Saturday, September 21, 2024
Home Authors Posts by John Stewart

John Stewart

Profile photo of John Stewart
3387 POSTS 0 COMMENTS
http://www.news-insurances.com

0 0

Officers from Nato are to hear from the Lloyd’s Market Association (LMA) as part of a three-day anti-piracy workshop in Germany.

Neil Smith, the LMA’s head of underwriting has been invited to offer Nato officers an insight into the London insurance market’s perspective on piracy and explain how the market handles this risk.

Mr Smith said:

“Nato is keen to get a broader, non-military perspective on piracy. They particularly want to understand its impact on insurers, both operational and financial.

“The LMA believes this is a very positive initiative and I’m delighted to have been asked to talk to these officers.”

EU NAVFOR is the European Union’s naval force combating piracy in the waters off Somalia. Nato personnel make up a major part of the force.

The anti-piracy workshop takes place at the Nato School in Oberammergau, Germany from 21-23 February.

The NATO School at Oberammergau (NSO) conducts education and individual training in support of current and developing Nato operations, strategy, policy, doctrine and procedures.

Source : LMA Press Release

0 0

Swiss Re announced its 2010 net profit soared 74 percent to $863  million (635 million euros) but it still fell well short of analyst forecasts.    Analysts had expected $1.2 billion in profits for 2010.

The group’s property and casualty underwriting services were hurt by high  natural disaster claims, with operating income down 30 percent.    Floods in Queensland, Australia, were expected to cost $100 million in the  fourth quarter, with another $225 million in claims coming in this year.    In addition, claims from Australian cyclone Yasi were seen reaching $100  million.

Nevertheless, the company, a pillar of the global reinsurance industry, has  gradually been rebuilding its capital base in a business turnaround since it  shed the risky investment policy that left it shaken two years ago.    In 2008, Swiss Re posted its biggest-ever loss of 864 million Swiss francs  ($901 million, 665 million euros), forcing the group to turn to Wall Street  sage Warren Buffett’s Berkshire Hathaway for fresh funds in the form of a  20-percent stake in the company.

In November 2010, it announced that it had repaid Berkshire Hathaway.    The group said that if impact of the Berkshire Hathaway repayment was  excluded from its 2010 earnings, then net income was at 2.3 billion dollars.    Swiss Re also moved to reassure investors, saying that its capital stood at  over $10 billion in excess of ratings agency Standard & Poor’s ‘AA’  requirements at the end of 2010.

It added that it would propose a dividend of 2.75 francs share, described  by analysts at Bank Vontobel as “solid.”    In morning trade, the stock was up 1.25 percent at 56.70 francs,  outperforming a weak Swiss Market Index which was down 0.17 percent.

Zurich, Feb 17, 2011 (AFP)

0 1

Fitch Ratings has revised Aviva’s Outlook to Stable from Negative and affirmed its Long-term Issuer Default Rating (IDR) at ‘A’.

The rating actions reflect the recovery in Aviva’s capital position, driven by financial markets and balance sheet de-risking. By end-H110, total equity had increased to GBP15.8bn (end-2008: GBP14.6bn) and the surplus in Aviva’s with-profit (WP) funds, a major component in Fitch’s assessment of the group’s overall capital strength, had increased to GBP4.2bn (end-2008 2.3bn). By end-Q310, Aviva’s regulatory capital (Insurance Groups Directive; IGD) surplus had increased to GBP3.6bn (end-2008: GBP2.0bn).

The ratings reflect the group’s diversification across product lines, with a broad range of life, non-life and asset-management products, and across regions.

In January 2011, Aviva announced plans to reduce external debt by at least GBP700m in 2011-2013, which is a positive rating factor, given the group’s strong liquidity.

Fitch views Aviva’s rated US entities, Aviva Life and Annuity Company and Aviva Life and Annuity Company of New York, as ‘very important’ to the Aviva group (as defined in “Fitch’s Approach to Rating Insurance Groups”, dated 24 March, 2010 and available at www.fitchratings.com) and factors one notch of group support into their ratings.

Aviva’s US entities remain subject to the risk that the US is not granted third-country equivalence or transitional arrangements under the evolving European Solvency II regulatory regime due to take effect from early 2013. “In the absence of equivalence or transitional arrangements for the US, Aviva’s US entities might face higher capital requirements than their US-owned peers, and might therefore become less viable under continued ownership by a European parent,” says David Prowse, Senior Director in Fitch’s Insurance team in London. “However, Fitch remains of the view that if the US is not granted third-country equivalence, it will be granted transitional arrangements.”

