All articles by LII editorial
LII editorial
Tackling the daunting risk challenge
Though North American life insurers view enterprise risk management (ERM) as a key management issue, many have yet to implement crucial ERM elements reveals a study by professional services firm Towers Perrin Towers Perrin found areas where insurers lag most include quantifying economic capital (EC), the capital required based on an insurers view of risk.
Allianz’s first European variable annuity launched
Germany has become the first country to be targeted by Allianz in the rollout of its first variable annuity (VA) product to be marketed in Europe, Invest4Life The insurers launch of VAs in Germany will be followed by the introduction of similar products in France at the end of 2008 and Italy in the first quarter of 2009. A single premium VA Invest4Life was jointly developed by the insurers German unit Allianz Leben and its international asset management unit Allianz Global Investors, and draws on experience with similar products marketed by Allianz in the US
Transamerica tops for service
The claim by Transamerica Retirement Services (TRS), which swept the boards in a survey conducted by market research and consulting company Chatham Partners, that it offers superior customer service has been shown to have real substance In Chathams 2007 Client Satisfaction Analysis study, TRS, a retirement product marketing unit of Netherlands insurer AEGONs US subsidiary Transamerica Financial Life Insurance Company, received 17 best in class ratings and was adjudged best overall performer Chatham performed a client study covering service aspects ranging from the accessibility and professionalism of account specialist teams to fees and the range of investment choices offered
Former AIG executives agree to $115 million settlement
Amid the turmoil in financial markets an event that might otherwise have made headlines has been somewhat sidelined: A $115 million settlement between American International Group (AIG) and the insurers former chairman and CEO Maurice Hank Greenberg and three other former AIG executives The news came in a statement released by shareholder and corporate governance law firm Grant & Eisenhofer (G&E) which reached the settlement on behalf of AIG after six years of litigation with trial scheduled to start on 15 September 2008 According to G&E the four former AIG executives were accused of conducting an extended series of transactions expressly engineered to siphon money away from the company and into private affiliates they controlled.
Old Mutual South Africa revamps its structure
Old Mutual South Africa revamps its structure As part of a series of restructuring initiatives, life insurer Old Mutuals South African unit, Old Mutual South Africa (OMSA), has sold its 50 percent stake in Old Mutual Bank (OMB) to its 51 percent-owned banking subsidiary Nedbank for ZAR140 million ($21 million)
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New CEE market leader arises
An agreement entered into by two of Austrias largest financial services groups, composite insurer Vienna Insurance Group (VIG) and Erste Bank, is set to radically alter the market share profile of the fast-growing Central and Eastern Europe (CEE) insurance industry Under the agreement VIG will acquire control of Erste Banks life and general insurance units in the Czech Republic, Slovakia, Hungary, Croatia, Romania and Austria, a move that will see it overtake Allianz as the largest foreign insurer in CEE and entrench its leading position in Austria
Aviva USA offers health incentive
Aviva USA offers health incentive Stay healthy and get the benefit of lower life insurance premiums this is the essence of Aviva USAs Wellness for Life Program, launched in conjunction with US medical services company Mayo Clinics Mayo Clinic Health Solutions
Shin Kong Financial scrambles for capital
Dai-ichi Mutual Life, Japans second-largest life insurer has come to the assistance of Taiwanese financial services group Shin Kong Financial Holding (SKFH), the parent company of Shin Kong Life Insurance (SKL), which is currently in the throws of bolstering its capital base depleted by investment-related losses sustained by SKL. Assistance comes by way of a private placement in which Dai-ichi will acquire SKFH ordinary shares and SKL preference shares for a total consideration of NT$8 billion ($240 million).
A dark day for former AIG and General Re executives
The spectre of lengthy prison terms hangs over the heads of four former senior executives of reinsurer General Re (Gen Re) and one former senior executive of American Insurance Group (AIG) This unpleasant prospect follows their conviction on 28 February by a federal jury on 16 counts of conspiracy, securities fraud, false statements to the US Securities and Exchange Commission (SEC) and mail fraud Those convicted are Ronald Ferguson, Gen Res CEO from 1987 to 2001; Elizabeth Monrad, Gen Res chief financial officer from 2000 to 2003; Robert Graham, Gen Res senior vice-president and assistant general counsel from 1986 to 2005; Christopher Garand, Gen Re senior vice-president and the head and chief underwriter from 1994 to 2005; and Christian Milton, AIGs vice-president of reinsurance from 1982 to 2005.
OECD slams slack corporate governance
Poor corporate governance in the financial services industry has let the world down, believes the Organisation for Economic Co-operation and Development (OECD) Supporting its view the international body, which represents 30 of the worlds largest economies, has launched a campaign aimed at raising corporate governance standards and performance in an effort to restore shattered investor confidence. Rebuilding investor confidence will be vital to helping the economy get back on track, stressed the OECDs Secretary-General Angel Gurra at the launch of the campaign in late September.