Saturday, November 23, 2024
Home Authors Posts by George Stobbart

George Stobbart

Profile photo of George Stobbart
1954 POSTS 0 COMMENTS
http://www.news-insurances.com

0 3

Salaam Halal insurance is the UK’s first dedicated Islamic insurance provider set up to provide Islamic insurance based on the Shariah* principle of Takaful**. Now muslims can have great value home insurance and car insurance, without compromising the principles of their faith.

Julie Owens, head of home insurance at moneysupermarket.com, said: “It is encouraging to see this level of variety in what is an increasingly competitive insurance market.”

“Salaam Halal insurance launched mid last year with the first shariah-compliant car insurance product and has now added home insurance to its mantel, giving both Muslims and non-Muslims the opportunity to compare prices of Halal insurance with conventional home insurance for the first time.

“Prior to Salaam Halal insurance’s launch in July 2008, British Muslims didn’t have the option of buying insurance products aligned with their faith.  Salaam Halal insurance is also likely to appeal to the non-Muslim community who are interested in competitively priced products of an ethical or co-operative nature. Halal insurance, also known as Takaful, prohibits investment in non-ethical industries, e.g. alcohol and tobacco, and is based on mutual cooperation.

“Their specialist insurance offering often sits competitively in our car insurance listing and we would expect their home insurance to offer customers similar great value.”

Note :

Shariah : This is the term for the rules that govern the Muslim way of life.

Takaful : Takaful is described as the Halal alternative for conventional insurance which is fully compliant with Shariah. It abides by all the rules and regulations of Islamic law.

    0 0

    According to the insurer’s statement filed with the Taiwan Stock Exchange, the damages caused by the typhoon have “not led to a material impact on the company’s financial situation.”

    Union Insurance said it has been “paying high attention to those engineering insurance, vehicle insurance, health and injury insurance, as well as fire insurance underwritten by the company in the flooding and typhoon-affected regions.”

    The insurer said for those who have purchased typhoon and flood insurance from the company will attain insurance indemnity.

    Union Insurance added that since it has achieved natural catastrophe insurance risk diversifications mainly through reinsurance arrangements, the company’s financial situation will not see a significant impact.

    Another Taiwan-listed property insurer, First Insurance Co. Ltd., said damages caused by Morakot will not constitute an impact on the company’s financial situation.

    As of Aug. 10, First Insurance noted four insurance claims reported from commercial fire policies, with estimated claim payment of NT$3 million. Another four insurance claims were reported from accident policies, with estimated payment of NT$2.5 million.

    The insurer also recorded an insurance claim from a goods transporting policy, with estimated payment of US$30,000.

    Taiwan Life Insurance Co. also said the typhoon has not caused any significant impact on the company’s financial situation.

    Central Re, the sole reinsurer in Taiwan, said in a statement filed with the stock exchange that the actual insurance loss payment is still being calculated as its reinsurance business-related insurance company partners are still in the process of collecting relevant figures.

    Central Re said it also has reinsurance transfer arrangements with foreign reinsurers, who will share part of the Taiwanese reinsurer’s business risks. In view of that, the reinsurer said Morakot should not lead to a significant impact on Central Re’s financial situation.

    Catastrophe risk modeling firm AIR Worldwide said that Typhoon Morakot did not intensify before landfall overnight on Aug. 7 as expected, but heavy rains and winds hit Taiwan.

    According to the Joint Typhoon Warning Center, Morakot had maximum sustained winds of 148 kilometers per hour (90 mph) with gusts of 185 kph (115 mph).

    The Central Weather Bureau in Taiwan warned residents of flooding and mudslides on Aug. 7, as it said Morakot was expected to bring up to 1,200 millimeters (47 inches) of rainfall and strong winds over the next couple of days.

    Reinsurance broker Guy Carpenter & Co. said on Aug. 7 that the outer bands of the storm were already pounding Taiwan, with tropical-storm force winds and heavy rain affecting all parts of Taiwan.

    According to the broker, at least 14 people were reported killed by the typhoon in Taiwan amid some of the worst flooding the country as seen in 50 years.

    Guy Carpenter added that about 220 flights were cancelled in the southern Japanese island prefectures of Okinawa and Kagoshima as the typhoon moved through the region, affection around 40,000 passengers.

