All articles by LII editorial
LII editorial
US individual life ownership plummets
That economic hardship is taking a heavy toll on American families has been made abundantly clear by data from consulting and development organisation LIMRA showing that ownership of individual life insurance has hit a 50-year low. Clearly, more American families are living on the edge surviving paycheck to paycheck and, as our new study suggests, too many without the safety net that life insurance provides,” said LIMRA CEO Robert Kerzner
New York Life goes from strength to strength
An aggressive marketing strategy highlighting its financial strength using emotive slogans such as “Built For Times Like These” and “Guarantees Matter” continued to pay off for New York Life (NYL) in the first half of 2010. Following up on its record performance in 2009, the US largest mutual insurer has reported individual life insurance sales of $2.3bn in the first half of 2010, up a hefty 47% on what were record sales in the first half of 2009. The first half of the year continues to show that families and businesses are putting their money where the guarantees are and where the stable returns are,” said Mark Pfaff, executive vice-president in charge of NYLs US life and agency operations.
Accounting upheaval faces insurers as IASB moves towards global contract standards
Uniform accounting standards for insurance contracts took a big step towards becoming a reality with the publication by the International Accounting Standards Board (IASB) in late July of Insurance Contracts, an exposure draft of improvements for comment The IASB is working with the US Financial Accounting Standards Board to develop a harmonised standard that all insurers in all jurisdictions can apply to all contract types on a consistent basis
AIG finds buyer for consumer finance unit
Continuing its asset divestment strategy, American International Group (AIG) is to sell 80% of its consumer credit unit American General Finance (AGF) to US investment management company Fortress Investment Group for an undisclosed sum Founded in 1920, AGF provides loans, retail financing and other credit related products to more than a million families in the US, Puerto Rico, the Virgin Islands, and the UK through 1,100 branches
Country review: Bahrain – Middle East’s pocket-size powerhouse
Bahrain can justly lay claim to having one of the worlds most progressive economic policies, which includes the full support of development of its financial services sector This has been especially evident in the rapid advance of its life insurance industry in recent years which, although small, has solid potential. Small in size, Bahrain covers an area of 727 square kilometres and has a population of 729,000, of which about a third are foreign nationals
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Munich Re establishes Japanese office as part of expansion strategy
The move forms an important part of a strategy to expand life and health reinsurance activities, said Joachim Wenning, a member of the reinsurers board of management Life and health reinsurance premiums increased from 24% of Munich Res total premium income in 1999 to 39% in 2009, Wenning added
US employees losing out on retirement benefits by sticking with herd
A study by Towers Watson provides compelling reason for US workers aiming to retire comfortably to rely more on their own initiatives and less on those of their employers. In its study, the professional services company found that from1998 to 2008 the value of total retirement benefits provided to new, salaried employees in eight major industries fell 19%, from 7.88% of pay to 6.36% of pay
Insurance operations fail to impress
Mixed interim results from ING Group saw banking surge ahead to produce its best results since the onset of the global financial crisis, while insurance operations disappointed Central to INGs insurance woes is its US legacy variable annuity business, which remains subject to the whims of the equity market. ING Group has reported making progress with the daunting task of dismantling its sprawling bancassurance empire, a process that began almost a year ago as part of an agreement with its major creditor, the Dutch government.
A decade of strong global private retirement asset growth lies ahead
Global retirement assets are set to enjoy robust growth over the next decade and will soar by two-thirds from 22trn ($28trn) at the end of 2009 to 36trn in 2020, predicts Allianz We expect the escalation in retirement savings to be the driving force for the development of the monetary wealth in many countries in Europe, Asia-Pacific and the US,” said Allianz senior pension analyst Renate Finke.
Cuna goes for growth in Europe
Using its recently established underwriting base in Ireland, US mutual insurer Cuna Mutual Group is on a drive to significantly boost its European market share Paul Walsh, CEO of the insurers European operations, shared with LII the strategy being followed, particularly in the UKs building society sector. Driving growth by offering consumers simple, understandable and affordable products is the over-riding objective of Cuna Mutual Group Europe (CMGE)