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George Stobbart

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    Given the exceptional complexity of the climate risk challenge, the core insurance mechanisms of underwriting, claims management and asset management can play a central role in dealing with climate change, according to a new report published today by Zurich Financial Services Group (Zurich).

    Zurich’s brief white paper “The Climate Risk Challenge – The role of insurance in pricing climate-related risks”, highlights that there is a strong need to create a structure of sustainable, market-friendly incentives for climate risk adaptation and mitigation and that insurers, whose core expertise is managing the balance between risk exposure and financial stability, are in an ideal position to suggest how this can be done effectively.

    The report concludes that for insurers, the most important concepts for any public policy response related to climate change are:

    • Terms and conditions of the policy response must continue to allow insurers to use their core skills to send risk-based price signals and manage risks
    • Climate policy must close the global governance gap, including provisions, which allow for the quick and efficient resolution of situations involving a conflict of laws both within and between sovereign jurisdictions
    • Climate policy must enable markets to function properly. To do so, public policy makers must properly assign property rights, and where they cannot be assigned because the property in question is a public good, governments must align incentives to reflect the goals of climate policy.
    • Climate policy must recognize the regional nature of climate change and the resulting intersection of energy, water, and carbon risk management strategies

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      UK swine flu cases have fallen for the first time since August, down to 64,000 new infections in the past week. It is thought the half-term break may be behind the drop of 20,000 from the previous week.

      Despite a fall in cases the number of people needing hospital treatment for the virus has remained high, with 785 patients in hospital. Of these patients 173 are receiving critical care.

      The UK has also seen 28 further deaths related to swine flu, raising the total to 182: 124 in England, 33 in Scotland 14 in Wales and 11 in Northern Ireland.

      Vaccinations

      Virtually all GPs have now received their first supplies of the swine flu vaccine. The 6.6 million doses delivered in the past month are now being used to protect those most susceptible to swine flu, including pregnant women and people with long-term conditions.

      The government is also launching an advertising campaign that will explain the importance of receiving the vaccine, which is expected to offer several years of protection against swine flu.

      In other swine flu news:

      • Use of the National Pandemic Flu Service has levelled off.
      • Priority groups continue to be vaccinated, and virtually all GPs have received their first delivery of swine flu vaccine.
      • The Department of Health has published new guidelines for the treatment of swine flu in pregnancy. The new guidance contains detailed advice for clinicians caring for pregnant women.

      The National Vaccination Programme

      NHS hospitals are now vaccinating patients facing the greatest risk of complications. Healthcare staff dealing with the public are also being vaccinated to help keep medical services running smoothly and to prevent them from passing the virus to patients.

      Virtually all GPs have received their first supplies of the vaccine. Patients will be contacted by their GPs if they fall into one of the at-risk categories.
      The order of priority will be:

      • People aged from six months to 65 years in current seasonal flu risk groups
      • All pregnant women
      • Those living with people with compromised immune systems, for example those recieving cancer treatment
      • People aged over 65 in the current seasonal flu risk groups.

      The government has produced a swine flu vaccination leaflet with more information. The chief medical officer, Sir Liam Donaldson, said: “I urge everyone in the priority groups to have the vaccine – it will help prevent people in clinical risk groups from getting swine flu and the complications that may arise from it.”

      Who is a priority for vaccination with the H1N1 swine flu vaccine?

      People who are most at risk from swine flu need to be vaccinated first. These groups are, in order of priority:

      • People aged between six months and 65 years in the seasonal flu vaccine at-risk groups.
      • All pregnant women, subject to licensing. The European Medicines Agency, who license the vaccine, will indicate whether it can be given to all pregnant women or whether it should only be offered at certain stages of pregnancy.
      • People who live with those whose immune systems are compromised, such as cancer patients or people with HIV/AIDS.
      • People aged 65 and over in the seasonal flu vaccine at-risk groups.

      Frontline health and social care workers will also be offered the vaccine at the same time as the first clinical at-risk groups. Health and social care workers are both at an increased risk of catching swine flu and of spreading it to other at-risk patients.

      What are the seasonal flu vaccine at-risk groups?

      These are people with:

      • chronic respiratory disease, such as chronic obstructive pulmonary disease (COPD),
      • chronic heart disease, such as heart failure,
      • chronic kidney disease, such as kidney failure,
      • chronic liver disease, such as chronic hepatitis,
      • chronic neurological disease, such as Parkinson’s disease,
      • diabetes requiring insulin or oral hypoglycaemic drugs, and
      • immunosuppression (a suppressed immune system), due to disease or treatment.

      Why are healthy people over 65 and children not a priority for the swine flu vaccine?

      Healthy people aged over 65 appear to have some natural immunity to the swine flu virus. And while children are disproportionately affected by swine flu, the vast majority make a full recovery – therefore the experts do not advise that children (other than those in at-risk groups) should be vaccinated initially.

