Best's Review articles from November 2006

Best's Review archives from November 2006

Coming ashore.(Editor's Prologue)(forecast of insurance companies)
November 1, 2006... It's Business 101. If you want the best opportunity to grow your company, you go where market potential is the greatest, even if it means taking risks and spending a lot of capital. For large European life insurers, that land of opportunity is...

Insurance for insuring.(Comment)(Brief article)
November 1, 2006... Andrew L. Margulis' article "Getting Personal" in Best's Review, July 2006, was excellent. It missed pointing to the individually purchased insurance policies of the officers and directors. Individuals who are or become officers and...

Quote/unquote: excerpted from Best Week.(Comment)(Brief article)
November 1, 2006... "Capacity has suffered, true. But all the companies that were doing business in our state when Katrina and Rita came ashore, they are still doing business in our state. Unfortunately, they are not writing new business in our coastal parishes on...

2005 P/C Gulf loss ratios point to insurers' pain, need for reforms.(Briefing)
November 1, 2006... The hurricanes of the past year hit personal-lines insurers in the Gulf states hard, showing the need for adequate homeowners insurance rates, experts said. But in some states, that's easier said than done. For instance, Florida's total...

Experts eye insurers' exposure to hedge risks.
November 1, 2006... Given the increasing role hedge funds are playing in the insurance industry, high-profile problems such as the recent disclosure of Amaranth Advisors LLC's $6 billion loss on energy trades may shed light on the dangers inherent when high-risk...

Life and property/casualty divide.(100 YEARS AGO in Best's Review)(Brief article)
November 1, 2006... In November of 1906, the Best's Review changed. Instead of one publication containing life and property/casualty news, two publications were created--one for each line of business. In the first life insurance publication, Mutual Life of New...

Surplus Lines' future looks strong despite a flat year.(By the Numbers)(Brief article)
November 1, 2006... In 2005, direct premium volume for the surplus lines market remained relatively flat, after growing significantly during the prior three calendar years, according to the A.M. Best Special Report "Surplus Lines Market 2006." The surplus lines...

Percentage of premiums, surplus vs. commercial lines.(By the Numbers)(Statistical table)
November 1, 2006... Percentage of Premiums, Surplus vs. Commercial Lines A comparison over the past two decades of the growth in the surplus lines industry with that of the commercial lines industry. ($ Thousands) Commercial Lines Surplus...

Meetings.(Briefing)
November 1, 2006... Nov. 8-10 Professional Liability Underwriting Society: Annual International Conference, Hyatt Regency Chicago. Web site: www.plusweb.org Phone: (952) 746-2580 Nov. 9-12 National Conference of Insurance Legislators: Annual Meeting...

Hawaiian earthquake reminder of threat.(Briefing)
November 1, 2006... The 6.6 magnitude earthquake that shook Hawaii's Big Island Oct. 15 is a notice that earthquakes are a serious threat beyond the boundaries of California, experts said. Robert Hartwig, executive vice president and chief economist for the...

A.M. best stock indices, third quarter 2006.(Briefing)(Statistical table)
November 1, 2006... (Dec. 31, 2004 = 1,000.00) Index Summary Quarter Ended 9/29/06 Percent Change Index Qtr/ Year/ Close ...

Best's insurance stock indices.(Briefing)(Statistical table)
November 1, 2006... Best's Insurance Stock Indices (Dec. 31, 2004 = 1,000.00) Four Weeks Ended October 12, 2006 Percent Change Year ...

El Nino's return could have positive impact.(Briefing)(Brief article)
November 1, 2006... The climate phenomenon El Nino made an unexpected return this year, and its influence on world weather patterns could have an impact on the property/casualty insurance industry--including fewer hurricanes for the rest of the 2006 season. ...

Sun Life Financial Inc.(Life)(appoints Ronald Friesen)(Brief article)
November 1, 2006... Canada's SUN LIFE FINANCIAL INC. has appointed RONALD FRIESEN as its new vice president and chief financial officer for the company's U.S. division. Friesen will work out of the company's Wellesley, Mass., offices and report to Bob Salipante,...

