All articles by LII editorial
LII editorial
Vienna Insurance Group forges ahead in CEE
Austrian composite insurer Vienna Insurance Group (VIG) continued to pursue its goal of building a significant presence in Central and Eastern Europe (CEE), adding a presence in three additional countries Estonia, Latvia and Lithuania in the closing weeks of 2007 The additions came via the acquisition of 100 percent of Seesam Life Insurance from Finnish insurer Finnish Suomi Mutual Life and brought VIGs presence in CEE to 18 countries Seesam Life was established in 1993 and subsequently expanded into Latvia in 1999 and Lithuania in 2001
Full potential still to be realised
Boosted by robust economic growth in the past decade, Lithuanias life insurance industry has flourished, sustaining a growth pace few others have matched But for now what had promised to be an ongoing growth story has been severely checked by economic problems, both global and specific to Lithuania. What it lacks in size Lithuania, a country with a population of only 3.7 million, has made up for in the dynamic growth of both its economy and insurance industry
Don’t delay Solvency II preparation, warn actuaries
Dont delay Solvency II preparation, warn actuaries Although the deadline for the introduction of the European Unions Solvency II regulatory regime October 2012 may appear a long way off, insurers should start to prepare now, delegates at The Actuarial Professions recent General Insurance Research Organising Conference were told
FSA takes tough stance on payment protection advice
A hard line taken in January this year by UK financial regulator the Financial Services Authority (FSA) left no doubt about the steps it will take to protect consumer interests in the payment protection insurance (PPI) market In the FSAs sights was consumer finance specialist HFC Bank (HFC), which received a fine of £1.085 million ($2.1 million) this marks the highest fine imposed for infringements of PPI regulations In a statement enumerating numerous infringements it had identified, the FSA said that between January 2005 and May 2007, a period during which HFC sold 163,000 PPI policies, the bank did not require advisers in its 136 branches to gather sufficient information about customers circumstances and take sufficient information into account when considering whether PPI was suitable
Potent growth potential in Irish market
The Republic of Irelands life insurance industry continued to power ahead in 2006, lifting total gross premium income 27.8 percent compared with 2005 to 30.4 billion ($41.5 billion), according to the Irish Financial Services Regulatory Authority (IFSRA)
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Aviva’s strategic about-turn
Reaffirming Indias significance in the global business process outsourcing (BPO) market, UK insurer Aviva has sold its offshore life and general insurance processing unit, Aviva Global Services (AGS) to Indian BPO specialist WNS Global Services for £115 million ($228 million) Under the terms of the deal WNS will provide processing functions including policy administration and settlement, finance, accounting, customer care and other support services for Avivas UK and Canadian operations for eight years and four months The sale of AGS and the BPO contract with WNS worth a total of $1 billion over its life marks a notable change in Avivas strategy
Pearl Group emerges victorious to secure resolution in tug of war for control of Resolution Life
Pearl Group emerges victorious to secure resolution in tug of war for control of Resolution Life The battle for control of UK insurer Resolution Life ended in victory for closed life fund specialist Pearl Group on 16 November, when rival Standard Life withdrew its offer and Resolutions directors gave Pearls cash offer their full backing
Developing markets leading the way
Despite economic headwinds the worlds life insurance industry continued to make solid headway in 2007, Swiss Res latest world insurance study reveals Premium income grew at an inflation-adjusted 5.4 percent to $2.993 trillion, while premium growth exceeded the average world increase in GDP of 3.8 percent in 2007 and the world 10-year average real premium growth rate of just above 4 percent Developing markets led the way, registering an average growth rate of 13.2 percent which took total premium income to $218.8 billion
Credit crunch jitters hit insurers’ property funds
Plunging UK commercial property values have sent investors scrambling for property fund exit doors However, many are finding the doors shut, including those of insurer Axa UKs Retail Life and Pensions Property funds, which have total assets of £2.1 billion ($4.1 billion) and about 100,000 investors Axas funds, which had seen cash reserves fall to 5 percent of fund values, are now subject to a six-month waiting period from the date a request is received for an investment redemption or transfer
Great Eastern celebrates centenary
August 26 was a day of particular significance for Singapores largest and oldest life insurer, Great Eastern Life Assurance Company (GEL) It marked exactly 100 years since a Canadian, AH Fair founded the company which began operating with total assets of S$70,000 ($49,000) and a staff of 15. From those modest beginnings GEL has grown into a company boasting total assets of S$46.5 billion ($32.5 billion) and market shares of 28 percent in Singapore and 23 percent in Malaysia, where it also ranks as the oldest and largest life insurer