      Who is at greatest risk of serious complications from swine flu?

      Some people are more at risk of complications if they catch swine flu, and need to start taking antivirals as soon as it is confirmed that they have the illness. Doctors may advise some high-risk patients to take antivirals before they have symptoms, if someone close to them has swine flu.

      It is already known that people are particularly vulnerable if they have:

      • chronic (long-term) lung disease,
      • chronic heart disease,
      • chronic kidney disease,
      • chronic liver disease,
      • chronic neurological disease (neurological disorders include motor neurone disease, multiple sclerosis and Parkinson’s disease),
      • immunosuppression (whether caused by disease or treatment), or
      • diabetes mellitus.

      Also at risk are:

      • patients who have had drug treatment for asthma in the past three years,
      • pregnant women,
      • people aged 65 and over, and
      • children under five.

      National Pandemic Flu Service

      The National Pandemic Flu Service was launched in July. This online service assesses patients for swine flu and, if required, gives them an authorisation number that can be used to collect antiviral medication.

      The system, which can also be accessed by phone, will take the strain off GPs as swine flu spreads. For the moment, it is being used only in England.

      “The National Pandemic Flu Service is a new self-care service which will give people with pandemic swine flu symptoms fast access to information and antivirals,” said a Department of Health spokesman.

      “This new service will free up GPs, enabling them to deal with other illnesses that need their urgent attention.”

      The launch of the system brought important changes to the official advice that is given to people who think they may have swine flu. That advice – and the new system – is supported by the Royal College of General Practitioners.

      Advice for antivirals

      Several newspapers reported that the World Health Organization (WHO) had changed its advice regarding use of antivirals for swine flu. Its advice suggests that while antivirals should always be given in serious cases, they may not always be necessary for otherwise healthy people.

      The papers pointed out that this appeared to differ from the approach taken in the UK, where Tamiflu is being widely used.

      However, the Department of Health said:
      “We believe a safety-first approach of offering antivirals, when required, to everyone remains a sensible and responsible way forward. However, we will keep this policy under review as we learn more about the virus and its effects.

      “The WHO recommendations are in fact in line with UK policy on antivirals. We have consistently said that many people with swine flu only get mild symptoms, and they may find bed rest and over-the-counter flu remedies work for them.”

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      Franco-Belgian bank Dexia, the target of a major bailout late last year, announced a 274-million-euro net profit for the first quarter on Friday after losses of 3.3 billion euros for 2008.

      The figures compared to a loss of more than 1.5 billion euros (2.25 billion dollars) for the corresponding three-month period last year.

      And they enabled the bank — deep in restructuring negotiations with Brussels — to argue it had already “considerably reduced” its risk profile.

      Citing “sizeable” progress since the disposal of troubled US bond insurance subsidiary Financial Security Assurance, chief executive Pierre Mariani’s comments were clearly aimed at the European Commission, eight months into a state-aid probe.

      In August, the commission said it had “reservations” over the bank’s restructuring plans, but chairman Jean-Luc Dehaene insisted that talks were progressing in an “open and constructive climate.”

      Dexia, which posted third-quarter income of 1.37 billion euros, was yellow carded by the commission last month for announcing to markets the early repayment of debt without first alerting European competition authorities.

      However, in a statement Mariani stressed that the bank had “confirmed its profitability with a third consecutive positive result, thanks to the good performance of its core activities and to the magnitude of its restructuring plan.”

      Belgian banking and insurance group KBC meanwhile announced a second quarterly net profit running, and said it too was entering the home straits in its own negotiations over restructuring with the commission.

      It posted net profits of 528 million euros for the third quarter, up from 302 million euros between April and June and a dramatic turnaround from cumulative losses of seven billion euros at the height of the crisis between July 2008 and March 2009.

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      The government will push for a relaxation of draft EU rules which could force UK insurers to bolster reserves by 50 billion pounds ($82.88 billion), financial services minister Paul Myners said.

      The government wants to make sure the proposed Solvency II rules do not result in higher costs for pensioners as insurers seek to meet “excessively conservative” capital requirements, Myners said on Thursday in a speech to the Association of British Insurers.

      “We absolutely cannot allow this to happen,” Myners said.

      “Government is committed to ensuring that these regulatory reforms do not unintentionally impact the lives and wellbeing of pensioners in the UK and elsewhere in Europe.”

      As currently drafted, Solvency II would force annuity providers to hold extra capital as a reserve in case of declines in the value of the corporate bonds they use to fund payments to their customers.

      British insurers including Legal & General, Prudential and Aviva would be disproportionately affected as they sell far more annuities than their continental European rivals.

      The ABI warned in August that the rules could expose a capital shortfall of up to 50 billion pounds among its members.

