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For the second year in a row, NFU Mutual has won ‘Best Life Insurance Provider’ at the Personal Finance Awards.

The insurance, pensions and investment specialist received an overwhelming number of nominations from readers of personal finance website themoneypages.com and won over the judging panel with its record of excellent customer service.

themoneypages.com has been reviewing products and offering advice to consumers on personal finance issues since 1994. The 2011 survey canvassed the opinions of more than 7,000 website readers on financial services organisations, ranging from mortgage to life insurance providers.

Ben Wilkie, Editor of themoneypages.com, said: “NFU Mutual has consistently offered high quality products, which is why it has won the award for the second year running. The judges were impressed by the simplicity of the products, the high value yet low cost pricing and the quality of customer service offered at every stage.”

NFU Mutual was selected from a shortlist of five life insurance providers by a judging panel consisting of personal finance journalists and independent financial advisers.

On collecting the Award, Robert Torrance, General Manager at NFU Mutual, said: “It’s a proud moment for everyone at NFU Mutual when our products and services are given such an accolade from the people that use them. Clearly, our focus on high-value insurance is a hit with our members and providing a personal, face-to-face service strikes a chord with them too.”

NFU Mutual Financial Consultants advise on NFU Mutual products and services and in special circumstances those of other providers. For more information on NFU Mutual’s protection plans, members can visit their local branch, go online at www.nfumutual.co.uk, or call 0800 622 323.

Source : NFU Mutual

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Christmas is well known to be a stressful time for many parents who want to give their children the latest ‘must-have’ presents, but new research from Aviva reveals the forgotten financial pressures placed upon some grandparents at this time of year.

With monthly household income for retirees dropping to a historic low according to Aviva’s latest Real Retirement Report of £1,216, half of those aged 55 and older say they find Christmas a financially stressful time of year, with almost the same proportion (46%) feeling that paying for Christmas is a financial strain. Two in five go as far as saying that the financial pressures of the festive period take some of the enjoyment out of Christmas.

And the worries about how to pay for Christmas start well before the decorations go up. One in five (20%) start worrying by the end of the summer, and by Halloween, more than a third (36%) are concerned about how to meet bills. To help alleviate these concerns, more than half of all retirees have to save for Christmas in advance, with one third of those starting to save as early as January, even before the end of the previous festive season.

Festive food is another added expense for those in retirement. Almost two-thirds of grandparents (62%) feel it is their duty to host a family Christmas lunch, with a third (33%) wishing their children would take on more responsibility for organising and contributing to the Christmas meal for relatives.

Despite these financial pressures, retirees have no intention of holding back when it comes to buying presents for loved ones this year. Ninety per cent of those with grandchildren will be buying all of them presents, with over half spending £30 or more on each grandchild. What’s more, almost two-thirds of retirees plan to spend even more on their grown-up children than on their grandchildren, creating a healthy pile of presents under the tree.

Clive Bolton, ‘at retirement’ director at Aviva, said:

“The festive period is always a great opportunity for families to spend time together, with our research showing retirees have no intention of holding back in ensuring their children and grand-children enjoy the Christmas they wish. However, it is also worth bearing in mind that this time of year can bring its own financial pressures for many older relations, who are often on a fixed income.

“Despite the current economic uncertainty, planning ahead and saving during the year can help ease the financial burden of Christmas for retirees. Even better, longer term financial planning can help individuals to better cope with pinch points such as this, at a time when ones extended family can often be at its largest.”

Source : Aviva Press Release

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Fitch Ratings has affirmed Prudential Plc’s (Prudential) Long-term Issuer Default Rating (IDR) at ‘A+’ and senior unsecured debt at ‘A’. The agency has also affirmed Prudential Assurance Company Ltd’s (PAC) Insurer Financial Strength (IFS) rating at ‘AA’. At the same time, Fitch has affirmed Prudential’s US subsidiaries Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York’s (collectively, JNL) IFS ratings at ‘AA’. The Outlooks on all of the group’s Long-term IDRs and IFS ratings are Stable. A full list of ratings actions is at the end of this comment.

The affirmation reflects Prudential’s continued strong and resilient capital position, operational scale and strong business position in each of its key markets, the UK, the US and Asia. Prudential has strong cash generation and a strategy focussed on high-margin products with short pay-back periods and a profitable asset management business.

Partially offsetting these positive rating factors is the company’s relatively high exposure to credit risk, longevity risk and adverse policyholder behaviour risk. This exposure includes the rapidly increasing variable annuity business in the US.

“Sales on JNL’s variable annuity book have increased 25% during the first three quarters of 2011 compared to the same period in 2010,” said Clara Hughes, Senior Director in Fitch’s insurance team. “Fitch recognises JNL’s track record of pricing discipline and effective risk hedging on this business through economic cycles, but nevertheless views such rapid growth as negative from a credit perspective. Prudential has recently increased guarantee charges to reduce sales figures so Fitch expects growth to slow in 2012.”

The key rating factors that could result in a downgrade of Prudential’s ratings include the crystallisation of credit risk, longevity risk and adverse policyholder behaviour, or interest coverage falling below 5x-6x. Also, any structural increase in leverage is likely to result in downward pressure on the rating. An upgrade is unlikely in the near term.

