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John Stewart

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Despite the prestige car industry seeing a fall in sales, Home & Legacy has reported excellent growth from its flagship motor product which entered the market earlier this year.

Since its launch to the broker market in April, the mid and high net worth specialist is on target to exceed its 2009 gross written premium budget for sales of the Defaqto premier-rated product.

Home & Legacy has now added further value to its Ultra Motor proposition by partnering with TRACKER Network (UK) Ltd, the UK’s leading car tracker and vehicle recovery company. Customers can now buy TRACKER systems via Home & Legacy’s website and receive the first year’s subscriptions free or a discount for the duration of subscription.

This offer is not restricted to Home & Legacy policies, providing brokers with an excellent opportunity to add value for their clients whilst earning a commission for introducing leads.

Home & Legacy motor manager, David Cleverley, said: “Despite the reduction in sales of prestige cars, the need for effective risk management remains. The partnership with TRACKER is further proof of our commitment to providing clients and brokers with value-added services.”

He added: “Our unique approach of not having a minimum value of lead vehicle and writing motor in isolation means that customers do not have to own an expensive vehicle to benefit from quality cover and high net worth service levels. Our competitive pricing is a real benefit in this tough economic climate and puts us in a great position for when the market improves.”

TRACKER’s commercial relationship manager, Phil Morrell, said: “Home & Legacy are ideal partners for TRACKER with their routes to market through over 2,000 brokers, all having customers who will benefit from a vehicle tracking system.”

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Zurich Financial Services Group announces the appointment of Scott Egan (38, British citizen), currently Chief Financial Officer (CFO) for UK General Insurance, to the position of Group Head of Operations, Planning and Performance Management, effective October 5, 2009.

In his new role, Mr. Egan will continue to drive further improvements in Zurich’s operations, planning and performance management initiatives.

He will report to Dieter Wemmer, Zurich’s CFO, and will be located in Zurich, Switzerland. Mr. Egan succeeds Stephen Lewis, who will become CEO for UK General Insurance and Shared Services, as previously announced.

Mr. Egan joined Zurich in late 2007, having previously held a number of senior positions in Norwich Union (Aviva) including Finance Director of Norwich Union (Aviva) and Strategy & Business Development Director of Aviva Europe. Mr. Egan completed his CIMA studies in 1992 and achieved an MBA in 2001 from Cranfield University.

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Paweł Pytel has been appointed chairman of the board and Marcin Żółtek has been named as a member of the board of Aviva Powszechnego Towarzystwa Emerytalnego (Universal Pensions Company) Aviva BZ WBK SA. The decision was taken at the company’s AGM.

Paweł Pytel was a member of the board and the finance director of Aviva PTE. He has been acting as chairman of the company since 4 September 2009.

He graduated from the Warsaw University of Technology and completed postgraduate studies at the University of Amsterdam. He received a Master of Science in Business from the Business School at the Warsaw University of Technology. Between 1995 and 2000 he worked in the financial services department at PricewaterhouseCoopers where he specialised in auditing insurance companies. Between 2000 and 2007 he was deputy director of the finance department at Commercial Union Polska – Towarzystwa Ubezpieczeń na Życie (Life Insurance Company) SA. From the start of 2008 he was financial director at Aviva PTE and he has been a member of the board since March 2008.

Marcin Żółtek, who has been appointed as a member of the board, is an investment director at Aviva PTE.

Marcin Żółtek graduated in applied mathematics from the Department of Mathematics, IT and Mechanics at the University of Warsaw. He completed a number of courses, including: risk management, Derivative University LSE, bank evaluation. Between 1993 and 1998 he worked at the Mathematics Department at the University of Warsaw. He then worked in the Debt Instruments Department and the Company Finance Centre at Bank Pekao SA for a year. He has worked as a securities market analyst in charge of the securities portfolio and as an investment director at Commercial Union PTE (now Aviva PTE) since May 1999.

The appointment of Marcin Żółtek as a member of the board will require the approval of the Financial Supervisory Committee.

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    This year’s annual seasonal flu vaccination campaign was launched today by the Department of Health.

    The campaign will encourage people who are at risk of seasonal flu to protect themselves by getting their free flu jabs.

    Everyone over the age of 65 is routinely offered the jab, as are younger people with long-term conditions such as heart disease, diabetes, multiple sclerosis, serious kidney and liver disease.  Around 15 million people in the UK have the jab, which must be administered every year as it is altered each year to match the flu strains in circulation.

