All articles by LII editorial
LII editorial
Aviva’s strategic about-turn
Reaffirming Indias significance in the global business process outsourcing (BPO) market, UK insurer Aviva has sold its offshore life and general insurance processing unit, Aviva Global Services (AGS) to Indian BPO specialist WNS Global Services for £115 million ($228 million) Under the terms of the deal WNS will provide processing functions including policy administration and settlement, finance, accounting, customer care and other support services for Avivas UK and Canadian operations for eight years and four months The sale of AGS and the BPO contract with WNS worth a total of $1 billion over its life marks a notable change in Avivas strategy
Pearl Group emerges victorious to secure resolution in tug of war for control of Resolution Life
Pearl Group emerges victorious to secure resolution in tug of war for control of Resolution Life The battle for control of UK insurer Resolution Life ended in victory for closed life fund specialist Pearl Group on 16 November, when rival Standard Life withdrew its offer and Resolutions directors gave Pearls cash offer their full backing
Developing markets leading the way
Despite economic headwinds the worlds life insurance industry continued to make solid headway in 2007, Swiss Res latest world insurance study reveals Premium income grew at an inflation-adjusted 5.4 percent to $2.993 trillion, while premium growth exceeded the average world increase in GDP of 3.8 percent in 2007 and the world 10-year average real premium growth rate of just above 4 percent Developing markets led the way, registering an average growth rate of 13.2 percent which took total premium income to $218.8 billion
Credit crunch jitters hit insurers’ property funds
Plunging UK commercial property values have sent investors scrambling for property fund exit doors However, many are finding the doors shut, including those of insurer Axa UKs Retail Life and Pensions Property funds, which have total assets of £2.1 billion ($4.1 billion) and about 100,000 investors Axas funds, which had seen cash reserves fall to 5 percent of fund values, are now subject to a six-month waiting period from the date a request is received for an investment redemption or transfer
Great Eastern celebrates centenary
August 26 was a day of particular significance for Singapores largest and oldest life insurer, Great Eastern Life Assurance Company (GEL) It marked exactly 100 years since a Canadian, AH Fair founded the company which began operating with total assets of S$70,000 ($49,000) and a staff of 15. From those modest beginnings GEL has grown into a company boasting total assets of S$46.5 billion ($32.5 billion) and market shares of 28 percent in Singapore and 23 percent in Malaysia, where it also ranks as the oldest and largest life insurer
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New life insurance distributor Futurity First is established
Even in the most competitive of markets, there is always room for an innovative new player This is the philosophy behind Futurity First, a new US life insurance distribution company to be headquartered in Hartford, Connecticut According to Futurity First, it plans to distinguish itself by focusing on the middle-income and small business markets and by providing its customers with the same level of product quality, advice, professionalism and service that the high net worth market has enjoyed for years
Allianz solves Dresdner dilemma
For some time the sale of Allianzs Dresdner Bank unit has been in little doubt, being, rather, more a question of who would be the buyer The question has been answered with the news that Allianz is to sell Dresdner to Commerzbank and embark on an alternative bancassurance strategy in Germany. Speculation over the future of Allianzs Dresdner Bank has been rife
A huge protection gap opportunity
When it comes to retirement wealth creation Australians have made impressive strides thanks to the success of superannuation funds The same cannot be said for using life insurance to protect their wealth, a shortcoming that presents life insurers with a significant opportunity to expand their reach Introduced in 1992 as the key element of a sweeping reform of Australias retirement system, superannuation (super) funds have become the dominant feature of the countrys savings market
Insurers face life settlements dilemma
Insurers face life settlements dilemma They may not like it, but life insurers have no alternative but to acknowledge that the life settlements market is here to stay and will continue to grow rapidly
Allianz walks off with top honours
On an international basis, Allianz has been honoured as the worlds most ethical insurer, while in the worlds most populous Muslim-majority country, Indonesia, it has been named as the best Islamic (takaful) insurer The award as the most ethical insurer was bestowed on Allianz by the Ethisphere Institute, an organisation described as a think-tank dedicated to the research and promotion of profitable best practices in global governance, business ethics, compliance and corporate responsibility.