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Electrical Contractors’ Insurance Company Ltd (ECIC) has developed a comprehensive package of insurance protection for roofers which is available to members of the National Federation of Roofing Contractors (NFRC) and those registered as a CompetentRoofer.

The new scheme features a comprehensive range of cover including:

– Employers’ Liability

– Public/Products Liability

– Financial Loss

– Professional Indemnity

– Contractors’ All Risks

– All Risks Property, Business Interruption, Money and Goods in Transit

The insurance scheme is suitable for contractors who specialise in roofing disciplines such as pitched and heritage roofing, lead/zinc/copper roofing, green roofing, and waterproof coatings.

Richard Forrest Smith, Chief Underwriting Officer and Deputy Managing Director at ECIC said: “This product has been developed specifically for the roofing trade and our underwriters have ensured the wording of the policy is tailored to the profession’s needs.”

“This type of work requires contractors to have a real understanding of all the risks involved and ensure they have the right cover for the work they will be carrying out. The ECIC cover can also be extended to accommodate working at a greater height level than most schemes.”

Ray Horwood, Chief Executive at the NFRC said: “NFRC has worked closely with ECIC for many years. Previously only full NFRC members were able to access the NFRC Insurance Scheme. We have now widened access under the scheme to additionally include those registered as a CompetentRoofer.”

The scheme is available now and also features no height limit and interest free instalments.

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Pakistan is offering to insure foreign businessmen to attract overseas investment to a country where thousands have been killed by Taliban and Al-Qaeda-linked violence, officials said Wednesday. 

A series of wealthy countries, including Australia, Britain and the United States, advise against non-essential travel to Pakistan and this makes insurance unavailable or very expensive for citizens who wish to visit.

Islamabad says more than 35,000 people have been killed as a result of terrorism in the country since the 9/11 attacks on the United States. But the government hopes that by offering insurance to foreigners invited to Pakistan on business, it can help revive the flagging economy.

According to the International Monetary Fund, the Pakistani central bank’s foreign exchange reserves declined to under $10 billion in October and the deficit, excluding grants, hit 8.5 per cent of gross domestic product last year.

“Any private or public entrepreneur inviting foreign businessmen or investors will now be responsible for providing insurance cover to their guests through the National Insurance Company (NIC),” said commerce ministry spokesman Abdul Kabir Kazi.

“We have launched the scheme immediately and asked the foreign office to dish out information about the scheme to all Pakistani missions abroad to benefit foreign investors and businessmen,” he told AFP.

Nazim Latif, pointman for the scheme, said businessmen can be insured for $200,000, $300,000 or $500,000, depending on their length of stay.  “The premium for the above products will be $75, $150 and $225 respectively if a buyer stays in Pakistan for a week; and $250, $350 and $500 for a stay beyond a month,” he told AFP.

In the event of death, the NIC will pay out the full compensation and in case of injury, $6,000, $7,000 or $8,500 per week for medical treatment.  “Normally, foreigners hesitate to visit Pakistan in business deals because of the law and order situation in the country. We are introducing this scheme as a tool to offer them peace of mind when they come to our country,” Latif said.

Islamabad, Jan 2, 2013 (AFP) 

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Andy Zanelli, head of retirement planning, AXA Wealth, comments on FSA research that says a third of consumers believe financial advice is free.

“Today’s research from the Financial Services Authority (FSA), showing that a third of all consumers believe financial advice to be free, is worrying but perhaps not surprising. Critically, this includes those who have previously been advised, but may not have appreciated they were paying. People may have long believed financial advice to be free, not fully understanding fees and commission, but this has never been the case. This belief has no doubt contributed to the significant devaluing of advice and the scenario, in a post-RDR world, where people say that they simply cannot afford to pay for financial advice. This may lead to consumers choosing to go it alone.

“As we approach the implementation of RDR in January, the single biggest change in the financial services world, it’s vital that consumers think carefully about their needs and ambitions and how they best manage these going forward. Our research* has shown that self-investing, an already growing trend, is favoured by many consumers. Nearly half of respondents (49%) said they can make their own financial decisions while 13% would go it alone for all investments. A third (32%) believe they will benefit from seeing their investments when they want and 29% are attracted by the opportunity to learn more about investing.

“To meet the demand for DIY investment, AXA Wealth has expanded its range of services with the launch of AXA Self Investor; a direct to consumer service, offering a simple, non-advised solution to investors wanting to manage their individual savings and investment plans themselves.”