      EU insurance regulatory body CEIOPS, tasked with drawing up final recommendations for Solvency II legislation, indicated this week that it may be necessary to amend the rules so as to limit their capital impact on annuity writers.

      “We welcome Lord Myners’ effort and commitment to achieving the right result in Europe for UK savers and pensioners,” said Tim Breedon, chief executive of L&G, regarded by analysts as particularly vulnerable to Solvency II due to its heavy reliance on annuities.

      “The direction of travel is now more positive, but sustained effort will still be required to build a pan-European consensus on capital issues.”

      Myners also said the current Solvency II proposals ran the risk of creating “structural imbalances” in the financial markets by imposing higher capital charges on corporate bonds than on other assets such as equities or gilts.

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      Brit Insurance Holdings PLC announced its intention to reorganise its corporate structure by putting in place a new holding company for the Group.

      Brit today announces that Brit Insurance Holdings N.V. (“New Brit”), a company, incorporated in the Netherlands, tax resident in the Netherlands and which will be listed in the UK, will (subject to Brit Shareholder approval) become the new holding company of the Group (the “Proposals”).

      A circular (the “Scheme Circular”) setting out full details of the Proposals will today be sent to Brit Shareholders and a prospectus in relation to New Brit will today be published and filed with the Financial Services Authority (the “Prospectus”).

      Key features of the Proposals

      • New Brit will become the new holding company of the Group by way of a court sanctioned scheme of arrangement under the Companies Act 2006 (the “Scheme”)
      • Under the Scheme, Brit Shareholders will receive one New Brit Share for each Brit Share that they hold (Brit Shareholders will not be required to pay any amount for the New Brit shares issued under the Scheme)
      • The listing of the existing Brit Shares will be cancelled and an application will be made for New Brit Shares to be listed on the London Stock Exchange. New Brit is expected to replace Brit as a member of the FTSE 250 Index
      • New Brit Shares will be tradeable in CREST through Depositary Interests
      • New Brit will continue to report results under IFRS in sterling
      • The Proposals will not make any substantial changes to corporate governance, to existing shareholder protection measures nor to the existing distribution policy of Brit (albeit that initially New Brit intends to make distributions to shareholders by way of reductions of the par value of the New Brit Shares)
      • The implementation of the Proposals is not expected to have any adverse tax implications for Brit Shareholders

      Click here to read the full reorganisation details

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      Towergate Partnership today announces the acquisition of Scottish insurance broking firm, Money Wise (Scotland) Limited.  Under the deal, all 15 staff and Directors have made the move to Towergate. The team will continue to be led by Managing Director, Bruce Law.

      This is the latest acquisition made by Towergate in Scotland where it already has broking offices based in Glasgow, Aberdeen, Kirkcaldy, Berwick, Jedburgh, Galashiels, Inverness and Elgin.  Money Wise (Scotland) Limited now becomes part of Towergate’s expanding presence in Scotland where it has ambitious plans for further acquisitions and organic growth.

      Money Wise (Scotland) has offices based in Banff and Buckie.  The business controls premiums of over £3.5m with a strong and well established commercial and retail client base.

      Alan McEwan, Towergate’s Regional Managing Director said: “Money Wise (Scotland) Limited is another great addition to our team.  It’s a first class business with a reputation for delivering great customer service to its clients.  It’s also a great fit for us in Scotland where we will continue to grow through more acquisitions of quality broking businesses and recruitment of the best people”.

      Bruce Law, MD of Money Wise (Scotland) Limited, said: “Towergate has ambitious plans for the broker market in Scotland which we want to be part of.  The direction and vision which Towergate has for Scotland made it an easy decision for us to join forces with their team.”

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      Freight forwarders, port operators, ship managers, naval architects and marine surveyors will be among those that will benefit from a major expansion of Beazley’s marine underwriting capabilities to offer professional liability and logistics coverage.  A new team, headed by Zareena Hussain, will lead the company’s drive into this section of the market.

      Beazley is a leading insurer of marine hull, cargo and war risks in the London market, participating in the insurance of approximately 13.5% of the world’s ocean-going tonnage.  Ms Hussain joins Beazley from a Lloyd’s managing agency underwriting on behalf of Mitsui Sumitomo Insurance.  She will be accompanied on the new team by Vincent Egon, underwriter, and Sharon Duffy, assistant underwriter, also from the same managing agency.

      Clive Washbourn, head of Beazley’s Marine division, said: “The arrival of the new team will enable us to offer a much broader and deeper service in the liability market.  Zareena and her colleagues have extensive experience in professional liability cover for ship managers, ship agents and marine surveyors, as well as cover for the operators of ports and logistics companies.

      “We already offer a range of liability covers but the new team will allow us to extend our range of services to target markets, such as marine surveyors and ship managers, that are not traditional buyers from the Lloyd’s market. We believe the security and service that the Lloyd’s market can offer will prove highly attractive to these buyers.  Our existing clients will also benefit from their wealth of experience.