Fitch views JNL as ‘core’ to the Prudential group (as defined in “Insurance Rating Methodology”, dated 22 September 2011 and available at www.fitchratings.com) and is factoring group support into JNL’s ratings, which would be lower on a standalone basis.

Prudential has the joint-highest IFS rating among European insurance groups. Its ratings continue to reflect its excellent capitalisation and profitability, and its geographical diversification with particularly strong market positions across Asia.

Source : Fitch Ratings Press Release

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Once viewed as an issue of interest only to greens or academics, the threat posed by climate change to security is now eyed with deepening concern by politicians and defence chiefs.

Droughts and floods which devastate crops and rising seas which imperil coastal cities will become potent triggers for famine, disease and homelessness, in turn inflaming tensions and leading to unrest, say experts. Indeed, some suspect that climate change is already an invisible driver of turbulence.

The conflict in Sudan’s Darfur, caused by an exceptional drought that impoverished herding communities and forced them to migrate, has been cited as just such an illustration.  Another example may be this year’s revolutions in Tunisia and Egypt, where food prices, propelled by devastating heatwaves in big grain-growing countries, fanned hunger, and then anger, among the poor.

“Extreme weather events continue to grow more frequent and intense in rich and poor countries alike, not only devastating lives but also infrastructure, institutions and budgets — an unholy brew which can create dangerous security vacuums,” UN Secretary General Ban Ki-moon said in July at a Security Council debate.

Climate change “not only exacerbates threats to international peace and security; it is a threat to international peace and security,” he said.

In its 2010 Quadrennial Defense Review, the Pentagon said climate shift “could have significant geopolitical impacts around the world, contributing to poverty, environmental degradation and the further weakening of fragile governments.”

“While climate change alone does not cause conflict, it may act as an accelerant of instability or conflict,” it said.

Rear Admiral Neil Morisetti, an envoy for climate and energy security at Britain’s ministry of defence, said climate migration was one of the hidden factors in this equation.  “What happens to those people who lose their land or who lose their livelihood?” Morisetti said at a conference in London last month.

“If they migrate, is it planned, coordinated, manageable migration in a country or between countries? Or is it unplanned mass migration that causes tension?

“If they lose their livelihood because of rising sea levels, rising temperatures, loss of crop yields, do they find a legal livelihood to replace that? Or are they susceptible to recruitment into crime, ultimately (becoming) a five-dollars-a-day AK-47 terrorist?”

Morisetti said the biggest risks were “in the equatorial belt, where we have seen conflict time and time again in the last 40 or 50 years, partly because the countries there and their governments do not have the capacity and the resilience to cope with those stresses and look after their population.”

In a paper published last month by the US journal Science, an international team of researchers said “climate-related resettlement” was already underway in Vietnam’s Mekong delta, along the Limpopo River of Mozambique, in China’s Inner Mongolia, the coast of Alaska and the Carteret Islands in Papua New Guinea.

Calling for help to ensure fair and orderly migration, they urged changes to national and international law and the involvement of climate-threatened communities in deciding where they would be resettled.

Other factors in the murky interface between climate and security are health — especially through the expansion of mosquito- and water-borne disease — and the amplified risk of hunger and poverty from rising food prices.

Wheat, corn and sorghum have all seen global spikes in the past 18 months, but in the drought-hit Horn of Africa their prices have at times doubled or tripled compared to a five-year average. Rice in flood-affected Thailand and Vietnam is some 25 per cent more expensive than a year ago. In February, the World Bank estimated 44 million people in developing economies had fallen into extreme poverty through spiralling food prices.

“For the poorest who spend up to 75 per cent of their income on food, price rises on this scale can have consequences as families are forced into impossible trade-offs in a desperate bid to feed themselves,” Oxfam said on Monday at the start of the UN climate talks in Durban, South Africa.

Paris, Nov 29, 2011 (AFP)

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The UK government has confirmed the starting date of the new automatic enrolment scheme in 2012. Yet for SMEs, because of the economic situation and to ease the effect of reforms during this Parliament, the starting date has been pushed back from April 2014 to May 2015.

Minister for Pensions Steve Webb said:

“Our society and economy needs to be based on a foundation of saving, not debt. Automatic enrolment will help millions save, and to not act will leave people poorer in retirement. That is why I am confirming today that automatic enrolment will start on time and all employers will be part of it.

“We recognise that small businesses are operating in tough economic times so we are softening the timetable for implementation to give them some additional breathing space. This is a sensible step that ensures long term pension issues are addressed while meeting the short and medium term needs of small business.

“We are committed to ensuring the employees of these small businesses get the chance to save and that is why no one will miss out.”

ABI comments :

Maggie Craig, Director of Life and Savings at the ABI comments :

“We have always strongly backed automatic enrolment as a good way to get people saving and our view on that remains unchanged. It is imperative that we help employees with no pension start saving as soon as we possibly can. We are pleased that the Government still plans to start automatically enrolling employees in 2012. We do realise that the UK is facing huge economic challenges and that small businesses are up against it. We support the Government’s efforts to alleviate some of this burden by allowing more time for the economy to recover before smaller companies start enrolling their employees into a pension.

