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China Insurance Regulatory Commission (“CIRC”) has issued its approval in connection with the proposed transfer by AXA’s wholly-owned Swiss subsidiary, AXA Life ltd., of its entire 15.6% interest in Taikang Life, China’s 4th largest life insurer, to a consortium of new and existing shareholders. The consideration for this transaction amounts to USD 1.2 billion (or ca. Euro 0.9 billion). This corresponds to implied 2009 multiples of 21x net earnings1 and 6x book value1.

This transaction is expected to generate a positive impact of ca. Euro 0.8 billion in Net Income and reduce debt gearing by 1 point in the first half of 2011.

The completion of the transaction is subject to obtaining other CIRC approvals which are pending.

AXA continues to actively develop its life insurance business in China through AXA-Minmetals, its joint venture with Minmetals Corporation. As announced on October 28, 2010, and pending regulatory approvals, this company will be transformed into ICBC-AXA, a joint venture with the largest Chinese bank by assets and clients. This joint venture will be the vehicle for AXA’s growth in the Chinese Life insurance sector. The sale of AXA’s interest in Taikang Life, which was acquired through the Winterthur transaction in 2006, is motivated principally by Chinese regulatory positions restricting the ability of foreign investors to hold multiple interests in the Chinese life insurance sector.

Source : AXA Press Release

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Shares in Swiss Re, one of the world’s  biggest reinsurers, fell 4.6 percent in early trading on Friday after Japan  was struck by its biggest earthquake on record and a giant tsunami.

“It is too soon to have financial consequences (estimates),” Swiss Re  spokesman Tom Armitage told AFP.

Total Swiss Re gross written premiums and fees in Japan amount to $688  million, including $469 million in non-life insurance, according to data  provided by the reinsurer.    The reinsurer’s shares plunged by over 8.5 percent at market open, before  recovering to $51.15, a drop of 4.6 percent at mid-morning. It remained  however the worst performer on the Swiss Market Index, which was down 0.52  percent.

Geneva, March 11, 2011 (AFP)

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The H1N1 swine flu that swept the globe in  2009/10 could easily morph into a more transmissible form, while an older,  mid-20th century virus could also come roaring back, scientists warned this  week in separate studies.

The so-called Asian influenza, a H2N2 strain, first appeared in 1957 and  killed one to four million people despite a major vaccination campaign.

Studies have shown that most people today aged 50 or older retain some  immunity to the virus, which continues to circulate in birds and swine.

Those younger, however, are acutely vulnerable to H2N2, which increases the  chance that the potentially lethal strain will jump back into humans and once  again spread across the world.    “H2N2 looms as a public health threat, and could re-emerge,” Gary Nobel, a  researcher at the Vaccine Research Center of the U.S. National Institutes of  Health and lead author of a commentary published Thursday in Nature.

Governments, the World Health Organisation (WHO) and drug companies “should  develop a pre-emptive vaccination programme,” he urged.

Nobel outlines three strategies for anticipating a resurgence of the  bird-borne virus.

One is to manufacture the same vaccine licenced in 1957 and immediately  inoculate enough of the world’s population to provide what scientists call a  “herd immunity” to the rest.    Alternatively, health authorities could stockpile the same vaccine in the  event of an outbreak, or make “master lots” and ramp up production at the  first sign of an outbreak.    Acting now would be far more cost effective than waiting for the strain to  reappear, Nobel argued, citing a US government study estimating that a flu  pandemic costs the United States 71 to 167 billion dollars.

In another study, published in the online science journal PLoS One,  researchers at MIT in Boston led by Ram Sasisekharan identified a single  mutation of the 2009 H1N1 virus that would greatly boost its ability to spread  among humans.

This is precisely what happened to the original H1N1 strain, which first  emerged in the fall of 1917 in a mild form before coming back nine months  later in a far more deadly variant, a two-wave pattern typical of flu  pandemics.

In total, the Spanish flu, as it was known, killed at least 50 million  people — fully three percent of the world’s population at the time — before  subsiding, though many of those deaths were due to the absence of antibiotics.    “There is a constant need to monitor these viruses,” Sasisekharan said in a  statement, calling on governments to check strains and share information.

The major factor in flu transmissibility is the structure of a protein on  the surface of the virus called hemagglutinin, or “HA” for short.    The tightness of the fit between HA and the respiratory receptor cell in  the human respiratory tract determines how easily the virus infects a host.