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Keychoice has teamed up with DAS Legal Expenses Insurance Company Ltd and MAPFRE ASSISTANCE to provide its 800 plus members with another way to boost their personal lines revenue by giving them access to a range of Guaranteed Asset Protection (GAP) insurance products.

Traditionally GAP protection has been sold mainly by motor dealerships. However, the partnership between Keychoice, DAS and GAP insurance specialist MAPFRE ASSISTANCE will help brokers break into this market and provides them with a new add-on product for their personal lines portfolio. With margins in motor remaining tight, the commission available for the Keychoice GAP cover will provide brokers with another valuable income stream.

The Keychoice GAP Protection Insurance product provides two levels of cover in the event of a total loss claim and is available for most new or used cars and vans.  Return to Invoice GAP provides cover for the difference between the original invoice price and current market value of the vehicle, while Finance GAP covers the difference between any outstanding finance agreement and the current market value of the vehicle.  This difference can be stark given how quickly vehicles depreciate in value and can leave drivers facing a significant shortfall if they want to replace their car or van on a like for like basis.

Underwritten by MAPFRE ASISTENCIA and administered by DAS, the two products are accessed via an online quotation system which produces all of the point of sale documentation required.

Derek Findlayson, commercial director at Keychoice said: “Everything we do is aimed at improving life for our brokers and we believe this new product will help them drive revenues and improve retention levels. Keychoice GAP Protection Insurance is a fantastic extension to our product range and in DAS and MAPFRE ASSISTANCE we are working with partners of the very highest calibre.”

Andy Westall, group sales manager at DAS said: “With cars losing value as soon as they leave the forecourt and around 500,000 cars being written off every year there is a growing interest in this product. With the online system allowing Keychoice brokers to produce quotes instantly, incept cover and produce policy documentation in minutes, they have a great sales opportunity, either at new business or when they receive a change of vehicle request.”

These sentiments were backed up by Charles Coburn, head of sales at MAPFRE ASSISTANCE who added: “Many people are surprised by just how much their vehicle has depreciated in value when their insurer pays out after a total loss. With the economic outlook remaining uncertain and household incomes under pressure, people simply cannot afford to make up this shortfall when it comes to replacing a vehicle and more are looking to the insurance market to provide the protection they need.”

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According to Swiss Re sigma preliminary estimates, total insured losses from natural catastrophes and man-made disasters will reach approximately USD 65 billion in 2012. Natural catastrophes alone will lead to over 11 000 lives lost and roughly USD 60 billion in insured claims.

After a benign first half of the year, Hurricane Sandy and drought in the US in the second half of 2012 will lead to total economic losses from disasters of at least USD 140 billion. Insured losses arising from the catastrophic events of the year are set to reach roughly USD 65 billion. The tally is moderate compared to 2011, which saw historic insured losses of over USD 120 billion due to record earthquakes and flooding, but is above the average of the last 10 years.

Kurt Karl, Swiss Re’s Chief Economist, says: “Severe weather events continue to affect many parts of the world. Although insurance cannot bring back lost lives, many people and businesses can rely on financial relief from insurance cover, as is the case for the US. However, in large parts of the globe that are prone to severe weather events, people and businesses could increase risk-preparedness by eliminating underinsurance.”

Weather-related events in the US dominate 2012
After two years of historic losses arising from record earthquakes and floods in Asia Pacific and South America, 2012 is dominated by large, weather-related losses in the US. Moreover, the top five insured loss events are all in the US. Hurricane Sandy is the largest Atlantic hurricane on record in terms of wind span. This record storm surge caused widespread flooding and damage to a densely populated area on the East Coast of the US. It also led to the worst power outage caused by a natural catastrophe in the history of the US. Before hitting the US, Hurricane Sandy also struck the Caribbean and the Bahamas, adding to the loss of lives and property. Estimates for the insured cost of the devastation are between USD 20 and 25 billion, which is relatively high despite the fact that the Hurricane was weaker in comparison to others. Part of the reason for the high cost is the combination of moon tides and interference with concomitant weather patterns that amplified the impact. However, the total insured loss tally is subject to a high degree of uncertainty, as it is still too soon to gauge the final overall damage.

In addition, extremely dry weather conditions and limited snowfall in the US led to one of the worst droughts in recent decades, affecting more than half of the country. Drought-related agricultural losses are likely to reach approximately USD
11 billion, including pay-outs from federal assistance programs.

