Conseco Announces Plan to Consolidate Insurance Subsidiaries to Build Capital

Conseco, Inc. (NYSE: CNO) today announced a plan to consolidate three insurance companies within its Conseco Insurance Group segment.

Under the plan, two insurance subsidiaries – Conseco Insurance Company and Conseco Health Insurance Company – would be merged into a third subsidiary – Washington National Insurance Company (“WNIC”). Subject to the approval of insurance regulators in Arizona, California and Illinois, Conseco expects to complete the merger in the fourth quarter of 2009.

“We expect this merger to provide many benefits, chief among which will be to increase Conseco’s total adjusted statutory capital and our consolidated risk-based capital ratio,” said Conseco CEO Jim Prieur. “On a pro forma basis, if the merger and the agreement to coinsure a block of non-core life insurance business (announced on June 25, 2009) had been completed as of June 30, 2009, Conseco’s consolidated risk-based capital ratio would have been 265%, an increase of 18 percentage points.”

In addition, Prieur said, the merger will:

• Provide an estimated $2.5 million of annual savings by eliminating the costs to administer and file financial reports and related audits and examinations on two statutory companies and by reducing overall premium tax payments. Offsetting these savings would be approximately $8 million of one-time expenses over the next 12 months, including costs to update and restock forms, update IT systems, modify agent appointments, and complete other changes arising from the merger. (The planned merger would have no other impact on Conseco’s earnings or financial statements under generally accepted accounting principles.)

• Significantly simplify the structure of Conseco Insurance Group, putting nearly half of its inforce business and all of its new sales activity into a single company.

Upon completion of the merger, WNIC (domiciled in Illinois) would have approximately $5.3 billion of statutory assets, 925,000 policies in force, $625 million of annual premiums, and $4.3 billion of statutory policy reserves, comprised of specified disease and other supplemental health policies (58%), annuities and other deposits (33%), and life insurance policies (9%).

Chaucer Holdings PLC, re-appoints Bob Deutsch as a Non-Executive Director

Chaucer Holdings PLC, the specialist Lloyd’s insurer, is pleased to announce the re-appointment on 26 August 2009 of Bob Deutsch as a Non-Executive Director.

He was also appointed to serve on the Audit, Nomination and Remuneration Committees (and will act as Chairman of the latter), and as a Non-Executive Director of Chaucer Syndicates Limited, the Group’s Lloyd’s Managing Agency and main operating subsidiary.

Bob has extensive insurance experience worldwide, having held senior executive or directorship roles with Ironshore Inc., CNA Financial Corporation, Platinum Underwriters Holdings, Ltd., Executive Risk Inc., Darwin Professional Underwriters and Wilton Re Holdings Limited. He is a Fellow of the Casualty Actuarial Society, an Associate of the Society of Actuaries and a Member of the American Academy of Actuaries.

Bob previously served as a Non-Executive Director of Chaucer between January 2002 and December 2008. He stepped down as director only due to a conflict of interest arising from his role as CEO of Ironshore Inc, which owns Pembroke Managing Agency, another Lloyd’s insurer. That conflict has now fallen away following his departure from Ironshore on 31 March 2009.

Commenting on the appointment, Martin Gilbert, Chairman, said, “I am delighted to welcome Bob Deutsch back to the Board. His contribution has always been outstanding. Bob’s deep expertise, especially in actuarial, financial and strategic matters, will serve Chaucer well in the years ahead.”

Chaucer is also pleased to announce the appointment on 26 August 2009 of Richard Scholes as the Senior Independent Director. Richard has been a Non-Executive Director of Chaucer since 2003.

Chaucer Holdings PLC reports excellent 2009 half year profit

Chaucer’s first half pretax profits more than doubled, rising to £17m from £3.9m in the first half of last year.