Fitch views Aviva’s capital as strong, albeit lower than some similarly rated peers’. Capital depletion relative to peers on Fitch’s risk-adjusted assessment might lead to a downgrade, as might a fall in Aviva’s IGD surplus cover to below 140%, a 20% fall in shareholders’ equity or a decline in Aviva’s WP surplus to the extent seen during the financial crisis. Aviva has significant investment exposure to commercial property. Adverse developments in this asset class that lead to capital depletion on the scale indicated above could lead to a downgrade. Conversely, if Aviva managed capital to a higher level, as some peers do, with IGD surplus cover around 200% and the WP surplus levels maintained, the ratings might be upgraded.

Source : Fitch Ratings Press Release

0 1

Lloyd’s Channel Syndicate 2015 has appointed David Leathem as Head of its Property Division.

David has 30 years’ experience in the London market and has built an international property account from a standing start for previous companies.  David will be joined by an experienced team very shortly.

Commenting on the appointment, Richard Harris, Chief Executive of The Channel Syndicate said “We are delighted that David is joining the Syndicate to head up the Property Division with effect from today. David brings a great deal of experience in the London Market which will be valuable as we build our Team and develop our business.”

Syndicate 2015 was authorised by Lloyd’s in the fourth quarter of 2010 to write Property Direct and Facultative, Accident and Health, Marine and Financial Lines for risks incepting on or after January 1st 2011 and is backed 100% by SCOR capital and managed by Whittington Capital Management Ltd.

Source : The Channel Syndicate Press Release

0 0

Eric Galbraith, Chief Executive of the British Insurance Brokers’ Association (BIBA), has called on the Financial Services Authority (FSA) to accelerate its fundamental review of the Financial Services Compensation Scheme (FSCS).

Eric Galbraith said: “I am concerned that recent comments by the FSA have shown that the FSCS issue is not as high priority for the FSA as it is for us and our members.

“The recent publication of the FSCS’s interim budget for 2011/12 with a potential further 50% increase in levies for insurance intermediaries highlights once again the fundamental unfairness in the current funding model. It is imperative that the FSA now pushes forward with its consultation process to ensure that a more equitable model is in place for April 2012.

“The huge increase in FSCS levies during the last three years for our sector has been caused by the failure of credit brokers who have mis-sold payment protection insurance. This has nothing to do with insurance brokers and therefore we are demanding that a revised funding model not only removes the current cross-subsidies, but also separates the professional insurance broker from the plethora of ‘secondary sellers’.”

Source : BIBA Press Release

0 0

Home & Legacy has announced a major increase in sales across its entire product portfolio, demonstrating a 26 percent year-on-year growth.

The success across Household (25%), Motor (32%) and Landlords (33%) lines during quarter four of 2010, in comparison to the same period in 2009, follows Home and Legacy’s decision to invest heavily in its product offering and operations to improve service levels to brokers and clients.

Barry O’Neill, managing director at Home & Legacy, comments: “These fantastic results are testament to the investment we have made to develop high-quality products and offer a level of service that high net worth brokers expect.”

In 2009, Home & Legacy refreshed its household policy and launched an online quote and buy facility for mid net worth (MNW) household clients, allowing brokers to obtain instant quotes and submit larger cases online for individual underwriting. Following this, Home & Legacy launched its flagship motor product, ‘Ultra Motor’ in 2010.

O’Neill adds: “Figures suggest that many brokers are seeing real value in our proposition and increasingly trust Home & Legacy with some of their most important clients. We will endeavour to make further enhancements to ensure the growth in the volume of enquiries and sales continues.”

“This level of growth would present challenges to any business. We continue to invest in our staff to and improved systems to ensure we deliver the consistent levels of service expected by our brokers.”

Source : Allianz press Release

0 0

Fitch Ratings has revised Atlanticlux Lebensversicherung S.A.’s (ATL) rating Outlooks to Stable from Negative and affirmed its Insurer Financial Strength (IFS) Rating at ‘BBB’ and Long-term Issuer Default Rating (IDR) at ‘BBB-‘.