Table 1: The most costly insured catastrophe losses in 2012

Insured losses1 Date Event Country

 

 (in USDbn)      

1

 20 to 25 Oct/Nov Hurricane Sandy US (et al)

[2]

2

 11 Jul/Sep Drought US

[2]

3

 2.5 March Severe storms, tornadoes US

[3]

4

 2.3 April Severe storms, tornadoes US

[3]

5

 2 July Derecho storm US

[3]

[1]

 Property and business interruption, excluding liability and life insurance losses

[2]

 Swiss Re estimates

[3]

 With the permission of Property Claims Services (PCS)

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Research from Legal & General Investments shows that investor confidence has stabilised during the past year.

A third (34%) of investors are confident in their investments and the market, anticipating an increase in the value of their portfolios over the next six months. This is a small increase on 2011 when it was 33%. While two in five investors (40%) expect no change to the value, which is an 11% increase from 2010.

Significantly, just 14% expect a decrease in the value of their investments, a 6% drop from last year.

The findings come from Legal & General Investments’ What Matters Investment Index which investigates investors’ views of the market and is now in its third year.

Despite volatile markets investors are anticipating a level of return that exceeds most cash alternatives from their investments, with 29% expecting 2.5%-4.99%, while 8% expect 7.5% and above. The average expected return is 4.32%. Men remain more confident (38%) than women (28%), while the over 55s are the most pessimistic investors with 14% expecting a decrease in the value of their investments.

Wales shows itself to be the most confident region with nearly half (45%) of all Welsh investors believing they will see an increase from their investments in the next six months.

Confidence in the value of investments over six months 2012 2011 2010
They will increase in value compared with today 34% 33% 34%
They will remain at the same value compared with today 40% 32% 29%
They will be worth less than today 14% 22% 22%
Don’t know 12% 12% 15%

Simon Ellis, Managing Director, Legal & General Investments, said: “In the current economic climate, and following a period of extreme market volatility, it is heartening to see investors’ confidence stabilise.  The research indicates that there is an increasing sense of positivity with a substantial decrease in the number of investors who expect a fall in the value of their investments.”

He continued: “It appears that investors are in it for the long haul and having navigated difficult waters and turbulent times, now is the time to re-assess investment ambitions carefully. One would hope this will enable the industry to re-engage with customers more positively after RDR in 2013. It is certainly an opportunity to look at asset allocation and think about portfolio diversification with a trusted, heritage brand to help manage that investment journey.

“Legal & General Investments’ user friendly, easy to navigate website is the one-stop shop for advisers and consumers alike to obtain all the latest investment news and information.”

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Equinox Global Limited, an approved Lloyd’s cover holder and specialist in trade credit insurance, is pleased to announce that it has secured additional capacity through Jubilee Syndicate 5820 (“Jubilee”) at Lloyd’s. With the addition of Jubilee, Equinox Global’s automatic capacity increases from $30m to $35m.

Going forward, Equinox Global’s carrier platform will be comprised as follows: Beazley Syndicate AFB 2623/623 (37.14%), Aspen Syndicate 4711 (34.29%), Pembroke Syndicate 4000 (14.29%) and Jubilee Syndicate 5820 (14.29%).

Mike Holley, Chief Executive Officer of Equinox Global, commented: “We are delighted that Jubilee will be working with us as we continue to grow our business. Jubilee brings a greater diversity to our panel and reinforces our relationship with Lloyd’s. Working with Jubilee, along with the rest of our carriers, means that we are even better positioned to meet all our client’s trade credit needs.”

Simon Hayter, senior Political and Credit Risk Underwriter, Jubilee, added: “Jubilee is delighted to be entering into a partnership with Equinox. At Jubilee we believe in long-term partnerships built around a specialty focus and genuine leadership and Equinox provides us with an ideal partner in the whole turnover credit market. This new development represents another important step for us as we build out our Political Risks and Trade Credit underwriting franchise.”

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    The European Insurance and Occupational Pensions Authority (EIOPA) has published its second half-year report for 2012 on the financial stability of the insurance and institutions for occupational retirement provision (IORPs) sectors in the European Economic Area (EEA). 

    In the report EIOPA states that financial soundness of the European insurance and occupational pensions sectors could face a significantly negative outlook over the medium term due to macroeconomic uncertainties and the fragile state of financial markets. Despite recent positive developments in financial market prices, action by the ECB and coordinated political initiatives, the risks to financial stability remain high. This is particularly pertinent when considering the increasing likelihood of long-lasting low interest rates in a number of global economies, along with capital market volatility.