Financial highlights

• Profit before tax and foreign exchange adjustments on non-monetary items1 of £52.6m (30 June 2008: £3.4m)

• Profit before tax of £17.0m (30 June 2008: £3.9m)

• Gross written premiums up 38.2% to £491.0m2 (30 June 2008: £355.3m)

• On a constant currency basis, gross written premiums up 18.4%

• Successful defensive rebalancing of the investment portfolio, generating return of £34.6m (30 June 2008: £1.5m), a return on average funds of 2.7% (30 June 2008: 0.2%)

• Interim dividend of 1.3p declared (30 June 2008: 1.8p)

• Post-tax annualised return on equity of 8.6% (30 June 2008: 1.9%) Underwriting highlights

• Strong underwriting performance, generating £28.6m of profit before investment income and the impact of foreign exchange on non-monetary items1 (30 June 2008: £6.6m)

• An average premium rate increase of 5.9% achieved across underwriting portfolio

• Combined ratio improved to 91.3%2 (30 June 2008: 97.2%) supported by more stable claims environment

• Syndicate 1084 capacity increased by 42.5% to £634m for 2009 (2008: £445m)

• Contribution of £2.6m from syndicate participation and management activities (30 June 2008: £2.4m)

Commenting on the results, Ewen Gilmour, Chief Executive Officer, said:

“I am pleased to report an excellent start to 2009. The £52.6m profit generated in the first half, before the impact of non-monetary items, was largely the function of an excellent underwriting result and a healthy contribution from our investments as the defensive repositioning of our portfolio realised significant gains. The outlook for the second half of the year and 2010 is also positive, with conditions improving in the majority of our markets. We are well-placed, with our strong underwriting focus and diverse business mix, to benefit from this.” We are holding an analysts’ meeting at our Head Office at Plantation Place, 30 Fenchurch Street, London at 9:30am today.

Fortis insurance activities returns to profit

Belgian insurance group Fortis (FOR.BR) took a major step in its restructuring on Thursday, returning to profit in its core business and setting a date for the results of a key strategic review.

Highlights :

• Insurance net profit of EUR 228 million; negative impact of market on investment portfolio of EUR 84 million netof- tax, compensated by a EUR 94 million tax recovery in Belgium

• Group net profit of EUR 886 million of which General net profit of EUR 658 million; EUR 835 million net positive result on transaction related events and a EUR 301 million net-of-tax charge for legal dispute with Fortis Capital Company Ltd

• Total gross inflow, including non-consolidated joint ventures at 100%, stable at EUR 7.9 billion; inflow on a consolidated basis EUR 5.9 billion (down 6%)

• Capital position further strengthened; Total insurance solvency ratio of 229%

CEO Bart De Smet said: ’The first half of 2009 was marked by the closing of the transactions with BNP Paribas, the Belgian State and Fortis Bank,representing a new start for Fortis as a pure insurance company. Our results benefited from a number of exceptional items related to these transactions but I’m also pleased to report that our insurance operations performed well in what were sometimes difficult markets, with inflow levels in line with the same period last year. For the entire year, and based on the most recent data, we expect our inflow levels to be at least in line with last year. Several commercial campaigns were rolled out in a number of countries in support of efforts to increase inflows, and resulted in a strengthening of our main market positions, an illustration of the resilience of our franchise. Nevertheless, we expect the market environment to remain challenging with an economic situation impacting customer behaviour across Life and Non-Life businesses. As in the past, we remain vigilant and disciplined towards our business performance. As previously announced, we are currently conducting a strategic review, focusing on our insurance activities and the balance sheet structure, the conclusions of which will be communicated on 25 September. In conclusion, we continue to leverage the full potential of the
new Fortis

Fortis changing its group management structure and to appoint Kurt De Schepper and Antonio Cano

Fortis announces the appointment of Kurt De Schepper as Chief Risk Officer (CRO) and Antonio Cano as CEO AG Insurance effective from 1st of September. At the same time, Fortis has announced changes in its Group management structure to reflect the new scope of Fortis as an international insurance company.

The appointments of Kurt De Schepper and Antonio Cano are subject to the approval of the Banking, Finance and Insurance Commission (CBFA).

The new organisational structure, supervised by the Board of Directors, consists of an Executive Committee and a Management Committee

The Executive Committee is composed of

• Bart De Smet, CEO responsible for Strategy & Development, Audit, Investor Relations, Communications and Corporate Secretariat;

• Bruno Colmant, Deputy CEO responsible for Finance, Legal and Legacy issues and

• Kurt De Schepper, CRO (Chief Risk Officer) responsible for Risk, Compliance, Support Functions and Separation issues.

The Executive Committee will oversee the activities of the Group on a daily basis with a particular focus on capital management, legacy and separation issues of the old Fortis, audit, compliance, finance and risk, communication and other corporate management issues.

The Management Committee is responsible for defining and implementing the corporate strategy, business plans and budgets and for the operational activities of the company.