The 2009 H1N1 strain — like the first wave of the 1918 flu — does not  bind efficiently, one of the main reasons the death toll from the recent  outbreak was lower than initially feared.

But it only took one small mutation for the 1918 virus protein to become a  mass killer.

Moreover, the locus of the mutation spotted in the study is in a part of  the viral genome that is prone to frequent change, raising the chances of such  a mutation.

The swine flu — so named because it was first identified in pigs in Mexico  — has killed some 18,500 people since emerging in the spring of 2009,  according to the WHO.

Paris, March 10, 2011 (AFP) –

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Aon Risk Solutions has appointed the new leaders of its Professions practice in London, and made a number of strategic new hires. The team provides specialised insurance brokerage and risk advisory services to professional service firms, including some of the world’s largest legal, accountancy, consultant and design professional firms.

A recent restructure has seen:
David Powell formally appointed head of Professions in the UK. David is an 11 year veteran of Aon. He brings 27 years of expertise within the insurance industry to the role.

Giles Bentley assigned the role of leader of the UK solicitors/consultants business. He has also taken on responsibility for leading client service in the UK. With 26 years of experience in the client facing role, this additional responsibility is seen as a natural expansion to his existing responsibilities within the professions arena.

Andrew Newton has been appointed leader of Aon’s UK Accountant’s retail team. He adds this responsibility to his existing client facing role, working with the “Big 4” accounting firms.

Additionally, the Professions team has expanded, with the following colleagues joining the team:
Michael Earp, most recently at Willis’ FINEX Division for the past five years, joins Aon as executive director and will lead the UK Design professional team, helping the country’s leading architects, engineers and construction companies with design capabilities manage their professional exposures. Michael is a construction expert and brings over 30 years of experience in the industry to his role, including time spent as both an underwriter and broker.

Jane Hunter will be joining Aon as executive director and will provide loss prevention and risk management advice and expertise to clients. She joins from law firm Bird & Bird LLP where she has been a practicing solicitor for the last four years.

Eve McBrinn joins Aon as director within the Professions team and will provide claims advice, bringing 15 years experience as a professional indemnity solicitor, the last three of which were spent at Thomas Egger LLP.

Tony Kavanagh joins Aon as director within the Professions team and will provide insurance brokerage and risk advisory services to UK solicitors and consultants.

David Powell, head of Aon’s Professions team in the UK commented: “The landscape for professional service firms has rarely been so complex, making the management and transfer of risk of paramount importance.

“The strengthening of our Professions team further demonstrates our commitment to our professional service firm clients. We are proud of the unique and extensive knowledge that we bring to our clients. We believe that our market access and expertise continues to be second to none and that our integrated global platform is truly beneficial to our global clients.”

Source : Aon Press Release

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Aon Benfield today announces the launch of the Market Analysis team within Aon Benfield Analytics.

The Market Analysis team, which has evolved from Aon Benfield Research, provides in-depth reports on reinsurers and insight into reinsurance market trends. Aon Benfield Research will now focus entirely on the firm’s academic and industry research collaboration.

Over the past year, as part of ongoing investment in Analytics, Aon Benfield has more than doubled the size of the team specializing in the analysis of the reinsurance markets. The decision to form a dedicated Market Analysis team reflects the team’s capabilities in response to the increased emphasis on credit risk, due to the financial market crisis and recent proposed or enacted regulatory standards.

Mike Van Slooten, Head of the International Market Analysis team, said: “We want our clients to recognize that we have a dedicated team that scrutinizes their reinsurance counterparties and will keep them informed of emerging trends in the industry.  There is a huge amount of information in the reinsurance market.  Our clients need a trusted source to quickly tell them what is important and how it will impact them.”

The Market Analysis team publishes reports on reinsurance markets at both individual and group level through MarketReViewTM, Aon Benfield’s proprietary internet portal. The information available through MarketReView combined with the additional client service capabilities of the Market Analysis team help (re)insurers to make more informed business decisions.