    In the insurance sector premium growth has been observed overall, but the variation across companies is large. The profitability of undertakings remains relatively stable and Solvency I capital ratios are still at comfortable levels. This should not give rise to complacency, however, as Solvency I, is not market or credit risk sensitive. It does not allow supervisors to have a full picture of the underlying market and credit risks to which undertakings are exposed.

    Reinsurers’ profitability in the coming months will likely remain under pressure due to excess capacity in the market, as well as reduced demand for reinsurance services resulting from the weak global macroeconomic environment. Natural catastrophe losses in the course of the first 9 months of 2012 have been relatively moderate, but this trend was interrupted by the exceptionally wide-ranging Hurricane Sandy that occurred in the fourth quarter 2012.

    Initial estimates vary, but one provisional estimate anticipates losses of up to USD 52 billion with as many as 200,000 claims for wind damage and 20,000 claims for flood damages filed by policyholders.

    The analysis of the IORPs data shows a worrying decrease in the IORPs’ funding positions, especially for larger defined benefit (DB) systems such as those in the UK and the Netherlands. The UK statistics now show funding levels below 80%.

    A key driver behind these developments is the low yield environment, since low discount rates increase the current market value of the liabilities. Taking a longer-term, forward looking perspective, improved longevity of pensioners will also weigh negatively on funding levels in the future.

     The Financial Stability Report December 2012 and the Statistical Annex Insurance 2011 can be viewed on EIOPA website (Link: https://eiopa.europa.eu/publications/financial-stability/index.html ).

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    US insurance giant American International Group said Monday it had priced the Hong Kong sale of its remaining stake in Asian insurer AIA. 

    AIG said it would sell about 1.65 billion shares of AIA Group Limited within the price range of HK$29.65 (approximately US$3.83 per share) to HK$30.65 (approximately US$3.95 per share).

    The final price will be announced before the opening of the Hong Kong market on Tuesday, AIG said.

    “This represents all of the AIA ordinary shares owned by AIG,” said the insurer, which has been selling off assets to repay the $182 billion bailout it received from the US government during the 2008 financial crisis.

    At the price range, the sale could fetch $6.32-6.52 billion for AIG. The company has sold AIA shares twice this year, raising a total of $8 billion.

    The move also comes a week after the US Treasury sold all of its remaining shares in AIG, earning the government $7.6 billion from the sale and taking the government’s net profit on the AIG bailout to $22.7 billion.

    The Hong Kong initial public offering of AIA in 2010 raised $20.5 billion, making it one of the world’s biggest.

    New York, Dec 17, 2012 (AFP)

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    The ECB’s Financial Stability Review highlights a tangible easing of euro area financial stability strains since the summer that has been evident across various market indicators.

    The ECB’s announcement of its Outright Monetary Transactions (OMTs) programme and the decisions taken by the European Council in June are fundamentally responsible for the improvement felt in the financial markets that has reduced the dispersion of yields and spreads of sovereign debt instruments. The agreement reached by the ECOFIN (and the European Council) on the establishment of a Single Supervisory Mechanism, centered in the ECB, is another important indication of the Monetary Union framework continuous improvement with positive consequences for future financial stability.

    Nevertheless, key financial stability risks remain and there is no room for complacency. These potential risks stem from imbalances and vulnerabilities in the fiscal, macroeconomic and financial sector domains and they can be grouped into three categories:

    – Possible aggravation of the euro area sovereign debt crisis, partly because of implementation risk for agreed policy measures at the national and EU level: a steady commitment to necessary adjustment by member countries, along with a determined implementation of European-level decisions to complete the strengthening of the institutional framework for Economic and Monetary Union (EMU), is necessary to avoid the materialisation of this risk.

    – A further deterioration in bank profitability and credit quality owing to a weak macro-financial environment: fostering market confidence in the solidity of banks’ balance sheets is paramount – and efforts at the national level to enhance the transparency of balance sheets, notably through strengthened asset quality reviews coordinated by supervisory authorities, are a key step towards easing existing banking vulnerabilities in the euro area.

    – Fragmented financial markets amplifying funding strains for banks in countries under stress: the functioning of money and debt markets has remained impaired, notwithstanding ECB action, as the diffusion of aggregate liquidity has been hindered by intertwined sovereign and counterparty credit risk concerns. Strides towards improving fundamentals at the national level, whilst simultaneously working to sever sovereign-bank feedback loops, are critical to resolving the pernicious fragmentation of funding and capital markets.

    The systemic dimension of these possible risks originates not only from each of them individually, but also from potential amplification as a result of the interplay among them.

