All articles by LII editorial
LII editorial
US interstate compact has achieved mixed success
In existence for nine years, the US Interstate Insurance Compact Model aimed at enabling life insurers to file a single new product application in multiple states has been met with mixed results In its study, Milliman found that in 2011 132 insurers were registered with the Interstate Insurance Product Regulation Commission (IIPRC), 58 (78%) more companies than were registered at the time of its last study in 2009
South African life insurers step up
However, while this move saw about 3,800 new intermediaries enter the industry over the past 12 months, Astute found that the dropout rate remained very high. The end result was that the net number of registered financial advisers active in the South African life industry increased by only some 700, taking the total to about 17,400.
UK insurers face a whopping final bill from the FSA
What is likely to be the UK Financial Service Authoritys (FSA) swansong annual fundin requirement announcement has received a cold reception from the Association of British Insurers (ABI) In its 20122013 fiscal year, the FSA is looking to raise £578.4m ($910m) in fees it levies on financial services companies, an increase of £77.9m (15.6%) compared with 20102011.
Achmea takes a grim view of Dutch life market
Signalling a gloomy outlook for the Netherlands life insurance market, the countrys largest composite insurer Achmea has announced that it is to fully impair goodwill related to its life insurance and pension activities The total amount involved is 279m ($365m) and relates to goodwill that arose from the merger of Achmea and Dutch bank Rabobanks life insurance subsidiary Interpolis in 2005. At the time of the merger, Achmea was a unit of Dutch insurer Eureko which changed its name to Achmea in November 2011
Hedge fund presses for The Hartford’s break up
John Paulson, president of hedge fund management firm Paulson & Co, believes there is only one way that US insurer The Hartford Financial Services Group can unlock value for its shareholders and that is by separating its life and general insurance operations. With Paulson & Co now the largest shareholder in The Hartford, Paulson has backed his proposal in a letter to The Hartford chairman, president and CEO Liam McGee.
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ABI gets tough on transparency
When it comes to investing their hard-earned retirement savings, a study by the Association of British Insurers (ABI) found that a third of workers in the UK approaching retirement do not shop around for the annuity product best suited to their circumstances. One of the fundamental requirements of the code is that service providers will be compelled to communicate clearly to their clients that they are free to use their retirement savings to buy an annuity from another service provider, if they choose to do so
AIG prospering again, says CEO
Announcing American International Groups (AIG) 2011 results, its president and CEO Robert H Benmosche sent out a clear message that AIG has put its troubled past behind it and is again a force to be reckoned with in the insurance industry.
Sagicor expands its US presence
Increasing its reach in the US life market, Barbados insurer Sagicor Financial Corporations US unit Sagicor Life is to acquire PEMCO Life from PEMCO Mutual, a Washington statebased company focused on general insurance.
Old Mutual stakes its claim in Nigeria
UK-domiciled insurer Old Mutual is to take its first step into West Africa through the acquisition of Nigerian insurer Oceanic Life from Nigerian bank Oceanic Bank Group Commenting on the deal, Old Mutual Africa MD Johannes Gawaxab said that exploiting the opportunity that Nigeria and the broader West African region presents makes sound business sense and will form part of Old Mutuals strategy of expanding its presence in sub-Saharan Africa.
Axa Real Estate’s letting spree in France
Europes economy may appear to be teetering on the brink of recession but you would hardly say so, judging from the leasing success Axa Real Estate Investment Managers are achieving in France. Axa Real Estate reports that in 2011 it signed 96 leases on 175,000sqm of space in its office and retail portfolio, an increase of 23% compared with 2010. Of the lettings, 58 representing 63,000 sqm were new leases, while the remaining 38 representing 112,000sqm of space comprised lease renewals and extensions.