    Dr David Salisbury, Director of Immunisation at the Department of Health said: “There has been so much coverage about swine flu this year that it is very important to remind people not to forget about getting their normal annual flu jab.

    ”People should not underestimate the effects of seasonal flu. It is not the same as getting a cold. It can seriously affect your health and the risks of developing complications are greater if you have certain pre existing medical conditions.”

    Seasonal flu, also known as influenza, is a highly infectious illness caused by a virus. The virus which is different from swine flu (H1N1) changes every year as does the vaccine, so, it is important that those at risk ensure they receive the jab to protect themselves.

    Dr Salisbury added: “If you are in any of the at risk groups, my advice, especially at this time of the year is to visit your local surgery and get the vaccination as soon as possible. This is the best form of protection for you and others”.

    Every year approximately 8,000 people suffer flu-related deaths in the winter months in England and Wales.

    The best way to avoid flu is to get immunised, but in addition, people can protect themselves by practising good hand hygiene. This means carrying tissues, covering coughs and sneezes with a tissue, disposing of the tissue after one use, and cleaning hands as soon as possible.

    Notes:

    1. Last year the Department’s seasonal flu campaign saw an increase in the uptake of the vaccine in England among those aged 65 years and over reaching 74.1% compared with 73.5% in 2007/8.

    2. The vaccine uptake in clinical risk groups under 65 was lower, but increased to 47.1%  compared with 45.3% in 2007/8. The Department hope to see this trend continue this year.

    3. Swine flu is a completely new virus to which very few people are likely to have immunity. It has occurred at a time of the year when seasonal flu isn’t around, and may affect more people than seasonal flu. It might become more serious. The seasonal flu vaccination does not protect against swine flu.  The vaccine to protect against swine flu will be available later in the winter.

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    Lloyds Banking Group chief executive Eric Daniels must keep many plates spinning to keep alive his hope of launching a record rights issue, and a lack of political or regulatory support threatens to bring them all crashing down.

    The partly-nationalised bank needs to raise about 25 billion pounds ($40 billion) to satisfy regulators it’s strong enough if it is to opt out of a state asset protection scheme (APS), according to bankers and industry sources.

    And that is a tall order, even if investors are showing a good appetite for cashcalls, leaving the most likely outcome as a revision of the terms to the APS, analysts reckon.

    Daniels is pushing for a full exit from the scheme, which he regards as costly and a better deal for taxpayers than for his shareholders.

    But if the bank opts out it needs to show Britain’s Financial Services Authority its capital position is “bullet-proof”, industry sources said.

    “Lloyds obviously wants to come out of the APS altogether,” said a top 15 investor in Lloyds, who asked not to be named. “The stress tests are so aggressive that’s looking like an expensive option because … they have to raise more capital than they would have liked.”

    That’s because under APS Lloyds would be passing onto the state the risk on 260 billion pounds of toxic assets and getting a huge reduction in its risk-weighted assets. So without the APS it would need to raise enough capital to withstand potential losses on a bigger balance sheet.

    Many seat at table

    Adding to the complexity of the situation is that not just Lloyds and the FSA are sitting at the negotiating table.

    As a shareholder Britain’s government needs to decide whether to support a cashcall and pump billions more into the bank, while the European Commission as competition regulator needs to agree on the nature and extent of whatever state aid Lloyds is going to end up with.

    “There are a lot of different views on the merits of each part of the plan,” said David Williams, analyst at Fox-Pitt, Kelton.

    “On the FSA’s mind is financial stability and whether Lloyds could risk stability; the government is worried about what’s the burden on the public purse; and the European Commission is thinking about competition. It’s a horrible one to get everyone to buy into,” he said.

    Lloyds’ hopes hinge on it raising about 15 billion pounds from a rights issue and 10 billion pounds from asset sales and restructuring its debt.

    The rights issue would be the world’s biggest ever, surpassing a 12.9 billion pound cashcall made by HSBC in March. It would represent more than half of Lloyds’ current market value.

    To succeed it would need to offer shares at a discount of close to 40 percent, several bankers said. Recent bumper rights issues by BNP Paribas and Societe Generale were set at under 30 percent.

    UKFI, the body holding Britain’s state interests in its rescued banks, would be asked for about 6.5 billion pounds to keep its stake at 43 percent.

    The decision rests with UK finance minister Alistair Darling.