    Timely ECB action to address risks to euro area price stability has been critical not only in ensuring the ECB’s primary objective of keeping prices stable, but also in easing financial stress that had, at times, reached extreme levels. Most recently, the announcement of the Outright Monetary Transactions (OMTs) programme was crucial in underpinning a widespread narrowing of euro area sovereign spreads, accompanied by a more generalised calming of financial markets. ECB policy action cannot address the root causes of financial market fragmentation, but it has attenuated the symptoms – creating breathing space for governments and financial institutions to tackle the fundamental causes of the crisis.

    Some progress has been made to date in addressing these root causes of stress – including the strengthening of the European fiscal governance framework, the improved adjustment efforts made by the different Member States, the reduction of the competitiveness and productivity gaps within EMU and the introduction of a sweeping and exhaustive global regulatory agenda. Notwithstanding the progress made to date, continued momentum is needed to improve the robustness of the financial system, while completing the foundations of EMU, in order to durably strengthen euro area financial stability.

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    XL Group has announced its preliminary net loss estimate related to Storm Sandy of $350 million, pretax and net of reinsurance and reinstatement premiums. Approximately 60% of the Company’s estimated loss relates to the Reinsurance segment.

    Within the Reinsurance segment, the loss estimate is comprised of approximately 20% for Marine and 80% for Property Reinsurance, including catastrophe treaty, per risk treaty and facultative exposures. Within the Insurance segment, the loss estimate is comprised of approximately 15% for Specialty lines, including Marine, Fine Art and Specie, and 85% for Property. This loss estimate is in line with the Company’s expectations given the potential size of this event to the insurance industry as commented on by the Company during its third quarter earnings call on November 5, 2012.

    The Company’s estimate is based on its review of individual treaties and policies expected to be impacted, along with available client data. This preliminary estimate involves the exercise of considerable judgment. Given that the facts are still developing, as well as the complexities of the nature of the event, there is considerable uncertainty associated with the loss estimate of the event and such estimate is accordingly subject to revision as additional information becomes available. Actual losses may differ materially from this preliminary estimate.

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    CRIF Decision Solutions Ltd (CRIF) has enhanced its UK Data Hub, offering its customers real time access to its full suite of services through a single portal, now enriched by the addition of vehicle and identity check data and specific anti-money laundering tools. CRIF has established agreements with two leading information providers in the UK:  HPI for vehicle identification information, including details on drivers, policy holders and individuals, and Tracesmart for UK identity check and consumer profiling solutions.  The UK Data Hub helps insurers, brokers, aggregators, financial organisations and solicitors know their customers better, and prevent fraud.

    Recent market surveys confirm that motor and personal injury insurance fraud, at both policy application and claims stages, has significantly increased in 2012. With the flexibility of secure application-to-application and web browser communication, the portal allows users to streamline decision making processes over the whole customer life cycle, from quotation at point of sale to the underwriting and claims stages. The CRIF UK Data Hub provides a single point of access to a unique set of information through the CUE Motor, PI and Home insurance databases and is further enhanced by the partnerships with HPI and Tracesmart. Users have real time access to a content-rich source of consumer intelligence data on 40 million records and 27 million linked addresses, incorporating data on birth and death records, passport verification, landline and mobile number checks, with the possibility of linking all electricity bills to a customer address and meter, irrespective of supplier. Moreover, critical information such as vehicle information and individuals’ records (including county court judgements and bankruptcy information) are also available in less than two seconds without leaving a footprint, and required data can be combined into one message.

    Commenting on the new partnership, HPI’s Finance and Insurance Director, Darren Greenyer, said, “HPI has been supporting the insurance industry’s anti-fraud efforts for years with the provision of vehicle identification data. We are delighted to be partnering with CRIF to make our information available alongside other sources of identification data through a single hub that will enhance fraud mitigation processes for the industry”.

    HPI has been a primary source of vehicle information for the UK motor industry and motoring consumer for over 70 years, providing detailed and updated information on the make, model, date of registration, engine size and CO2 emissions, year of manufacture, colour, number of keepers, date of last keeper change, door/body plan, fuel, transmission, and much more.

    Commenting on the launch of the UK Data Hub, Sara Costantini, Director at CRIF Decision Solutions, said “The sharp increase in identity, personal injury and vehicle fraud in the UK makes our Data Hub an invaluable business tool to support fraud management.  The ease and speed at which information can now be accessed will definitely make a positive impact on our clients’ businesses and their operational decisions, enabling them to protect their honest customers from the financial effect of fraud”.