Zurich.(Property/Casualty)(Zurich Global Corp appoints Mario P. Vitale)(Brief article)
November 1, 2006... Property/casualty insurer ZURICH has named MARIO P. VITALE chief executive officer of its global corporate North America operations. Vitale was to start Oct. 2 in this newly created position, reporting to Geoff Riddell, CEO of Zurich Global...

American International Group Inc.(Property/Casualty)(appointment of Robert B. Willumstad)(Brief article)
November 1, 2006... ROBERT B. WILLUMSTAD, the retired chief operating officer of CITIGROUP INC. will be AMERICAN INTERNATIONAL GROUP INC.'s new board chairman effective Nov. 1. He will take over from FRANK G. ZARB, who has been the board's interim chairman since...

Wilson to take over day-to-day operations at Allstate Corp.(People in Insurance)(appointment of Thomas J. Wilson)(Brief article)
November 1, 2006... Allstate Corp.'s president and chief operating officer, Thomas J. Wilson, who has been with the insurer for 12 years, will ascend to chief executive officer when the current chairman and CEO, Edward Liddy, retires at year end. Wilson, 48,...

American International Group Inc.(Property/Casualty)(appointment of Anastasia D. Kelly)(Brief article)
November 1, 2006... AMERICAN INTERNATIONAL GROUP INC. has hired the former chief legal officer of MCI/WorldCom, ANASTASIA D. KELLY, as executive vice president, general counsel and senior regulatory and compliance officer. Kelly served as chief legal officer at...

Progressive Corp.(Property/Casualty)(appointment of Brian Domeck)(Brief article)
November 1, 2006... PROGRESSIVE CORP. has named BRIAN DOMECK chief financial officer, effective March 1, 2007. Currently, Domeck is the demand manager, overseeing all media buying and sponsorships for the Progressive Direct group.

Quanta Capital Holdings Ltd.(Reinsurance/Capital Markets)(appointment of Peter D. Johnson)(Brief article)
November 1, 2006... PETER D. JOHNSON, a veteran insurance executive with extensive runoff management experience, has been named the new president and chief executive officer of QUANTA CAPITAL HOLDINGS LTD. Johnson succeeds interim CEO ROBERT LIPPINCOTT III,...

Grinnell Mutual Reinsurance Co.(Reinsurance/Capital Markets)(appointment of Steven Crawford)(Brief article)
November 1, 2006... GRINNELL MUTUAL REINSURANCE CO. has promoted STEVEN CRAWFORD to the newly created position of senior vice president and chief operating officer. Crawford currently is senior vice president of Grinnell's reinsurance division. He has worked...

XL Capital Ltd.(Reinsurance/Capital Markets)(appointment of Robert Douglas and Daniel Sussman)(Brief article)
November 1, 2006... Bermuda's XL CAPITAL LTD. said it named chief executives for two of its business units. ROBERT DOUGLAS was named chief executive of XL's global reinsurance life operations. Previously, he was CEO of the XL Re Life unit. DANIEL SUSSMAN was...

White Mountains Re Group Ltd.(Reinsurance/Capital Markets)(appointment of C. Russell Fletcher III)(Brief article)
November 1, 2006... WHITE MOUNTAINS RE GROUP LTD. has named C. RUSSELL FLETCHER III president and chief executive officer of White Mountains Re Underwriting Services, Ltd., the group's Bermuda-based underwriting advisory company. Fletcher will oversee the main...

Royal Alliance Associates Inc.(Agent/Broker)(appointment of Clara Sierra and Gary N. Bender)(Brief article)
November 1, 2006... Broker-dealer ROYAL ALLIANCE ASSOCIATES INC., an affiliate of AMERICAN INTERNATIONAL GROUP INC., has made several management promotions. CLARA SIERRA has been named senior vice president of investment advisory services and marketing....