    After hitting Taiwan, Morakot crossed the Taiwan Strait and made landfall in the Chinese province of Fujian on Aug. 9 as a tropical storm, hitting cities in the region with heavy rain and winds of up to 50 mph, Guy Carpenter reported. The broker Reports said about 1 million people were evacuated from coastal areas in Fujian and Zhejiang provinces and 35,000 fishing vessels were recalled to port. Zhejiang officials reported that around 2,000 homes were destroyed.

    More than 3.4 million people in Zhejiang suffered property losses as hundreds of villages were flooded and more than 1,800 houses collapsed, according to the Provincial Flood Control and Drought Relief Headquarters, said Guy Carpenter. Government officials expect the typhoon to cause more than 8.5 million yuan (US$1.2 billion) in damages, reports said.

    Source : Hong Kong news editor

    0 2

    Christian Torkington has been named as UK chief operating officer of RSA.

    Torkington was director of operations at Scottish Widows and before this, he worked at Barclays Bank in a variety of senior operational and business roles. He was also the chief executive of an economic development agency and has held a number of consulting and accountancy roles in both the UK and Hong Kong.

    Adrian Brown, RSA UK chief executive said: “Christian brings a wealth of experience that will allow him to develop RSA’s UK Operations and IT infrastructure and I’ve no doubt that his arrival will really benefit the entire team and that his knowledge and expertise will be crucial as we look to further develop our IT infrastructure.”

      0 0

      The number of motorists getting behind the wheel uninsured has risen by a third (33 per cent) compared to 2008, according to research from moneysupermarket.com.


      • 33 per cent uplift in uninsured drivers from 2008
      • Every fifth car being driven on UK roads could be uninsured, says moneysupermarket.com

      The survey by the price comparison site found a fifth of motorists (20 per cent) admit breaking the law by driving uninsured, compared to 15 per cent in 20082; almost a tenth of motorists (nine per cent) have disregarded the law and driven their own car without insurance, while eight per cent admit to getting behind the wheel of someone else’s car when not adequately insured. A further three per cent say they have driven their own car uninsured in between renewing their insurance policy.

      Men are more likely to drive uninsured, with one in four (23 per cent) admitting to it compared to 16 per cent of women. The poll also exposes younger drivers; 37 per cent of twenty-somethings say that they have driven without cover, compared to just seven per cent of those in their sixties.

      Steve Sweeney, head of motor insurance at moneysupermarket.com, said: “How disappointing to see so many Brits have taken to the roads uninsured – it’s a worrying thought every fifth car we see isn’t covered, and year on year the research reveals a staggering 33 per cent increase in the number of people driving uninsured2. The onset of recession may mean more motorists are unable to afford the cost of their insurance but, if hit by an uninsured vehicle, only motorists with a fully comprehensive policy will be covered by their insurer to pay for the car to be repaired, and even then they may face losing their no claims discount. Organisations such as the Motor Insurers’ Bureau offer advice on how to make a claim under the Uninsured Drivers’ Agreement3.”

      “Whatever the distance driving without insurance is illegal. Anyone caught doing so could face hefty penalties which include a £200 on-the-spot fine and six points on their licence.  There’s also the possibility of the car being impounded – involving a £150 collection charge and £20 per day charged for storage. If Brits are forgoing their motor insurance for cost reasons it clearly is a false economy.

      “Uninsured motorists cost the industry £500 million each year in claims, and cause the cost of cover to rise by £30 for more responsible motorists4. By covering yourself to drive a car, you are not only protecting yourself in the event of an accident, theft or damage, but you are safeguarding yourself against other less cautious motorists as well. The cost of running, and insuring, a car can be expensive – especially for younger drivers – however it is quicker and easier than ever to find a cheap motor insurance quote.

      Top tips to reduce the cost of motor insurance:

      Keep it safe
      Insurers look at the risk every driver presents, so you’ll get a better deal if you can reduce that risk. By keeping the car off the road at night in a garage or on a drive you make it safer, meaning your premiums will come down.


      Pick a smaller engine
      If you’re struggling to pay your insurance then give some thought to the car you’re driving. The bigger and faster the vehicle, the more it will cost to insure.

      Shop around
      This is one of the easiest ways to save money. Don’t assume that your current provider is giving you the best renewal quote but look at other insurers using the moneysupermarket.com car insurance comparison tool and see if you can save.