The revision of the Outlooks to Stable from Negative reflects the recovery of the financial markets and the fact that ATL’s premium income and earnings held up relatively well despite the impact of the financial crisis. Fitch notes that drops in the German book of business in 2009 and 2010 were partly offset by strong growth in the Italian market, illustrating the benefits of geographic diversification.

ATL’s ratings reflect the life insurer’s relatively risk-averse insurance approach with limited insurance and investment risks, as policyholders or other external parties that provide guarantees offered within ATL’s policies carry most of the risk of adverse capital market movements. Remaining mortality and disability risk is largely reinsured, which Fitch views positively.

Positive rating factors include ATL’s strong capitalisation, which is reflected in its satisfactory regulatory solvency margin and resilience in Fitch’s stress test. ATL upstreams a moderate EUR620,000 of its earnings to its parent companies, FWU AG and VHV, and an increase in dividends is not expected in the near future, according to the company.

ATL reported relatively robust earnings in its 2008 and 2009 financial statements and lower than expected declines in premium income overall. While premiums decreased for the third consecutive year, net income recovered in 2010. Fitch notes ATL’s vulnerability to a reduction in demand for unit-linked insurance policies as well as a reduction in the volume of assets under management (AUM). Fitch positively notes that ATL has taken measures to limit the risk of increased lapses in periods of poor performing capital markets by introducing a guarantee that secures any peak-value of a policy only at its maturity. The investment risk of that guarantee has been hedged with an external party.

Fitch views ATL’s high exposure to unit-linked policies as an offsetting factor, as the development of new business, as well as ATL’s profitability is highly exposed to the future developments of the financial markets. Additionally, ATL distributes its products exclusively via brokers, which creates dependencies as this form of distribution is comparatively hard to control. Furthermore, the ratings are constrained by operational risk considerations due to ATL’s relatively small size and relatively short track record.

Fitch views the current low interest environment as a challenge to ATL. However, compared to most German peers, ATL is in a more comfortable position since the average guaranteed interest rate in its book of business is significantly lower than the German market. ATL’s policies mainly carry low or soft forms of guarantees.

Fitch will continue to closely follow ATL’s top-line and AUM developments in the context of the company’s profitability. Continued improvements in the franchise and scale of the company and demonstrated stability in the company’s top-line developments among the various jurisdictions could lead to an upgrade. A significant and sustained decrease in revenues leading to deterioration in profitability could lead to a downgrade.

ATL is a Luxemburg-based life insurer offering unit-linked and term insurance products, predominantly in Germany, France and Italy. ATL’s main shareholder with 74.9% ownership is FWU AG, a privately owned holding company, which also runs Islamic Takaful insurance operations. The remaining 25.1% of ATL is owned by VHV, a medium sized German insurance group.

Source : Fich Ratings Press Release

    0 2

    Egypt’s former president Hosni Mubarak may  be in poor health, the country’s envoy to Washington told a US broadcaster  Monday, days after the longtime leader was ousted by a people power revolution.

    In some of the first comments by an Egyptian official on Mubarak’s  condition, Ambassador Sameh Shoukry brought up the possibility of the  ex-leader’s deteriorating health when asked about reports that he may have  suffered a stroke or be in a coma.

    “I am following the rumors and the press reports related to his health, and  might have received some communication at a personal level indicating that he  is possibly in somewhat of bad health,” Shoukry told NBC’s Today Show.    But he stressed that “I really don’t have sufficient information so I  wouldn’t like to speculate” on what, if anything, might be ailing Mubarak.

    The 82-year-old strongman relinquished power on Friday after a 30-year  autocratic rule.    Rumors had surfaced that the former leader had fled the country, but on  Sunday Prime Minister Ahmed Shafiq said Mubarak was still in Egypt in the Red  Sea resort town of Sharm el-Sheikh.

    Speculation has remained steady in Egypt in recent years over Mubarak’s  health. His medical condition had usually been a closely guarded secret in  Egypt, and journalists have been jailed for writing about it.    Last March, state media announced that Mubarak was to undergo surgery that  month in Germany.

    He spent three weeks out of the country, and at Heidelberg University  Hospital in Baden Baden he had surgery to remove his gall bladder and a growth  on the small intestine.    Afterwards the flew back to Egypt, first to Sharm el-Sheikh to recuperate  before returning to a normal work schedule.

    Mubarak underwent surgery for a slipped disc in 2004 and suffered a minor  health scare while  delivering a televised speech the year before.

