All articles by LII editorial
LII editorial
Deep pockets and patience
Indias private life insurance sector has enjoyed spectacular premium income growth, driven by the enormous success of unit-linked products Profits, however, remain illusive at a time when many of the life industrys hard-sell tactics are being called into question by respected Indian business leaders Since deregulation of Indias insurance market in 2000 a steady stream of new entrants has continued to swell the ranks of private life insurers and since late-2007 alone the number has grown from 15 to 21
Long-term care insurers under fire in Washington
Long-term care insurers under fire in Washington Insurers offering long-term care insurance have come under strong criticism in the US state of Washington following a meeting between the states insurance commissioner, long-term care insurance professionals, a representative of Washington nursing homes and state legislators
Pension paupers in the making
The future is bleak for many UK workers who will have to rely on income from defined contribution (DC) private pension plans when they retire, warns Fidelity International (FI) The warning is based on the findings of the asset management companys third annual Fidelity Retirement Index study that, based on 2007 data, indicates that the average member of a DC scheme faces a massive slump in income after retirement
Scottish Re reveals subprime exposure
Scottish Re reveals subprime exposure Bermuda-based life reinsurer Scottish Re has again delivered unpleasant news, revealing in its second-quarter financial statement that it has a hefty exposure to US subprime residential mortgage-backed securities (RMBSs) The revelation came only two months after Scottish Re had received a much-needed $600 million capital injection from MassMutual Capital Partners, a member of the US-based MassMutual Financial Group, and affiliates of private equity firm Cerberus Capital Management.
Minnesota attorney general sues third insurer for miss-selling
Lori Swanson, the Attorney General of the US state of Minnesota, has brought a charge of undertaking unsuitable sales of long-term deferred annuities to Minnesota senior citizens against Midland National Life Insurance Company Iowa-based Midland National became the third insurer in 2007 to be sued by Swanson for the miss-selling of annuities In the lawsuit, Swanson alleges that Midland National did not comply with the states suitability laws that require an insurance company to ensure an annuity is suitable for the particular senior citizen
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AM Best takes a dim view of AIG
Unpleasant surprises from American International Group (AIG), the worlds largest insurer, have become all too common as it reels under the impact of the US subprime meltdown First came mammoth losses $5.29 billion in the fourth quarter of 2007 and $7.8 billion in the first quarter of 2008 Then came a $20 billion capital raising exercise followed within weeks by the announcement that its CEO of three years standing, Martin Sullivan, had resigned with immediate effect.
Better advice from IFAs than banks
Better advice from IFAs than banks Anyone in the UK looking for financial advice on pensions or other savings products should stay clear of banks and building societies, it would seem
Still too soon for complacency
Just as a modicum of stability appears to have returned to global financial markets hit by the US sub-prime mortgage crisis Christine Li, an economist at rating agency Moodys Investor Services, poses the question: Is the financial crisis really over
MetLife expands Mexican base
MetLife expands Mexican base MetLife has signed an agreement to acquire Mexican pensions administration company AFORE Actinver for an undisclosed sum Founded in 2003 by Mexican financial services company Grupo Actinever, AFORE Actinver is one of Mexicos 21 administradoras de fondos para el retiro (AFORE) which administer individual pension accounts
Friends Provident has a lot of convincing to do
Friends Provident (FP) is facing a credibility gap following the unveiling of its much-awaited transformation strategy on 31 January Hyped by FP as the solution that will transform it into a more focused and profitable business, the UK life insurers strategy received a cold welcome, reflected in an immediate 10 percent slump in its share price to its lowest level in over three years Adding to negative sentiment was a warning that charges would slice pre-tax profit to about £20 million ($39 million) in 2007, down from £509 million in 2006