Webster Insurance.(Agent/Broker)(appointment of Peter B. Matthews)(Brief article)
November 1, 2006... WEBSTER INSURANCE has named PETER B. MATTHEWS as senior vice president and business finance officer. Most recently, Matthews was a financial officer for Cigna. During his career, he held a variety of positions with Aetna Life & Casualty...

Marsh & McLennan Cos.(Agent/Broker)(appointment of Michele Burns)(Brief article)
November 1, 2006... Insurance broker MARSH & MCLENNAN COS. has named its chief financial officer, M. MICHELE BURNS, chairman and chief executive officer of Marsh subsidiary Mercer Human Resource Consulting. Marsh also named MATT BARTLEY to succeed Burns as...

Time to freshen up the Web site.(AGENT/BROKER)(strategic management of the Web site)(Brief article)
November 1, 2006... Agencies need a rock-solid Web presence. I-Marketing Management sees nine common online mistakes: 1. Who's on first? Put somebody qualified in charge of strategic management of the Web site. 2. You're so last century! Most agents...

On a roll ...(Advertising campaigns)(Brief article)
November 1, 2006... TRAVELERS' new "Insurance.In synch (SM)" advertising campaign is aiming to rebrand the fourth-largest property/casualty insurer nationwide. It's the first nationwide advertising campaign for the company since it merged with St. Paul in 2004....

John Hancock Financial.(ADVERTISING)(advertising campaign)(Brief article)
November 1, 2006... JOHN HANCOCK FINANCIAL is targeting baby boomers with a new, $25 million to $35 million advertising campaign that it says shifts the focus from fear to the investment products boomers need for a financially secure retirement. It's the first new...

New twists on living benefits.(introduced a lifetime withdrawal guarantee rider)(Brief article)
November 1, 2006... Insurers continue to innovate the living-benefits features of their annuities. Among recent developments is Guaranteed Return Plus, a rider that combines exchange-traded funds with a guaranteed minimum accumulation benefit. It is available with...

Life policy covers entire family.(Family Protection Insurance)(Brief article)
November 1, 2006... New York Life Insurance Co. has introduced Family Protection Insurance, a term-life policy that can cover both adults and dependent children with conversion privileges and the ability to increase coverage without further proof of insurability...

Indexed UL product uses global indices.(Life)(AIG Elite Global indexed universal life)(Brief article)
November 1, 2006... American General Life Insurance Co. has launched AIG Elite Global IUL (indexed universal life), which credits interest every five years based on the performance of the Standard & Poor's 500 Composite Price Index, Hang Seng Index (Hong Kong) and...

Health uninsured ratio changes.(SNAPSHOT)
November 1, 2006... Differences in 2-year-average uninsured rates by state: 2004-2005 less 2003-2004 [ILLUSTRATION OMITTED]

Allstate rolls out illness products.(Employee Benefits)(Brief article)
November 1, 2006... Allstate Workplace Division in September introduced two voluntary group critical-illness policies that offer guaranteed issue based on group size, participation and benefit amount selected. New Generation is a composite-rated product for...

Guardian offers dental rollovers.(dental plans for employees)(Brief article)
November 1, 2006... The Guardian Life Insurance Company of America in August introduced Dental Maximum Rollover, a feature in dental plans for businesses with fewer than 10 employees. The feature allows Guardian and First Commonwealth PPO members to roll over a...

Learn more.(New Products)
November 1, 2006... Integrity Life Insurance Co. A.M. Best Company # 07739 Distribution: Stock brokerage firms, independent broker/dealers, financial institutions Guardian Life Insurance Company of America A.M. Best Company # 06508 Distribution: Career...

Best's rating changes.(Ratings for insurance industry)
November 1, 2006... This edition of Best's Rating Changes reflects all rating changes--assignments, changes or placed trader review--that occurred for life, health and property/casualty insurers domiciled in North America, as well as international insurance...

The rediscovery of America: many European life insurers established a presence in the United States in the 1980s through the early 2000s by buying American companies. Today, they're reaping the rewards.(Life)(Industry overview)(Cover story)
November 1, 2006... Key Points * European life insurers accelerated their acquisitions of American business in the past 10 years. * Given the size of the U.S. market and lower penetration rate, the Europeans felt compelled to build their presence. *...