Mike McClane, Head of the U.S. and Bermuda Market Analysis team, added: “The analysis of reinsurers is a lot more challenging than a few years ago.  The balance sheets of reinsurers are becoming increasingly complex to analyze due to sophisticated investments, securitizations, hedging strategies and a more complex capital structure, including contingent capital and hybrid equity.  In addition, it is important to understand the intercompany obligations among a reinsurance group and how freely capital can move between affiliates.  We now have a larger client servicing team conducting the credit analysis and forwarding the information quickly to our clients.”

Source : Aon Benfield Pres Release

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    In the same day, Google has acquired British comparison website BeatThatQuote.com for £37.7m and has then penalised its ranking.

    Google decided to slap on a penalty to lower its ranking because of disrespect of Google’s webmaster’s guidelines.

    As the news of the acquisition came out, SEOBook called out the site’s aggressive SEO tactics.

    Aaron Wall shows how the site was using techniques that went against Google’s guidelines, such as link buying, doorway pages and other questionable techniques.

    Shortly after, BeatThatQuote.com was penalised in Google. It wasn’t an all outright ban, being that the site is still indexed but if you search for the name of the site, it does not come up at the top of the results anymore.

    With Search Engine Land

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    XL Insurance announced expansion of its North America Programs team with the appointment of three executives including Quinnon (Pete) K. Purvis. Mr. Purvis joins as President for North America Programs, succeeding John Hartman who recently announced his retirement from XL Insurance. Mark R. Mahanna and Christopher A. Bressette also join XL’s North America Program team as SVP, North America Programs, reporting to Mr. Purvis. All three will be based in Boston.

    Mr. Purvis reports to Seraina Maag, Chief Executive of XL Insurance’s North America Property & Casualty (P&C) unit in New York. According to Ms. Maag, “We’re pleased that Pete, Mark and Chris have decided to join XL especially as John announces his retirement and we look to continue the growth momentum that he started here. With more than 70 years of collective experience, they bring additional energy to a team with a strong track record in not only managing and growing profitable program business, but in cultivating the kind of longstanding relationships with brokers and program administrators that drive successful programs.”

    Ms. Maag continued: “Under Pete’s leadership, we look forward to growing our book of programs by teaming up with qualified program administrators who are experts in the industries they serve and extending our quality coverage to benefit more industries.”

    Mr. Purvis joins XL Insurance from Lexington Insurance Company where he served as Senior Vice President and Senior Product Line Manager for Multiline Programs and managed programs business comprised of programs offering property, casualty, auto, and excess/Umbrella to targeted industry segments. Mr. Purvis’ three decades of industry experience also includes management, underwriting and marketing positions with Crum and Foster, Commercial Union Insurance Companies, Assurex Marketing Group, The St. Paul’s Companies and Federated Mutual Insurance Companies. A graduate of Milligan College, he holds a Chartered Property Casualty Underwriter (CPCU) designation and a graduate degree in Business Management from Harvard University.

    Mr. Mahanna and Mr. Bressette also join XL from Lexington Insurance Company. Mr. Mahanna served as a Vice President and managed a significant book of program business there, including Human & Social Services business as well the company’s Canadian Program business. His career also includes tenure with Hanover Insurance Company, St. Paul Insurance Company, and Liberty Mutual. He earned his BA in Business Administration from Stonehill College and his MBA from Boston’s Suffolk University. Mr. Mahanna also holds a Chartered Property Casualty Underwriter (CPCU) designation.

    Mr. Bressette served as a Vice President and managed departments with more than 20 Programs offering industry-specific property, casualty, inland marine, ocean marine and auto coverages. His professional experience includes underwriting and marketing positions with Aetna Casualty Providence Washington Insurance Company and the Arbella Insurance Group. He is a graduate of Trinity College in Hartford, CT and earned his MBA, with a concentration in Risk Management and Insurance, from the University of Texas at Austin.

    Source : XL Insurance Press Release

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    Fitch Ratings has affirmed Brit Insurance Limited’s (BIL) Insurer Financial Strength (IFS) rating at ‘A’ with a Stable Outlook. The agency has also affirmed Brit Insurance Holdings N.V.’s (BIHNV) Long-term Issuer Default Rating (IDR) at ‘BBB+’ with a Stable Outlook and its subordinated notes at ‘BB+’.