      Pass Plus
      If you’re a new driver then you’re going to be the worst hit by rising prices. Take the time to sit your Pass Plus and insurers will see that you’re safer, helping you reduce your premiums by as much as 36 per cent.

      Up the excess
      Agreeing to pay a higher excess, such as £500 instead of £100, can reduce your premiums. Don’t forget that this is what you will need to pay in the event of a claim, so be sure you can afford it.

      Reduce your mileage
      When applying for insurance, you estimate the number of miles you’ll do each year. If you aren’t travelling much then you’ll usually pay less. That means that if you car share with a colleague or decide to take the train a couple of times a week, you can bring down the price.

      Add an older driver
      If you have a partner or parent who is more experienced behind the wheel, adding them to the policy can sometimes reduce what you pay. Whatever you do, don’t make them the named driver, though. This is called fronting and could invalidate your insurance.

      Ensure it’s adequate
      As you look for the lowest price, don’t be tempted to scrap things you really need. It might cost more to have a courtesy car or legal fees paid, but if you need it then include it. Skipping extras that you can’t do without will be a false economy if you do need to claim.

      Don’t commit fraud
      When you’re trying to reduce what you pay, it can be very tempting to avoid telling the whole truth, but this is a dangerous tactic. By misleading your provider, you are committing insurance fraud. That means your cover isn’t valid and if you caused an accident you could be responsible for all the costs yourself.

      0 0

      Insurance specialist, Home & Legacy, announced that Fortis Insurance Limited has joined the Company’s unique household insurance panel.

      As of August 10, Fortis will compete with existing panel members to underwrite Home & Legacy’s Defaqto fivestar rated, mid net worth household offering, Prestige Home.

      The addition of Fortis to the Prestige panel will provide brokers with greater choice and flexibility, increasing the opportunities to win and retain clients in the growing mid net worth market.

      Commenting on the arrangement, Ian Davies, household products and underwriting manager at Home & Legacy, said: “The addition of Fortis to our household panel is testament to the quality of our household products and the service levels we offer to our customers. This development will provide our broker partners with greater flexibility and a competitive edge in the mid net worth market.”

      Mark Cliff, Managing Director Fortis Insurance Limited, said: “We are delighted to be partnering Home & Legacy as a household panel member. This arrangement builds on our expertise within the market and is further evidence of our commitment to providing greater service and increased products to the broker channel.”

      0 0

      Groupama Insurances has confirmed three senior appointments to head its Motor, Household and PA & Travel business. Reporting to Personal Lines Director Kevin Kiernan, the appointments follow the divisional changes announced in June to offer a more personalised and highly responsive service to Groupama’s partner brokers.

      Maximising the talent and expertise within Groupama, Andrew Fletcher, formerly Head of Commercial Motor, has been appointed in the new role of Head of Motor. Andrew has been with Groupama since 1991. In addition, Craig Allen and Neil Thunstrom retain their positions as Head of Home and Head of PA and Travel respectively. Craig joined the business in 2006 from Churchill and has significant experience in technical household underwriting and developing successful schemes. Neil Thunstrom re-joined Groupama in 2004 and has over 28 years underwriting experience, the last 5 years of which has focused exclusively on PA and Travel.

      Kevin Kiernan, Personal Lines Director said: “It is really pleasing to now have these three senior positions in place and to be able to draw upon the existing skills and depth of knowledge we have within the business. For Craig and Neil this was a natural move given their roles within the previous organisational set-up and Andrew will capitalise on his in-depth knowledge of the motor sector to really drive forward the profitable development of our personal motor business.”

      MCraig and Andrew’s responsibilities will include leadership of Groupama’s new Development Underwriting teams for motor and household and they will be working to ensure an even closer link between the company’s technical underwriting and pricing activities whilst also supporting an enhanced front-line service offering for partner brokers.

      Kevin Kiernan concludes: “Our desire is to have a swift and integrated service for personal lines brokers with easy access to decision makers and these senior managers will be responsible for making this happen in their area of the business. The next step is the appointment of a new Head of Planning and Pricing to help us boost speed to market and offer competitive deals more quickly and efficiently.”

      “With these roles in place we can really get to work ensuring that personal lines brokers have access to the local support and instant decisions that they have told us they want to give them the competitive edge they need.”

      Craig Allen

      0 0

      AIG announced that William J. Glasgow has been named Chief Restructuring Officer of AIG Global Real Estate, the international real estate investment organization.