      Zareena Hussain said: “Beazley is one of the most respected marine underwriting businesses in the market, offering an excellent platform for us to develop our book of business further.  I am confident our skills and experience will prove complementary to those of the existing marine team.”

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      The Government welcomed the news that the number of people in work has risen this quarter by 6,000 according to figures published by the Office for National Statistics today.

      Today’s figures also show that ILO unemployment has risen more slowly than many expected. At 30,000 this quarter’s rise is the lowest in more than a year. ILO unemployment is 2.46 million (7.8%), reinforcing the fact that the UK labour market is performing better than most major economies.

      Ministers said that the figures showed the Government’s action on the economy was making a real difference.

      However they warned that labour market difficulties were still expected to continue for some time to come, with further rises in unemployment expected next year. Ministers said they were determined to provide more help especially for young people.

      The Government today announced the next 35,000 jobs to be created for the young and long term unemployed through the Future Jobs Fund – bringing to 95,000 the total number of jobs announced through the Fund so far.

      Today’s figures show that the number of 16-24 year olds classed as ILO unemployed is lower than last month’s figure of 946,000. But it has increased by 15,000 over the quarter to 943,000. Most of that increase is accounted for by a 14,000 rise in the number of full time students who say they are looking for work.

      In total 267,000 (28%) of the 943,000 are now shown to be in full time education. The UK youth unemployment rate, even including the students looking for work, remains below the EU average.

      The figures also show a major increase of 126,000 in the total number of young people in full time education over the same period, reflecting the substantial expansion of education places, including the September Guarantee.

      Secretary of State for Work and Pensions, Yvette Cooper said: “The figures show more people in work and a lot more young people taking up our offer of full time education and training, which is welcome news.

      “The fact that unemployment is significantly lower than everyone forecast at the beginning of the year shows the support for the economy is making a real difference. But we know things are still tough for a lot of families, and unemployment is expected to increase further next year. That’s why we’re determined to do more with an extra 35,000 youth jobs, more apprenticeships and education places so we can guarantee no young person gets stuck in long term unemployment.”

      The figures out today also reinforce the fact that the UK labour market is performing better than most major economies. They show UK unemployment at 7.8%, compared to an EU average of 9.2% and lower than 14 other EU countries including France (10.0%), Ireland (13.0%) and Spain (19.3%), as well as the US (10.2%) and Canada (8.6%)

      Employment Minister Jim Knight said: “When faced with the worst global recession since the 1930s we made a decision to give jobseekers the support they need, investing £5bn since last November in creating jobs, bringing in front line advisers to Jobcentre Plus and expanding training and apprenticeships.

      “Today’s figures show that while there is still more to do our investment is making a real difference to people’s lives and ensuring that our labour market is performing well compared to other leading economies.”

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      AEGON returned to profit in the third quarter this year, helped by an improvement in world financial markets and a substantial decline in impairments.

      The company reported net income for the third quarter of EUR 145 million – a turnaround from a loss of EUR 329 million for the same three-month period last year.

      Profits came despite EUR 66 million in one-off charges during the quarter and lower income as a result of measures taken recently to reduce financial risk.

      At the same time, impairments dropped to EUR 285 million – a reflection of further improvements in the US housing market.

      In a statement, AEGON CEO Alex Wynaendts said the third quarter numbers showed the company had taken the “right actions at the right time” to deal with the global financial crisis.

      He added that strong sales and net deposits in the quarter “demonstrate the continued confidence of our customers”.

      Third quarter earnings come as AEGON prepares to repay EUR 1 billion to the Dutch government at the end of this month – an important first step toward repaying the full EUR 3 billion provided by the Dutch State last year at the height of the financial crisis.

      In his statement, Mr. Wynaendts said AEGON’s stronger capital position had enabled the company to repay the EUR 1 billion “while continuing to maintain a larger capital buffer, a necessary precaution in the current environment”.

      AEGON’s underlying earnings were lower in the third quarter at EUR 351 million, down 13% compared with the second quarter. New life sales, meanwhile, rose 3% compared with the second quarter to EUR 484 million, supported by strong retail sales in the United States, while net deposits – excluding institutional guaranteed products – increased to close to EUR 2 billion. AEGON also booked a tax gain in the third quarter of EUR 154 million.

      AEGON’s quarterly net profit was the company’s first in more than a year – a reflection of the severity of recent turmoil in world financial markets.

      To counter the effects of the crisis, AEGON has taken decisive steps in recent months, reducing risk, lowering operating costs and freeing up additional capital from its businesses.

      At the end of third quarter, AEGON’s excess capital – over and above what the company requires consistent with a AA rating – totalled EUR 4.8 billion, up from EUR 3.5 billion three months before.