Movin' on up: some of the nation's largest homeowners insurers are gaining on or passing their competitors in market rank.(Property/Casualty)
November 1, 2006... Key Points * Allstate, the second-largest homeowners insurer, picked up nearly a full percentage point in market share in 2005 while scaling back its homeowners business in high-risk states. * The top 25 largest writers of homeowners...

Movers & shakers: the nationwide homeowners ranking has been shaken up by several insurers among its top 50.(Property/Casualty)
November 1, 2006... Allstate Corp. A.M. Best Company # 00008 (Allstate Insurance Group) Distribution: Exclusive agencies, independent financial professionals Principal products: Allstate sells 13 major lines of insurance including auto, property,...

Homeowners multiple peril, top writers, United States--2005.(Statistical table)(Statistical table)
November 1, 2006... Homeowners Multiple Peril, Top Writers, United States--2005 Rank is based on 2005 direct premiums written. ($ Thousands) 2005 Direct % Change ...

Homeowners multiple peril, top writers by state--2005.(Statistical table)(Statistical table)
November 1, 2006... Homeowners Multiple Peril, Top Writers by State--2005 Rank is based on direct premiums written in 20005. ($ Thousands) Direct % of No. of Premiums U.S. Premium...

Guidance department: reinsurance brokers can help insurance companies successfully manage rapid growth.(Reinsurance/Capital Markets)
November 1, 2006... Key Points * Steady insurance company revenue growth is correlated with enhanced shareholder returns, but very rapid growth puts these returns at risk, according to a recent study. * Reinsurance brokers possess skills, experience and...

Call to action: workplace dynamics are changing how disability insurance is underwritten.(Health/Employee Benefits)
November 1, 2006... Key Points * The increased number of workers older than 55 foreshadows more costly disability leaves of greater duration. * New products should be designed to provide greater employer and employee coverage and funding options. *...

Ready, set, go? Most health plans agree that migration to a new coding system--ICD-10--is a step in the right direction, but they fear a proposed 2010 deadline is too soon and could have costly effects on the industry.(Technology)
November 1, 2006... Key Points * Health plans say 2010 is too soon to migrate to a new billing and coding set. * Insurers have other migrations and conversions to accomplish before moving to ICD-10. * Health insurers and health-care providers face a...

9 key retirement-income questions: with the life industry's latest generation of products, advisers and buyers have new retirement-planning issues to consider.(Agent/Broker)
November 1, 2006... Key Points * The recent generation of annuity products has introduced more options in retirement-income planning. * Properly used, these new options can reduce retirement risk and guarantee some growth. * Advisers, however, now...

Familiar refrain: as the NAIC considers its 2007 budget, insurance industry concerns of years past echo once more.(Regulatory/Law)
November 1, 2006... Key Points * The NAIC 2007 proposed budget includes surplus of $56.2 million, nearing the total revenue of $63.4 million. * Some fear the focus on revenue generation diminishes the NAIC's mission to serve the public interest. *...

Silver lining: 'co-logo contracts' can help health insurers glide though the clouds enveloping Medicare Part D.(Regulatory/Law)
November 1, 2006... The Medicare Part D craze has brought with it a haze of complicated rules and regulations. Yet, for health insurers, there may be a glimmer of light breaking through all the fog. Designed to provide seniors with low-cost prescription drug...

Flirting with disaster: 2006 may seem like a quiet year for catastrophes so far--there have been no Katrinas, Ritas or Wilmas--but natural catastrophes don't need a first name in order to wreak disaster.(catastrophe losses report)
November 1, 2006... Before the 2006 hurricane season began, catastrophe losses for the first half of 2006 had exceeded the first-half losses from both 2004 and 2005. However, with the hurricane season proving to be mild, as of early October, nine-months numbers...