“However it will be very important that this is not allowed to slip and slip. We need to keep up the momentum to address the UK’s savings crisis. We need a firm timetable so that employers are clear what is expected of them and the millions of workers in the UK without a pension can start saving for their retirement.”

Aviva comments :

Aviva’s Director of Workplace Savings Paul Goodwin said:

“We have always supported the staged rollout of auto-enrolment and felt that a staging date for most smaller employers of mid 2014 gave enough time to plan and budget for a suitable scheme. We felt the timetable was achievable and was overwhelmingly beneficial to the large number of employees who are currently not saving for retirement through any form of workplace scheme.

“However, we acknowledge that in today’s difficult financial climate a short delay may provide some employers with more flexibility to plan their auto-enrolment process.

“Providers, including NEST, and advisers need to continue to work closely with employers to minimise the cost of auto-enrolment and maintain the momentum behind these important reforms.”

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The director of Japan’s troubled Fukushima Daiichi nuclear power plant is stepping down because of illness, the plant’s operator said Monday, without revealing whether his condition was radiation-related.

Masao Yoshida, 56, has been hospitalised for “treatment of illness” and will be relieved of his post as of Thursday, a spokeswoman for Tokyo Electric Power Co. (TEPCO) said.

“We cannot give you details of his illness because they are private matters,” Chie Hosoda said, declining to say whether his illness was related to exposure to radiation.

“He is hospitalised where he is able to take time in his convalescence,” she said. Yoshida has been on site at the plant since it was hit on March 11 by a massive earthquake and tsunami, which knocked its cooling system out and left some of its reactors in meltdowns in the worst nuclear accident since the 1986 Chernobyl disaster.

It continues to leak radiation, although TEPCO and the government insist the reactors will all be brought to cold shutdown by the end of the year. The Sankei Shimbun reported in its Internet edition that doctors had made no mention of a relationship between his illness and radiation.

Yoshida said in a message to officials and workers at the plant, “A condition was discovered during a regular medical check the other day,” according to the Sankei.

“I had no choice but to be hospitalised at very short notice for treatment under doctors’ advice.”

Yoshida is being replaced by Takeshi Takahashi, who was in charge of nuclear power plant operations at TEPCO’s head office in Tokyo, some 220 kilometres (140 miles) southwest of the Fukushima plant.

Yoshida told reporters on November 12 when the plant allowed a group of journalists to visit there for the first time that he had a very frightening time in March.

“In the first week immediately after the accident I thought a few times ‘I’m going to die’,” he said. And referring to when a hydrogen explosion tore apart the buildings around rectors 1 and 3, he said: “I thought it was all over.”

Yoshida also said there were still spots of dangerously high radiation in the compound but he wanted residents to feel relieved as reactors are now stabilised. TEPCO told journalists on the day, a Saturday, that there were around 1,600 people at the plant, half of the weekday number, working to tame the reactors. The atomic crisis, which has seen radiation leaking into the air, sea and food chain, has not in itself claimed any lives but has badly dented the reputation of nuclear power, a key source of energy in resource-poor Japan. Thousands of people remain evacuated from a large area around the plant, with no indication when the many who left homes and farms in the shadow of the reactors will be able to return.

Tokyo, Nov 28, 2011 (AFP)

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Allianz Global Corporate & Specialty announced two new appointments to its Board of Management with effect from January 1 2012: Sinéad Browne joins AGCS from Allianz Re to oversee HR as well as Discontinued Business and Catastrophe Management, and will be based in Munich. She will also take over Claims Management from Hermann Jörissen upon his retirement in January 2013. William Scaldaferri, CEO of AGCS’s wholly-owned subsidiary Allianz Risk Transfer (ART), also joins the Board, with responsibility for Reinsurance and for ART (for which he remains CEO), and will remain based in New York.

“I am delighted to welcome Sinéad and William to our Board of Management,” explained Axel Theis, AGCS CEO. “With their profound expertise, a proven track record of various assignments, and an international mindset, they personify the new generation of insurance leaders. Along with the other AGCS Board members they will help us to meet future challenges and capitalize on opportunities for our clients.”

Ms Browne’s appointment signals the continuing development of two key parts of AGCS’s business: Claims Management which, for AGCS, involves supporting clients in over 150 countries worldwide with over €1.1 billion paid to clients during the first nine months of 2011. Her Board responsibility for Human Resources reflects the growth of AGCS since its foundation in 2006: staff numbers have increased by more than 75% since then to over 3,000 employees in 27 countries and the company has established 17 new AGCS offices during the period globally.

Ms Browne (39), an Irish citizen, started her career in underwriting and broker management with Allianz Ireland in 1993 before moving in 2004 to Allianz SE in Munich, managing strategic projects within the Global Strategy Department. She became Head of Operations at Allianz Re in 2007 and was appointed Chief Operating Officer two years later. Allianz Re provides reinsurance solutions to Allianz Group companies and external clients.

Mr. Scaldaferri’s appointment reflects the growing importance of ART as a core part of the overall AGCS portfolio. Founded in 1997 in a single office in Zurich, ART now has locations in New York, Bermuda, The Netherlands, London, Zurich and Dubai. Its team of around 65 specialists offers highly customized services for corporate clients seeking non-traditional solutions to risk management challenges. These include (re)insurance and ‘insurance linked markets’ products (where ART helps investors gain access to insurance risks) as well innovative solutions such as bespoke weather risk insurance. AGCS and ART jointly serve many international clients offering complementary insurance solutions.