      Approximately EUR 900 million in extra capital was released in the third quarter – bringing the total of capital released since AEGON initiated its strategy just over a year ago to EUR 4.2 billion, well ahead of the company’s original schedule. AEGON has also achieved its target of reducing costs this year by EUR 150 million, three months ahead of the original plan.

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      Aviva, the UK’s largest insurer, is to introduce an innovative continuous money-back guarantee option for new with-profits investments in response to customer demand.

      Investors will have the peace of mind that if they move out of the fund at any point after five years they will get back at least what they put in. The fund also enables them to benefit from potential increases in all the major asset classes including property, shares and fixed interest.

      The guarantee will be available from 30 November 2009 on new investments in the With-Profit Guaranteed Fund. The charge for the guarantee is an extra 0.7% a year for the first five years. (See notes to editors for conditions).

      David Barral, marketing director at Aviva, said: “Customers tell us that they are looking for a return that’s better than a bank or building society account without taking too much risk with their money. By taking advantage of the with-profit guarantee option, customers can benefit from potential increases in property and shares, with the peace of mind of a money back guarantee providing they invest for at least five years.

      “The fund shows our continued commitment to with-profits, and is a great addition to our existing suite of low-risk and guaranteed investment solutions.”

      The value of the investment can go down as well as up and if you surrender the bond before the five-year guarantee, you may not get back your initial investment.

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      Zurich Financial Services Group reported today a solid nine-month[1] operating performance, with balance sheet strength and solvency margins at near-record levels, and continued profitable growth in Global Life and Farmers underpinning the Group’s 27th consecutive quarter of profitability.

      Swiss insurer Zurich Financial Services AG said on Thursday third-quarter profit rose 138 percent, broadly in line with expectations, after claims on hurricanes Gustav and Ike battered profit a year earlier.

      Europe’s fourth-largest insurer by market value said its third-quarter business operating profit came in at $1.5 billion, up from $636 million a year earlier and broadly in line with the average forecast of $1.6 billion in a Reuters poll of analysts.

      Business operating profit for the discrete third quarter 2009 was USD 1.5 billion, a 138% increase over the same prior-year quarter, with net income[1] of USD 909 million, a 490% increase over the same prior-year quarter. Both figures represent the fourth consecutive quarter-on-quarter improvement since the third quarter 2008.

      “In this period of ongoing economic uncertainty, our focus remains on maintaining our strong balance sheet, driving operational excellence and delivering sustained profitable growth,” remarked Zurich’s Chief Executive Officer James J. Schiro. “By effectively balancing these levers, we have generated excellent quarterly results and ensured that Zurich is well positioned for the future under any economic scenario.”

      Nine-month performance highlights [2] include:

      • Business operating profit (BOP) of USD 4.1 billion, down 3% but an increase of 2% as measured in local currencies, with all core operating segments improving on a local currency basis. Annualized BOP ROE3 after tax of 16.9%
      • Net income of USD 2.2 billion, a decrease of 24%. Annualized return on equity (ROE) of 11.6%
      • General Insurance gross written premiums and policy fees of USD 26.3 billion, down 10% or 3% in local currencies, and an improved combined ratio of 96.9%
      • Global Life new business value4, after tax, of USD 520 million, up 2% or 11% in local currencies. New business margin, after tax (as % of APE), of 21.8%, with APE up 5% or 17% in local currencies
      • Farmers Management Services’ management fees and other related revenues up 8% to USD 2.0 billion, with business operating profit also up 8% to USD 992 million
      • Shareholders’ equity of USD 28.5 billion, an increase of 29% over year end 2008, boosting the Group’s solvency position to 209%.

      The Group continued to exploit emerging opportunities, expanding its product range and distribution capabilities organically as well as through the ongoing successful integration of its recent acquisitions completed in Europe, the U.S. and emerging markets. Furthermore, Zurich continued to transform its operating platforms in ways that improve the effectiveness and efficiency of its business. The company is well on track to meet its operational improvement target under The Zurich Way initiatives of USD 900 million after tax, as well as its additional expense saving target of USD 400 million for the current year.


      Click here to read the full third quarter result

      Note:

      [1] Attributable to shareholders.
      [2] All comparisons refer to the first nine months of 2008 unless stated otherwise.

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      One in four businesses expect staff to delay retirement with proportion of pension-age workers set to double to 1.8 million people by 2019 UK businesses are bracing themselves for a surge in staff looking to delay retirement with around 1.8 million people expected to be working beyond traditional retirement ages in just 10 years.

      The findings from new research [1] commissioned by Prudential among finance directors at UK businesses found nearly a quarter (24 per cent ) of companies expect staff to work beyond retirement age in the next 10 years, with the proportion of people in the workforce who are past traditional retirement ages expected to more than double to 1.8 million people [2].

