All articles by LII editorial
LII editorial
Rebound in European M&A activity predicted
Merger and acquisition (M&A) activity in the European insurance market is poised for a rebound, predicts Antonello Aquino, senior credit officer at rating agency Moodys Investors Service A recovery would after a period of comparatively low M&A activity which saw deals totalling 23bn ($29bn) in 2008 and 2009, combined
Prudential’s plan to buy AIA hits a brick wall
It is back to the drawing board for UK insurer Prudential and advisers on its planned £13.9bn ($20.7bn) rights issue following a move by UK regulator the Financial Service Board (FSA). The rights issue forms the key funding avenue for Prudentials $35.5bn acquisition of US insurer American Insurance Groups Asian life insurance unit AIA Group
Sophisticated investors urged to use life settlements as an asset class
Life settlements is a potentially profitable alternative for sophisticated investors, particularly those seeking an asset class uncorrelated to capital markets, believes Ryan Bisch, a senior associate at consultancy Mercers Alternatives Boutique in Melbourne, Australia. The global financial crisis was a wake-up call for many investors who realised that traditional alternative assets, such as hedge fund of funds, had failed to provide investors with adequate strategy diversification,” said Bisch Life settlements provide a genuine alternative because they are based on bearing longevity risk as well as exploiting structural inefficiencies in the life insurance market, rather than mainstream capital market risk premia.”
Regulators plunge India’s ULIP market in to limbo
Indias Insurance Development and Regulatory Authority (IRDA) and capital markets regulator, the Securities and Exchange Board of India (SEBI), have locked horns over the latters move to impose its authority on unit-linked insurance products (ULIP). The SEBI sparked confusion in the market on 9 April when it issued an order restraining 14 the countrys 22 private life insurers from launching any new ULIPs or accept premiums for existing ULIPs until the SEBI issued them a certificate of registration
SCOR enters China’s life and health markets
Expanding its reach in Chinas insurance market, French reinsurer SCOR Group has been granted a composite licence by the China Insurance Regulatory Commission that will enable it to extend its current general insurance activities into the life and health insurance sectors.
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AIG back in the black
American Insurance Group (AIG), in which the US government has a stake of almost 80%, had good news for taxpayers in the first quarter of 2010, reporting that it had generated a net profit of $1.45bn The result compares with a net loss of $4.35bn in the fourth quarter of 2009 AIG reported a net loss of $7.2bn in the fourth quarter following two consecutive profitable quarters
Japanese government angers insurance industry bodies
Ten major industry bodies representing the interests of life insurers, general insurers and reinsurers in the US, Europe and Asia have joined forces in condemning the Japanese governments stance on state owned Postal Life Insurance Service, or Kampo. The move follows a government cabinet decision on 30 April this year approving new legislation that contemplates legal and regulatory exemptions for Kampo from laws applying to private sector companies In addition, the industry bodies object strongly to other aspects of the cabinet decision which would permit Kampo to enter new business areas that they believe will greatly expand Kampos market reach
Money does not always buy a longer life
Money does count when it comes to longevity but it is not the only factor, reveals a study based on UK data conducted by actuarial consultancy Hymans Robertsons pension scheme advisory unit, Club Vita Analysing data from the Office for National Statistics and Scottish Neighbourhood Statistics, Club Vita found that people living in Kensington and Chelsea live on average the longest in the UK to 86.6, six years above the national average of 79.6 years
Munich Re reduces stake in Helvetia
In a move it describes as reducing its portfolio risk, Munich Re has reduced its stake in Swiss composite insurer Helvetia from 8.2% to under 3% The reduction involved the sale of Helvetia shares worth 119m ($160m) on which the German insurer and reinsurer said it realised a gain of about 90m Munich Re, which has had an association with Helvetia since 1988, emphasised that the reduction of its stake does not reflect any change in its assessment of the present or future performance of Helvetia
UK workplace pensions go from bad to worse
Workplace pensions in the UK present a sorry picture of decline, reveals 2009 a data study published by the Office for National Statistics (ONO) Of particular concern is that in recent years defined contribution (DC) pension provision has joined the long-term decline in defined benefit (DB) pension provision. Overall, the ONS study shows that 35% of private sector employees were in a workplace pension scheme at the end of 2009, down from 45% in 1999