Mr. Scaldaferri (44), a US national, has over 20 years’ experience in management and underwriting of traditional and structured reinsurance products. He joined Allianz Risk Transfer in Zurich in 1999, becoming Chief Underwriting Officer of ART Group in 2001 and then Chief Executive Officer of ART globally in 2009.

Source : Allianz Press Release

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Deputy Prime Minister Nick Clegg and Employment Minister Chris Grayling announced today that up to £1 billion will be spent on the “Youth Contract” over the next three years to help unemployed youths.

The Youth Contract will provide nearly half-a-million new opportunities for young people, including apprenticeships and work experience placements. It also marks a substantial increase in the support and help available to young people through the Work Programme, Jobcentre Plus and Sector-Based Work Academies.

This package follows extensive discussions with businesses about the practical help Government can provide to make it easier for them to take on fresh talent.

The key measures include:

Cash payments to encourage employers to recruit young people.

– There will be 160,000 job subsidies available worth up to £2,275 each for businesses who take on an 18-24 year-old from the Work Programme.

– This is more than enough to cover an employer’s National Insurance contributions for a year and exceeds the recommendations by the CBI in their recent report on youth employment.

An extra 250,000 Work Experience places over the next three years, taking the total to at least 100,000 a year.

– This will come with an offer of a Work Experience place for every 18 to 24 year-old who wants one, before they enter the Work Programme.

– Figures show that the Work Experience scheme is proving effective, with half of under-25 year-olds coming off benefits within three months.

At least 20,000 extra incentive payments worth £1500 each for employers to take on young people as apprentices, taking the total number of payments available to 40,000 next year.

Extra support through Jobcentre Plus in the form of weekly, rather than fortnightly, signing-on meetings, more time to talk to an adviser and a National Careers Service interview.

The measures differ from previous schemes over the last decade, as they are focused on equipping young people with the skills and opportunities to gain long-term sustainable employment in the private sector.

Mr Clegg said: “The aim of the Youth Contract is to get every unemployed young person earning or learning again before long term damage is done.

“This is a £1bn package and what’s different about it, is it gets young people into proper, lasting jobs in the private sector.

“But it’s a contract, a two-way street: if you sign up for the job, they’ll be no signing on for the dole. You have to stick with it.”

Mr Grayling said: “We are absolutely committed to making a difference to the life chances of young people. We are expanding what works and delivering that as a priority.

“It demonstrates how government and business can work together to put young people on the path to employment and a self reliant future.”

The Government also announced a new £150m programme to provide support to some of our most vulnerable 16-17 year olds NEET (Not in Employment, Education or Training) from 2012. This will provide vital support to help them to get back into education, an apprenticeship or a job with training.

The total amount of money available for the new initiatives will be almost £1 billion, which is in addition to existing funding for employment services.

Skills Minister John Hayes said: “By reviving apprenticeships, the Government is enabling thousands of young people build successful careers, and helping put businesses on a footing to grow and create new, sustainable employment.

“We’ll continue to work with employers so that more training opportunities are created, and ambition and enterprise are recognised and rewarded.”

CBI Director-General John Cridland said: “This is good news for young people up and down the country.

“We’re pleased that the Government has developed our idea to incentivise businesses to take on the young unemployed.

“It will encourage firms to take a gamble on a young inexperienced person and help tackle the scourge of youth unemployment.”

Source : DWP

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AXA, Bharti, Reliance Industries and its associate Reliance Industrial Infrastructure announced today that they have mutually agreed to terminate their negotiations on the proposed acquisition by RIL and RIIL of Bharti’s shareholding of 74% in Bharti AXA Life Insurance Co. Ltd and Bharti AXA General Insurance Co. Ltd.

On June 10, 2011, the Parties announced that they had reached an understanding on this transaction, subject to entering into legally binding agreements, as well as obtaining necessary approvals from IRDA1 and other relevant/applicable authorities.

Bharti AXA Life Insurance and Bharti AXA General Insurance will continue to develop their operations in India, as they have successfully done over the past years, and build a sustainable and long-term business by tapping the significant growth potential offered by the Indian market.

Source : Axa Press Release

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Fitch Ratings has downgraded Portuguese insurer Millenniumbcp-Ageas’s operating entities’ Insurer Financial Strength (IFS) ratings to ‘BBB-‘ from ‘BBB’. The Rating Watch Negative (RWN) on the ratings has been removed. The Outlook is Negative.

The downgrade follows Fitch’s downgrade of Portugal’s Long-term foreign and local currency Issuer Default Ratings (IDR) to ‘BB+’ from ‘BBB-‘/RWN on 24 November 2011 (see “Fitch Downgrades Portugal to ‘BB+’ from ‘BBB-‘; Outlook Negative” on www.fitchratings.com). The agency considers that the deterioration in Portugal’s economic and fiscal profile, to which, as a largely domestic insurer, MBCPA has both significant business and investment concentration, indicates a heightened probability of a further rating downgrade of the insurer in the near term. This is reflected in the Negative Outlook, which also reflects the Negative Outlook attached to the sovereign rating.