The Management Committee is composed of the three members of the Executive Committee, Patrick Depovere, CFO and the heads of the four geographic operating divisions: Steven Braekeveldt, CEO Continental Europe; Antonio Cano, CEO AG Insurance; Barry Smith, CEO United Kingdom and Dennis Ziengs, CEO Asia.

Fortis is confident that this new management structure will facilitate the sharing of best practices and will help capture potential synergies between the businesses. These organizational changes represent an important step in preparing the company for future challenges and opportunities. Following the appointment of Antonio Cano and Kurt De Schepper, AG Insurance will, in due time, communicate on further management changes in the company.

A review of the organization and governance of the Group is one of the key elements in the strategic review currently underway. Fortis will present its strategic update to the market on 25 September.

In addition, Fortis is also reviewing a simplification of the Group’s legal structure. This is work in progress and will be presented at the appropriate time.

InsuranceLeads.com to boost insurance agents sales

InsuranceLeads.com, the online insurance leads provider, has unveiled a new promotion to attract more insurance agents to try their high-quality real time insurance leads.

This promotion is unmatched by any other major leads vendors in the industry.

If an insurance agent activates a new account he or she can receive up to 20 free insurance leads up to $300 dollars in value, depending on the lead types. This promotion applies to auto insurance leads, home insurance leads, health insurance leads and life insurance leads. This is by far the most generous promotion compared to any major insurance leads provider on the web. This unprecedented promotion is InsuranceLeads.com’s way to demonstrate its confidence in the quality of its leads, service and technology. They are convinced that once agents will try their free leads and service, most will remain active buyers.

This new promotion already sparked an unprecedented wave of interest among insurance agents, who no doubt will appreciate the quality of leads, great variety of filters and convenient leads delivery methods available to them. InsuranceLeads.com is integrated with all popular leads management systems and rating software used by the industry. Agents can receive leads by XML feed to the agents’ database or email. Several email addresses can be used if an agent wants to receive a certain group of leads at a particular address. Hot transfers of live prequalified prospects with double verified interest are also available.

InsuranceLeads.com’s insurance agents report the highest closing ratios of any leads provider. InsuranceLeads.com also provides free leads management tools and services to help agents keep track of their leads. Visit InsuranceLeads.com to find out how you can take advantage of a special offer to receive 20 free leads for auto, home, health, and life insurance leads worth up to $300 dollars.

Insurance premium rate reductions slowed for property and casualty business across Europe

Insurance premium rate reductions slowed for property and casualty business across Europe, the Middle East and Africa in the first half of 2009, according to figures released by Marsh, the leading insurance broker and risk adviser. While rising claims notifications are increasing pressure on rates, competition between carriers and plentiful capacity are still the dominating downward drivers of rates in most markets.

Bruce Trigg, Leader of Marsh’s Risk Management Practice in Europe, the Middle East and Africa, said: “As clients look to manage their way through the economic downturn, they are reducing the sums they insure in an effort to cut costs where possible, potentially leaving them underinsured. This has resulted in premium reduction and increased capacity in the market.

“This means that the overall insurance marketplace remains competitive, especially in countries that have a developed insurance market. Capacity is largely unchanged and insurers’ appetite for risk remains. However, as claims rise, insurers are beginning to negotiate more aggressively on renewals, as previous rate reductions were unsustainable.” See attached release.

AEGON UK reports a loss for the first half 2009

the Netherlands-based insurer, reported a loss for the second quarter, reflecting primarily a one-time loss related to the sale of Taiwanese life insurance business as well as impairment charges.

Key highlights for AEGON UK include:

• Value of New Business (VNB), a key measure of profitability, was £39.3m in Q2 taking the total for the first half to £91m, in line with first half of 2008.

• Underlying IFRS earnings for the UK business for quarter 2 were lower than the same period in 2008 by 54% at £17m, and for the first half by 67% at £24m.

• Sales of new life and pensions business were £512m (API) in the first half, down 19% compared with the same period in 2008. This includes sales of variable annuities of £24m (API).

• In Q2, sales of new life and pensions business was £238m (API), down 30% on Q2 2008, which was a record quarter for AEGON UK, boosted by a large pension scheme and a short term distribution deal that boosted investment bond sales during the period. This includes sales of variable annuities of £15m (API).

• AEGON maintained its market share in the UK life and pensions market, currently 10.4%.