    The rating action follows both the publication of FYE2010 results for Brit Insurance Group on 25 February 2011 and the subsequent announcement made on 9 March by Achilles Netherlands Holdings B.V. (Achilles) confirming that its recommended cash offer to purchase Brit Insurance has been declared wholly unconditional. Achilles is majority-owned by funds managed by the private equity (PE) firms, Apollo Management VII, L.P. (Apollo) and funds advised by CVC Capital Partners Limited (CVC).

    The rating affirmations and Stable Outlook reflect Brit Insurance’s solid financial profile, which is supported by both a strong level of risk-adjusted capitalisation and reported FY2010 earnings that exceeded Fitch’s forecast. The affirmation also reflects the agency’s expectation that post-acquisition, the financial profile will remain within the insurer’s existing target range of mid to high ‘A’. This expectation is based on meetings with representatives from both Apollo and CVC.

    Fitch will closely monitor Brit Insurance’s post-acquisition profile, specifically that consolidated group adjusted leverage is maintained below 30% and that Fitch risk-adjusted capitalisation remains at a level at least commensurate with the current ratings. Fitch notes that the acquisition of Brit Insurance will not result in an increased level of regulatory capital being required post-acquisition, as a result of the change in ownership. The agency understands that the level of risk assumed within the investment portfolio will be raised modestly in an effort to increase returns and Fitch will also monitor this closely.

    Fitch anticipates that Brit Insurance’s existing management team will retain the day-to-day running of the business, with underwriting discipline being maintained and future premium growth being reflective of market conditions. The agency will also monitor the effects of the transaction on Brit Insurance’s ability to retain both strong insurance business and talented staff.

    Failure to maintain consolidated group leverage and capitalisation at levels at least commensurate with the current ratings would potentially result in a downgrade. The transition from a public to private company resulting in a significant loss of business or detrimental change in business strategy would also be viewed negatively. A marked and sustained improvement in earnings coupled with capitalisation in excess of the current rating level could result in an upgrade.

    Source : Fitch Rating press Release

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    Google has acquired UK price comparison website BeatThatQuote for 37.7m GBP.

    The US search engine giant’s cash will largely go to north London entrepreneur John Paleomylites who owns 90% of BeatThatQuote, a smaller rival to sites such as Go Compare and Compare the Market.

    Google wants to expand its involvement in price comparison products – it already runs a service called Comparison Ads in the US and has some limited offerings in the UK focused on credit cards and insurance.

    Paleomylites used to run internet security company JCP, which was set up in 1995 and originally financed using his credit card. He sold it to Sun Microsystems in 2000 for £40m, netting him an estimated £10m according to the Sunday Times rich list.

    BeatThatQuote was founded in 2005, and in the year to 31 January 2010 – the last year for which accounts are available – the company generated £8.5m in turnover and a loss of £2m.

    Although BeatThatQuote is not considered to be a market leader, Google is understood to be keen to run the business as a standalone brand at first, gradually building up its marketing and distribution power through increasing tie-ups with the search engine itself.

    Google also believes that the price comparison market should be simplified – and that existing competitors are either too complex, requiring consumers to make too many clicks, or bombard customers with email marketing. However, there are no plans to expand the company internationally.

    In a statement on the company’s website, Paleomylites said: “We are confident that by combining BeatThatQuote’s expertise in UK financial products with Google’s technology, we’ll accelerate innovation in this field.”

    Source : Guardian.co.uk

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    Standard Life launched Insights into Financial Responsibility (IFR). It defines how financial behaviours are changing in the relationship between employers and employees. The research is set against the context of recent financial volatility and forthcoming pension legislation change. The IFR provides insight into the role of the workplace in taking control of financial security.

    The IFR has been developed in partnership with leading Occupational Psychologist Emily Hutchinson. It addresses the issues of financial planning, employee communication and financial responsibility. The research is based on a survey of 250 employers and over 1,000 employees within the UK’s largest companies.

    Amongst the key findings was that eight in ten employers feel responsible for their employees’ financial security with nearly a quarter (22%) feeling it is their primary responsibility.

    According to the IFR, employers believe that employee communication has improved over the past five years (65%). However, almost the same number (64%) of employees felt that either nothing has changed or the situation has deteriorated.

    Though when asked about support with financial planning, three quarters (75%) of employees stated they would value more help from their employer. Two thirds (64%) of employers said that they thought offering help through financial planning would make them more attractive to potential new employees.