      “Will Glasgow’s management and restructuring experience spans not only real estate, but also financial services and other industries,” said Paula Rosput Reynolds, AIG Vice Chairman and Chief Restructuring Officer. “His background is especially valuable as AIG seeks the best possible outcomes for its real estate assets.”

      In conjunction with the overall restructuring of AIG, AIG Global Real Estate has previously announced its intention to divest certain holdings in its real estate business. Mr. Glasgow will oversee the execution of the real estate restructuring program.

      Headquartered in New York, AIG Global Real Estate has $24.3 billion of assets under management in 50 countries around the world.

      Prior to joining AIG, Mr. Glasgow served as the Chief Operating Officer of Scanlan Kemper Bard Companies, LLC, the real estate private equity firm. Previously, he held various senior positions at PacifiCorp, including Chief Financial Officer. Mr. Glasgow also served as Chairman, President and CEO of PacifiCorp Holdings, which included PacifiCorp Financial Services, NERCO, Inc. and Pacific Telecom. His career also includes leadership positions in venture capital management, including BCN Data Systems, and international joint venture controlled by Bechtel, and he has served as a director of numerous public and private companies.

      Mr. Glasgow earned a bachelor’s degree in economics, magna cum laude, from the Wharton School of Business at the University of Pennsylvania and a law degree, magna cum laude, from Harvard University.

      0 0

      AXA UK has appointed Havas Media UK to manage its media buying for all its brands in the UK including Sun Life Direct and Swiftcover from 1 January 20101.

      AXA currently has an annual media spend of circa £40million in the UK, a comprehensive agency review was carried out appointing one agency rather than the current three in order to create greater efficiency across the business.

      Havas will provide media buying services to help facilitate AXA’s new redefining / standards strategy including media strategy, planning and buying.

      Olivier Mariée, group marketing and communications director for AXA UK, commented, “AXA has a strong brand in the UK. By appointing Havas to manage our media buying I believe it will provide us with increased strength and efficiency which will enable us to develop further our red line advertising campaign and messaging to consumers.”

      0 1

      To promote energy savings in the home, Groupama is introducing an innovative new “Eco-friendly” Appliance Replacement Plan. All non-reparable faulty appliances will be systematically replaced, at no additional cost.

      Every day, the French rely on a variety of household appliances: each household has on average 6.5 large appliances and 13 small appliances 1 . An increasing number of consumers would like to purchase low-energy and low-pollution appliances, as they are aware of the environmental issues at stake, and are therefore willing to make the shift. Always aware of its customers’ preferences and keen to contribute to progressing environmental values, Groupama, France’s leading household insurer, is introducing a plan that includes the replacement of appliances with new “eco-friendly” models.
      All non-reparable faulty appliances will be systematically replaced, at no additional cost, with an eco-friendly apparatus of at least Class A, or even A+.

      Groupama’s new “eco-friendly” replacement cover

      The Groupama household insurance policy, PRIVATIS, includes an optional “new replacement” clause in its CONFORT (comfort) plan, or is automatically included in the TRANQUILLITE (peace of mind) plan. Over 400,000 Groupama customers have already taken out this type of cover. They are now being offered to systematically switch to new eco-friendly appliances at no additional cost2 . The advantages are twofold:

      • They will save on their water and power bills (30 to 40%), while protecting the environment;
      • They will enjoy the benefits of appliances using the latest technology.

      For Patricia Legrand, Director, Private Property Insurance, Groupama, “The introduction of this new cover will enable customers to play an active role in protecting the environment, while at the same time boosting their purchasing power, and will directly drive households to acquire eco-friendly appliances”.


      Changing attitudes: no passing trend

      Consumer awareness of the potential savings is now driving sales of eco-friendly household appliances:

      • Energy rating labels clearly identify the most efficient appliances. The majority of consumers are aware of energy rating labels3 and refer to them when purchasing an appliance: in 2007, 79% of those aware of these labels considered it directly influenced their product choice.
      • The difference in purchase price is largely offset by the subsequent savings: 30 to 40% savings on water and power bills for Class A appliances and above.

      Over 500 million household appliances used daily

      According to GIFAM, the number of appliances in use is very high: 165 million large appliances, 310 million small appliances, and over 50 million fixed electric heating and hot water appliances. Each year, 13.5 million large household appliances, 36 million small appliances and 6.5 million electric heating and hot water appliances are purchased by French consumers, that is an average of 150,000 appliances a day.

