All articles by LII editorial
LII editorial
Consumers told to spend their savings
British consumers have reason to be confused, being encouraged by the government to save for their old-age and simultaneously being told by the Bank of England to spend for prosperity Deputy Bank of England governor Charlie Bean has sent out a message that will hardly delight the countrys more than 200 life insurers and pension product providers locked in an intense battle for the British consumers savings
AIG forges ahead with recovery strategy
Marking one of the more significant developments in its disinvestment programme, American International Group (AIG) is to sell its Japan-based life insurance subsidiaries, AIG Star Life Insurance and AIG Edison Life Insurance, to US insurer Prudential Financial in a deal worth $4.8bn
Judge deals Great-West a harsh financial blow
Great-West Lifeco has been dealt a severe fine by an Ontario Superior Court of Justice judge who has ruled against the Canadian insurer for improperly using money from participating life insurance policyholders accounts The ruling follows a class action brought against Great-West in 2008 in which plaintiffs alleged that it had breached certain requirements of the Insurance Companies Act by using money from participating life insurance policy accounts of London Life to help finance London Lifes acquisition in 1997
US industry under regulatory spotlight
There is no doubt that the life insurance settlements industry has secured a permanent place for itself in the US life market However, reports by the Government Accountability Office and the Securities and Exchange Commission have highlighted many serious inconsistencies in its regulation. Even the life settlements industrys strongest detractors in insurance circles have little choice but to acknowledge that it is here to stay
UK households flock to deposit-based savings
In the first of a planned series of reports, UK bank Lloyds TSB has delved into the savings habits of UK households Overall, Lloyds TSB found that, between 2000 and 2009, UK households accumulated £802bn ($1.25trn) in new savings, including pensions, shares and deposit savings
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Medical insurance on the move
While travel insurance provides cover against inconveniences such as loss or theft of personal items, it is its role as portable medical insurance that is often the most critical Taken across the world, the bank found that the average cost of treatment in a foreign country is £2,040 ($3,200), an increase of 6.25% compared to 12 months earlier
Allianz exits fund of hedge fund management
Marking its exit from the fund of hedge funds management sector, Allianz has sold Allianz Alternative Asset Management (AAAM) to hedge fund management company Nexar Capital Group for an undisclosed sum Nexar was founded in 1999 by three former executives of Socit Gnrales alternative and has as its strategic partner Aquiline Capital Partners, a New York-based private equity firm
Australia’s CBA targets Vietnam bancassurance market
Expanding its reach in developing Asian markets, Commonwealth Bank of Australia (CBA) has acquired a 15% stake in Vietnamese bank Vietnam (VIB) As part of the investment CBA will implement a long-term capability transfer programme replicating programmes in place with its partner banks in China. CBA said in a statement that the programme will be over five years and include shared business initiatives which are expected to see VIB emerge as a full service bancassurance group
Cheaper cover for women could end
Cheaper insurance for women in the EU could soon be over following news that EU Advocate General Juliane Kokott believes that taking the sex of a person into consideration for insurance purposes is against a persons fundamental rights In their action they requested that the annulment of a provision transposing into law of an EU directive that permits sex-specific differences in insurance premiums and benefits
Growing defined pension benefit nightmare placing many FTSE 100 at risk of failure
Combined defined benefit (DB) pension scheme deficits of the UKs top 100 listed companies (FTSE100) improved markedly at the end of June, falling by £17bn ($26bn) compared with June 2009 to £73bn, reports consulting firm Pension Capital Strategies (PCS). The reduction was driven primarily by a significant increase in the funding of pension deficits, with the total amount pumped in by 58 companies increasing from £4bn to £11.8bn. However, the significant increase in deficit funding contributions was accompanied by a marked decline in the provision of ongoing DB pensions, which fell by 15% from £7bn to £6bn