    Washington, Feb 14, 2011 (AFP)

    0 0

    Towergate announces that it has entered into a conditional agreement in relation to a £200 million investment by Advent International (“Advent”), the global private equity firm (the “Investment”). As a result of the Investment, Advent will acquire separate shareholdings in each of Towergate and Cullum Capital Ventures (“CCV”).

    The Investment is conditional upon raising new debt facilities through the bank and bond markets. The completion of the Investment and debt capital raising initiative (together, “the Transaction”) is expected to be in mid-February.

    The benefits of the Transaction include:

    – Refinancing Towergate’s existing debt facilities, reducing its total borrowings and establishing a long-term capital structure on more favorable terms

    – Increasing Towergate’s funding capacity to pursue its acquisition-led growth objective which has been at the core of its strategy since establishment

    – Securing a supportive partner with well-recognised credentials to assist in the next stage of the group’s development

    – Providing opportunities for the group to extend its range of specialist insurance services to further improve its client proposition

    These benefits will underpin Towergate’s growth strategy which has already seen it become the largest independent insurance intermediary in Europe, generating more than £2 billion of gross written premiums a year.

    Andy Homer, CEO of Towergate, said:

    “This transaction follows a strong year for Towergate despite the ongoing tough economic conditions. We will continue to invest across our business and maintain a strong focus on acquisitions, a strategy which has delivered significant value over the last decade.”

    Peter Cullum, Chairman and Founder of Towergate, said:

    “This marks an important milestone for Towergate and I am delighted to be working alongside Advent as our new private equity partner.  Advent’s investment provides real firepower as the group reignites its acquisition programme as part of our ambitious growth strategy.”

    Source : Towergate Press Release

    0 0

    US finance firm Fortress Investment plans to raise $1 billion for a China fund that would invest in housing for the elderly, as authorities contend with a looming ageing problem, a report said Monday.

    The hedge fund and buy-out group wants to team up with a local partner at a time when China is encouraging private companies to get involved in providing housing for the elderly, the Financial Times said, citing company co-founder Wesley Edens.

    The newspaper pointed out the potential for growth in providing services for the elderly in China, where the problem of a rising proportion of old people is thought to have been exacerbated by “one-child” policies limiting the number of offspring per family. However entering the market is a complex task, involving working with the state in a sector that combines hospitality, housing and medical care, Edens told the business daily.

    “It is complicated and difficult to get it right,” he said. Edens was in China in January meeting government officials and corporate executives and the firm is in talks with potential partners, the newspaper said. Fortress, which was hit hard by the global financial crisis, operates the largest independent living facilities for seniors in the United States and Canada, the FT said. Currently, 155 million of China’s 1.3 billion people are over 65, and the number is expected to swell rapidly to about 260 million by 2020, it added.

    Hong Kong, Feb 14, 2011 (AFP)

    0 0

    AXA Gulf, the international non-life company in the GCC, has announced the opening of its second outlet in the Sultanate of Oman. The opening of the company’s new outlet, in Muscat City Centre in the Omani capital, is part of its aggressive growth plans in the country and the region.

    The new outlet in Muscat City Centre, offers the entire gamut of retail products available at the AXA Gulf branches across the region, including applying for or renewing of Motor, Home, Travel, Home Help, Golf, Personal Accident and other retail insurance. The company’s outlets in Muscat, at Qurum City Centre operational since 2008 and the new one at Muscat City Centre, are open from 10 am to 10 pm (except Friday which is from 2 pm to 10 pm).

    In his comments, Deepak Kamath, Country Manager of AXA Gulf Oman, said, “AXA has been steadily growing in the Sultanate of Oman, and we work with all stakeholders and partners to make our products available to all sections – corporates, SME’s, individuals and families. With Muscat city expanding in all directions, we are looking at expanding strategically to enable customers to access our service centers at a convenient place and time where they can combine insurance transactions with other leisure activities.”

    He added, “We opened our first outlet at Qurum City Center in late 2008 to strengthen our branch network at Al Khuwair and Sohar. Following the excellent response to this outlet, and on our customers’ request for easy access in the Seeb and Mawaleh region, we have now launched our second outlet at Muscat City Center.”

    Said Alexis de Beauregard, Chief Officer Marketing & Retail product offering, “Our strategy is to get closer to our customers and to be available whenever they need us – not only to insure but in the unfortunate event of a claim. Going forward, we have plans to launch internet insurance, online assistance and call center facilities so that our customers can reach us any time of the day or night.”