    “It’s a political decision. And how does a government claiming the economy is recovering turn around and say we’ve got to put another several billion pounds into a bank?” said Simon Maughan, analyst at MF Global.

    The government could opt not to participate in a rights issue, which would dilute its stake to about 25 percent but might attract new investors in to take up the slack if the discount is about 35 percent, he said.

    Several bankers and investors said Whitehall support is key to underpin an offer, however. “It is a must,” said one fund manager.

    The Treasury would like to maintain its stake but has not made its final decision, people familiar with the matter said. Treasury coffers could also get about 1 billion pounds from Lloyds to pay for the insurance provided by the APS since March.

    Where Lloyds gets its other 10 billion pounds from could be more of an issue for UK and European regulators.

    Lloyds could offload its insurance operations, notably Scottish Widows and Clerical Medical, or its 60 percent stake in wealth manager St. James’s Place, but may struggle to get much of a capital boost from offloading those assets at a discount to embedded value.

    The sale of 164-branch Cheltenham & Gloucester may not go far enough to raise capital or appease Brussels. Which means it might have to consider a more radical option — such as selling Bank of Scotland, said MF Global’s Maughan.

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    • Think carefully about the risks you could face while paying back a loan, mortgage or credit/store card and whether taking out PPI would be to your advantage. If you had an accident that stopped you from working, would you have enough money from other sources to be able to continue paying off the loan?
    • Consider whether you have other insurance which already covers you (such as sick pay or death-in-service benefit through your employer), or whether other types of protection insurance may be more appropriate – see Protecting income or borrowing.
    • Don’t be pressurised into buying it – it is very rare that you have to take out PPI to get a loan and you definitely don’t have to buy it from the same place you get your loan from.
    • Check the total amount of benefit you may receive from the policy, compared to the cost of the cover over the duration of the loan. This may help you decide whether PPI covers what you need it to cover.
    • Check online forms when applying for loan or credit online. Although many firms have agreed not to do this, PPI may have been selected by default, and you will need to change this option if you don’t want to buy it. You should also print out or keep copies of completed forms in case you need to complain or make a claim in the future.
    • Find out whether the firm is giving you advice; if not, consider whether you need advice. Getting advice means that the firm should recommend a PPI or other policy that meets your needs.
    • Find out whether the policy is a single or regular premium. If you buy a single premium policy you pay a lump sum of 3-5 years’ worth of premiums in advance. This amount is added to the sum you borrow and attracts interest, so you’ll be paying more over the long run.
    • Check if the PPI cover lasts the length of the loan. Some policies do not always last as long as the term of the loan. For example you may have a 25 year loan but the PPI policy may only cover you for the first 5 years. Think about how you will protect repayments after the policy ends, but whilst you are still paying back the loan.
    • Think about what you would do if the claims payments stop (usually after 12 months) and you are still unable to work. How would you pay the rest of your loan?
    • Check to see what you will be covered for and what won’t be covered – for example any exclusions or limitations relating to the nature of your employment or your medical history.
    • Check whether payments from a PPI policy would affect the benefits that could be paid from other protection insurance that you already have.
    • Check what you will get back if you cancel the policy or repay the loan early.

    Ask the salesperson to explain the terms and conditions of the policy and make sure you read the key policy information – especially the exclusions.

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    Part-nationalised British lender Lloyds Banking Group is sounding out investors about a 15 billion pound ($23.81 billion) rights issue to help it avoid a government scheme to insure it against credit losses, The Financial Times reported on Thursday.

    Banking regulator the Financial Services Authority (FSA) is scrutinising the plan, the FT said, citing people close to the planning for the deal, in which Lloyds would also sell assets such as insurance business Scottish Widows, and shrink its balance sheet.

    On Wednesday, Sky News reported that Lloyds had presented the FSA with a plan to raise 25 billion pounds through a rights issue, asset disposals and other measures to allow it to withdraw completely from the government-sponsored asset protection scheme.

    The FT said the government, which owns a 43.5 percent stake in Lloyds, would likely subscribe to the rights issue and could inject a further 6.5 billion pounds of public funds into the company.

    A detailed plan could be presented to finance minister Alistair Darling within days, the FT said, citing one person close to the affair.

    Lloyds and the FSA declined to comment on the reports.

    Lloyds said last month that it was in talks with the government to scale back or cancel its participation in the so-called asset protection scheme, seen as expensive and potentially unnecessary following an upturn in the economy since it was first drawn up in March.