      Larger companies expect to see an even greater proportion of their workforce working beyond retirement, with more than a third (39 per cent ) of finance directors at larger firms expecting to have to accommodate requests from staff to work longer.

      UK companies antic ipate this will mean around 6.3 per cent of their workforce (equivalent to 1.8 million people across the UK working population) will be made up of people working beyond statutory retirement ages in 10 years, more than double the current proportion of 2.6 per cent of company workers (equivalent to around 752,700 people 3) who currently work past retirement.

      The study also found that in the past 12 months alone, 7 per cent of finance directors have reported an increase in the number of employees asking to work past traditional retirement ages.

      Martyn Bogira, Prudential’s Director of Defined Contribution Solutions, said: “As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made.

      “The statutory retirement age for men and women is due to rise to 68 by 204 6, so working longer will be a fact of life for those entering the workforce today but these findings suggest that increasing numbers of pensione rs will be forced to work later far sooner than this.

      Employers have told us that their staff costs could rise as the ir employees work for longer. “Workers face the stark choice of either having to save more for their pension from an earlier age or havin g to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension .”

      The research also identified a clear North/So uth divide. Companies in the n orth of the country expect an average of 16.2 per cent of their staff to work past the statutory retirement age compared with an average of 2.4 per cent in Greater London and the South East.

      Workers expected to work beyond retirement age

      Note:

      1. Survey conducted by Continental among 507 financial directors of UK comp anies, 300 from small and medium sized organisations and 207 from large companies. Survey was conducted in October 2009.
      2. ONS Labour Market statistics: There are currently 28.95 million people in the UK in full and part time employment . 1.8 million = 2 8.95 x 6.3 per cent.
      http://www.statistics.gov.uk/cci/nugget.asp?id=12
      3. 752,700 people = 28.95 x 2.6 per cent.

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      The chief executive of bailed-out insurance giant AIG is considering stepping down due to government compensation limits, the Wall Street Journal reported Wednesday.

      At a board meeting last week, Robert Benmosche told fellow AIG directors that he was “done” but agreed to think it over after other board members reacted with shock, the report said, quoting people familiar with the matter.

      Benmosche, who took the job three months ago, was unhappy with constraints imposed by AIG’s government overseers, particularly a recent compensation review by President Barack Obama’s pay czar, Kenneth Feinberg, the newspaper reported.

      AIG is 80 percent government-owned since it offered a financial lifeline last year to the company on the brink of bankruptcy amid a financial crisis.

      AIG bosses reportedly met with Feinberg in New York last week and discussed difficulties of complying with pay policies and retaining talent at the company.

      Benmosche was said to be prepared to step down in August, when his own pay package had not yet been formally approved by Feinberg.

      His 10.5 million dollar pay package, including cash salary of three million dollars, was later finalized and is the largest compensation package approved under the Treasury Department’s recent curbs on executive pay, the report said.

      AIG was the largest single recipient of US bailouts with the government pumping more than 170 billion dollars into the firm to keep it afloat and taking a controlling stake in the group in the process.

      The company was in trouble after backing trillions of dollars in risky financial products amid a US home mortgage meltdown that triggered a global financial crisis.

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      Aon, the leading UK insurance broker, has appointed Jayne Ward as client services manager for the marine team in Manchester.

      Building on Aon’s commitment to the region, she will ensure delivery of cargo, hauliers’ liability and craft insurance broking services to companies in the North-West of England.

      She will be responsible for the daily management of the client services team, and will ensure the ongoing delivery of the highest levels of service for Aon’s clients.

      Having joined from RSA Marine, Jayne brings over 19 years of experience to the role, including claims and underwriting, as well as work experience as far afield as New Zealand.

      Mark Williams, head of the UK cargo team, commented: “We are delighted to welcome Jayne to our team, and believe she is the perfect person to help us strengthen our regional presence. The expansion of the Marine team demonstrates our commitment to the region, and to ensuring we continue to deliver the highest levels of service to our clients.”

      Jayne said: “This is a team that works together extremely well, and I hope to build on that and continue to improve the service our clients receive. This team is known within the industry for outstanding technical skills and understanding and I look forward to working with them.”

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      Jardine Lloyd Thompson Group plc is today releasing its Interim Management Statement for the three months ended 30th September 2009 in accordance with the requirements of the Disclosure & Transparency Rules of the UK Listing Authority.

      The Group’s performance for the third quarter ended 30th September 2009 was in line with our expectations. JLT remains on track to achieve its financial objectives and to make further progress in 2009.

      Insurance market conditions continue to be competitive in most classes of business with no consistent evidence of rates hardening.  Across our operations we have continued to experience the adverse impact of global economic slowdown and reduced levels of corporate activity as well as unprecedented low rates for investment income.

      Despite the challenging insurance market conditions, our Risk & Insurance business overall continues to trade strongly and achieve encouraging levels of organic growth.