    The opening of the new outlet marked a major period of achievement for AXA Gulf in Oman, after the company was named the number one insurer in Oman in ‘Best Brands in Oman’ survey conducted by Business Today – Oman’s leading business magazine, with the International Marketing Research Consultancy [IMRC]. This recognition is a major achievement for AXA Gulf, considering that the company was ranked seventh when the last survey was conducted in 2008. The ‘Best Brands in Oman’ survey across 15 categories was judged by over 600 executives including CEOs, General Managers and executives from a cross section of Oman’s business community.

    Expressing his excitement on the Best Insurer recognition, Mr Kamath said, “We are extremely honoured to be rated the best brand in Oman. This customer recognition confirms that we are on the right track to becoming the preferred company and that our efforts to provide customers with products and services that meet their needs and expectations have paid off. The honour goes out to all my colleagues for their efforts and dedication, and their high standards of service and professionalism. Now we have to double our efforts and keep our focus on service excellence to maintain this achievement.”

    The best insurer recognition in Oman reaffirms the message of trust, excellence of service and quality of insurance solutions that AXA Gulf is offering to its large and expanding customer base.

    Source : AME Info

    0 1

    Spain’s public prosecutors joined environmental  groups Wednesday in demanding emergency measures to clear a thick layer of  smog lingering over Madrid that medics warned could have grave health effects.

    Both Madrid and Barcelona, Spain’s two largest cities, have seen their  levels of atmospheric pollution rise due a high pressure system lodged over  the Iberian peninsula that prevents the pollutants from clearing.    Meteorologists expects the weather pattern, which has also brought sun and  warm weather since last week, to last until at least Friday.

    Virtually all levels of air contamination in Madrid and the surrounding  area, home to over five million people, are higher than those recommended by  the World Health Organisation, said a spokesman for environmental group  Ecologists in Action, Paco Segura.    “Madrid has very serious problems of air pollution. We broke the limits in  2010 and we are breaking them now,” he told a news conference.

    The European Union recommends that levels of tropospheric ozone, also  called “low level ozone”, not be allowed to surpass 120 micrograms per cubic  metre.    In Madrid this level was surpassed at eight out of 23 measuring stations,  according to the environmental group.    “We demand immediate measures be taken to promote the use of public  transportation and discourage the use of private cars,” said the president of  the regional federation of residents’ associations of Madrid, Ignacio Murgui.

    The group called for the number of parking spaces to be reduced and their  costs increased, the use of bicycles to be encouraged and for limits to be  placed on the rise in the cost of public transportation.    Another environmental group, Equo, went even further, calling for cars to  be banned “immediately” from the centre of Madrid and all public  transportation be free of charge.    At the same time the public prosecutors’ office has sent an official letter  to the mayor’s office urging the city take steps “to lower pollution levels  because they have surpassed European limits”, a spokesman for the office said.    Municipal authorities in the Spanish capital have since Monday used  overhead panels on the city’s ring road to advise drivers to take public  transport “as a preventive measure” to avoid raising pollution levels.

    The municipality, which is controlled by Spain’s conservative opposition  Popular Party, came under fire last year for moving the measuring stations to  less polluted districts of the city in a bid to post lower levels.    Spain’s Environment Minister Rosa Aguilar said Madrid, unlike Barcelona,  had not adopted any measures to fight the smog.    “Surely we’ll soon have some proposals,” she told a news conference.

    The government of the northeastern region of Catalonia, which had a  long-standing plan to increase speed limits from 80 kph (50 mph) on some   motorways entering Barcelona from Monday, postponed the measure to reduce the  risk of pollution.    Air pollution is reponsible for 16,000 premature deaths each year in Spain,  according the European Commission, the executive arm of the European Union.    “It can increase mortality by at least five percent,” warned Doctor Javier  Gonzalez Medel, the spokesman for the Association for the Defence of Public  Health in Madrid.

    When the International Olympic Committee was considering bids from host  cities for the 2016 Games, Ecologists in Action presented it with a study that  showed that Madrid suffered from higher air pollution levels than other major  European cities like London and Paris.    The Games were awarded to Rio de Janeiro, which eliminated the Spanish  capital in the final round of voting.