    The FSA had previously set tougher-than-expected capital conditions on Lloyds’ potential exit from the programme, making an outright departure less likely

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      Brokers can now offer customers personal lines products that are more price competitive with the direct insurance marketplace.

      By drawing upon Aviva’s underwriting expertise in the direct marketplace, brokers can now access Aviva’s most sophisticated pricing system either through a web based portal or via their software house, creating a transparent alignment between direct and broker prices.

      Insurecom is the first software house to work with Aviva on this development, which ultimately allows brokers the opportunity to improve their service to customers.  This follows the launch of Personal Best from Aviva, which was created to allow brokers online access to Aviva’s advanced pricing elements and special offers via an extranet portal.

      John Kennedy, director of personal lines, Aviva, says: “We have listened to broker feedback and we know that the biggest stumbling blocks for personal lines products are price competitiveness and ease of access.

      “As a result, we have invested in pricing and technology to offer brokers the opportunity to genuinely compete with the direct market and provide the first steps towards a solution to help make selling policies easier,” he added.

      Working with Insurecom follows the success of Personal Best from Aviva, launched in July this year. As well as more competitive rates, this web based offering also allows brokers to take advantage of the same special offers that were previously only available in the direct market place.

      “Since we launched Personal Best we have seen thousands of quotes being placed across hundreds of brokers with a conversion rate of more than one in four (27%)*,” says John.

      He adds: “We’re extremely pleased with the success of Personal Best and if the initial roll out with Insurecom is anything to go by, we are confident, as we roll out across other software houses we will Aviva back in the number one spot for Personal lines.”

      Chris Moseley, strategic relations director, Insurecom, says: “Having worked closely with the Aviva team over the last few months, Insurecom is delighted to be the first software house to integrate with Aviva’s rating engine and provide its users with access to more competitive rates.

      “This successful development initiative changes the way personal lines rates are able to be distributed, with the technology allowing Aviva to change their rates in real-time. Insurecom software customers have a head-start in the industry with their new ability to access Aviva’s most sophisticated and competitive motor rates in the broker market.”

      “Private car is the first product to be available through Insurecom. All Insurecom users with Aviva agencies will be automatically switched on and can take advantage of the new rates with immediate effect.”

      * According to Aviva September 09 sales figures

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        Vaccinations against the H1N1 swine flu virus began in the United States this week as part of the Obama administration’s mass immunization effort to help limit the worst effects of the pandemic.

        The U.S. Centers for Disease Control and Prevention expects up to 7 million doses of vaccine by the end of this week, mainly AstraZeneca unit MedImmune’s nasal spray.

        The U.S. government has ordered vaccine from five companies: Sanofi-Aventis SA, CSL Ltd, Novartis AG, GlaxoSmithKline and MedImmune.

        Here are some questions and answers about the immunization program:

        How is the vaccine being distributed?

        Vaccine production is expected to reach 40 million doses by mid- to late-October and continue to rise at a rate of about 20 million per week through December. The U.S. government has ordered 250 million doses and says this should be enough to ensure coverage for every American who wants it.

        The CDC is working with healthcare services firm McKesson Corp. to distribute doses to 90,000 vaccination sites designated by state and local health departments. The sites include clinics, doctor’s offices, hospitals, schools and retail chains where vaccine will be available.

        The government says its centralized distribution system can reach more sites than the direct manufacturer distribution used for seasonal flu vaccine.

        The United States hopes to vaccinate 160 million Americans considered at highest risk of death or severe disease by the beginning of December. These include pregnant women, people with asthma, diabetes or heart disease, and children and young adults.

        The United States has also offered 10 percent of its vaccine supply, or about 25 million doses, to help the World Health Organization distribute vaccine to less developed countries.

        When did vaccine begin moving to distribution sites?

        The vaccine has taken less than a week to arrive at designated sites after orders are placed.

        On Tuesday, health officials said the 50 U.S. states had ordered 2.2 million vaccine doses, or more than 90 percent of the 2.4 million doses currently available. Limited vaccination started on Monday.

        U.S. health officials and other experts say some states may not have finalized their immunization programs while others are limited by constraints on budgets or storage capacity. State and local health departments also are still administering seasonal flu vaccinations, which became available earlier than usual this year.

        The Health and Human Services Department expects orders to increase as vaccine becomes available in the more widely used injectable form.