How far is too far? Faced with pressures from all sides, underwriters face choices about what tools to use, and whether they'll be allowed to use them.(Life)
November 1, 2006... To satisfy top management ("do it faster, cheaper, customer-friendlier, and as profitably as ever"), chief underwriters must sift and winnow options that would scarcely have seen light of day a few decades ago. They have no choice. ...

A road less traveled: Symetra Financial, a spinoff bought by an investor group, exploits its advantages during its first two years.(Life)(Interview)(Company overview)
November 1, 2006... Few companies can take unusual roads to success. That seems the case with Symetra Financial, which took form two years ago when Safeco Corp. sold its life insurance and investments businesses to an investor group led by Berkshire Hathaway and...

Facing the new competition: life insurers need to focus more on improving the speed of underwriting.(Life)
November 1, 2006... Life insurance people like to talk about competition. Some focus on new products. Others issue daily bulletins announcing lower rates, more liberal underwriting guidelines or news about some company's "sweet spot." It all sounds like the...

Breaking borders: some state workers' compensation funds have expanded beyond their original intent--and state borders--to write business in other states, and even to write other lines of business.(Property/Casualty)(Idaho Department of Insurance)
November 1, 2006... Key Points * State workers' compensation funds come in many different forms. Some are mutual insurance companies that compete directly against the private market. * Some companies established by states to serve the residual market...

Form familiarity: insurance pros who know their coverage forms inside and out are more likely to impress, rather than confuse, potential clients.(Property/Casualty)(Column)
November 1, 2006... AS Sir Francis Bacon said, "knowledge is power." One of the best lessons I learned as a novice in the insurance business was the value of knowing and understanding all of the coverage forms. For the first few weeks of my training, my mentor and...

Benfield hopes to speed move toward technology.(Technology)(Benfield Group Ltd)
November 1, 2006... The advance of technology in the London insurance market has been a ragged process at best. Ambitious announcements have been followed by stagnation and failure. The most dramatic reversal was the decision by Lloyd's earlier this year to...

Aetna.(dental plans for employers)(Brief article)
November 1, 2006... Aetna launched a Dental Plan Selection and Cost Estimator Tool to assist employees in choosing their dental plan during open enrollment by allowing them to compare Aetna and non-Aetna dental plans. The interactive decision-support tool allows...

Darwin Professional Underwriters Inc.(Web site introduced)(Brief article)
November 1, 2006... Darwin Professional Underwriters Inc. launched a new Web site (www.tech-404.com), dedicated to educating agents, brokers and commercial insurance purchasers about the inherent technology and information liabilities facing traditional...

Conseco.(Web sites (World Wide Web) introduced)(Brief article)
November 1, 2006... Conseco launched a new Web site (www.ExpectBigThings.com) where agents can learn about incentive programs offered to the company's agents, and submit their e-mail addresses to receive updates about Conseco products, incentives and technology...

Reliance Standard Life Insurance Co.(software application usage)(Brief article)
November 1, 2006... Reliance Standard Life Insurance Co. introduced RSL LeaveManager, a Web-based software application designed to administer leave and absence programs in accordance with the Family and Medical Leave Act for cases of 50 to 2,000 lives. Developed...

Enabling human resources: technology is a key component to helping improve the return on human capital.(Technology)
November 1, 2006... Insurance and financial services businesses are highly dependent on human capital for their success in their roles as financial intermediaries. While measuring the return on human capital is more complex than returns on financial capital, the...

Playing with the big boys: competition is heating up among health plans to attract large national accounts.(Health/Employee Benefits)(national networks, Starbucks)
November 1, 2006... Key Points * Many large employers are forgoing several regional health plans for one or a few insurers with a national network. * To attract large accounts, insurers need to have a national account competency in place and be able to...

Personal touch matters: a survey finds homeowners give a vote of confidence to agents and their hands-on approach.(Agent/Broker)(Survey)
November 1, 2006... Why deal with an independent agent when you can just Google "insurance"? Because the Internet offers information, not knowledge. Agents have the professional knowledge to properly protect what is usually a family's biggest asset--their home....

