All articles by LII editorial
LII editorial
Baltimore Life adds to consolidation among smaller US insurers
Continuing the trend of consolidation among smaller US insurers, Baltimore Life Companies (BLC) is acquiring Philadelphia United Life Insurance Company for an undisclosed sum The acquisition, which will be paid for in BLC shares, will boost BLCs policy-base to 350,000 and its total assets to $900m. Founded in 1882, BLC provides life and health insurance and annuity products to individuals and businesses and is licensed in 49 states and the District of Columbia
Mixed results from Australian insurers in a tough first six months
Australias life market proved to be tough going in the first half of 2010, with premium income falling 3% compared with the first half of 2009 to A$37.5bn ($37.5bn), reported actuarial consultancy Plan For Life (PFL). According to PFL, only the risk insurance sector enjoyed significant growth, with premium income rising 12.2%, while group superannuation investment business also increased, but only by 2.5% All the other market sectors were down, with individual superannuation investment recording the largest percentage drop 16% followed by retirement income down by 8.6%.
China and Taiwan forge landmark insurance pact
Signing of the Economic Cooperation Framework Agreement (ECFA) between China and Taiwan on 29 June 2010 has had a sequel The China Insurance Regulatory Commission (CIRC) has selected Xiamen, capital of Chinas Fujian province, as the pilot city to promote cooperation between the two countries insurance industries The ECFA is viewed as the most significant agreement between China and Taiwan since the two countries split after the Chinese Civil War in 1949
Alico exits Peru
Credicorp, Perus largest financial conglomerate, is to acquire American Life Insurance Companys (Alico) 20.1% stake in life insurer Pacifico Seguros Credicorps wholly-owned subsidiary Grupo Credito is to acquire Alicos 38% stake in general insurer Pacifico Vida, for a total consideration of $170m On completion of the deal, which is the biggest executed in Perus insurance market yet, Credicorp and Grupo Credito will jointly own 96.1% of Pacifico Seguros and 100% of Pacifico Vida
Study predicts big change for Indian insurers
This is the conclusion of a study, Indian Insurance sector, Stepping into the next decade, undertaken by the Confederation of Indian Industry (CII) and professional services firm Ernst & Young (E&Y) In the study, CII and E&Y emphasise that, in what they term Phase III of the industrys development, most large insurers are expected to decelerate the pace of distribution growth and increase their focus on retention of channel partners and improving channel productivity
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Resolution Group swoops again
Acquisition-hungry UK insurer Resolution Group has snapped up health insurer Bupas UK protection and risk business, Bupa Health Assurance (BHA), for £165.15m ($265m) This follows on the heels of Resolutions acquisition of Axa UK life and pensions operations in June for £2.75bn. In a statement, Bupa said the decision to sell BHA would enable it to focus on its health care businesses, including its health insurance products and services in the UK
State Street to administer UK’s NEST programme
US asset management company State Street has been appointed to provide fund administration and custody services to the UKs National Employee Savings Trust (NEST) programme
Munich Re expands its US Medicare footprint
In a move designed to strengthen its position in the US government-sponsored Medicare health insurance market, Munich Re is to acquire Windsor Health Group for $125m in cash Wolfgang Strassl, the Munich Re board of management member responsible for MH, said: “As one of the largest health insurance markets in the world, the US is very important for MH
Axa adds momentum to China’s changing financial landscape
Marking a further blurring of the boundary between Chinese banks and insurers, the countrys largest bank Industrial and Commercial Bank of China (ICBC) is to acquire a 60% stake in life insurer Axa-Minmetals Assurance Company (AMAC)
UK home owners turn their backs on insurance
Financial pressure on consumers in the UK is being reflected in many ways, not least of which appears to be neglect of life insurance This is indicated by a study by Sainsburys Banks life insurance unit which shows that there has been 47% increase in home mortgages not covered by life insurance since January 2006 Overall, the findings by Sainsburys indicate that 7.1m people with a collective outstanding mortgage balance of £318bn ($509bn) have no life insurance to cover on their mortgage