        How much money is the Obama administration spending to buy and distribute vaccine?

        The federal government has spent or set aside $6.4 billion for H1N1 immunization so far. About $1.5 billion is for enough bulk antigen to create over 250 million vaccine doses, according to official statistics. The sum also includes $1.4 billion to help states and hospitals plan and prepare for the vaccination campaign.

        Congress appropriated $7.65 billion in June for H1N1 and other pandemic influenza preparedness.

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        Guy Carpenter & Company, LLC, the risk and reinsurance specialist, announced today that it has entered an agreement to buy all of the issued shares of the London-based reinsurance broker Rattner Mackenzie Limited (RML) from HCC Insurance Holdings, Inc. (HCC).

        HCC is a leading specialty insurance group headquartered in Houston, Texas, with offices in the United States, Bermuda, Ireland, Spain and the United Kingdom. RML is a specialty reinsurance broker. RML places HCC’s reinsurance programs in the London market as well as servicing a number of third-party clients.

        The transaction is consistent with Guy Carpenter’s strategy to supplement organic growth with targeted acquisitions. Following successful completion of the transaction, Guy Carpenter will become a significant provider of reinsurance intermediary services to HCC. “We have great respect for HCC and its management team and are extremely proud to become a major trading partner as a result of this transaction,” said Peter Zaffino, President and Chief Executive Officer of Guy Carpenter. “The acquisition of RML is further demonstration of our strategy to build our capabilities in the specialty sector.”

        “This transaction will enable HCC to focus on its core businesses while enabling RML to develop its business proposition in conjunction with Guy Carpenter, which we believe to be an ideal home for RML,” said John N. Molbeck Jr., President and Chief Executive Officer of HCC Insurance Holdings, Inc. “We consider Guy Carpenter to be a premier reinsurance intermediary and we are delighted to further our trading relationship with them as a result of this transaction.”

        It is expected that the transaction will close in October 2009, following receipt of regulatory approvals and satisfaction of other closing conditions. Terms of the transaction have not been disclosed. Lexicon Partners (US) LLC acted as financial advisor to Guy Carpenter in relation to the transaction, and Freshfields Bruckhaus Deringer LLP acted as legal counsel.

        Forward-looking statements contained in this press release are made under “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The types of risks and uncertainties, which may affect the Company are set forth in its periodic reports filed with the Securities and Exchange Commission.

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        Standard & Poor’s Ratings Services said today that it assigned its highest principal stability fund rating of ‘AAAm‘ to Aviva Investors Sterling Liquidity Fund and Aviva Investors Sterling Government Liquidity Fund, two money market funds pertaining to the same Dublin-domiciled umbrella fund, Aviva Investors Liquidity Funds PLC.

        The ‘AAAm’ rating assigned to Aviva Investors Sterling Liquidity and Aviva Investors Sterling Government Liquidity subfunds reflects their extremely strong capacity to maintain principal stability and to limit exposure to principal losses due to credit, market, and/or liquidity risks.

        The two subfunds are managed by Aviva Investors Global Services Ltd. and are targeted at institutional investors. They offer a variable net asset value (VNAV), which means that the net asset value (NAV) of these funds is calculated daily based on market prices. To further safeguard their VNAV, the funds are managed so their weighted average maturity never exceeds 60 days to maximize liquidity and diminish the funds’ sensitivity to changing interest rates. The two funds will maintain strong credit quality standards by investing all of their assets in securities and, or with, counterparties rated at least ‘A-1’ by Standard & Poor’s.

        The aim of Aviva Investors Sterling Liquidity Fund, which was launched in 2002, is to maximize current income consistently with the preservation of capital and liquidity by investing in a diversified portfolio of high grade, sterling-denominated short-term debt. To achieve its investment objective, the subfunds invest in certificates of deposit, commercial papers, asset-backed commercial papers, and reverse repurchase agreements backed by U.K. gilts.

        The Aviva Sterling Government Liquidity Fund, which was launched in December 2008, aims to provide security of capital with a high degree of liquidity and generate income primarily from short-term instruments issued by government or government agencies. To achieve a performance benchmarked against the London Interbank Bid Rate, the subfund invests directly in reverse repurchase agreements backed by U.K. government debt with a maximum maturity of 10 years, with counterparties rated at least ‘A-1’ by Standard & Poor’s, and in U.K. treasury bills.

