All articles by LII editorial
LII editorial
UK Post Office dangles a big cashback incentive on life products
UK Post Office dangles a big cashback incentive on life products Reflecting the competitiveness of the UKs life insurance market, the Post Office Life Insurance, a unit of the countrys Royal Mail postal service, has hung out a £100 ($205) cashback lure to prospective buyers of its new level term and decreasing term life insurance products
Beleaguered Scottish Re jettisons international unit
As part of its strategy to dispose of non-core assets, Bermuda-registered life reinsurer Scottish Re has agreed to sell its International Life Reinsurance (ILR) unit to US insurer Pacific Lifes parent company Pacific LifeCorp for $71.2 million, subject to a potential downward adjustment The disposal comes at a time when Scottish Res market capitalisation has slumped to a mere $5.5 million and its counterparty credit rating slashed to CCC- by rating agency Standard & Poors. Scottish Res ILR unit, which is to be renamed Pacific Life Re, provides life and annuity reinsurance in the UK, Ireland and Asia and has offices in London, Singapore and Japan.
UK pension schemes seek performance
UK pension schemes seek performance Despite volatility in world investment markets, UK executives responsible for final salary pension schemes still favour a significant exposure to return-seeking assets, consultancy Watson Wyatt has concluded following a recent investment seminar it hosted
Axa Asia-Pacific has ambitious goals for Australasian units
At its annual strategy conference held in late November 2007, Axa Asia-Pacific (AAP), a 53 percent-owned subsidiary of French insurer Axa, unveiled Ambition 2012, a bold set of expansion targets it has set itself for its units in Australia and New Zealand between 2008 and 2012 Among key targets during the five-year period are the doubling of both the enterprise value and new business volumes of both units, and the lowering of the Australian units cost-income ratio by 25 percent and that of the New Zealand unit by 15 percent These targets represent a significant stretch for our Australian and New Zealand businesses and achieving them will drive strong growth over the next five years, said AAPs group chief executive, Andrew Penn.
Old Mutual’s lucky break in China
The door to Chinas asset management market has been opened for UK insurer Old Mutual in an unusual manner: a Chinese regulatory requirement that has compelled Belgo-Netherlands bancassurer Fortis to sell its stake in one of two Chinese joint ventures (JV). For Fortis, the choice was to sell its 49 percent stake in Fortis Haitong or its 49 percent stake in ABN AMRO TEDA Fund Management (AATEDA), company shares it inherited as part of its recent acquisition of a portion of the Netherlands bank ABN Amro. Fortis decision was to sell its AATEDA stake to Old Mutual, a choice Lex Kloosterman, a member of Fortis Groups executive committee, said was supported by AATEDAs other JV partner, Chinese conglomerate Tianjin TEDA Investment Holding Company.
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Dai-ichi stakes its claim in Australia
Dai-ichi Mutual, Japans third largest life insurer, has bought a 29.7 percent stake in Australian life insurer TOWER Australia Group (TAG) from UK investment company Guinness Peat Group for A$376 million ($336 million) Of the total stake 14.9 percent has been acquired unconditionally, 5 percent is subject to regulatory approval and 9.8 percent subject to regulatory and shareholder approval. The deal with Dai-ichi brings with it a business cooperation agreement that TAGs chairman Rob Thomas said would result in the transfer of significant additional expertise to TAG
Delta Lloyd goes the extra mile
Ending a dispute dating back to 2006 Delta Lloyd Group (DLG), the Netherlands unit of UK insurer Aviva, has reached an agreement with Dutch consumer organisations Verliespolis and Woekerpolis on compensation for some 200,000 aggrieved unit linked policyholders which they represent The action by the consumer organisations was sparked by a finding by Netherlands regulator the Autoriteit Financile Markten in 2006 that information provided to consumers about certain Dutch insurance products, DLGs included, was inadequate and that a substantial portion of premiums were being absorbed by commissions and other costs. In March 2008 the Netherlands Financial Services Ombudsman made a recommendation on compensation for aggrieved policyholders that costs be limited to a maximum of 3.5 percent for a unit-linked policy without guarantees and a maximum of 4.5 percent for a policy with a guarantee of at least 3 percent on the net fund return.
Americans raid pension savings
Amid media comments such as swipe your way to the poorhouse, ReservePlus debit cards that enable people to borrow from their 401k pension savings are being actively marketed by Reserve Solutions, a unit of The Reserve, an asset management company that lays claim to having created the first money market fund in 1970.
UnitedHealthcare’s admission policy faces stiff opposition
The New York Insurance Department (NYID) has issued a request to health insurer UnitedHealthcare (United) to delay implementation of what New York State Superintendent of Insurance Eric R Dinallo termed a controversial new policy requiring hospitals to provide notice within 24 hours after a patient has been admitted According to the request issued on 30 November 2007, United will impose a penalty of up to 50 percent of normal payment if a hospital fails to notify United within 24 hours after a patients admission
A potent package from LV=
UK mutual life insurer LV has launched what it terms a revolutionary product providing home mortgage payments and living expenses protection Chris McFarlane, head of protection at LV, explained that the product is unique in that it provides mortgage protection for up to 25 years compared with 12 to 24 months in the case of most mortgage payment protection products. In addition to mortgage protection, LVs product offers cover against accident and sickness and, if required, unemployment