• Withdrawal from the group risk market in June, freeing up £47m of capital over the next 3 years, in line with strategy to reallocate capital to more profitable areas of the businesses.

• Five-year sponsorship of British Tennis began, part of AEGON’s strategy to invest in its brand development in the UK market.

Commenting on the UK results, AEGON UK chief executive Otto Thoresen said

“This is a resilient performance, achieved in some of the most challenging market conditions we have ever experienced. Despite a fall in sales amounts, which was to be expected given the lower stock market levels, value of new business, a key profitability measure, is in line with the first half of 2008, itself a very strong reporting period.

“The recession has meant that some people have put ther retirement savings plans on hold, and lower market levels mean pension pots are lower, but we must look for ways to help people take the right financial decisions and act on them once the storm passes.

“Guarantees will become increasingly important to people. This year AEGON has continued to lead the way in guaranteed retirement income solutions with our variable annuity product development, launching our Secure Lifetime Income product, which is marketed alongside our traditional annuity offering. We are also looking at how we might develop our SIPP proposition, where we are already a strong player in the market.

“Our investment in building our brand through our sponsorship with British tennis is allowing us to reach new audiences, with over 7 million people watching televised coverage of the AEGON Championships during June.

“AEGON remains one of the leading life and pensions players in the UK market and we intend to stay at the forefront through these challenging times.”

China Life has announced 29 % increase in profit

China Life Insurance Co., the world’s biggest life insurer by market value, rose in Hong Kong trading after the company said first-half profit increased 15 percent on investment returns.

The shares advanced as much as 1.7 percent and were 0.9 percent higher at HK$33.55 as of 10:39 a.m. local time. The benchmark Hang Seng Index added 0.3 percent.

Net income at China Life climbed to 18.2 billion yuan ($2.7 billion), or 0.64 yuan a share, from 15.8 billion yuan, or 0.56 yuan, a year earlier, the company said in a statement to the Hong Kong stock exchange late yesterday. A 63 percent gain in the benchmark Shanghai Composite Index helped China Life’s investment returns in the period after a 55 percent plunge a year earlier dented earnings.

“China Life has been able to timely adjust its investment portfolio to capture the strong year-to-date A-share market performance,” Citigroup Inc. analysts Bob Leung and Jones Ku said in an e-mailed note today. “We expect to see the market react positively as China Life’s new business value growth picked up for the first time in three years.”

Chairman Yang Chao has slowed premium growth this year to improve underwriting profitability by curbing short-term, single-payment products and boosting higher-margin policy sales.

The Beijing-based insurer’s net realized gains on financial assets, which reflect returns from the stock market, surged 16 times to 11.9 billion yuan. The company reported a 1.4 billion yuan net fair-value gain on held-for-trading assets, reversing a 6.5 billion yuan loss a year earlier.

Source : Bloomberg

AIG shares rise up 50% to reach $50.23

Shares of insurance giant American International Group (AIG.N) soared more than 50 percent last week and they now look overpriced, Barron’s said in its August 31 edition.

The bailed-out insurer’s shares climbed to $50.23 on Friday, their highest level since a 1-for-20 reverse stock split on July 1, but AIG’s obligations to the U.S. government and the challenges of selling — or maintaining — its various operations still loom large, the newspaper said.

AIG faces difficulties in selling its overseas life-insurance units and reviving its core property-casualty insurance businesses, Barron’s said.

The company, which reported a second-quarter profit, is difficult to assess since there are few analysts covering it and its finances are complex but, according to Barron’s, AIG has negative tangible common shareholder equity.

Investors interested in the company would be better off buying its debt rather than its common shares, the newspaper said.

The rise last week in part reflected hopes former Chief Executive Hank Greenberg may have a larger role at the company, Barron’s said.

AIG’s new chief executive, Robert Benmosche, told Reuters in an interview that he had turned to Greenberg for help and support and has been in regular contact with him.

A short squeeze in AIG’s shares also contributed to the rally last week, as well as optimism that rising markets would help the insurer’s large investment portfolio, Barron’s said.

Source : reuters

HSBC enters China’s life insurance market

HSBC Life Insurance Company Limited, a joint venture set up by HSBC and the Beijing-based National Trust, opened for business in Shanghai Thursday, marking the global financial giant’s entrance into one of the world’s fastest-growing life insurance markets.