      1 Source: GIFAM (French Association of Household Appliance Manufacturers).
      2 Appliances concerned: non-reparable whiteware (washing machines, fridges, freezers, dishwashers, ovens, hobs and cookers).
      3 81% of people questioned, compared with 63% in 2007, according to a SOFRES-ADEME survey published in 2008.

      0 0

      Catlin Group Limited, the international specialty property/casualty insurer and reinsurer, announces its financial results for the six months ended 30 June 2009 : 60% increase in profit before tax to a record $240m in the first half of 2009, compared to $150m in the first half of last year.

      Financial Highlights :

      • 60 per cent increase in profit before tax to record US$240 million (30 June 2008: US$150 million)
      • 77 per cent increase in net income to common stockholders to record $196 million (30 June 2008: US$110 million)
      • 18 per cent annualised return on average equity (30 June 2008: 9 per cent)
      • 25 per cent annualised return on net tangible assets (30 June 2008: 13 per cent)
      • 9 per cent increase in interim dividend to 8.2 pence (13.8 US cents) per share (30 June 2008: 7.5 pence; 14.6 US cents1)
      • 14 per cent increase in gross premiums written to US$2.2 billion on constant currency basis; 7 per cent increase on a reported basis (30 June 2008: US$2.1 billion)
      • 9 per cent increase in net premiums earned to US$1.3 billion on constant currency basis; 3 per cent increase on a reported basis (30 June 2008: US$1.3 billion)
      • 96 per cent combined ratio on US GAAP basis (30 June 2008: 91 per cent)
      • 2.9 per cent investment return for period (30 June 2008: 0.9 per cent)
      • 10 per cent increase in dollar net tangible book value per share in first half to US$5.09 (31 December 2008: US$4.63)1

      Operational Highlights

      • Average weighted premium rate increase across risk portfolio of 6 per cent
      • Growing profitable contribution from Catlin US, international offices
      • Attritional loss ratio on target
      • Embedded growth emerging as anticipated
      • Proceeds from US$289 million capital raise already being utilised
      • Brand awareness increased among brokers and clients via Catlin Arctic Survey

      1     Prior periods adjusted for impact of 2 for 5 Rights Issue completed in March 2009

      Stephen Catlin, Chief Executive of Catlin Group Limited, said:

      “Catlin performed strongly during the first half of 2009, producing record pre-tax profits and net income for the period as well as a 25 per cent return on net tangible assets. In the light of this performance, the Group has increased the interim dividend by 9 per cent.

      “We are now benefiting from our investment in Catlin US and the international office network, which provided meaningful contributions to our success during the first half. In addition, we were assisted by a significant improvement in investment return during the period, which compensated for a higher than usual frequency of large single-risk losses.

      “Christopher Stooke, who has been Catlin’s Chief Financial Officer and an Executive Director since 2003, will step down at the end of the month. I want to thank Chris for his dedication and his many contributions to Catlin and wish him success for the future. Benjamin Meuli, who was appointed as a Director on 30 June 2009, will succeed Chris as CFO.

      “We look ahead with confidence. We believe that pricing for nearly all classes of business will continue to strengthen for the foreseeable future. Catlin is well positioned to grow – both in terms of premium volume and profitability – in this market environment.”

        0 0

        AIG today reported its first quarterly profit since the third quarter of 2007, as certain of its businesses stabilized and the company’s results reflected positive valuation changes. AIG also achieved several important milestones in its restructuring program.

        For the second quarter ended June 30, 2009, AIG reported net income attributable to AIG of $1.8 billion, including net income attributable to AIG common shareholders of $311 million or $2.30 per diluted common share, compared with a net loss of $5.4 billion or $41.13 per diluted share in the second quarter of 2008. Second quarter 2009 adjusted net income was $2.0 billion, compared with an adjusted net loss of $1.3 billion in the second quarter of 2008.

        Commenting on the second quarter results, AIG Chairman and Chief Executive Officer Edward M. Liddy said, “Our results reflect stabilization in certain of our businesses. The primary drivers of our positive second quarter results were reductions in net realized capital losses, primarily due to the decline in other than temporary impairments resulting from the adoption of new accounting guidance and improved market conditions; positive valuation changes for our Maiden Lane interests on a net basis; continued reductions in the risk profile of the AIG Financial Products Corp. portfolio; a reduction in the allowance for recoverability of deferred tax assets, reflecting the effect of recently announced transactions; and gains on hedges not accounted for under FAS 133.