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    Asta Managing Agency Ltd; the Lloyd’s leading third party syndicate manager, is pleased to confirm that subject to final Lloyd’s approval, management  of  ICAT Syndicate 4242 will migrate to Asta as of January 1 2013.

    Syndicate 4242 maintains a stamp of £80M, and is in its 6th year of underwriting at Lloyd’s.  ICAT is a leading provider of property insurance to businesses and residential property owners located in hurricane and earthquake exposed regions of the United States. ICAT assists businesses and people to recover from natural disasters and provides best-of-market products and services to its policyholders, agents and brokers.

    The Syndicates transfers from Chaucer Syndicates Limited.

    Commenting on their transfer to Asta, Greg Butler, the Active Underwriter for ICAT said: “We are very pleased to have this opportunity to move our business forward with Asta, a managing agency with a proven track record for supporting syndicates as they grow. In 2013 we are excited about new opportunities to build on our existing successful business model.”

    Stephen Cane, Chief Executive for  Asta added: “We welcome the whole 4242 team to Asta and look forward to working with them to help grow the business further and to build on their excellent track record.”

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    Responding to the Ministry of Justice’s (MOJ) launch of a consultation on whiplash compensation, Insurance Fraud Bureau (IFB) Director Phil Bird said:

    “The IFB welcomes the MOJ’s consultation which will challenge a long-standing status quo on whiplash compensation. Improving the diagnosis standards for whiplash will help to root-out fraudsters abusing the system, but more importantly speed-up the payment process for genuine claimants with a right to compensation.

    “Tasked with investigating ‘crash for cash’ fraud, all too often the IFB sees whiplash used as a method by organised crime groups to repetitively scam insurers out of hundreds of millions of pounds. Honest policyholders ultimately pick up a collective bill for fraud. The MOJ’s consultation is a welcome step forward in the evolution of measures to fight fraud.

    “Protecting honest policyholders by reducing all forms of fraud is a top priority for the insurance industry. Over £200 million per year is invested in sophisticated controls including dedicated counter-fraud teams using cutting-edge technology to vet claims and a dedicated police unit bringing cheats to justice.

    “But whilst the industry continues to tighten its grip on fraud, the MOJ’s consultation does recognise the importance of dispelling myths amongst the public that insurance fraud is victimless or somehow acceptable. Following the launch of the IFB’s ‘Crash for Cash’ report in November, the Bureau will continue to work with the Association of British Insurers, our industry partners and law enforcement agencies to help educate consumers on the consequences of committing fraud.”

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    Xuber, Xchanging’s insurance software business, has announced a partnership with fellow insurance software house Innovation Group plc, which will see its advanced analytics tools incorporated into a new Xuber product. ‘Xuber Analytics’ will be launched in early 2013.

    Xuber Analytics will meet increasing customer demand for more powerful, comprehensive reporting, that crystallises return on investment and turns data into information, enabling businesses to make more informed decisions. The product will provide analytics relevant to all company practitioners, not simply management or reporting specialists. Xuber Analytics will be an optional addition to the Xuber suite of products.

    Under the terms of the agreement, Xuber has exclusive worldwide rights to Innovation Group’s software to use with Xuber products. Xuber and Innovation Group (both of whom use Microsoft .NET™ technology) will jointly invest in tailoring product development. Once released, Xuber Analytics will be available for use anytime, anywhere, on a large range of mobile devices.

    Richard Clark, Head of Business Development at Xuber comments: “We want to integrate with best-of-breed complementary solutions wherever possible and Innovation Group fits the bill in the field of insurance software analytics. Customers will benefit from our cutting edge service as we customise the solution and take advantages of the synergies between our businesses.”

    The development follows the successful re-launch of Xchanging’s insurance software business as ‘Xuber’ in October, the culmination of a £20 million plus investment in the development of a next-generation suite of commercial insurance software, in addition to a substantial expansion of the company’s marketing and sales.

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    Chinese insurer PICC will make its trading debut in Hong Kong Friday after raising a lower-than-expected $3.1 billion from the city’s biggest share sale this year, amid choppy global market conditions. 

    The state-owned firm has sold 6.898 billion new shares at HK$3.48 ($0.45) each — near the bottom end of its indicative price range of HK$3.43-HK$4.03 — in the world’s fifth largest initial public offering (IPO) this year.