      The performance of our London Market businesses has been particularly robust; our retail insurance broking businesses around the world have reflected the different speed of economic recovery in the different countries and regions in which they operate.

      As reported at the time of our interim results, our Employee Benefits business in the UK and Ireland has been adversely impacted by the economic downturn but is well positioned to recover with the market.

      JLT’s balance sheet continues to be in a strong position with low net debt under bank facilities committed to December 2011.

      Outlook

      JLT has good momentum and is well placed to benefit as the economic and insurance industry background improves and to take advantage of growth opportunities including new hires and acquisitions.

      Dominic Burke, Chief Executive said:  ” JLT remains well positioned and we will continue to build on our successful strategy of balanced growth – organically, by bolt-on acquisitions and through selective hiring of industry-leading people.”

      There have been no material events or transactions in the quarter and there have been no significant changes in the financial position of the Company since the publication of the Interim Results for the six months to 30th June 2009.

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      Tourists aged 25-34 are the worst for being uninsured on holiday, it was revealed today.

      As many as 43% of holidaymakers in this 25-34 age bracket took a summer break without getting travel insurance, a survey by supermarket finance company found.

      Travellers aged 16-24 were the next worst in not being covered, with 39% not taking out travel insurance last summer.

      In all, 37% of those who took summer 2009 breaks went away without insurance, the survey of 1,000 people showed.

      People in the East Midlands and East Anglia were least likely to be covered while tourists from northern England were best in making sure they had insurance.

      The main reason given for lack of cover was that travellers thought they did not need insurance, while 17% said they could not afford to be covered.

      A spokesperson said: “Buying travel insurance should be considered a holiday essential.

      “It is very worrying that many people feel that they do not need travel insurance as no-one can guarantee a ‘hiccup-free’ holiday.”

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      Former president Bill Clinton planned a rare visit to the US Senate Tuesday to unite Democrats divided on President Barack Obama’s push for a sweeping overhaul of US health care.

      Fifteen years after his own dramatic push to remake the US system went down in flames after a strong start, Clinton was to address Democrats behind closed doors at their weekly policy luncheon to give Obama’s plans a shot in the arm.

      The former president “is going to help energize our caucus to accomplish the three goals” of bringing health care costs down and covering every American without breaking the federal budget, said Democratic Senator Ben Cardin.

      The US House of Representatives on Saturday narrowly approved its version of the legislation, which the Senate could take up next week amid Democratic doubts and near-united Republican opposition that cloud the plan’s fate.

      “We have to let people know that this is really essential that we do it now, and I think that President Clinton coming up here — no one can express this better than he can,” said Democratic Senator Ted Kaufman.

      “I mean this is so traumatic and so tough, that if we don’t pass something, I don’t know when we can get it,” said Kaufman, who pointed to Democratic control of the White House and the US Congress.

      The visit could also underscore the political peril Democrats may face:

      Republicans energized by wrecking Clinton’s health care push went on to a landslide victory in the 1994 mid-term elections.

      Democratic Senate Majority Leader Harry Reid and White House chief of staff Rahm Emanuel came up with the idea of having the savvy two-term Democratic president address Senate Democrats, according to a Democratic Senate aide.

      The visit was “something that Senator Reid and Rahm thought of,” said the aide, who requested anonymity.

      Clinton’s appearance came as Reid and Emanuel worked to rally the 60 votes needed in the Senate to overcome any parliamentary delaying tactics and pass the legislation, which Obama has said he wants to sign this year.

      A handful of swing-vote Democrats, as well as Independent Senator Joe Lieberman, have signalled strong opposition to a White House-championed approach that includes the creation of a government-backed health insurance plan to compete with private insurers.

      The Senate plan also omits vastly stricter curbs on governments funds helping to pay for abortions, a last-minute addition to the House bill that won critical support from a platoon of pro-life Democrats.

      If, as expected, the Senate and House of Representatives approved rival versions of the legislation, they would have to forge a compromise bill and approve it in order to send it to Obama to sign into law.

      Cardin, who was in the House of Representatives when Clinton’s health care overhaul fell apart in 1994, said the US health care picture had grown much worse than forecast during that hard-fought political debate.

      “We were wrong in 1993, the cost increases were much larger than we thought they could be. We’ve actually found that we’re in worse shape than the projections showed us,” he told reporters.

      With AFP WASHINGTON, Nov 10, 2009

      Bill Clinton

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      TrygVesta saw sustained growth in the third quarter of the year and maintains its target of full-year growth of 8%. The Group upgrades its full-year post-tax profit forecast from DKK 1.7bn to DKK 1.8bn. Sweden reported a three-month profit for the first time.

      The TrygVesta insurance group reported continued strong growth for the third quarter of 2009. Growth in earned premiums of 11.4% in local currency terms (7.3% in DKK terms) was driven partly by strong growth in the number of insurances in Sweden and Finland, partly by an influx of new customers in Denmark and Norway.