        “While our insurance companies’ operating results remain challenged, largely driven by weak economic conditions and the lingering effect of negative AIG events earlier in the year, performance trends stabilized from the first quarter. We continue to focus on stabilizing and strengthening our businesses, but expect continued volatility in reported results in the coming quarters, due in part to accounting charges related to ongoing restructuring activities. In particular, we expect that permanent reductions in the Federal Reserve Bank of New York credit facility related to the issuance of the preferred interests in the ALICO and AIA special purpose vehicles, which upon closing will substantially reduce our debt to the FRBNY, will result in accelerated amortization of a portion of the prepaid commitment asset approximating $5 billion before tax,” Mr. Liddy said.

          0 0

          Allianz Group’s operating profit fall to €3.2bn (-34%) for the first half f 2009, compared to €4.9bn in the same period last year.

          Property and casualty’s operating profits fall to €1.8bn (-41%), followed by financial services, which dropped by over 36% to €344m.

          However revenues rise to €49.9bn (+2.9%) from €48.5bn the previous year.

          Allianz said: “Allianz Group’s overall performance gained momentum during the second quarter of 2009. Total quarterly revenues grew to €22.2bn, compared to €21.5bn in the second quarter of 2008.

          “Operating profit exceeded the results of the previous three quarters and reached €1.8bn. This represents an increase of 25.9% compared to the first quarter 2009 figure of €1.4bn, and a decrease of 33% compared to €2.7bn in the second quarter of 2008.

          “Quarterly net income grew by 21% to €1.9bn, compared to €1.5bn in the second quarter of 2008.

          “Allianz Group’s capital position continues to be strong with a solvency ratio of 159% at 30 June, 2009. Shareholders’ equity increased by 4.5% to €34.5bn as of 30 June, 2009, compared to €33bn at the end of the first quarter of 2009.”

          Michael Diekmann, chief executive officer of Allianz SE, said: “Overall, we achieved very good quarterly results. Allianz is prepared for what we perceive as ‘the new normal’, an ongoing challenging market environment with structurally lower returns. We remain strongly capitalized and our low risk profile allows us to withstand potential market shocks. In addition, we are well diversified from both a regional and business unit point of view, and are thus able to benefit from market upturn.”

          0 1

          Aviva today announced that it has significantly increased its Group Income Protection Maximum Income Benefit Limit and Employer Pension Fund Contributions (PFC) meaning that it now offers the most generous maximum benefit formula in the market.

          The Maximum Income Benefit Limit has been increased from £300,000 to £350,000 and Employer PFCs, which are available in addition to the £350,000 Income Benefit Limit, have increased from £50,000, to £75,000 with immediate effect.

          Cover is also available for Employee Pension Contributions and Employer National Insurance Contributions.

          Andrew Stephenson, group risk national sales manager, Aviva UK Health, said: “Aviva is totally committed to being a leading force in the group risk market. Increasing our Maximum Benefit Limit and Employer Pension Fund Contribution to £350,000 and £75,000 respectively, puts us at the forefront of the market, and is another prime example of how we continually enhance our terms to meet our customers’ changing needs.”

          0 13

          ACE European Group (AEG) today announced the appointment of Mike Reynolds as its new Chief Financial Officer. Philippa Curtis, CFO for ACE’s European operations since 1996 will be retiring in September 2009.

          Mike Reynolds joins ACE from the AON Corporation, where he was most recently CFO for Aon Benfield. Based in ACE’s London European Headquarters, Mike will report to Andrew Kendrick, ACE European Group’s Chairman and CEO.

          Commenting on the appointment, Andrew Kendrick, said: “Mike is joining ACE European Group at a moment of great opportunity. AEG represents a $4 billion business and following our recent launch in Turkey, we are now present in 26 countries covering Europe, MENA and South Africa. As we move forward, Mike will play a key role in helping to ensure that ACE emerges a stronger player following the current economic downturn”.

          Kendrick continued: “Whilst welcoming Mike to the organisation, I would like to express our deepest thanks and appreciation to Philippa Curtis, who has led ACE’s European Finance, Actuarial and Risk functions during a period of momentous development and growth. Philippa’s contribution has been critical to our success and we wish her the very best in her forthcoming retirement”.