The joint venture, headquartered in Shanghai, has registered capital of 500 million yuan (73.2 million U.S. dollars). HSBC and the National Trust each hold a 50 percent stake.

The company will focus on the sector of China’s population that has rapidly-growing discretionary income and will offer life, pension and medical insurance products.

“China is the focus of HSBC’s strategy in emerging markets,” said Zheng Haiquan, chairman of HSBC Asia Pacific. “If HSBC has no insurance business in China, we could not be called one of the world’s largest insurance companies and China’s largest foreign bank.”

China’s total life insurance premiums amounted to 733.8 billion yuan in 2008, up 48 percent from the previous year, the second in scale in Asia after Japan. But its insurance penetration, or premiums as a percentage of the economy, was low at 3.3 percent, said David Fried, board chairman of the joint venture and chief executive officer of HSBC Insurance for Asia Pacific.

China’s large population, low insurance penetration and ongoing economic reforms make for confidence in the important role the Chinese market would play for HSBC insurance’s global expansion, he said.

HSBC also holds 16.78 percent of Ping An Insurance (Group) Co. of China, the country’s second largest life insurer.HSBC enters China’s life insurance market

AmTrust Financial Services, Inc. to Acquire CyberComp From Swiss Re

AmTrust Financial Services, Inc. (Nasdaq:AFSI) announced that it had entered into an agreement to acquire CyberComp, the workers’ compensation business unit of Swiss Re, in a renewal rights transaction.

CyberComp has emerged in less than a decade as one of the leaders in internet-based mono-line workers’ compensation. Utilizing a fully digitalized platform, CyberComp allows agents to enter data, get quotes and issue policies in a matter of minutes. Serving the workers’ compensation needs of small to medium-sized employers in 26 States, CyberComp distributes through a network of 13 regional wholesale agencies and over 600 retail Agents. In the 12 month period ending June 30, 2009, net written premium totaled approximately $100 million.

“We are delighted to welcome CyberComp into our AmTrust family,” stated Barry Zyskind, President and CEO of AmTrust. “CyberComp has long set a standard of excellence and innovation in the small workers’ compensation market. This renewal rights acquisition offers us an opportunity to obtain and develop a book of business that is an appropriate and complementary fit to our business. We look forward to working closely with our new colleagues, employees and producers at CyberComp in the months ahead as we continue together to expand our workers’ compensation business.”

Philippine’s unit of AIG to buy 51% of Ayala Life

The Philippine unit of American International Group (AIG.N) is acquiring 51 percent of smaller rival Ayala Life Assurance Inc for an undisclosed sum, the insurers said in a joint statement on Wednesday.

Philippine American Life and General Insurance Co (Philamlife), the Philippines’ largest life insurer, is a unit of AIG.

Ayala Life, the country’s seventh-largest life insurance company, is a subsidiary of Bank of the Philippine Islands (BPI.PS), the country’s third-biggest lender by assets and a unit of conglomerate Ayala Corp. (AC.PS).

AIG scrapped plans in March to sell Philamlife and instead decided to fold it into its Asian unit, AIA, which has more than $60 billion in assets.

Philamlife said on Wednesday it is still in the process of becoming part of the AIA Group, pending regulatory approvals.

The deal is also subject to approval by regulators.

Deutsche Bank was the financial advisor to Philamlife and AIA for the transaction while BPI Capital and ING advised BPI.

Source : Reuters

Lloyd’s-listed insurer Omega Insurance Holdings reports light profit fall

Lloyd’s-listed insurer Omega Insurance Holdings reported a light fall in first half pre-tax profits for 2009, but remained optimistic.

Financial Highlights

• Profit before tax of $22.9 million (H1 2008: $24.5 million)

• Profit after tax of $20.6 million (H1 2008: $21.8 million)

• Premium income of $187.5 million (H1 2008: $185.9 million)

• Combined ratio of 82.5% (H1 2008: 83.7%)

• Effective tax rate of 10% (H1 2008: 11%)

• Interim dividend of 6 cents per share

Operational

• Loss ratios reflect limited large loss experience in the first half of 2009

• Omega US growing rapidly writing $17.1 million in the period (H1 2008: $2.6 million)

• Omega Specialty direct underwriting growing premium income of $52.1 million (H1 2008: US $33.6million)

• Completion of £124 million capital raise in January 2009.

• Successful capacity offer increasing the Group’s share of Syndicate 958 to 34.7% from 16.4% for the 2010 year of account onwards.

