

            Although the reasons are not fully understood, possible explanations include lower standards of living and poor overall health status, including a high prevalence of conditions such as asthma, diabetes and hypertension.

            Implications for the developing world

            Such findings are likely to have growing relevance as the pandemic gains ground in the developing world, where many millions of people live under deprived conditions and have multiple health problems, with little access to basic health care.

            As much current data about the pandemic come from wealthy and middle-income countries, the situation in developing countries will need to be very closely watched. The same virus that causes manageable disruption in affluent countries could have a devastating impact in many parts of the developing world.

            Co-infection with HIV

            The 2009 influenza pandemic is the first to occur since the emergence of HIV/AIDS. Early data from two countries suggest that people co-infected with H1N1 and HIV are not at increased risk of severe or fatal illness, provided these patients are receiving antiretroviral therapy. In most of these patients, illness caused by H1N1 has been mild, with full recovery.

            If these preliminary findings are confirmed, this will be reassuring news for countries where infection with HIV is prevalent and treatment coverage with antiretroviral drugs is good.

            On current estimates, around 33 million people are living with HIV/AIDS worldwide. Of these, WHO estimates that around 4 million were receiving antiretroviral therapy at the end of 2008.

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              Health care costs are expected to increase on average 10.5 percent in the next 12 months,(1) according to Aon Consulting, the global human capital consulting organization of Aon Corporation.

              Aon Consulting surveyed more than 60 leading health care insurers, representing more than 100 million insured individuals, and found that health care costs are projected to increase by 10.4 percent for HMOs, 10.4 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. These are slightly lower than one year ago, when HMO cost increases were 10.6 percent and POS plans were 10.5 percent. PPOs and CDH plans remain steady at 10.7 percent and 10.5 percent, respectively. (See below for trend data from Aon Consulting’s prior health care surveys.)

              “Aon Consulting conducts a health care trend survey twice a year to forecast the expected future increase in employer-provided health plan claims cost, before any plan changes, based on input from leading health plan actuaries,” said John Zern, Aon Consulting’s U.S. Health & Benefits Practice director. “This data helps employers evaluate the competitiveness of health insurance premium renewals. For employers with self-funded health plans, it helps in developing future claim estimates for budgeting purposes.

              “While we’re seeing a slight decrease in the trend rates, it’s still at double digits, and this year, it’s compounded by a struggling economy, lower wage increases, and in some cases, salary freezes.”

              Aon Consulting’s U.S. Health & Benefits Chief Medical Officer, Dr. Paul Berger, acknowledges there has been progress in lowering the medical trend rate during the last several years, but emphasizes there’s still significant work to be done. He suggests wellness and health promotion initiatives are critical in the next phase of lowering the medical trend rate.

              “Approximately 30 percent of workers have chronic medical conditions, which account for 65 percent of this nation’s medical spend,” said Berger. “Wellness programs provide a strong platform for effectively managing chronic conditions and preventing future problems, but it’s up to the individual to take advantage of the programs offered. Behavior change is never easy, but those willing to make changes in this capacity benefit from better health and lower health care costs.”

              Prescription drug costs are expected to increase 9.3 percent, which is slightly lower than the 9.4 percent trend rate one year ago. The specialty pharmacy trend rate is 13.2 percent, up from 12.4 percent one year ago. Aon Consulting points to the sluggish rate of drug adoption across the board, compounded by the FDA’s reduced rate of drug approvals – especially for new molecular entities and biologic products – as the contributing factors leading to this decline.

              In addition, health care rate increases for retirees over the age of 65 are projected to be 6.6 percent for Medicare Supplement plans and 7.3 percent for Medicare Advantage plans, down from 7.3 percent and 7.7 percent, respectively, one year ago.

              To learn more about this Health Care Trends Survey, click here

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                Lloyds Banking Group, 43 percent owned by the government, will cut 200 jobs in its general insurance division by the end of January in a shake-up of back office functions, the bank said on Tuesday.

                Lloyds, which agreed to buy rival HBOS last year, said it was combining the support operations of Lloyds TSB and HBOS General Insurance, including sales, marketing, actuarial and underwriting operations.

                The bank said the jobs would be cut in locations including Wales and Yorkshire.

                Analysts have estimated that over 30,000 jobs could be cut as Lloyds integrates HBOS.

                The announcement came week after the bank said it was reviewing its decision to close its Cheltenham & Gloucester subsidiary, possibly saving 833 jobs.

                “We have no confidence in this bank’s confused strategy,” said Rob MacGregor of the union Unite.

                Philip Loney, managing director of Lloyds General Insurance unit said, “We recognise that this is difficult news for our affected colleagues.”

                “We are committed to working through these changes with our colleagues carefully and sensitively and will seek to use natural turnover and redeployment wherever possible.”

                “This steady stream of announcements and cuts is soul destroying for the workforce at this state-owned bank and it must end,” Mr MacGregor said.

                On 30 June, Lloyds said it would cut 2,100 jobs over the next three years and it also announced the closure of all Cheltenham & Gloucester branches in the same month, a decision that it has since decided to review.

                Lloyds has been struggling since it bought HBOS last September. HBOS made a loss in 2008 of almost £11bn and the two banks together are expected to make a loss this year.

                Lloyds has previously said it had created 1,200 new roles since January.

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                Delta Lloyd Bank NV has granted a brokerage mandate to InterFinanceNed. As from today InterFinanceNed subscribers can apply for mortgage quotes directly from Delta Lloyd Bank.

                Erica Blom, chief commercial officer at Delta Lloyd Bank, had this to say: “We are delighted that this brokerage agreement has been signed.  It allows us to transfer part of our work to InterFinanceNed. Our brokerage policy not only allows us to implement our growth strategy but also to establish a long-term partnership and share mutual expertise.”

                Eddie Kempers, chief executive of InterFinanceNed, is also excited about the joint venture: “We have roughly 500 subscribers and the main advantage for them is that it is now very easy for them to apply for a quote from Delta Lloyd Bank NV via our Mortgage Desk. Through signing this brokerage agreement we are underlining the importance of a long-term, professional partnership.”

                InterFinanceNed, based in Heerenveen, operates throughout the Netherlands, providing services for brokers. The company’s formula is simple yet attractive: various forms of cooperation available, a broad range of products, fast payment of brokerage commission and support provided by InterFinanceNed’s Mortgage Desk. InterFinanceNed is the owner of the mortgage formulas Huis & Hypotheek and Het Nationale Hypotheek Huis.