            0 3

            Aviva reports £747 million profit and Builds Capital Strength and announces news plans for Delta Lloyd

            Management actions deliver encouraging results

            • IFRS profit after tax £747 million (HY08: £84 million loss)
            • IFRS operating profit £1,049 million (HY08: £1,223 million)
            • MCEV operating profit £1,685 million (HY08: £1,509 million)
            • Margin increased, with life and pensions sales down 4%
            • Combined operating ratio ahead of target at 97% (HY08: 97%)
            • IGD solvency surplus increased to £3.2 billion (31 December 2008: £2.0 billion)


            Action on dividend reflects strategy, earnings and outlook

            • Interim dividend reduced by 31% to 9 pence
            • Lower earnings drives dividend adjustment
            • Provides additional financial flexibility to create long-term value

            Strategic actions create financial flexibility to exploit market opportunities

            • Plans for partial IPO of Delta Lloyd on Euronext Amsterdam
            • Sale of Aviva Australia will complete in the third quarter
            • Overwhelming customer support for reattribution of inherited estate which will generate customer and shareholder value
            • 9% reduction (£0.5 billion annualised) in group’s operating cost base


            Andrew Moss, group chief executive, commented:

            “In a challenging economic environment Aviva has returned to profit: life and pensions margins have improved, the general insurance business has beaten our targets and our regulatory capital position has strengthened significantly. The diversity of our business and innovative products and services have served our shareholders and customers well in difficult economic times.

            “Our overriding priority now is to continue to build a position of strength from which Aviva can exploit market opportunities. In this context we have decided to reduce our interim dividend to 9p per share in line with lower investment earnings in 2009.

            “We continue to transform Aviva for the future. We are today announcing plans for a partial IPO of Delta Lloyd when market conditions allow. This will enable Aviva to free up capital for use elsewhere and will allow Delta Lloyd to pursue its ambitions in the Benelux region.

            “These actions, together with ongoing focus on cost management and the sale of Aviva Australia, will significantly increase our strategic flexibility. In the long term interest of our shareholders we are determined that Aviva should be in the best possible shape to seize opportunities to grow and add value.”

            Full report available here

            0 0

            Hannover Re, the German reinsurance, said that net income for the first half of 2009 jumped 66%, as ‘positive’ effects on life and health reinsurance and a strong demand for non-life reinsurance took earnings to €419m from €252m in the first half of 2008.


            • Gross premium + 26.7%
            • Net premium + 30.8% due to stronger demand, ING acquisition and increased retention
            • Net investment income +27.9%
            • Operating profit (EBIT) +49.9%
            • Group net income +66.1%
            • Burden of catastrophe losses within the expected bounds
            • Combined ratio 97.1%
            • EBIT margin in non-life and life/health reinsurance clearly better than target range
            • Annual targets within reach

            In its interim report published today Hannover Re expressed considerable satisfaction with the development of its business. “We achieved gratifying results in both our underwriting business and on the investments side, and we are therefore well on track to generate the forecast return on equity of at least 18% for the full 2009 financial year”, Chief Executive Officer Ulrich Wallin explained.

            The operating profit (EBIT) as at 30 June 2009 grew by a substantial 49.9% year-on-year to reach EUR 600.1 million (EUR 400.2 million). Group net income increased by a similarly gratifying 66.1% – inter alia due to the good overall development of business as well as positive special effects in life and health reinsurance – to EUR 419.0 million (EUR 252.2 million). This was equivalent to earnings of EUR 3.47 (EUR 2.09) a share; the annualised return on equity stood at 27.9% (16.4%).

            Gross written premium climbed 26.7% as at 30 June 2009 to EUR 5.3 billion (EUR 4.1 billion). “This significant increase derived in large measure from organic growth, although the acquisition of the ING life reinsurance portfolio was also a factor here”, Mr. Wallin noted. Given the higher level of retained premium at 93.0% (89.5%), net premium earned grew to EUR 4.5 billion (EUR 3.4 billion).

            Non-life reinsurance

            The development of non-life reinsurance continued to be highly satisfactory for Hannover Re. The capital squeeze felt by primary insurers in the wake of the financial market crisis has led to stronger demand for reinsurance protection. “The treaty renewals on 1 June and 1 July also passed off very well for our company overall. Yet we were not satisfied with the movements in the rate level in all segments”, Mr. Wallin explained. “In view of our profit-oriented underwriting policy, we therefore reduced our exposures – especially in property catastrophe business in the United States and Japan, but also in some casualty segments.”