Years of experience: Sheldon Rankin is marking 50 years in the insurance business by leading Integro Canada's charge.(Agent/Broker)(Biography)
November 1, 2006... Sheldon Rankin has been working in the insurance business for half a century. When he landed his first job in 1956 as a clerk with Western Assurance Co. in Toronto, he was only a high school graduate earning $19 a week. Fifty years...

Sittin' in: property/casualty agents and brokers can--and should--align themselves with planners at the wealth-management table.(Agent/Broker)
November 1, 2006... Independent agents and brokers already may realize they can develop new business from affluent individuals by working with financial planners and other trusted advisers--but do they know how to secure a seat at the wealth-management table? ...

Maintaining the status quo: at Commerce Group, success and growth come from keeping things the same.(Property/Casualty)
November 1, 2006... Key Points * Commerce Group, the largest auto and homeowners insurer in Massachusetts, recently changed leadership after 40 years. * Commerce has been leading opposition in the state to revamp the auto insurance industry, saying the...

Tainted spinach could highlight recall insurance.(Property/Casualty)
November 1, 2006... Not only are insurers likely to play a major role in the ongoing legal and financial fallout from spinach contaminated by E. coli bacteria, the publicity over the tainted spinach could help boost sales of an insurance product designed to...

Marsh & McLennan Cos.(Agent/Broker)(Broker Marsh and McLennan Cos)(Brief article)
November 1, 2006... Broker Marsh & McLennan Cos. said it is cutting 750 jobs as part of an effort to reduce costs. Marsh said the cost-cutting measures include consolidating some locations and overhauling its information technology infrastructure, and would result...

HCC Insurance Holdings has closed its acquisition of the assets of Allianz Life of North America's health products division for $140 million.(Allianz Life Insurance Company of North America)(Brief article)
November 1, 2006... HCC Insurance Holdings has closed its acquisition of the assets of Allianz Life of North America's health products division for $140 million. The division provides excess medical insurance for self-insured corporations.

Lloyd's underwriter Kiln plc said its subsidiary R.J. Kiln & Co. Ltd. launched a joint venture to write Asian marine business.(Lloyd's)
November 1, 2006... Lloyd's underwriter Kiln plc said its subsidiary R.J. Kiln & Co. Ltd. launched a joint venture to write Asian marine business. The joint venture between R.J. Kiln and John Cahill Group, based in Singapore and a part of Lloyd's Asia, will...

ING.(Mergers & Acquisitions)(Brief article)
November 1, 2006... Dutch financial services group ING sold its stake in a German mortgage bank to a group of German investors as part of its ongoing strategy to sell off noncore businesses. ING said the sale would translate into an 83 million [euro] net loss...

Continuing a planned nationwide rollout, Travelers now is offering a 10% discount on private-passenger automobile insurance in Texas for owners of hybrid cars.(Property/Casualty)(St. Paul Travelers Cos)(Brief article)
November 1, 2006... Continuing a planned nationwide rollout, Travelers now is offering a 10% discount on private-passenger automobile insurance in Texas for owners of hybrid cars. Earlier this year, the personal-lines Travelers subsidiaries of St. Paul Travelers...

Alea Group sold its North American excess and surplus lines unit to Praetorian Financial, the U.S. specialty insurance arm of German reinsurer Hannover Re.(Praetorian Financial)(Brief article)
November 1, 2006... Alea Group sold its North American excess and surplus lines unit to Praetorian Financial, the U.S. specialty insurance arm of German reinsurer Hannover Re. The $34.6 million sale is part of Alea's ongoing run-off of its property/casualty...

Custer's last policy: General George Custer's life insurance policy is now on display at the fort he called home before the Battle of Little Bighorn.(The Last Word)(George Custer)
November 1, 2006... Before he rode out to battle the Sioux and Cheyenne at Little Bighorn General George Custer purchased a life insurance policy to protect his family. A replica of that policy is now on display at the Custer House in the Fort Abraham Lincoln...