All articles by LII editorial
LII editorial
Benfield agrees to enter Aon’s fold
In a deal worth $1.75 billion, Aon Corporation is to acquire Benfield Group, a move repressing notable consolidation in the global reinsurance brokerage and risk management industry Benfield, which is UK-based and incorporated in Bermuda, will add annual revenue of almost $1 billion to Aons existing revenue base of about $7.5 billion. In addition to a sizable revenue boost Aon believes Benfield will add significantly to it capabilities in a number of areas
Insurers face life settlements risks
Insurers face life settlements risks Adding its weight to the ongoing controversy surrounding the US life settlements industry, rating agency Fitch has warned that life settlements expose life insurers and their reinsurers to a variety of risks in their core individual life segment
Uniqa entrenches its position in Albanian insurance market
Austrian insurer Uniqa is to acquire a 46 percent stake in Albanian composite insurer Sigal for an undisclosed consideration The purchase cements a co-operation agreement entered into between the two insurers in March 2007 that included an option for Uniqa to acquire a majority stake in Sigal in 2010 Explaining the reason for the decision to purchase a stake in Sigal prior to 2010, Uniqa CEO Konstantin Klien said: The positive experiences we had in the past months of close co-operation with Sigal have moved us to skip a step in our staged plan for acquiring a majority of the company.
Dai-ichi Mutual launches new insurer
Dai-ichi Mutual launches new insurer The final stage of Japans financial markets deregulation will open the door for banks to compete with insurers across the full range of insurance products In anticipation of full deregulation, Japans second-largest life insurer, Dai-ichi Mutual (Dai-ichi), has announced the launch of a new insurance company, Dai-ichi Frontier Life (DFL), which will open for business on 1 October this year
Deep pockets and patience
Indias private life insurance sector has enjoyed spectacular premium income growth, driven by the enormous success of unit-linked products Profits, however, remain illusive at a time when many of the life industrys hard-sell tactics are being called into question by respected Indian business leaders Since deregulation of Indias insurance market in 2000 a steady stream of new entrants has continued to swell the ranks of private life insurers and since late-2007 alone the number has grown from 15 to 21
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Long-term care insurers under fire in Washington
Long-term care insurers under fire in Washington Insurers offering long-term care insurance have come under strong criticism in the US state of Washington following a meeting between the states insurance commissioner, long-term care insurance professionals, a representative of Washington nursing homes and state legislators
Pension paupers in the making
The future is bleak for many UK workers who will have to rely on income from defined contribution (DC) private pension plans when they retire, warns Fidelity International (FI) The warning is based on the findings of the asset management companys third annual Fidelity Retirement Index study that, based on 2007 data, indicates that the average member of a DC scheme faces a massive slump in income after retirement
Scottish Re reveals subprime exposure
Scottish Re reveals subprime exposure Bermuda-based life reinsurer Scottish Re has again delivered unpleasant news, revealing in its second-quarter financial statement that it has a hefty exposure to US subprime residential mortgage-backed securities (RMBSs) The revelation came only two months after Scottish Re had received a much-needed $600 million capital injection from MassMutual Capital Partners, a member of the US-based MassMutual Financial Group, and affiliates of private equity firm Cerberus Capital Management.
Regulators haul UnitedHealth over the coals
As one chapter of controversy closes for UnitedHealth Group, the USs second-largest health insurer, another chapter opens, so it seems. And the latest chapter could prove to be UnitedHealths most costly yet as it faces down the California Department of Insurance (CDI) and the California Department of Managed Health Care (DMHC) and a potential fine of up to $1.3 billion Collaborating for the first time, the CDI and the DMHC have brought a joint action against UnitedHealth in response to consumer and provider complaints alleging handling violations by its PacifiCare unit it acquired in July 2005 for $8.1 billion The CDI regulates provider preferred organisations, in essence alliances between healthcare providers and insurers
Business as usual for AIG Africa
Business as usual for AIG Africa Shrugging off negative publicity surrounding its parent groups financial woes, AIG Africa has enjoyed yet another successful year Indeed, far from stagnating, expanding its three existing operations and moves into new African markets are high on the agenda, the companys newly appointed CEO Peter Flint tells LII.