    The IFR was published yesterday to coincide with the launch of Lifelens by Standard Life, an innovative employee pension and benefits portal. Lifelens has been developed based on extensive employee and employer insight. It is the first platform to address employer needs around cost management, benefit provision and administration efficiency with employee needs around pension savings, benefits and education/information. Lifelens provides a one stop portal for employees, making it easier to view and manage their benefits.

    Gerry O’Neill, Managing Director, Corporate Solutions at Standard Life said: “The Insights into Financial Responsibility provides new and meaningful insight into the employer-employee relationship and its influence on financial behaviour. What’s clear is that since the downturn, employers feel more responsible for their employees’ financial security and employees in turn are looking to their employers for help with financial planning.

    “Interestingly, employers seem to think they are doing a good job when it comes to communicating with staff. This isn’t the view of many employees and shows that more needs to be done to increase volume and improve quality of communication, in particular around financial issues and the benefits available. Against the backdrop of a reduction in government support and the closure of final salary schemes, it is critical that employers take on a new active role in helping their staff plan for the future.”

    Emily Hutchinson, Occupational Psychologist, said: “The Insights into Financial Responsibility reveals that although it is recognised that the individual is primarily responsible for their financial security, they would happily benefit from help in planning and securing that.

    “However 90% of both employers and employees feel there is a role that the employer should take in supporting individuals to secure their financial future. This is a fascinating insight into the pressures and expectations felt by both sides of the debate.”

    Additional findings from the IFR include:

    – Two in five (38%) employers expect their employees to spend more than 10 years at their organisation. Just under half (48%) of all employees expect to spend more than a decade with their employer

    – Over half (56%) employers think the role of providing support and security to employees is more important than five years ago

    – Eight in ten (81%) employers agree that providing benefits increases the level of employee engagement. Two thirds (66%) of employees agreed that benefits increase motivation at work

    – Two in five (40%) employers believe over half of their employees take full advantage of the benefits available to them with one in three (30%) having no idea about the level of uptake of benefits. Only a quarter (25%) of employees say they make full use of their benefits.

    Source : Standard Life Press Release

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    From New Orleans, to Venice and Rio de Janeiro, people are dancing in the streets.

    It’s Mardi Gras season, and millions of revellers throughout the world join the celebrations with wild street parties, masquerade balls, and spectacular parades.
    Rio’s Carnival alone attracts more than 700,000 tourists annually and pumps $500 million into the city’s economy. For organisers and performers, more is at stake than just some pre-Lenten indulgence.
    The celebrations are the culmination of months of hard work, preparation, and financial investment, and anyone with a role in organising the festivities also has an incentive to protect their assets. That’s where festival and street party insurance comes in.

    Revelling risks

    “Lloyd’s has a role in insuring the majority of major events around the world, including major carnivals and festivals. As a specialist insurance market it is very relevant in contingency and event insurance and there are lots of risks coming to Lloyd’s from the overseas markets, where the local markets don’t have the appetite or expertise to cover it,” said Jon Wilkinson, Chief Operating Officer of WorldWide Special Risks, a Lloyd’s coverholder that writes policies specifically for festivals and street parties.
    The need for this type of specialist cover is certainly there. In early February, a warehouse fire destroyed millions of dollars worth of costumes, props and floats for three samba groups due to participate in the Rio Carnival parades. Losses for one group reportedly reached $5.5 million (US).

    Celebration cover

    There are three main areas of coverage for street parties and festivals. Public and employers liability cover protect event coordinators in the event they are accused of being negligent, and most often when someone is injured at the venue.

    Cancellation or abandonment cover will reimburse organisers for costs, as well as expected profits if certain festivities must be cancelled, even if it’s due to adverse weather conditions. Finally, property damage ‘all risks’ cover will protect both owned and hired costumes and equipment in the event of theft or damage.

    Even when disaster strikes the best planned events, paying losses isn’t the only way insurers help. “Sometimes insurers are the ones that make sure the show can go on,” said Wilkinson. He gave the example that his firm will organise and supply matting for walkways that may be too wet or slippery for the event to take place otherwise. “Insurers are often willing to lay out costs for their clients to enable the event to go ahead that would be otherwise cancelled. We work with specialist adjusters to determine how we can help save an event. That’s the positive side to this type of insurance,” he said.