    Madrid, Feb 9, 2011 (AFP)

    0 0

    Swiss insurer Zurich Financial Services on  Thursday posted a 13 percent slump in annual net profit to 3.43 billion  dollars, hurt by losses from Chile’s earthquake and floods in Australia.

    Nevertheless, the earnings were better than expected by analysts polled by  financial news agency AWP, who forecast profit of 3.38 billion dollars.    Zurich’s general insurance unit reported that business operating profit  plunged 23 percent due to an “above-average frequency of loss events, such as  earthquakes, weather-related losses and higher levels of large losses,  compounded by lower investment income.”

    These included the earthquake in Chile, which cost the insurer pre-tax  losses of 175 million dollars and floods in Australia, which are estimated to  cost around 100 million dollars.

    Zurich, Feb 10, 2011 (AFP)

    0 0

    Fitch Ratings has revised UK travel bond insurer Travel & General Insurance Company plc’s (TGIC) rating Outlook to Stable from Negative and affirmed its Insurer Financial Strength (IFS) Rating at ‘BBB-‘.

    The change in Outlook and affirmation reflects the stabilisation of TGIC’s Fitch risk-adjusted capital assessment at end-October 2010 (FYE10), at a level that is supportive of the current rating, as well as a marginal improvement in TGIC’s earnings. The agency also views TGIC’s experienced management team, disciplined underwriting approach, long-established client relationships and conservative investment portfolio as positive rating factors.

    Fitch also views positively TGIC’s decision in 2010 to cease writing its unviable loss-making travel insurance book, at a time when demand for TGIC’s historically profitable travel bond insurance has stabilised at a viable level. The revision of the Outlook to Stable reflects Fitch’s expectations that TGIC’s capital and earnings will remain supportive of the current rating level.

    The stabilisation of TGIC’s Fitch risk-adjusted capital reflects a modest increase in shareholders’ equity, which increased 4.5% through retained earnings to GBP6.2m at FYE10. As for FY09, the company did not distribute any dividends in respect of FY10. Fitch expects that equity will to continue to grow in line with profitability in the near term.

    The company achieved a profit of GBP267k in FY10, compared with a loss of GBP484k in FY09. While the return to profitability in FY10 was helped by a reduction in claims costs related to major losses, Fitch notes that the company also reduced its exposure to poorly performing clients for the financial protection (travel bond insurance) and travel insurance books. Gross written premium (GWP) subsequently reduced by 4.2% in FY10, in contrast to a 20% increase in FY09. For FY11, TGIC has also lowered the retention on its travel protection reinsurance programme to GBP500k (previously GBP750k) to reduce volatility from future large losses. Fitch believes this will help to stabilise future income to a certain extent, although the company remains exposed to large individual claims.

    The travel insurance business had been loss making since the insurer diversified into this area following the introduction of the ATOL Protection Contribution (APC) in 2008. While the introduction of the APC reduced demand for TGIC’s core travel bond product, demand has now stabilised to a level that Fitch considers to be viable. The agency believes that TGIC will have a greater ability to generate improved earnings by focusing on a core business where its expertise lies. On the other hand, Fitch notes this means that the company is exposed to the inherent risks of being a “monoline” organisation with significant dependence on one line of business.

    Fitch believes that the travel industry is more greatly exposed to recessionary effects than many other insurance lines, although this is partly mitigated by TGIC’s prudent underwriting approach as well as its long-established client relationships.

    Key rating drivers that could lead to a downgrade include a significant fall in business written, a deterioration of underwriting margins or a weakening of TGIC’s capital position (for example through the triggering of one or more large travel bonds).

    Fitch’s considers an upgrade as unlikely in the near to medium term given the risk profile of the company’s insurance portfolio and challenging market conditions. Positive rating pressure could come from a substantial strengthening of TGIC’s capital position, which would be most likely to come from a sustained growth in earnings.

    Source : Fitch Ratings Press Release

    0 3

    The Association of Medical Insurance Intermediaries (AMII) condemns the proposed 57% increase in this year’s Financial Services Compensation Scheme (FSCS) levy on its members as unfair, excessive and totally inappropriate.

    Andrew Tripp, Chairman of AMII said: “This increase is on top of a massive eight-fold increase last year and is mainly a result of compensation payments for PPI (payment protection insurance) misselling. As almost all AMII members never sold any of these policies, it is unfair that they are footing the bill on an equal basis.  This huge increase has come out of the blue totally and will have a serious impact on many intermediaries.”