      TrygVesta recorded gross earned premiums of DKK 4,747m in the third quarter of 2009. The Group’s pre-tax profit increased from DKK 198m to DKK 717m, mainly attributable to an improvement of the investment return. The insurance operations reported a profit of DKK 397m, which was DKK 149m less than in the year-earlier period.

      The Group’s pre-tax profit the first nine months of the year increased from DKK 999m to DKK 2,038m. Profit for the period after tax increased 128% to stand at DKK 530m.

      TrygVesta upgrades its full-year post-tax profit forecast from DKK 1.7bn to DKK 1.8bn based on the improved investment return. The profit forecast before tax is upgraded from DKK 2.2bn to DKK 2.4bn.

      Improvement in the Nordic region

      Group CEO Stine Bosse comments :

      “Our third quarter performance clearly demonstrates the advantages of being a Nordic insurance group,” said .

      “We reported our best performance in Norway since Q4 2007, thanks to measures such as price adjustments and cost restraint. At the same time, we managed to increase our market share and maintain our high customer loyalty rates.”

      “We can apply this experience in the Danish market, where the profitability of our house and contents insurances is not quite good enough. This is a problem prevailing in the entire industry, and we are going to see price adjustments in the upcoming period. Furthermore, the price adjustments we have already implemented will improve profitability going forward.”

      “We passed a milestone in Sweden which produced its first quarterly profit since we began operations there in 2006. Moderna, which we acquired in April 2009, contributed excellent growth and good profitability. Premium increases effective from 1 April will gradually improve profitability in the remaining part of our Swedish business.”

      “Finland continued to report strong growth, and the Finnish branch is seeking to strike a better balance between growth and profitability in order to become profitable,” said Stine Bosse.

      0 0

      British Prime Minister Gordon Brown drew cautious support on Monday for his latest crusade to introduce a so-called “Tobin” tax on big financial transactions.

      “There was some curiosity about Gordon Brown’s proposals surrounding a financial levy” pushed at the G20 meeting in St Andrews, said Joaquin Almunia, European financial commissioner.

      He was speaking after a meeting of eurozone finance ministers who “agreed to discuss this again in the coming months,” said Almunia, whose body has already been mandated to explore options.

      However, he stressed that Brown himself had underlined “the need to adopt a global position so as not to create disruptions to capital flows.”

      Spanish finance minister Elena Salgado, standing in for eurogroup chief Jean-Claude Juncker, said the idea was like an environmental tax “where the polluter has to pay” and a “kind of insurance” against future systemic failure.

      Just hours after Brown resurrected the Tobin idea in his Scottish homeland, the United States appeared to shoot it down in flames.

      “No, that’s not something that we’re prepared to support,” US Treasury Secretary Tim Geithner said.

      The IMF is to report on a “better” solution to the G20 next April.

      0 0

      Hub International Limited announced today that it has acquired Mones & Associates Insurance Brokers Inc., one of the largest personal and commercial insurance brokers in Western and Northern Canada with approximately $10 million in annual revenue, from Aviva Canada Inc. Mones also operates under the name of Arctic Insurance Brokers Ltd in select markets. As a result of this acquisition, Hub will expand its operations to the following seven new locations in Canada: Edmonton, Calgary, Saskatoon, Prince Albert, Iqaluit, Whitehorse and Yellowknife. Terms of the acquisition were not disclosed.

      “This acquisition is a major step in our strategy to increase our presence in Western and Northern Canada,” said Jim Barton, President of Canada & Midwest Regions for Hub      . Mones will become part of the Hub International Barton operation, based in Chilliwack, British Columbia.

      “We are excited to welcome the Mones employees to our team” said Barton. “Mones has developed a strong and loyal customer base by continually exceeding its clients’ expectations. Given their stellar reputation in the communities they serve, their strong commitment to customer service, and robust revenue growth over the years, they are an excellent fit for the Hub organization. We look forward to continuing to serve Mones’ clients and providing them with the value-added resources that Hub offers,” he said.

      “As a strong supporter of the independent broker channel, Aviva acquired Mones in May of 2008 as a short-term solution until a suitable partner could be found,” stated Grant Miner, Senior Vice President, Western Canada for Aviva Canada. “Our existing relationship with Hub, combined with their exceptional track record in providing insurance services to Canadians, made it easy to identify them as the best partner possible for the Mones business”, he continued.

      Randy Stafford, Chief Operating Officer of Mones, stated that “the Mones philosophy includes understanding our clients’ businesses, striving to exceed their expectations, and emphasizing quality and integrity throughout our company. We are pleased to join Hub and look forward to expanding our presence in the communities we serve while continuing to build upon our commitment to excellent client service.”

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