    Source : Lloyds

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    A survey has found that Australian mothers prefer not to face the reality of getting life insurance. Even though 83 per cent say their untimely death would place a huge financial burden on their family, more than 62 per cent do not have life insurance.

    And as many as one in four would prefer the nappies and one in five the discomfort of the doctor and dentist’s chair than addressing the issue, according to the survey by Lonergan research.

    85 per cent of the 1032 women aged between 30 and 44 surveyed were frustrated with the industry, with costs, time and a lack of understanding of the benefits the main concerns.

    With two thirds of the surveyed mums in charge of household administration, this leaves a lot of families uninsured.

    Dee Madigan, panellist on ABC TV’s The Gruen Transfer and creative director of Madigan Communications, said for mums the “what happens if I die” question is “almost too awful to deal with”.

    “Insurance is really tricky to sell because you’re basically selling a product people will hopefully never need,” Ms Madigan said.

    “We know from lots of research that if you show something truly tragic, rather than motivating people to act, it has the opposite effect – people shut down and don’t respond. That’s why even life insurance tends to be dealt with in a reasonably light-hearted way.”

    Anecdotal responses to ad campaigns on the internet show the difficulties the insurance industry has getting it right.

    “Most of the ads seem to focus on ‘what if the husband dies’,” says Ms Madigan, which may explain why they struggle to attract female customers.

    If it’s not women comparing the cost of insurance to gossip mags over a drinks break at the tennis club, it’s a middle aged woman rapping in her bakery.

    Canberra mother-of-three Pirra Jaide is typical of who the industry is trying to reach but says while she has health, car, and home and contents insurance she does not life insurance.

    Ms Jaide says the ads were “really annoying” and failed to convince her because they did not adequately represent her. Even though I’m in my mid-thirties, most of the women in these ads come across as being older and you don’t identity with them,” she said.

    “No one likes to think about their own death. So [life insurance] doesn’t really register on the radar. When you’re young you don’t really think death is something that is going to happen to you. The protection of your health and your family’s health is a little more immediate and ongoing.”

    Amanda Connors, marketing director for Priceline, which has just launched a new insurance product aimed at women with families, says: “So far the insurance industry hasn’t been able to find a way to really reach mums.”

    “Mums, more than anyone, know how important it is to safeguard their families – they do it every day, but they don’t want to have to trawl through masses of paperwork and jargon when it comes to insurance.”

    Source : News.com.au

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    The European Insurance and occupational Pensions Authority (EIOPA) today announced the members of its two stakeholder groups, the Insurance and Reinsurance Stakeholder Group as well as the Occupational Pensions Stakeholder Group. These groups each include 30 members and are established to facilitate EIOPA’s consultation with stakeholders in Europe on issues such as regulatory and implementing technical standards in addition to the guidelines and recommendations that apply to the insurance and occupational pensions industry.

    Members of the stakeholder groups can submit opinions and advice to EIOPA on any issue related to its task. Furthermore, the stakeholder groups are expected to notify EIOPA of any inconsistent application of European Union law as well as inconsistent supervisory practices in the different European member states.

    The new Insurance and Reinsurance Stakeholder Group is currently composed of ten industry representatives, five consumers, eight users of insurance and reinsurance services, two representatives of trade unions and five independent academics.

    The new Occupational Pensions Stakeholder Group is currently composed of ten industry representatives, three beneficiaries and consumers, five professional users, seven employee/employer representatives and five independent academics. Both stakeholder groups are expected to convene for the first time at the beginning of the second quarter of 2011.

    EIOPA received around 100 applications from high level experts for each stakeholder group after a public invitation for interested candidates to apply for membership. Those eligible for membership were qualified individuals selected on the basis of their expertise in the area of financial services.

    The composition of the two stakeholder groups is based on legal requirements as defined in EIOPA’s regulation. Additionally, EIOPA aimed for outstanding professional expertise, appropriate geographical and gender balance to achieve the best available representation of stakeholders across the European Union.

    The members of the stakeholder groups were appointed by EIOPA’s Board of Supervisors after a pre-selection by EIOPA and its Management Board. The new stakeholder groups replace the so-called Consultative Panel that was established under CEIOPS, the organisation that preceded EIOPA. At a minimum, the stakeholder groups will meet four times a year. The members of the stakeholder groups may serve up to two consecutive terms of two-and-a-half years each.