            Stronger demand for reinsurance protection was also observed in worldwide credit and surety insurance. In the area of structured covers, too, the reverberations of the financial market crisis injected significant growth impetus as anticipated. All in all, the prospects for worldwide non-life reinsurance are very promising.

            Gross premium in non-life reinsurance as at 30 June 2009 improved on the comparable period of the previous year by 16.0% to reach EUR 3.1 billion (EUR 2.7 billion). At constant exchange rates, especially against the US dollar, the increase would have been 12.0%. The level of retained premium climbed to 94.1% (89.4%) due to sharply lower retrocessions. Net premium earned consequently rose by 19.2% to EUR 2.5 billion (EUR 2.1 billion).

            In the second quarter Hannover Re incurred only a modest number of major losses. The largest single loss event was the crash of an Air France passenger jet with a strain of some EUR 30 million for net account. The total net burden of major losses amounted to EUR 163.3 million (EUR 130.0 million). This was equivalent to 6.6% of net premium in non-life reinsurance, a figure below the expected level of 10%. The combined ratio stood at 97.1% (98.4%).

            Net underwriting income in non-life reinsurance improved from EUR 23.6 million in the corresponding period of the previous year to EUR 57.3 million. The operating profit (EBIT) in this business group increased by 10% to EUR 317.1 million (EUR 288.2 million). Group net income grew by 14.1% to EUR 223.2 million (EUR 195.7 million).

            Life and health reinsurance

            Developments in life and health reinsurance were exceptionally pleasing. Owing to a visible weakening in the solvency position of life insurers, demand for reinsurance solutions continued to rise – leading to an increased clamour for risk- and financially oriented products. This state of affairs was especially evident in the United States, where the insurance industry had suffered considerable erosion of its capital base.

            Hannover Re’s worldwide life and health reinsurance business enjoyed further profitable growth following the acquisition of the ING portfolio in January 2009. “With this transaction we were able to further strengthen the segment of risk-oriented life reinsurance, which had hitherto been underrepresented in the United States”, Mr. Wallin explained. Hannover Re remains keenly interested in the seniors’ health market and the financial solutions sector in the US. Not only that, the new markets segment – in which Hannover Re writes enhanced annuities and ranks among the market’s leading reinsurers in the United Kingdom – also offers considerable potential. Here, as is also the case with the reinsurance of existing pension funds, the opportunities for further profitable expansion are very good.

            Hannover Re maintains a regional focus on the so-called BRIC markets (Brazil, Russia, India and China), although Korea – the largest life reinsurance market in Asia – also offers good growth prospects. The main drivers of business nevertheless continue to be the developed insurance markets of the United Kingdom, United States, Germany and Australia.

            Spurred on by the acquisition of the ING life reinsurance portfolio and brisk organic growth, gross written premium as at 30 June 2009 surged by 45.6% to EUR 2.2 billion (EUR 1.5 billion). At constant exchange rates growth would have been as high as 49.6%. The level of retained premium rose from 89.6% to 91.6%, while net premium earned increased by 48.9% to EUR 2.0 billion (EUR 1.3 billion).

            The investment income generated in life and health reinsurance doubled from EUR 154.8 million to EUR 314.0 million. Positive special effects were a factor here. They derived from the reversal of unrealised losses on deposits with US cedants (B36 derivatives) and from improvements in the value of deposits assumed by Hannover Re in the context of the ING transaction. The result was adversely impacted by opposing effects in UK annuity business. On balance, the operating result (EBIT) in life and health reinsurance profited from non-recurring effects of around EUR 150 million in the first half-year.

            The operating profit (EBIT) as at 30 June 2009 consequently increased sharply to EUR 266.1 million (EUR 87.2 million). The EBIT margin of 13.4% thus comfortably surpassed the target corridor of 6.5% to 7.5%. Group net income rose appreciably to EUR 212.5 million (EUR 65.0 million).

            Full report available here

            Prev1...919293...98Next Page 92 of 98

            POPULAR POST

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

            SOCIAL

            34FansLike
            6Subscribers+1
            965FollowersFollow

            Popular category

            © Seroni Interactive