Fitch continues to believe that the immediate impact of the deterioration in Portugal’s economic and fiscal profile will be evidenced in a weakening of the insurer’s regulatory solvency through the accumulation of sizeable unrealised capital losses on the Portuguese fixed-income portfolio and the part-suspension of new business being produced by the minority partner, Banco Commercial Portugues (Millennium bcp; ‘BB+’/Negative). While a prolonged period of deterioration could result in a liquidity strain for the insurer, as policyholders look to redeem their policies, Fitch has no evidence to suggest that this is currently happening.

MBCPA’s ratings incorporate some benefit from the Ageas Group’s ratings (AG Insurance; IFS ‘A+’/Stable) reflecting ongoing and expected future operational and financial support. Majority owner Ageas has clearly stated that it continues to view MBCPA as a strategic investment and a long-term partnership and that, together with Millennium bcp, owner of the remaining 49% of MBCPA, it would ensure the protection of existing policyholders should this be necessary.

The most likely reason for a rating downgrade at this time would be a further downgrade of the Portuguese sovereign rating. A reduction in the level of implied support from the majority owner, Ageas, could also result in a downgrade. Conversely, explicit unilateral support from Ageas could result in a rating upgrade.

Source : Fitch Ratings Press Release

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Standard & Poor’s has revised the outlook from stable to negative on French protection insurer AG2R Prevoyance’s and its core subsidiary PRIMA. The insurer financial strength and counterparty credit rating on both companies has been affirmed to ‘A-‘.

The negative outlook reflects uncertainties about AG2R’s ability to sufficiently turn around its underwriting performance to positive, and whether it can make a stable contribution to its earnings, particularly through tighter risk selection, increased cross subsidies within its portfolio of risks, and increased contributions from its policyholders.

Here is Standard & Poor’s report :

We believe that the insurer’s earnings generation ability will remain constrained in the medium term. We view AG2R’s operating performance as having deteriorated since year-end 2010, due to its limited ability to fund rising claims experience with commensurate contribution increases and risk management actions. Exacerbating this is the cost of French pension reform, which we believe will be challenging to fully fund through increased contributions. Furthermore, we expect AG2R’s underwriting earnings this year to be negative as a result of increasing claims in the accident & health (A&H) and worker’s compensation/disability (WCD) segment. The long-tail WCD line, which still reports very high loss ratios, is hampering the loss ratio in A&H. The profitability of group protection is also generally limited by granular profit-sharing policies that limit cross subsidies at the company’s aggregate level, which in turn limits the ability to source surpluses from this business.

The ratings continue to reflect AG2R’s strong competitive position and strong investment profile. Partially offsetting these factors are only good operating performance and financial flexibility.

AG2R has built a strong foothold in multiple industries thanks to its historical roots in the sectorwide agreement business (“conventions collectives”). The AG2R-La Mondiale Group is a well-recognized brand in France, covering complementary client bases and product ranges in life, savings, and A&H. However, we believe that AG2R’s concentration in France and a high reinsurance cession rate partially offset its strong competitive position.

We view AG2R’s investment profile as strong with manageable market and credit risks. However, we believe that a legacy of high exposure to hybrid debt issued by financial institutions hampers the company’s quality of investments.

We view financial flexibility as “good” relative to its our assessment of its needs. The insurer’s capital needs stem principally from organic growth, which we do not expect to be highly capital-demanding in the next two years. We believe, however, that the most important source of funding is earnings generation and retention. Therefore, AG2R’s flexibility is dependent on generating strongly profitable business to maintain strong capital adequacy.

Source : S&P

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Solvency II is unlikely to incorporate revised capital risk charges for European Economic Area sovereign bonds in the near term, as the European Commission will want to avoid any market disruption that this could cause, Fitch Ratings says.

The Commission is likely be sensitive to the fact that some financial market participants and commentators are questioning whether the euro will survive in its current form. Adding risk weights to some, but not all, eurozone member countries could be seen as acknowledging these concerns, and would potentially push a significant number of insurers currently satisfying the Solvency II capital requirements into the red.

The eurozone sovereign debt crisis has seen a number of market participants call into question Solvency II’s uniform assessment of own-currency sovereign debt from the European Economic Area as risk-free with a zero capital risk charge.

However, the zero risk charge in the standard formula does not necessarily mean the risk is not taken into account by insurers. Many, especially larger, insurance groups use internal models to calculate capital which factor in risk capital for sovereign defaults. Capital increases, which can be added by regulators under Pillar II to reflect risk not captured in the standard formula, may also be imposed.

Crucially, moving to a mark-to-market balance sheet means that insurers are already largely factoring current market expectations for default and some of the illiquidity concerns. Given that an Italian 10-year bond is trading at 85% of face value and an Irish 10-year bond is trading at 78%, this already goes some way to factoring in the risks insurers are taking of default on the bonds. These adjustments flow directly into the solvency position under Solvency II.

Calls for a rethink on the treatment of eurozone sovereign debt are understandable, and we think charges could be added if eurozone government bond markets stabilise. But it is unlikely that they will be incorporated into Solvency II in the near term.