    Source : EIOPA Press Release

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    China plans to set up an insurance exchange in Shanghai as part of efforts to build the city into an international financial centre, the state media said on Monday, citing top insurance regulator Wu Dingfu.

    Wu, chairman of the China Insurance Regulatory Commission (CIRC), also said there was limited scope to increase the proportion of assets insurers can use to buy stocks and mutual funds, the official China Securities Journal said.

    However, there was significant room to lift the ceiling on direct financing by insurance companies, the official newspaper said.

    Wu made the remarks on the sidelines of the annual meeting of parliament.

    Wu did not give details on the planned Shanghai insurance exchange, but previous local media reports said that the exchange would offer risk securitisation products, catastrophe bonds and insurance derivatives at a later date.

    China currently limits the proportion of their assets that insurers may invest in stocks and equity funds combined to a maximum of 25 percent.

    The CIRC is also considering raising the ceiling on investments in unsecured bonds, Thomson Reuters publication IFR reported last week, which could see more cash flowing into the corporate debt market

    Source : Reuters

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    Allianz has launched a campaign to highlight the fire risks associated to timber frame construction sites.

    The company has issued thousands of fire safety leaflets to its brokers and clients as it seeks to help reduce the frequency and severity of timber-related construction site fires that have occurred in recent years.

    The campaign draws attention to the minimum site safety standards as set out in the Joint Code of Practice on the Protection from Fire of Construction Sites and Buildings Undergoing Renovation.

    The leaflet also contains a comprehensive list of do’s and don’ts with the aim of ensuring that adequate fire detection and prevention systems are incorporated during the design and planning stages and that work on a site is undertaken to the highest standards of fire safety.

    Martin Ball, underwriting and operations manager for Allianz Engineering, said: “To date, priority has largely been given to implementing health and safety measures which protect the personnel on site, which is, of course, very important. We hope this campaign will create awareness amongst brokers and help clients to put the fire security of their sites and the physical assets higher up the safety agenda.”

    Steve Coates, head of property and casualty at Allianz Commercial, said: “There has been a significant growth in timber frame construction projects and figures suggest that 35% of new builds in the UK are now timber frame. Importantly, many of these projects are now high-rise – presenting an even greater fire risk.”

    He adds: “The number of high-profile fires in recent years should be a warning that site personnel need to be aware of the risk of fire at all times and take the necessary prevention measures.”

    Source : Allianz Press Release

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    Fitch Ratings has revised the rating Outlook on Groupama S.A. and four of its core insurance subsidiaries’ to Negative from Stable and affirmed their Insurer Financial Strength (IFS) Ratings at ‘A’. The subsidiaries are Groupama GAN Vie, GAN Assurances, GAN Eurocourtage and Groupama Transport. Fitch has also affirmed Groupama S.A.’s Long-term Issuer Default Rating (IDR) at ‘A-‘ and subordinated debt ratings at ‘BBB’. A full rating breakdown is provided at the end of this comment.

    The Negative Outlook reflects the deterioration of the group’s profitability and capital adequacy as well as the challenging financial and claims environment which negatively impacts Groupama’s financial profile.

    The key rating drivers that could result in a downgrade include deterioration or limited recovery of the group’s financial profile, especially in terms of solvency, as well as its inability to translate tariff increases into sustainably stronger underwriting performance in non-life (combined ratio near 100%).

    The rating rationale is Groupama’s satisfactory solvency and low debt in relation to the risk profile, which benefits from a large degree of business and risk diversification. The ratings also take into account its solid business position and marginal profitability.

    Fitch expects Groupama’s capital adequacy to recover from the low level reached at year-end 2010, as growing retained earnings should compensate for increased capital requirements largely relating to internal growth. Fitch considers that Groupama’s largest challenge will be to successfully finalise the ongoing integration of recently acquired operations in several markets to deliver significant synergies expected in the coming years, and address goodwill accumulated on the balance-sheet. Fitch also expects Groupama to gradually reduce the share of its equity investments.

    Excluding the impact of financial market volatility, Groupama’s profitability can likely still be improved. However, competitive underwriting conditions in a number of business lines and the repeated occurrence of natural catastrophe events have challenged the group’s ability to achieve significant earnings improvement in recent years, including 2010.

    Fitch has affirmed the following ratings of Groupama S.A. and its subsidiaries:

    Groupama S.A.

