All articles by LII editorial
LII editorial
MetLife thinks big in mortgages
In a deal that will expand its involvement in the US residential property market significantly, MetLife is to acquire the residential mortgage origination and servicing business of First Tennessee Bank National Association (FTBNA), a subsidiary of bank holding company First Horizon National Corporation The FTBNA deal follows the US insurers announcement in April this year that it was to acquire the reverse mortgage unit of EverBank Financial Both acquisitions are to be housed in Metlifes wholly-owned unit MetLife Bank.
Health insurance premiums rise relentlessly
Health insurance premiums rise relentlessly The rise in US health insurance premiums has slowed to 7.2 percent (after any plan adjustments) in 2007 from 8.6 percent in 2006 but still remains significantly above the general rise in the cost of living, reveals the United Benefit Advisors (UBA) Annual Benchmark Survey.
Long-awaited UK equity release boom predicted
Significant growth in the UKs equity release market is inevitable, predicts industry body Safe Home Income Plans (SHIP) The reality is that declining levels of private pension provision and meagre state pension benefits will drive more people in this country to explore alternative ways to top up their income in later life, said SHIPs director general, Andrea Rozario Some will work longer, but a very large number are already planning to use the value in their property, she stressed
Disintegration of an industry giant
It took 18 years to build Fortis into a bancassurance giant which ranked as the worlds 20th largest company by revenue in 2007 Fortis glory ended abruptly in late September when three governments were forced to cobble together a rescue package that has left it a shadow of its former self. In what was to prove to be a sign of the turbulent times Fortis issued a reassuring statement on 26 September in which it stressed: Above all we underline the solid position of the bank. Less than two weeks later, the once mighty European bancassurer found itself decimated with the spoils divided up between French bank BNP Paribas and the, no-doubt reluctant, governments of the Netherlands and Belgium.
AXA Equitable triumphs in US VA market
In 2007, which it justifiably claims as having been a stellar year for it, AXA Equitable Life (AEL), a US unit of French insurer AXA, leapfrogged its competitors to move from third into first position in the US variable annuity market AEL ended 2007 with total net variable annuity (VA) sales of $15.5 billion, up 20.2 percent compared with 2006 and well ahead of a 15 percent increase in total VA sales to $184.2 billion reported by insurance industry association LIMRA International To put this achievement and our momentum in perspective, the companys $15.5 billion in variable annuity sales in 2007 was three times what it was in 2001, representing a 20 percent compounded annual growth rate over six years, said James Shepherdson, executive vice president of AEL and president of AXA Distributors, AELs wholesale distribution unit
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New York gets tough on insurers
New York gets tough on insurers Eric Dinallo, superintendent of the New York State Insurance Department (NYSID) is taking no chances that insurers under his jurisdiction will spring any more unpleasant surprises. In the first part of a two-part strategy to ensure stability, the NYSID has announced that it will undertake on-site reviews lasting between one to two days of insurers financial stress testing and scenario analyses processes.
Big challenges face foreign insurers
Big challenges face foreign insurers Chinas life insurance industry has set a cracking growth pace and, assisted by the full backing of the countrys government, looks set to deliver more of the same in the years ahead In 2000, Chinas life insurance industry ranked as the worlds 18th largest based on total premium income of RMB99.8 billion ($12 billion at the then prevailing exchange rate)
Lifecycle fund asset confusion
Lifecycle funds, also termed target date funds, represent a fast growing market in the US driven primarily by defined contribution pension scheme members seeking a seemingly simple yet effective solution Indicative of their popularity, industry body the Investment Company Institute reported that total assets in lifecycle funds soared by 61 percent in 2007 to $133 billion, of which 88 percent was held in retirement accounts
Image of property funds lies in tatters
Image of property funds lies in tatters In September 2004 one of the UKs top-five life insurers assured investors that commercial property funds carry only slightly higher risk than bonds. Just over two years later the doors of many commercial property funds were being slammed shut, some for up to 12 month following an avalanche of withdrawals
Equity release draws an ever-younger client base
Equity release draws an ever-younger client base Extracting capital from a residential property by way of a loan that need only be repaid when the property is sold or out of the borrowers estate after death equity release is gaining acceptance among pre-retirees in the UK