With Solvency II due to take effect from 1 January 2014, the timeframe for adding charges before this date is tight. But the Commission has been willing to make major changes to the charge structure and discount rate on corporate bonds without widespread testing, so it should not be assumed that introducing charges for sovereign bonds would automatically require another Quantitative Impact Study.

Source : Fitch Ratings Press Release

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Regional unemployment rates varied widely across the EU27 in 2010, with the lowest rates recorded in the regions of Zeeland in the Netherlands and Bolzano/Bozen in Italy (both 2.7%) as well as Tirol (2.8%) and Salzburg (2.9%) in Austria, while the highest rates were registered in the French Overseas Department of Réunion (28.9%) and the regions of Canarias (28.7%) and Andalucía (28.0%) in Spain. Between 2009 and 2010 the unemployment rate rose in nearly two-thirds of the 271 NUTS 2 2 regions of the EU27 .

Among the regions, 32 had an unemployment rate of 4.8% or less in 2010, half the average for the EU27. They included eight regions in the Netherlands, eight out of nine regions in Austria, seven in Germany, three in Italy, two in Belgium, and one each in the Czech Republic, Romania and the United Kingdom as well as Luxembourg. At the other extreme, thirteen regions had a rate of 19.2% or higher, double that of the EU27: nine regions in Spain and the four French Overseas Departments.

The se data on regional unemployment, compiled on the basis of the EU Labour Force Survey, are published 3 by Eurostat, the statistical office of the European Union .

Female unemployment rates varied from 2.5% in Tirol to 31.9% in Melilla

In the EU27 in 2010 both the male and female unemployment rates stood at 9.6%. This similarity was also evident at regional level, with the female unemployment rate being higher than the male rate in 131 regions, the male rate being higher in 128 regions and the rates being equal in 7 regions.

In 2010, the female unemployment rate ranged from 2.5% in Tirol in Austria to 31.9% in Melilla in Spain, while the male rate varied between 2.3% in Bolzano/Bozen in Italy and 29.2% in the Canarias in Spain.

Unemployment rates for young people varied from 5.1% in Oberbayern to 60.2% in Ceuta

Regional differences in the unemployment rate for young people are very marked. In the EU27 in 2010, the lowest rates for young people were recorded in the German regions of Oberbayern (5.1%), Freiburg (5.4%), and Schwaben (5.5%), and the highest in Ceuta (60.2%) in Spain and the French Overseas Departments of Martinique (59.0%), Guadeloupe (55.1%) and Réunion (54.7%). In more than three quarters of the EU27 regions the unemployment rate for young people was at least twice that for total unemployment.

Long term-unemployment share varied from 5.0% in Bucureºti – Ilfov to 78.8% in Guadeloupe

The long-term unemployment share, which is defined as the percentage of unemployed persons who have been unemployed for 12 months or more, varied significantly across the regions. In the EU27 in 2010, the lowest shares of long-term unemployed were recorded in Bucureºti-Ilfov (5.0%) in Romania, North Eastern Scotland (14.0%) in the United Kingdom, Övre Norrland (14.6%) in Sweden and Notio Aigaio (14.8%) in Greece, and the highest in the French Overseas Departments of Guadeloupe (78.8%), Guyane (73.6%) and Martinique (70.4%). In 43 regions more than half of the unemployed had been out of work for at least 12 months.

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New Friends Life survey shows people are more likely to turn to their parents or partner for financial advice than they are to enlist the help of a financial adviser.

Parents topped the list with 31% of respondents agreeing they would be most likely to trust them for financial advice. A further 27% claimed they would ask their partners for assistance, while less than one in ten (8%) of those surveyed would rely on a financial adviser to guide them on financial matters.

Despite the research indicating financial advisers are not the ones people are most likely to turn to for help with money matters, there was an encouragingly strong showing in favour of paying for financial advice. 31% of those surveyed agreed that financial advice should be paid for – ranking it alongside accountancy (34%) and legal advice (37%).

The research was released today by Friends Life, to coincide with the Institute of Financial Planning’s Financial Planning Week. As a key sponsor of this initiative and a leading provider Friends Life has long called for greater access to professional financial advice.

The need for professional advice is stronger than ever, with the squeeze on family finances and government cutbacks biting.

Andy Briggs, Chief Executive Officer, Friends Life said: “It appears people are recognising the need for financial advice, which on the surface is very encouraging. It shows that money matters are preying on people’s minds and whilst they might be relying on family and friends for this instead of bringing in the professionals, they are at least assessing their financial situation.

“The danger is that by consulting your Mum or Dad instead of a qualified financial adviser you learn someone else’s financial habits instead of making your own empowered decisions supported by all the facts.”

Source : Friends Life

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The Axa Group management, UNI Europa Finance and all the French representative trade unions (CFDT, CFE/CGC, CGT, UDPA/UNSA) have signed a framework agreement on the anticipating of changes to occur within the Axa entities located within Europe.

This agreement, negotiated within the European Works Council (EWC), sets out a social dialogue approach whose objective is to better anticipate changes within the sector in order to adapt the employees’ skills to future needs and thus to preserve employment.