    IFS rating: ‘A’; Outlook revised to Negative from Stable

    Long-term IDR: ‘A-‘; Outlook revised to Negative from Stable

    Subordinated debt: ‘BBB’

    Junior subordinated debt: ‘BBB’

    Groupama GAN Vie

    IFS rating: ‘A’; Outlook revised to Negative from Stable

    GAN Assurances

    IFS rating: ‘A’; Outlook revised to Negative from Stable

    GAN Eurocourtage

    IFS rating: ‘A’; Outlook revised to Negative from Stable

    Groupama Transport

    IFS rating: ‘A’; Outlook revised to Negative from Stable

    Source : Fitch Ratings press Release

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    The focus of this one day conference is on technology in Financial Planning, particularly in relation to risk.

    With a balance of practice management, technical and personal development sessions the day has plenty to offer advisers and planners.

    It’s ideally suited to business owners and managers, but also to advisers who are transitioning their business towards a more client centric, Financial Planning model.

     

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    Liberty Mutual Insurance Europe (LMIE), a member of Liberty Mutual Group, is launching a major push into commercial lines mid-markets.

    The company has been building its infrastructure in the sector, refining its offering and recruiting key personnel over the past year and, to become a recognised and credible alternative to existing commercial carriers, LMIE will expand its network of regional offices in the UK and its suite of commercial insurance products during 2011.  The main focus for growth will be in the UK market although the company also writes commercial business in Ireland through its Dublin branch.

    Focusing on corporate sector mid-market and larger SME risks, the commercial operation will offer property, casualty and financial lines backed up with risk management and risk engineering services as well as some more specialised products.  The company will continue to provide a range of specialty products via its London Market, Continental European and International operations under the Liberty International Underwriters (LIU) brand.

    To manage broker strategy while promoting the company’s commercial products, services and brand, LMIE has recruited a business development team for UK business under the leadership of Mark Stephenson, Head of Business Development and Market Relations. The new team is an integral part of LMIE’s plans and Mr Stephenson will be supported by Neil Findley and Ian Cook covering the northern and southern UK, respectively.

    The new division will report directly to LMIE CEO Sean Rocks, who will remain closely involved in managing the venture during the early stages of its development.

    Explaining LMIE’s new strategic focus on commercial, Mr Rocks said: “We have had a commercial offering for a few years now operating out of London and Dublin as well as regional offices in Bristol, Cheltenham and Manchester.  Our presence in this segment has been well-received by brokers and we have begun to score well in broker surveys.

    “Now, we’re making major investments in our newly-restructured LMIE commercial division in products, people and expanded distribution, and we are looking to establish the Liberty Mutual brand as a recognised, trusted name in the sector. The net result of this activity will be a modern, highly skilled commercial and corporate insurance operation backed by responsive service enabling us to provide first class solutions to our brokers and clients.”

    Source : Liberty Mutual Press Release

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    AXA Asia Pacific announces that the Supreme Court of Victoria has today made orders approving the schemes of arrangement between AXA APH and its shareholders and rightsholders, in relation to the proposed merger of AXA APH’s Australian and New Zealand businesses with AMP and the sale of AXA APH’s Asian businesses to AXA SA.

    It is expected that a copy of the Court’s orders will be lodged with the Australian Securities and Investments Commission tomorrow (Tuesday, 8 March 2011), at which time the Schemes will become legally effective.  A further announcement will be made once this has occurred.

    Following this, AXA APH’s shares will be suspended from trading on the ASX at the close of trading on that day.  AMP ordinary shares, which are to be issued to AXA APH minority shareholders under the share scheme, are expected to commence trading on a deferred settlement basis on Wednesday, 9 March 2011 under ASX code “AMPN”.

    The share scheme consideration is expected to be despatched to AXA APH shareholders on Wednesday, 30 March 2011.

    Source : AXA Press Release

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    Billionaire Warren Buffett’s Berkshire Hathaway says it is entering India’s insurance market.

    Berkshire India said it will start by selling auto insurance as an agent of India’s Bajaj Allianz General Insurance and may move into other lines of insurance as well.

    Its focus will be on direct sales, via internet and phone.

    Foreign companies have been eager to break into India’s booming insurance market but have been stymied by strict ownership limits.

    Source : Businessweek