All articles by LII editorial
LII editorial
Europe’s ?1 trillion headache
A combination of demographic changes and rising medical costs are placing a huge and growing burden on Europes primarily state-funded health care system Many countries may yet be forced to follow the example set by the Netherlands, which has placed private insurers in the forefront of providing a solution Health care expenditure in Europe is rising inexorably, in the process placing an increasing burden on government finances
Still brimming with opportunity
Still brimming with opportunity Despite achieving phenomenal growth since being opened up to private competition in 2000, Indias life insurance market remains in an early growth phase
A hard-to-please audience
Launched in 2006 the Association of British Insurers (ABI) Customer Impact Scheme, an initiative to improve customer experiences of the life and pensions industry, has achieved mixed results, indicates the 20072008 annual report of the ABI Customer Impact Panel, an independent oversight body On a positive note, 53 percent of customers surveyed strongly agreed or agreed that the industry has an excellent reputation, compared with 48 percent surveyed for the 20062007 report For the latest report 19,425 customers of 32 companies were surveyed.
Prudential has ambitious growth plans for China
Prudential has ambitious growth plans for China UK insurer Prudential says it has ambitious growth plans for its Chinese asset manage- ment joint venture (JV) CITIC Prudential Fund Management (CITIC Prudential) and, to ensure it reaps the maximum benefit, has increased its stake in the JV from 33 percent to 49 percent
Aon completes its exit of the underwriting market
Aons strategy to cease underwriting activities has reached finality with the signing of agreements to sell two wholly owned units speciality individual accident and supplemental health insurer Combined Insurance Company of America (Combined) and healthcare insurer Sterling Life Insurance for a total cash consideration of $2.73 billion Aon, the worlds second-biggest insurance broker, announced its intention to exit the underwriting market in 2006, a decision that was followed by a series of sales of speciality underwriting units The largest of the units sold in the latest deals is Combined, which is to be acquired by Bermuda-based composite insurer and reinsurer Ace for $2.4 billion in cash
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UK insurers’ £350 billion challenge
If ever proof was needed that defined benefit (DB) pension liabilities are unpredictable, the financially tumultuous month of September provided it in the UK The countrys 100 largest listed companies (FTSE100) began the month with what consultancy Watson Wyatt estimated at a combined DB pension scheme deficit of £12 billion ($21 billion) By the end of the month Watson Wyatt estimates that the deficit had swung into a surplus of £30 billion.
Bupa thinks big in Indian health market
Continuing to pursue an active foreign investment strategy, UK health insurer Bupa is to form a new health insurance company in India Max India, a financial and health services and technology conglomerate, is partnering with Bupa in the joint venture (JV) named Max Bupa Health Insurance (MBHI). JV Max India chairman Analjit Singh said that prior to the decision to establish MBHI, Max India had discussions with a number of international health insurers.
Activist investor takes Generali to task over governance
Activist investor takes Generali to task over governance Just a month after delivering an upbeat outlook on its growth prospects, Assicurazioni Generali, Italys largest insurer and Europes third largest, has come in for heavy criticism from Algebris Investments, a UK-based hedge fund manager In a 12-page letter to Generali, Algebris called for sweeping reforms of the insurers corporate governance and senior management remuneration structures, which it believes in their present form have led to Generalis share price being undervalued by 40 percent. Among corporate governance issues, Algebris called for Generali to end the practice of having two CEOs
Fortis takes action to boost solvency
Belgo-Dutch bancassurer Fortis has taken a decisive step in what it termed its accelerated solvency plan with the placing of 150 million new shares with institutional investors The issue which Fortis said attracted substantial interest raised 1.5 billion ($2.35 billion) and was pitched at 10 per new share, 36 percent below its closing price on 30 May 2008 The share issue which follows the raising of 625 million via a perpetual subordinated bond issue in late-May forms part of a strategy to increase solvency by more than 8 billion.
The Hartford flexes its muscles in the US pension market
US insurer and financial services provider The Hartford Financial Services Group (The Hartford) marked the final month of 2007 with an acquisition spree that boosted total assets of its pensions business to $46 billion, an increase of almost two-thirds compared with the end of the third quarter of 2007 The acquisitions, combined with strong growth in existing business, will mean The Hartford ends 2007 having almost doubled its pension business assets The number of pension plans in The Hartfords fold will have increased from about 18,000 to 24,700 and the number of plan participants from about 560,000 to 1.6 million