        The two money market funds are managed by Aviva Investors Global Services Ltd., wholly owned by Aviva PLC (A/Negative/–), and had GBP220 billion assets under management as on June 30, 2009, across a wide range of asset classes, including GBP16 billion in cash assets. Aviva’s money market fund team, based in London, operates under strict investment guidelines and a comprehensive risk framework to meet the rated funds’ objectives.

        The administration responsibilities of the two funds have been delegated to PNC Global Investment Servicing (Europe) Ltd. PNC International Bank Ltd. acts as the custodian for the two funds. Both entities are fully owned by PNC Bank N.A., Pittsburgh, PA (A+/Stable/A-1).

        Standard & Poor’s principal stability fund ratings, identifiable by the ‘m’ suffix, are assigned to funds or pools that exhibit stable NAV. Those funds rated ‘AAAm’ exhibit a superior ability to limit exposure to loss and maintain a constant or rising NAV per share at all times. Standard & Poor’s reviews pertinent fund information and portfolio reports on a weekly basis as part of its surveillance process.

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        Aon eSolutions, provider of technology-based tools that improve the management of risk, insurance and safety programmes, is today launching the results of its 2009 Global Risk Technology Survey at the Federation of European Risk Management Association conference in Prague, Czech Republic. The report shows how organisations are implementing, utilising and benefiting from their risk management information systems (RMIS), helping to shape and benchmark risk programmes against those of their peers. In turn, and most crucially, some 62% noted savings in risk transfer costs as a result of using risk technology.

        The survey of 435 risk professionals from 45 countries representing a broad range of industry sectors found that the number one benefit and driving force behind the use of risk technology is achieving accuracy and reliability of data.
        Global Risk Technology Survey – European Top Five Benefits of Technology
        1.    Accuracy and reliability of data
        2.    Management reporting improvements
        3.    Data consolidation/management
        4.    Control and transparency
        5.    Automation of processes


        Further findings include:

        • 77% of European companies think that regulation and compliance is impacting the future use of risk technologies
        • 76% of European companies think that the insurance market demanding better data is impacting the future use of risk technologies
        • 46% of European companies use risk technologies more than once a day

        By comparison, the study found that North America has a more mature RMIS market – mostly due to amplified workers’ compensation claims and the associated data consolidation needs.

        • North Americans use their RMIS for litigation management and safety, while usage of RMIS for captive management is more prevalent in Europe
        • 64% of North American respondents report using RMIS for more than five years compared with just 37% of European respondents.

        Steve Cloutman, managing director for EMEA at Aon eSolutions, said: “The results show that nearly two thirds of companies have experienced savings from using technology. This stems from having quality information that indicates where to focus risk management tactics to reduce claims and provides insurers with data to demonstrate a robust approach. Indeed, in the future we see greater use of technology to accurately capture a company’s risk profile as management, insurers and regulators increasingly demand more than a simple spreadsheet.”

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        AIG dismissed consulting firm McKinsey & Co as its restructuring adviser in an effort to cut costs, according to a Bloomberg report, citing two people familiar with the matter.

        Bloomberg reported that McKinsey worked on a review of AIG businesses starting in March under previous Chief Executive Edward Liddy, with the objective of producing a multi-year road map, called Project Destiny, to restructure the company after the government-sponsored bailout.

        The company’s new chief executive, Robert Benmosche plans to come up with his own vision of AIG businesses to be retained, and will rebuild them before disposing of them to repay bailout loans, according to Bloomberg.

        Representatives from AIG and McKinsey were not immediately available to comment.

        With Reuters

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        London insurance officials have hit back at Toni Braxton after she sued them over the cancellation of a string of shows.

        The Unbreak My Heart singer was forced to pull the final gigs in her two-year Las Vegas residency at the Flamingo Hotel in August, 2008, after she was hospitalised for an ongoing heart problem.

        Braxton, who has microvascular angina – a small vessel disease – sued Lloyd’s of London in April (09) for undisclosed damages, claiming she purchased insurance in the event of “non-appearance” or “cancellation”.

        But bosses refused to pay out on the policy, alleging Braxton did not mention her pre-existing health issue when she signed the document – invalidating the insurance.

        Now they have filed a countersuit against Braxton, insisting she had kept her heart condition a secret.

        They are refusing to pay compensation to the singer and are also claiming undisclosed damages from her, according to TMZ.com.