    AMII believes the FSA should review and address the funding of the FSCS immediately and not leave it for another year as has been suggested because the financial damage to smaller intermediaries could have a serious impact on growth and jobs.  “The substantial rises in regulatory costs over the last two years could cause some intermediaries to leave this market altogether, reducing consumers and businesses access to independent specialist advice on private medical insurance” added Andrew Tripp.

    Source : AMII Press Release

    0 1

    The number of new claims for US unemployment insurance tumbled last week to a two-year low, according to official data Thursday, offering hope for the troubled labor market.

    The Labor Department said initial jobless claims fell to a seasonally adjusted 383,000 in the week ending February 5, down nearly nine percent from the prior week.

    The department revised upward the previous week’s reading to 419,000, from an initial estimate of 415,000.

    The 383,000 figure was the lowest since early July 2008, data showed.

    The four-week moving average, a measurement to smooth out week-to-week volatility, also showed a positive trend for jobs: it fell to 415,000 from last week’s 431,500.

    The sharp decline in new claims surprised most analysts, who had forecast a drop to 410,000, and lent strength to other recent data on payrolls and job creation that suggest a turnaround in the US job market.

    Last week the government reported that the unemployment rate fell to 9.0 percent from 9.4 percent, based both on the trend and on data adjustments.

    At the same time, the number for newly created non-farm jobs was very low at 36,000 for the previous week. But that was blamed on harsh winter weather that shut businesses temporarily and prevented some data collection as well.

    The severe storms of late January and early February continued to skew the numbers, a Labor Department official said Thursday.

    “We are still unwinding a bit of the weather effect,” he told reporters.

    Despite signs that the US economic recovery is gaining pace, top government officials have warned that the slow pace of new job creation represents a continuing, crucial weakness.

    The US economic recovery has “strengthened in recent months” and now looks self-sustaining, but is still not enough to significantly improve the job market, Federal Reserve Chairman Ben Bernanke told a congressional panel Thursday.

    “Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he said.

    Washington, Feb 10, 2011 (AFP)

    0 8

    AEGON announces the launch of its free online trust analyser tool to help advisers identify which of their clients’ mortgage and family protection policies should be placed in trust.

    The tool will analyse the client’s situation, showing the advantages and disadvantages of a trust for their individual circumstances.

    AEGON warns that a range of problems and delays can arise due to legal issues when claiming on a life insurance policy which has not been written in trust, especially if the policy is written on a single life basis. For example, payment to customers’ intended beneficiaries may be delayed; payment may not go to their intended beneficiaries; too much inheritance tax may be payable and the policy may not be protected from creditors.

    Circumstances where a trust may be appropriate would be if the proceeds are to pass to children, or in the case of unmarried couples where there is no inheritance tax (IHT) spouse exemption, or if there is no will in place a trust could control who benefits from the proceeds rather than passing through intestacy rules.

    With so few protection policies placed under trust, AEGON highlights that many families may be unaware they are leaving themselves vulnerable. Advisers can help avoid unnecessary inheritance problems for their clients by accessing the free AEGON online trust analyser tool and identifying if a trust is appropriate.

    Elaine Cruickshank, Tax and Trust manager at AEGON says:

    ‘The tool takes you through a few simple questions which will help you discover if a trust is appropriate. It only takes a few minutes to find out if placing the policy in trust is the right thing to do.

    ‘For too long, trusts have been considered complex and daunting. We want to demystify the whole process. Trusts can be very straightforward. You can easily place a policy in trust immediately on application, or you can place an existing policy in trust later.

    ‘We think that the vast majority of protection policies should be written in trust. At the moment, many people are unwittingly exposed to completely avoidable risks. Our trust analyser tool will enable advisers to take steps to ensure their clients are properly protected.’

    For the vast majority of personal protection policies, a flexible trust is usually the most appropriate solution. AEGON has a flexible trust deed that can be downloaded free of charge from its website.

    Source : AEGON Press Release

    0 0

    Following the acquisition of BrandRisks Group Ltd (the holding company of BrandRisks Ltd and PropertyRisks) in September 2008, Electrical Contractors’ Insurance Services today announced that the BrandRisks businesses are now being integrated into ECIS and will become the basis for the formation of a new Affinity Group division within the ECIS business with effect from January 2011.

