All articles by LII editorial
LII editorial
AM Best takes a dim view of AIG
Unpleasant surprises from American International Group (AIG), the worlds largest insurer, have become all too common as it reels under the impact of the US subprime meltdown First came mammoth losses $5.29 billion in the fourth quarter of 2007 and $7.8 billion in the first quarter of 2008 Then came a $20 billion capital raising exercise followed within weeks by the announcement that its CEO of three years standing, Martin Sullivan, had resigned with immediate effect.
Better advice from IFAs than banks
Better advice from IFAs than banks Anyone in the UK looking for financial advice on pensions or other savings products should stay clear of banks and building societies, it would seem
Still too soon for complacency
Just as a modicum of stability appears to have returned to global financial markets hit by the US sub-prime mortgage crisis Christine Li, an economist at rating agency Moodys Investor Services, poses the question: Is the financial crisis really over
MetLife expands Mexican base
MetLife expands Mexican base MetLife has signed an agreement to acquire Mexican pensions administration company AFORE Actinver for an undisclosed sum Founded in 2003 by Mexican financial services company Grupo Actinever, AFORE Actinver is one of Mexicos 21 administradoras de fondos para el retiro (AFORE) which administer individual pension accounts
Friends Provident has a lot of convincing to do
Friends Provident (FP) is facing a credibility gap following the unveiling of its much-awaited transformation strategy on 31 January Hyped by FP as the solution that will transform it into a more focused and profitable business, the UK life insurers strategy received a cold welcome, reflected in an immediate 10 percent slump in its share price to its lowest level in over three years Adding to negative sentiment was a warning that charges would slice pre-tax profit to about £20 million ($39 million) in 2007, down from £509 million in 2006
Subscribe to our Newsletter
Get industry leading news, data and analysis delivered to your inbox
Aegon to persevere in Canada
A strategic assessment by Netherlands insurer Aegon on the future of its wholly-owned Canadian unit Transamerica Life Canada (TLC) has concluded that it represents a solid foundation for a successful presence in the Canadian marketplace. However, to meet what Aegon termed its profitable growth objectives, TLCs business model is to be revamped with key objectives including improving efficiency of operations and reducing Aegons capital allocation to the Canadian market At the end of 2007 TLCs shareholder equity stood at C$964.3 million ($894 million).
HSBC targets Korean insurer to accelerate its advance in Asia
HSBC targets Korean insurer to accelerate its advance in Asia UK bank HSBCs expansion strategy in Asian life insurance markets was advanced further in November with the conclusion of an agreement with Hana Financial Group (HFG), one of Koreas largest financial services groups
Axa acquires full control of Turkish joint venture for $525m
French insurer Axa is to acquire the 50 percent stake held in Turkish composite insurer Axa Oyak Holding (AOH) by its partner in the joint venture, Turkish conglomerate Oyak Group, for a cash consideration of $525 million Established in February 1999, AOH held a 10 percent share of the overall Turkish insurance market as at 30 June 2007, according to the Association of the Insurance and Reinsurance Companies of Turkey General insurance is the dominant source of AOHs premium income and in 2006 contributed 507 million ($750 million) or 88 percent of AOHs total of 577 million total
Egypt moves farther down liberalisation road
According to the Egypt Insurance Supervisory Authority (EISA), they have a combined share of 69 percent of Egypts life and general insurance market measured in terms of the industrys total investment assets as at 30 June 2006 of EGP18.7 billion ($3.3 billion)
Retirement income myth dispelled
Conventional wisdom suggests that retirement income is derived predominantly from savings and returns accumulated during the working years of a participant in a defined contribution (DC) pension plan This could not be further from reality, argue researchers at US asset management company Russell Investments, a unit of The Northwestern Mutual Life Insurance Company. Researchers Matt Smith, MD of Russells retirement services unit, and Bob Collie, investment strategy director, have dubbed their findings the 103060 Rule based on the benefits a DC scheme participant receives in retirement.