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        Aviva has confirmed that it has completed the reattribution of the inherited estate in its CGNU and CULAC with profits funds.  The total value of the inherited estate for the reattribution is £1.25 billion, based on the average calculated estate values at the end of June, July and August 2009**.

        The completion of the reattribution deal follows the High Court’s approval of the offer in September, and final approval by the Aviva plc and Aviva UK Life boards.

        Just over 87% of eligible policyholders voted during the election process, with 96% of them choosing to accept the offer. The voting period has now closed and those customers who have voted “yes” do not need to do anything further to receive their payment.

        Customer payouts slightly higher than indicated
        Approximately 90% of payments to eligible customers will be between £214 and £1,230. The final payments will now be slightly higher than the indicative offer included in policyholders’ individual voting packs, because the final value of the inherited estate is higher than minimum level of £1.2 billion on which the offer was based.

        Customers will automatically start receiving their payments from early November with most receiving them by the end of the year. In total, £470 million will be paid from shareholder funds to policyholders.  The vast majority of the payments will be tax-free.

        The reattribution offer is in addition to the special bonus of £2.1 billion for policyholders announced at the beginning of 2008. The first two instalments of the special bonus have already been added to policies. The last special bonus payment will be added in 2010. Through the special bonus and reattribution payments, Aviva will have allocated the equivalent of around 70% of the value of the inherited estates to customers.

        All policyholders, regardless of whether they have accepted the offer, will continue to receive their normal bonuses and the reattribution will have no impact on the security or performance of their investment.

        Anticipated shareholder benefit updated
        As previously stated, from a shareholder perspective the reattribution is expected to enhance the cash flow profile of Aviva’s UK life business and will bring significant financial benefits. In return for the £470 million shareholders are expected to gain access to around £650 million of additional capital over five years, to fund new, non profit business.  It is anticipated that the reattribution will also create a one-off profit of around £180 million on an MCEV basis and £80 million on an IFRS basis. Ongoing annual earnings are expected to be around £30 million on an MCEV basis and around £45 million under IFRS.

        A fair deal for policyholders and shareholders
        Mark Hodges, chief executive, Aviva UK Life, said: “Our objective has always been to create a reattribution that was fair to both shareholders and policyholders, and that’s exactly what we’ve achieved. I’m particularly pleased that we’ve been able to conclude the process in time for most customers to receive their payments by Christmas.

        “We’ve always made sure that customers had a choice of whether they wished to accept the offer, depending on what was best for their personal circumstances, and we believe this offer is good for 99% of policyholders so it’s great to see that so many customers have voted ‘yes’.”

        * Of the £470 million paid out from shareholder funds, £450 million will be in cash and the remaining £20 million will be added to policies in the form of bonuses.

        **  Based on the average values of £1.163 billion in June, £1.251 billion in July and £1.336 billion in August, plus interest.

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        The Association of British Insurers (ABI) announced today figures related to the UK Insurance market and report that despite the recession, the UK insurance industry remains strong overall.

        • The number of people employed in the sector in 2008, at 313,000, rose slightly (by 1.3%) over 2007, and accounted for nearly a third of all financial services jobs.
        • Net premium income from general insurance in 2008 was £34 billion, up 3% on 2007.
        • Premium income for overseas business during 2008 was £54 billion, up 13% on 2007.
        • Every day, UK insurers pay out nearly £300 million to customers. Of this, £239 million is in pensions and life insurance benefits, and £57 million in general insurance, such as motor and household, claims.
        • Despite a fall in life and pensions new business, long-term premium income in 2008 was the third highest in the last decade.

        Dr Rebecca Driver, the ABI’s Director of Research and Chief Economist, said:

        “The UK insurance industry continues to show resilience in the recession. But there is no room for complacency. These remain difficult times, and the UK can only remain a world leader in insurance if it stays competitive. The role of insurers, as major investors and providers of financial security to millions of customers, is vital in building a sustainable economic recovery. Insurers must not be forced to move overseas, and the UK must be able to attract new capital.

        “Future regulation must therefore strike the right balance between proportionate consumer protection, and ensuring the sector is strong and competitive. This will enable the industry to continue to innovate, and provide products that are relied upon by millions of families and businesses.”

