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EBRD committed to support regional insurance sector during crisis
The last two decades have seen massive growth in the financial services sector of Central and Eastern Europe (CEE) and the former Soviet Union. This trend is regarded as vital for theprocess of structural transition from state dominated to private sector economies. Here, WIR correspondent, Peter Falush, looks at the role of the European Bank for Reconstruction & Development in helping the region’s insurance sector negotiate the challenges thrown up by the current financial crisis
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Hanging on to your customers in an economic downturn
The banking meltdown has meant that many insurers around the globe are seeing their investment incomes completely disappear due to the industry’s reliance on the equity market to create surplus from invested premium incomes. The problem of underperforming investment returns is compounded by the fact that cost bases have either remained the same or are growing. With an attrition level of above 40% in specific lines of general insurance business, insurers must rethink the way they interact and deal with their customers. Here, Sabine VanderLinden, director of worldwide insurance solutions at Chordiant, looks at the opportunities for insurers to retain existing, and generate new, sources of revenues through retention schemes, product extension schemes or new business acquisition schemes
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Catching the “at retirement” wave
In 20 years time more people will be retiring, having held down several, often diverse jobs, for different employers. The onus will be on individuals to regularly monitor their savings provision. Providers will need to ensure that their products incorporate the many features and benefits required to support these changing lifestyles. According to Joanna Hall, Financial ServicePartner, with technology consultancy CSC, variable annuities could prove to be the catalyst to get this market back on track
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Property/casualty drives Allianz profits
Allianz is hoping that improvements to efficiency will mitigate the effects of claims and cost inflation
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Life insurers withstand recent turmoil but face new pressures
According to financial regulator BaFin, at the end of 2007, life insurers held only 16.2% of their capital in high-risk investments
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Chilean pensions assets continue to lose ground
But despite gloomy economic forecasts, Chile’s insurance industry is expected to post improved results in 2009
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Ergo’s life insurance partner dissolves joint venture deal
The German insurer insists that it was still a good time to enter India’s life insurance market
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Value of pension assets fall for first time in five years
The latest decline was large enough to exceed the inflow of contributions worth A$120bn during the year
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
World Loss Log: 3 - 16 March 2009
Late reports
1.3, fire, injury
US: Seattle Fire Department investigators said an electrical malfunction caused a fire that injured a man on the 140-foot tug Corbin Foss (178 gt, built 2003) on Elliott Bay two days before. The fire, which..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
OdysseyRe Holdings
Given the challenging underwriting environment in 2007, the improvement in the company’s net income was ultimately due to a greatly improved investment result. But the story is a little less straightforward than the headline figures suggest. Net investment income was significantly (32.0%) down on the year before. However, this decrease was more than compensated for by net realised gains on the sale of invested assets, particularly the sale of derivative securities. So much so that OdysseyRe’s net realised investment gains increased by 185.1% from $189.2mn in 2006 to $595.6mn in 2007
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Insurers wait for life insurance to take-off
The demand for life insurance in Pakistan, despite the country’s large population, is low compared with other countries in the region. However, despite the challenges of widespread illiteracy and poverty, the Pakistan economy has been growing in recent years with a corresponding growth in disposable incomes. This has led to an increase in demand for goods and services including financial services such as insurance, including life insurance. Indeed, life premiums have been increasing by around 30% per year since 2002. Insurers have been targeting middle class clients with notable success and, in further attempts to increase market penetration, insurers are also addressing traders in smaller urban centres and even the better-off in rural areas.In addition, low cost, micro-insurance, products are being developed for the rural markets
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Surprise positive statement from banks boosts insurance stocks
The insurance and reinsurance stocks tracked by WIR staged their strongest recovery this year during the two week period ending 19th March. Although share prices were, for the most part, below what they were at the beginning of the year, most of..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
AIG sells stake in Spanish power plants
The investment arm of troubled US insurer AIG has finally disposed of its interest in three Spanish alternative energy plants. AIG Financial Products Corporation said it had closed the sale of its interests in three operating Spanish solar..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Zurich North America opens energy office in Cleveland
The Commercial’s Energy Casualty division of Zurich North America has opened up offices in Cleveland, Ohio and Atlanta in order to enhance its access to the energy casualty markets in the US’s Southeast and Mid-Atlantic regions. The..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
P&c net profits fall in 2008
The sharp deterioration in economic conditions and investment markets is putting more pressure on US property and casualty insurers than traditional competitive pressures, according to a new special report by rating agency, Fitch. Commenting on the..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Chubb appoints global field manager
Chubb appoints international field manager
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Cavell to run-off Syndicate 2 exposures
Cavell Managing Agency Ltd, a subsidiary of insurance run-off specialist, Randall & Quilter, will take on the management of a new Lloyd’s syndicate, 3330 which take on £122mn of gross reserves by providing a reinsurance to close..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
BOC looking to enter life sector
Bank of China (BOC), the country’s biggest foreign exchange lender, announced recently that it was looking to buy a life insurance business. The bank’s President Li Lihui, who made the announcement while reporting on the..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Financial crisis: were the regulators negligent?