    The new PropertyRisks customer service base in Eastleigh will become the centre of excellence for all ECIS customer service and business development. As part of this development, Nigel Atkinson takes responsibility for the management of existing PropertyRisks operations and is tasked with expanding the product portfolio during 2011. Nigel was previously National Business Development Manager for PropertyRisks.

    Miles Ritchie continues to act as a consultant to this business and across the wider ECInsurance.

    Roger Brown, Managing Director of Electrical Contractors’ Insurance, commented:  “PropertyRisks has a highly successful business model with a broad range of affinity products and services. We intend to leverage their expertise in creating and managing affinity products to build a wider Affinity Group division across our Group.  We are also proud of the fact that PropertyRisks have developed a very strong customer service team at Eastleigh in Hampshire, and we are keen to develop this as a centre of excellence for all the ECI Group clients.”

    Source : ECIAS Press Release

    0 0

    Colin Williams has been appointed Director of Corporate at Friends Provident with immediate effect and will report directly to Trevor Matthews, Chief Executive Officer.

    In his new role Colin will be responsible for the development and implementation of the workplace savings strategy in the corporate benefits market and will manage the ongoing integration of the Friends Provident and AXA corporate propositions.

    Colin was previously Distribution and Marketing Director at Friends Provident and has over 15 years experience in the corporate benefits industry. He will continue to oversee the creation and management of the sales and marketing strategy for Friends Provident. His predecessor, Paul McMahon, has elected to leave the company to pursue a role elsewhere.

    Following the recent acquisition of Bupa Health Assurance the Friends Provident group risk team, led by Stephanie Baillie, will report to Steve Payne, Chief Executive Bupa Health Assurance.

    Trevor Matthews, Chief Executive Officer said: “Colin is a strong, senior player within our corporate business and I am sure he will drive forward our strategy in this market with energy and enthusiasm. He is well known among corporate IFAs and employee benefit consultants and has a deep understanding of the corporate benefits market. Colin is a great asset to our business and I am pleased we have someone of his calibre in this important role.

    “We would like to thank Paul McMahon for all his hard work and wish him well for the future.”

    Colin Williams, Director of Corporate said: “I’m excited about the opportunities ahead of us as we progress our integration work, develop our strategy and build a market leading position in workplace savings. We have a very strong future in this market.”

    Source : Friends Provident Press Release

    0 0

    Finland’s biggest insurance group Sampo reported a doubling of fourth-quarter net profits to 302 million euros ($412 million), beating expectations and boosting full-year profits by 72 percent.

    Full-year net profit for 2010 was 1.1 billion euros, compared to 641 million for 2009.

    “We have a much lower volatility in our results than our peer group. The main reasons for this are size, scale and geographical diversification as well as focus on underwriting excellence,” group chief executive Kari Stadigh said in a statement.

    Geographical diversification helped the group withstand the spike in regional costs incurred by severe weather in the past year, including “extreme winter, scorching summer riddled with storms and heavy downpours and in the fourth quarter weeks of premature but abundant snowfall,” the company said.

    In addition, the annual results were boosted by a change in the status of Sampo’s 20.5-stake in Nordic banking giant Nordea.

    At the beginning of 2010, Nordea’s status shifted from an equity investment to an associate company, immediately increasing Sampo’s reported profits.

    Sampo’s quarterly result overshot the expectations of analysts polled by Dow Jones Newswires, who predicted that fourth-quarter net profit would be 276.3 million euros.

    The group is optimistic about 2011, expecting a pickup in the global economy, an easing of the European debt crisis, and the continuing rise of short-term interest rates.

    Sampo, which employs nearly 7,000 people, said its property and casualty insurance unit If P&C, along with its Mandatum Life “insurance operations are expected to report good and stable results and the contribution to profit of associated company Nordea Bank is anticipated to remain strong.”

    If P&C and its subsidiaries serve the Nordic and Baltic regions as well as Russia.

    Following the news, Sampo saw its share price inch up 0.22 percent to 22.27 euros in morning trading on a Helsinki stock exchange up 0.14 percent.

    Helsinki, Feb 9, 2011 (AFP)

    Prev1...145146147...170Next Page 146 of 170

    POPULAR POST

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

    SOCIAL

    34FansLike
    6Subscribers+1
    965FollowersFollow

    Popular category

    © Seroni Interactive