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        Paternoster, the regulated insurance company which takes responsibility for the risks associated with companies’ defined benefit pension schemes, announces today that:

        • Paternoster shareholders will inject £5 million of new capital into the Group to ensure that the company retains the capability to write new business once it has raised further money or when there is significant improvement in the economic outlook. The new capital will also enable the Group to assist in the rapid growth of the longevity-only risk transfer market.
        • It predicts greater demand in the future from companies to buy out defined benefit pensions scheme obligations as credit markets improve and a more immediate demand for longevity-only risk transfer solutions.
        • However, while the volume of transactions will continue to be subdued for some time and Paternoster focuses on raising more capital, the company’s headcount will reduce from 130 to 106.

        • CEO Mark Wood becomes Deputy Chairman and is succeeded by Ed Jervis, previously Commercial Director.

        Ed Jervis, Chief Executive, commented: ‘The current interest being shown by defined benefit pension trustees and their corporate sponsors in ‘longevity swaps’ illustrates the continuing focus on reducing the risks inherent in their schemes.

        ‘Although credit markets have improved over recent months, the market for defined benefit pension scheme buy outs will remain subdued for some time yet. At the same time many corporate sponsors face pressure on their cash flows. As a result, pension trustees and their corporate sponsors’ desire to reduce risk will increasingly focus on longevity-only solutions.

        ‘Nonetheless there remains an overwhelming logic for corporate sponsors to fully transfer their pension scheme obligations from their balance sheets to an insurer, which provides solvency capital to support the promise made to pay pensions.

        ‘As the risk of credit defaults diminishes and asset values improve at the same time as underlying corporate cash flows strengthen, so pension scheme buyouts will again become viable and demand must be expected to soar. These conditions will also be conducive to raising further capital.’

        Mark Wood, Deputy Chairman of Paternoster, added: ‘Paternoster’s board and shareholders are determined that the company will remain a leader in what will once again be a rapidly growing market. Meanwhile, the proper governance of our business and of course the interests of our policyholders are of paramount importance.’

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          The details related to the mege of Mitsui Sumitomo Insurance Group Holdings Inc, Aioi Insurance Co. and Nissay Dowa General Insurance Co. have been released today. This planned merger will create Japan’s largest nonlife insurer by premium revenue.

          Under the merger agreement, the trio said one Aioi share will be exchanged for 0.190 Mitsui Sumitomo shares. Meanwhile, one Nissay share will be exchanged for 0.191 Mitsui Sumitomo shares.

          The companies plan to integrate operations next April under a holding company named MS&AD Insurance Group Holdings Inc.

          Mitsui Sumitomo President Toshiaki Egashira will become the holding company’s president.

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          Sister companies within THB Group plc, Cardinus Risk Management based in East Grinstead and  THB Risk Solutions based in Peterborough, have signed an agreement with Berkshire-based Global Continuity to launch an innovative business continuity solution, BusinessAssist, to the UK regional broker market.

          Commented Glen McCully, Managing Director of THB Risk Solutions, “BusinessAssist is the first business continuity solution designed for the SME market that delivers a low cost, efficient and pragmatic approach. Most SME’s cannot afford expensive consultants to plan and test solutions so it is not surprising that 80% of all SMEs fail within 18 months of a major loss. BusinessAssist is different in that it provides a practical solution to loss recovery at a low cost. Together with Cardinus’ wider risk management solutions we believe that we can offer brokers and their clients with practical and competitively priced solutions.”

          BusinessAssist has been developed over the past 2 years by experts in the business continuity arena who recognised the gap in the market for SME clients.

          Added Richard Pursey, Global Continuity’s Managing Director, “BusinessAssist delivers a very tangible value added service to customers, at price points that finally make real disaster recovery solutions affordable to small and medium sized businesses. BusinessAssist provides key next business day services required to get the core administrative functions back up and running as quickly and efficiently as possible.”
          BusinessAssist provides clients with:

          • convenient high quality temporary office accommodation,
          • a comprehensive IT infrastructure,
          • on site technical assistance with the restoration of  business data and
          • management of both  telecommunications and internet network access.

          BusinessAssist will deliver next business day recovery of the core business and administrative functions which is achieved with minimal disruption and allows a company to be up and running again quickly and effectively servicing  customers and communicating with  suppliers.

          The smooth recovery of your business will allow a company to continue collecting cash, generating invoices and maintain a healthy balance sheet.
          Pursey  added added, “we are delighted to be working with THB Group as they not only provide a strong insurance distribution route but through their risk management arm, Cardinus, have a full understanding of how business continuity solutions are essential to all firms, regardless of size.”

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