The most recent response to the global financial crisis by the UK’s financial services regulator, the Financial Services Authority (FSA), has been the publication of the Turner Review. Conducted by Lord Turner, the chairman of the FSA, the..
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
French reinsurers stand out
Despite its resilient performance, Scor did not return any capital to shareholders. Chief financial officer Paolo de Martin commented that with the benefit of hindsight, share repurchases did not seem such a good idea for many companies. Scor has been rewarded for its conservatism with a rating upgrade to A from A- by Standard & Poor’s . Chief executive, Denis Kessler said the reinsurer aimed to offer “an A+ level of security” by 2010
Online Published Date:
01 April 2009
Appeared in issue:
858 - 30 March 2009
Lloyd’s targets new markets for growth opportunities
Licenses for the Czech Republic and Turkey are next on the list for global expansion
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Talanx raises its stake in Swiss Life
Swiss Life said the Talanx deal will strengthen its market position in Germany and support international expansion plans
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Munich Re America leads reinsurance underwriting losses
Combined net underwriting losses for US reinsurers amounted to $552mn last year, compared with a $1.7bn surplus in 2007
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Validus rebuffed may seek another bride
Even if IPC shareholders were to rebel against their board, the agreement between IPC and Max Capital requires that the IPC board put the proposal to a shareholders’ meeting before entering discussions with another party. That meeting is unlikely to take place before June, Max Capital said, which meant that an offer from Validus or anyone else could probably not be completed until late in the third quarter
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Group solvency rules fall victim to EU negotiations
A review of Solvency II in 2015 will reconsider the controversial group support proposals that have been dropped
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Surge in whistleblowing
Companies advised to develop a more open style of corporate management to enable employees to voice concerns
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Generali boosted by Central European expansion
Strong growth in the non-life account followed the inclusion of Ceska Pojistovna and a rise of 143% in premiums from the CEE
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Chaucer Holdings Plc
Two thousand and seven was a good year for Chaucer. The company increased its net profits by 16.5% from £59.3mn in 2006 to £69.1mn in 2007. Although this was due to improved performances in all of the company’s three main revenue generating areas i.e. underwriting, investment and the third party capacity management, the improvement in the underwriting result was a little less straight forward than in the other areas
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Treasury toxic debt plan and G20 statement keep sector stocks afloat
For the fortnight ending 2nd April, the insurance and reinsurance stocks tracked by WIR broadly maintained the momentum gained over the previous period when sector prices staged their strongest recovery since the beginning of the year.
But this..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Chile’s health insurers impose premium rate freeze
Membership numbers at private health insurers have been put under renewed pressure by the global financial crisis
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Non-life market overtakes life for first time in six years
Vinare, which formed a strategic partnership with Swiss Re in 2008, recorded a rise in premiums and a 144% jump in profits
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Zurich’s O’Sullivan to retire
Zurich Financial Services Group has announced that Patrick O’Sullivan will be retiring at the end of April 2009 after 11 years at the company. Mr O’Sullivan first joined Zurich as chief executive officer of general insurance and banking..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
CNA appoints surplus lines vice-president
CNA Financial Corporation has appointed John Angerami as senior vice president of its wholesale and excess & surplus (E&S) business, effective April 20, 2009. Mr Angerami will report to Peter Wilson, executive vice president of CNA’s..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Argenta forms Singapore service company
Argenta Holdings Plc has established a Singapore-based service company, Argenta Underwriting Asia Pte Ltd (AUA), which will act as a regional coverholder for Syndicate 2121. The new service company has also assumed responsibility for underwriting..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
World Loss Log 17 - 30 March 2009
Late reports
13.3, collision, fatalities
Indonesia: one body remained missing from the accident off Jakarta a week earlier, when general cargo vessel Rimba Tiga collided with tug Harapan Indah, after a search team found three more bodies. The..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
NAIC makes argument for state over federal regulation
The new chief executive of the National Association of Insurance Commissioners (NAIC) Dr Therese Vaughan has defended the state-based system of regulation in the US. Speaking in an interview for the National Association of Professional Insurance..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Glacier opens Zurich office
Glacier Insurance has opened a new underwriting office in Zurich, which also establishes a marketing presence for Glacier Re. Richard Etridge, chief executive officer and a founding member of Glacier Insurance, will head up the Zurich operation...
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Beazley boosts US presence with First State
Beazley Group plc has completed the acquisition of the entire share capital and all renewal rights of First State Management Group Inc, a US underwriting manager specialising in surplus lines commercial property insurance, from the Hartford..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Accounting aspects of the current financial crisis
One of the characteristics of the growth of the financial services industry in recent years has been the extraordinary speed and range of innovation in products, services and indeed in organisational structures through which financial services are..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009
Market players prepare to meet non-life bancassurance demand
In 2006, bancassurance in Italy accounted for nearly 60% of premium income in the life sector compared with just 1.7% in the non-life sector. But non-life bancassurance is said by some to be ready to emerge in Italy and a number of new ventures..
Online Published Date:
14 April 2009
Appeared in issue:
859 - 13 April 2009