    Selling at the top end of its price range would have seen the Beijing-based People’s Insurance Company of China, the nation’s fourth largest insurer, raise up to $3.6 billion. PICC units rose 3.4 per cent to HK$3.60 Thursday in so-called grey market trading ahead of their official debut, Dow Jones Newswires reported, citing trading firm PhillipMart, amid a muted broader market which closed flat.

    After pricing its shares at the lower end of the range PICC has secured 17 cornerstone investors, committed to investing a total of $1.82 billion.

    These include the US-based American International Group insurance firm and China’s biggest life insurer by premiums, China Life Insurance.  Cornerstone investors are given the option to buy vast portions of stock in an IPO if they agree to hold the shares for a certain amount of time. PICC intends to use the net proceeds from the share sale to strengthen “the company’s capital base to support its business growth”, it said in an earlier statement.

    Founded in 1949, PICC was the first nationwide insurance company in China, which today has 130 million individual insurance customers and about 2.4 million institutional clients.

    There had been hopes that the Chinese insurer’s IPO could reverse a stagnant IPO market in Hong Kong, which took a hit after Chinese companies started to worry about slow economic growth.

    But figures show the Asian financial hub has only raised about $10.16 billion from new listings so far this year, a plunge of 66 per cent from the same period last year, according to data provider Dealogic.

    Hong Kong, Dec 6, 2012 (AFP) 

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    Standard & Poor’s Ratings Services said it affirmed its ‘BB-‘ long-term counterparty credit and insurer financial strength ratings on French insurer Groupama S.A. and its guaranteed subsidiaries. S&P also affirmed the ‘B+’ long-term counterparty credit and insurer financial strength ratings on strategically important subsidiary Groupama GAN Vie. The ‘BB-‘ long-term counterparty credit rating was affirmed as well as the ‘B’ short-term counterparty credit rating on banking subsidiary Groupama Banque. S&P removed all the ratings from CreditWatch with negative implications, placed on Oct. 9, 2012.

    At the same time the rating agency affirmed their ‘C’ issue rating on Groupama’s 2007 junior subordinated notes. The ‘CCC’ issue ratings on Groupama’s 2005 and 2009 junior subordinated notes were also affirmed. The ‘CCC’ ratings from CreditWatch negative were removed, placed on Oct. 9, 2012.

    All ratings were subsequently withdrawn at Groupama’s request. The outlook at the time of the withdrawal was negative.

    At the time of withdrawal, the ratings on French insurer Groupama and its guaranteed subsidiaries reflected Standard & Poor’s view of the group’s weak risk-adjusted capital adequacy and weak risk management practices, according to Standard & Poor’s criteria, and the negative consequences of past financial and operational management decisions. Only partially offsetting these weaknesses is the agency’s view of Groupama’s good competitive position in the French property and casualty market and its good liquidity profile.

    The affirmation reflects Groupama’s ongoing actions to strengthen its solvency position, mostly via the sale of several subsidiaries and the reduction of the group’s equity and real estate exposures. S&P also understands that Groupama expects to achieve its regulatory solvency ratio target of 120% at year-end 2012. Based on the latest available information, Groupama had a sizeable €1.8 billion of cash and cash equivalents on its balance sheet at midyear 2012.

    The outlook at the time of the withdrawal was negative, reflecting S&P’s opinion on the potentially negative impact that Groupama’s decision not to pay the coupon on its hybrid debt issued in 2007 may have on the group’s creditworthiness and, in the longer term, on its business and financial profile (for further details, see “French Insurer Groupama Ratings Lowered On Announced Coupon Nonpayment On 2007 Hybrids; All Ratings On Watch Negative,” published Oct. 9, 2012.

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    The European Insurance and Occupational Pensions Authority (EIOPA) published today procedures for how it will issue warnings and temporary prohibitions and restrictions regarding financial activities. The procedures are a key component of EIOPA’s strategic objectives in the area of crisis management and consumer protection/financial innovation. 

    Under its founding Regulation, EIOPA may issue different types of instruments where financial activities threaten EIOPA’s objective to contribute to the stability and effectiveness of the financial system. As such, EIOPA can issue warnings in the event that a financial activity poses a serious threat to its objectives. Moreover, the Authority may also temporarily prohibit or restrict certain financial activities that threaten the orderly functioning and integrity of financial markets or the stability of the financial system.

    The procedures have been adopted with a view to ensuring legal certainty in the process of adopting any warnings or temporary prohibitions/restrictions by establishing a basic framework for any future action. In doing so, the procedures lay down the steps to be followed for identifying threats and initiating the further assessment process within EIOPA. Moreover, the procedures lay down the rights and obligations of the addressees of any warnings or temporary measures, how such warnings and measures will be communicated, their duration and review provisions.

