All articles by Stafford Thomas
Stafford Thomas
Gen Re owns up and pays up
Ending one of the most shameful stories in the US insurance industrys history, reinsurer General Reinsurance Corporation (Gen Re) has entered into an agreement with the Department of Justice in which it acknowledged its role in a fraudulent scheme to manipulate American International Groups (AIG) financial statements. For the subsidiary of investment company Berkshire Hathaway, the settlement comes at a cost of $92.2 million, of which the lions share, $60.5 million, will go to settle a class action by AIG shareholders who suffered financial loss as a result of the scheme. Of the remaining amount, $19.5 million goes to the US Postal Inspection Service Consumer Fraud Fund and $12.2 million to the Securities and Exchange Commission (SEC)
Growth of China’s life market slackens in 2009
Specifically, the industrys premium income exceeded the CNY1 trillion ($146 billion) mark for the first time, coming in 13.8 percent higher than in 2008 at CNY1.11 trillion
UK’s Standard Life makes costly error
The new year got off to a bad start for UK insurer Standard Life when it became the recipient of the first significant fine handed down by the Financial Services Authority (FSA) in 2010. The FSA explained that between 10 July 2006 and 28 February 2009, Standard Life failed to ensure there were proper systems and controls over its Pension Sterling Fund (PSF), specifically in relation to the marketing material produced.
Phoenix sells a jewel in its crown as ‘strategic repositioning’ continues
US life insurer The Phoenix Companies (TPC) has sold its private placement insurance business PFG Holdings and subsidiaries Philadelphia Financial Group (PFG) and AGL Life Assurance Company to Tiptree Financial Partners for an undisclosed sum.
Private insurers lose ground to LIC
Indias life insurance industry can look back on a decade of remarkable growth which saw annual premium income soar from INR517.08 billion ($11.1 billion) in the fiscal year to 31 March 2002 to INR2.25 trillion in 2008-09, a CAGR of 22 percent.
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Axa Equitable thinks boldly with Retirement Cornerstone platform
In an era where most annuity providers are moving toward simplified, single-stream product offerings, Axa Equitable believes it can offer growth and downside protection and still keep the product understandable for consumers. The US unit of the French insurer recently launched Retirement Cornerstone, a variable annuity with a dual-account investment platform that it hopes will change the way that investors view the uses and benefits of variable annuities.
Moody’s predicts consolidation ahead for UK Mutual insurers
Following a recent increase in regulatory scrutiny by the UKs Financial Services Authority (FSA), mutual insurers and friendly societies face consolidative pressures, believes David Masters, an analyst at rating agency Moodys Investors Service. Masters said increased scrutiny was marked by a letter sent by the FSA in October 2009 to mutual insurers CEOs regarding prospects of their institutions, particularly those that continue to write new with-profits business in a declining sales environment
Paternoster still on UK buyout market sidelines
Paternoster, until 2008 a frontrunner in the buyout market, ceased writing new business about six months ago, a move that appears preempted action by the Financial Services Authority.Paternoster is, however, not back in business and will only resume writing new business once it has raised further money or when there is significant improvement in the economic outlook and, of particular significance, only once the company and the Financial Services Authority has agreed it appropriate to do so.Also of significance, Paternosters founder Mark Wood has relinquished his position as CEO and assumed the far lower-profile position of deputy chairman.Wood left his position as CEO of Prudentials UK and European operations in 2005 to establish Paternoster which he did with great success, raising £500 million from investors including major shareholders Deutsche Bank and private equity firm Eton Park.Wood has been succeeded by Ed Jervis, previously Paternosters commercial director.As at 31 August 2009, trustees has secured £2.7 billion of liabilities with Paternoster representing obligations in respect of 38,000 pensioners and 7,500 deferred members of a total of 42 pension schemes
A global challenge on a massive scale
Hammering home the reality of the economic and social challenges facing countries worldwide, the US Census Bureau has published a wide-reaching study which highlights the average age of the worlds population increasing at an unprecedented rate
Californian insurers ordered to sell Iranian-related investments
Steve Poizner, Californias insurance commissioner, has ordered 341 insurance companies licensed in the state to dispose of all shares they hold in companies that have connections with Iran Poizners demand follows an instruction he issued six months ago to all California-licensed insurers to declare their interests in Iran-related companies. As a result of this probe, insurance companies have reported $12 billion in investments in companies that do businesses with the Iranian energy, nuclear, banking and defence industries, said Poizner.