Determined to better manage the changes necessary to maintain AXA’s competitiveness in Europe, social partners are taking the following three main commitments:

1. The Group management will regularly inform the European Works Council members about what it is doing to adapt AXA’s strategy to the evolution of the European macroeconomic environment, as well as about the changes in the insurance sector. The harmonisation of the level of information between the various partners will improve the quality of the social dialogue within the Group.

2. A “European skills and employment observatory” is established within the EWC Bureau. It will undertake some forward thinking about the evolution of the occupations within the Group, in order to anticipate changes and list the actions to be carried out to support such changes and preserve employment.

3. Partners are planning various measures to preserve the employability of the AXA Group’s employees in Europe and to support employees whose position might be threatened by the changes within the sector and the company.

“When faced with the deep economic and social changes that Europe is currently going through, I deeply believe that a stronger, sincere and constructive dialogue will help us efficiently lead the changes necessary to maintain our competitiveness. I very much welcome this unanimous agreement which will allow us to address those questions at the European level and I would like to thank all the social partners who were able transcend national views in order to build this new balance. I would also like to say that to me the work undertaken by the Group EWC is extremely important and fully embedded in the Group’s governance” said Henri de Castries, Chairman and CEO of AXA at the signing of this agreement, in front of about a hundred European Group employee representatives gathered in Paris.

Daniel Vaulot, European Works Council Secretary, added: “This agreement is unique in our sector. It offers significant means to secure employees’ positions in Europe. In an uncertain environment, this strong signal shows the dynamism of the social relations within AXA’s EWC, with the aim of finding alternative solutions and refusing to accept things as inevitable”.

This framework agreement is concluded for a term of three years, renewable by tacit agreement, and is applicable to all AXA Group entities located in Europe, in conjunction with local employee representatives. AXA Group entities that so wish will be able to go beyond this framework agreement and sign a specific agreement. AXA Assistance has, in particular, decided to use this opportunity.

Source : Axa Group

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Fitch Ratings has published a Special Report on French Public Finances, examining the implications for the government deficit and debt, and France’s sovereign credit profile, of weaker economic growth and the potential contingent liabilities arising from the intensification of the Eurozone crisis.

According to Fitch, the recent adoption of new fiscal measures by the French government has enhanced the credibility of the government’s consolidation program. However, additional measures are still likely to be necessary if the 3% of GDP deficit target is to be achieved by 2013, with Fitch projecting the deficit in 2013 to be around 4% of GDP. In Fitch’s baseline scenario, the debt to GDP ratio will peak at 91.7% in 2014, in line with projected peak debt levels for France’s main ‘AAA’ peers and consistent with France retaining its ‘AAA’ status.

France’s ‘AAA’ status continues to be underpinned by a high-value added and diverse economy, broad and stable tax base and its commitment to deficit reduction and stabilising, and eventually reducing, public debt. Its structural budget deficit is smaller than that of the UK (‘AAA’) and US (‘AAA’) and general government debt is expected to peak at around 90% of GDP, which is similar to the level forecast for the UK and less than the projection of 105% for the US.

Similar to the situation of other major ‘AAA’ sovereigns, the increase in government debt has largely exhausted the fiscal space to absorb further adverse shocks without undermining their ‘AAA’ status. The principal concern with respect to France is that the intensification of the eurozone crisis will generate contingent liabilities that will be crystallised onto the sovereign balance sheet.

Today’s report suggests that were France’s EUR158.5bn guarantee commitment to the EFSF (‘AAA’) to be fully utilised – not Fitch’s current base-case scenario – gross government debt would surpass 95% of GDP, placing it at the higher end of the range that Fitch judges would be consistent with France retaining its ‘AAA’ status. This would leave the sovereign balance sheet with little room to absorb further shocks, such as having to fund capital injections into domestic banks, unless there were significant off-setting measures that would quickly reduce public debt to levels consistent with its ‘AAA’ rating. Fitch does not currently expect the French banks to require or to receive capital injections from the state at this juncture.

Under a stress scenario whereby a further intensification of the eurozone crisis resulted in a much sharper economic downturn in France and across the region, and a material increase in the risk of contingent liabilities being crystallised, especially with respect to financial support for the banking sector, France’s ‘AAA’ rating would be at risk.

Source : Fitch Press Release

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New research released by car insurance comparison website Tiger.co.uk shows which cars are likely to be driven by which professions.

Nearly 20% of all Tiger.co.uk shoppers drive one of the following vehicles : the most popular cars owned in absolute numbers were the Vauxhall Corsa, Ford Fiesta and the Renault Clio respectively. However when the data was analysed based not on absolute numbers but on the relative popularity of cars, it presents a different picture altogether.

The research looked at eight different occupations. Here is a brief list of the results:

Jobs and Cars

Compared to an average Tiger.co.uk shopper, an accountant is more likely to drive an Audi A4, a housewife a Vauxhall Zafira and a mechanic a Volkswagen Golf.

Job titles can have a large effect on the price of car insurance. A 27 year-old female soldier driving a 2008 Fiat 500 may expect to pay more for her car insurance than if she were a housewife, yet a housewife would pay more than a if she were a female investment banker. With occupations where drivers could be driving famous (and therefore well-insured) people around like actors or footballers, the effect on the price of their car insurance is far larger.