    The procedures outline the steps to be taken both in the case of warnings and temporary prohibitions and restrictions. It is noted, however, that as regards the temporary measures, the EIOPA Regulation foresees that such measures can only be issued where sectoral legislation sets the specific conditions for doing so. At the moment, there is no such sectoral legislation in the insurance and occupational pension area.  The document can be viewed under the following link: https://eiopa.europa.eu/activities/consumer-protection-and-financial-innovation/index.html (Link: https://eiopa.europa.eu/activities/consumer-protection-and-financial-innovation/index.html )

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    Britain’s HSBC said Wednesday it would sell its stake in China’s second largest life insurer Ping An for $9.4 billion, as it looks to shift its focus back towards its traditional banking business. 

    The lender said in a statement it will sell its entire 15.57 percent holding in Ping An Insurance Group to Thai conglomerate Charoen Pokphand Group at HK$59 ($7.66) a share, a two percent premium to its Tuesday closing price.

    Ping An recently hit the headlines after the New York Times said last month that relatives of Chinese Premier Wen Jiabao had gained from its Hong Kong listing in 2004 by buying stock at a discount before the sale.

    Ping An has denied those claims and threatened legal action against the US newspaper.

    HSBC Group Chief Executive Stuart Gulliver said in the statement the Ping An sale would benefit shareholders, but added that China remained “a key market for the group”.

    He said the firm would “strengthen our focus on growing our own operations and building on our long-term strategic banking partnership with the Bank of Communications”, China’s fifth largest lender, in which HSBC has a 19 percent stake.

    The bank has been selling non-core assets as part of a broad restructuring plan designed to boost profitability.

    “They can unload their non-core assets and resources to refocus on their main business, which is banking,” Tanrich Securities Vice President Jackson Wong told AFP.

    London-listed HSBC is also setting aside hundreds of millions of dollars as provision for fines related to possible criminal charges over money-laundering allegations in the United States.

    Shares in Ping An climbed after the announcement. It was up 2.25 percent at HK$58.95 in Hong Kong on Wednesday morning, while it rose 2.7 percent to 38.38 yuan in Shanghai.

    Last month the New York Times reported the chairman of Ping An wrote in 1999 to Wen, who was vice-premier at the time, and met his wife as the government considered a decision on whether to split up the company.

    After the lobbying, it said, the government granted Ping An a waiver from a requirement that large financial companies be broken up.

    Following the decision an investment vehicle — later controlled by relatives of Wen — bought shares in Ping An at a significant discount, long before most other investors could buy into it, the report said.

    Ping An said of the report that “recent media coverage related to the company” contained “serious inaccuracies, facts being distorted and taken out of context, as well as flawed logic”.

    Hong Kong, Dec 5, 2012 (AFP)

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    Novae Group announces the appointment of Charles Fry as Chief Financial Officer. He will formally take up the position no later than the second quarter next year, when he will also be appointed to the Board as an Executive Director, subject to FSA approval.

    Charles Fry has extensive experience in the global (re)insurance industry and has also held a number of executive positions across the financial services sector.

    Charles was Chief Operating Officer for global reinsurance intermediary, Guy Carpenter, in New York between April 2007 and June 2010. Prior to that, he worked with Apax Partners on their investment in Travelex Group. From 1999 to 2006 he was part of the senior management team of Benfield Group, the listed reinsurance intermediary, where he was CFO of the principal operating subsidiary, Benfield Limited.  Charles started his professional career at PwC, where he qualified as a Chartered Accountant.   Most recently, he has been working with specialty insurer ANV, advising on their acquisition of Lloyd’s Syndicate 1861 from Flagstone Re.

    Novae announced the resignation of former Chief Financial Officer, Oliver Corbett, on 23 August 2012, and he took up his new role at LCH.Clearnet on 1 December. Pending Charles Fry’s arrival, Mark Hudson, Novae’s Director of Finance, will serve as acting Chief Financial Officer.

    Matthew Fosh, Group Chief Executive, commented: “In the past three years we have focussed on driving up returns within the business. In the next three years our focus will shift towards developing growth areas within the business, and Charles has precisely the mix of knowledge and experience needed to help us do that.”

    Charles Fry commented: “I am delighted to be joining Novae at such an exciting time for the company. I look forward to working with Matthew and the rest of the team to help capitalise on the significant growth opportunities that lie ahead for Novae.”

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