A spokesperson at Tiger.co.uk said, “There are definitely interesting discoveries here, but maybe none that come as too much of a surprise. A people carrier is something of a predictable car for a housewife to drive and indicates their need to be driving children around more often. A small cute car such as the Ford Ka is what you might expect for hairdresser and a dependable car like a VW Golf is sensible choice for a mechanic. Maybe we would have thought we’d find something a little more sophisticated for an investment banker but perhaps this is an indication of the recession biting! ‘

Drivers professions have a marked effect on the price of their car insurance so it is recommended that all drivers double check they are choosing the right job title when getting their car insurance quotes.

Source : Tiger.co.uk

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Vincent Chaney has been appointed to the role of eCommerce and Marketing Director for insurance affinity specialist Junction. As part of his role, Vincent will ensure Junction’s partners remain at the forefront of the industry through ongoing technology innovation.

Vincent joined Junction in September 2009 as Associate Director, and since then has been an integral part of Junction’s senior management team. He has helped transform Junction’s eCommerce capability and, among other brands, led the Bradford and Bingley team that saw significant growth of its motor and home insurance portfolio.

Junction Managing Director, Peter Thompson, said: “Being in a position to confidently promote an individual within Junction is always a great achievement. Since joining us just over two years ago, Vince has made a demonstrable contribution to our business and that of our affinity partners. He is well respected by our clients and, as such, is well placed to lead the eCommerce and marketing team for ongoing success.”

Vincent said: “I have had an enjoyable and rewarding two years in Junction so far, working alongside talented colleagues to deliver profit and growth on behalf of our partners. In my new role, I look forward to building on our achievements in marketing and eCommerce to date. These are two areas of our business that undoubtedly offer substantial opportunity to position both Junction and our partners for future growth.”

A Cambridge graduate with a Masters in Engineering, Vincent has over ten years’ experience in senior roles within the financial services industry. Prior to Junction, this was gained as Head of Customer Strategy for HBOS and Head of Research and Commercial Development for business ratings company Trucost plc.

Source : Junction

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Commercial underwriting specialist Evolution Underwriting has made three promotions that help to ensure it is prepared for future growth.

Paul Starling has been promoted to the dual board-level roles of director of Evolution Technology Services and director and chief executive officer of Evolution Risk Services.  In addition to this Paul has also assumed responsibility for the day to day operation of the finance team. Paul’s new role will facilitate the further expansion of Evolution’s Stingray technology platform and re-affirms Evolution’s commitment to operational excellence.

Lee Batehup has been promoted to the role of senior technical underwriter. Lee’s role will expand as a referral point for both the existing and new business teams. He will work more closely with the sales team to drive development through the regions. This promotion further enhances Evolution’s commitment to enabling brokers to access decision makers quickly and easily.

Connie Brooks has been promoted to the role of office manager in formal recognition of the fact that her role has increased in scope over time.

Commenting on the changes Paul Upton, CEO of Evolution Underwriting said: These appointments are an important part of preparing for the future. Evolution has been building its brand, infrastructure and a reputation for technical excellence for seven years. We are now gearing up for phase two. These changes demonstrate our readiness to grow when the time is right and also the board’s absolute commitment to developing our people. Evolution has a philosophy of promoting from within where possible and recognising achievement and performance to ensure that professionalism is maintained for the future and our standards continue to be excellent.”

Source : Evolution

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Ecclesiastical’s efforts to combat the nationwide epidemic of metal theft have been recognised at this year’s Risk Management Awards.

Ecclesiastical won the award for Best Use of Risk Management in Financial Services at the event in London’s Lancaster Hotel.

David Bonehill, Ecclesiastical’s claims and risk services director, said: “Metal theft has been a huge problem for our churches, heritage properties and schools over the last five years and we’ve been working extremely hard to identify the best security measures and help our customers tackle the issue. Winning this award is a great recognition of all the efforts undertaken by our regional insurance consultants and surveyors, underwriters, claims team, and everyone else in the company working hard to put an end to this epidemic destroying our heritage.

“Our risk management strategy has been to provide our customers with the best possible information and intelligence to help them protect themselves while actively encouraging the use of deterrents. We have also engaged with other industries and groups at the national level to ensure we’ve been central to the metal theft debate in this country.”

Ecclesiastical has championed the use of the forensic liquid SmartWater in the faith sector to deter metal theft and recently piloted the use of wireless roof alarm systems. The insurer also actively participates in the work carried out by groups such as the Association of Chief Police Officers’ Metal Theft Group and Church Buildings Council Theft of Metal Group.

Theft of metal has been a major issue in the UK since 2006 with churches, transport infrastructure and the utility sector being hit particularly hard. During 2007–2008, insurance claims to Ecclesiastical from churches for metal theft peaked at 350–400 per month. After a reprieve in 2009, the trend has been upward during 2010 and 2011.

Between January 2007 and May 2011, Ecclesiastical has received more than 9,500 theft of metal claims from churches costing the insurer more than £25m.

The Risk Management Awards are run in conjunction with the Institute of Risk Management, the world’s leading risk management education institute. The awards event took place on Wednesday 16 November 2011.

Source : Ecclesiastical