• Admission to the London Stock Exchange Main List occurred on 7 July.

• AM Best A- (Excellent) rating for Omega Specialty reaffirmed

• AM Best A (Excellent) rating for Syndicate 958 reaffirmed

• Firming of rates in our core lines of business continues, giving a positive outlook for the full year 2009 and beyond

Richard Tolliday, Chief Executive of Omega, commented :“We are pleased that our first-half results demonstrate our ability to deliver attractive returns whilst growing our newer platforms. We close the first half with strong results, continued growth, a successful capacity offer and our move up to the Main List. Omega is well positioned to take advantage of the opportunities the current market place offers.”

Swiss Life to cut 520 jobs as net profits fall 92%

Swiss Life Holding has announced it is to implement a cost cutting programme after revealing that net profits for the first half of the year have fallen 92%.

Insurer Swiss Life said it would cut 520 jobs in Switzerland as it posted an 8.6 percent drop in first half net profit to 139 million Swiss francs (91.5 million euros, 131 million dollars).

“To remain competitive in the closely-fought life and pensions market and to enhance our ability to compete, we must focus more strongly on client needs and product profitability and further reduce our cost base,” chief executive Bruno Pfister said in a statement.

The Swiss insurer aims to save up to 400 million Swiss francs through measures such as job cuts which would be implemented by 2012.

Analysts at Bank Wegelin described Swiss Life’s latest earnings as “disappointing” and said the cost-cutting measures were “inevitable.”

These measures “should pay off in the long term but the group therefore remains a construction site with an uncertain future,” they added.

The insurer’s stock was the worst performer in early morning trade, slipping 2.20 percent to 124.20 Swiss francs, while the overall Swiss Market Index was up 0.06 percent.

half year results highlights :

• Swiss Life achieved a profit of CHF 172 million from continuing operations in the first six months of 2009 (+13%; HY 2008: CHF 152 million); the net profit stood at CHF 139 million.

• The Group improved its result from operations by 11%.

• Adjusted for extraordinary impacts and currency effects, premiums rose 7% to CHF 10 387 million.

• The net investment result of 1.8% was significantly higher than the prior-year figure.

• Shareholders’ equity came to CHF 6 752 million at the end of June 2009 (end 2008: CHF 6 609 million).

• The IFRS solvency ratio remained solid at 155%.

• Swiss Life is launching an extensive set of measures to boost competitiveness, achieve profitable growth and reduce costs.

• Efficiency gains and cost savings of around CHF 350 to 400 million compared to 2008 will be achieved by 2012.

• As a result of the cost savings, Swiss Life is making 520 job reductions in Switzerland over the next three years. A programme of measures, which was agreed on with the social partners, is in place for the employees affected to assist them with their professional reorientation.

Bruno Pfister, Group CEO: “We can look back on a satisfactory first half in 2009. This performance results from overall improvements at operational level within the Group. Over the last few months, we have prepared the company for the persistently challenging economic environment and tougher competitive climate. With the measures to boost competitiveness announced today, we are creating the conditions to grow profitably under our existing strategy and to exploit our business opportunities in the international life and pensions market using Swiss Life’s proven strengths.”

Swiss Re to urge governments to take a more joined-up approach to managing risk

Swiss Re is intensifying its efforts to urge governments to take a more joined-up approach to managing risk. In Helsinki, the global reinsurer will use its flagship Nordic Risk & Insurance Summit (NORIS™) conference to suggest how governments can improve the way they tackle large-scale disasters and work more closely with insurers to deal with crises quickly and cost-effectively. With winter storm risk expected to double in some parts of Scandinavia by the end of the century, Swiss Re is also aiming to raise awareness of the need to close the gap between economic and insured losses.

At a press briefing this morning, Swiss Re’s Chief Risk Officer, Raj Singh will say: “Our risk landscape is constantly evolving, and risks are highly inter-connected. As the financial crisis has shown, the risks we face can change suddenly and unpredictably. But while economic risks are high on the radar in 2009, we must not ignore the long-term horizon.”

“In the years ahead, climate change is one of the major risks to be confronted by the insurance industry, companies, governments and the general public. It’s well known and accepted that due to global warming, an increase in natural catastrophes like storms, floods and droughts, both in frequency and severity, has to be expected. But there are other impacts such as effects on public health, and consequences such as food security and possible human conflict,” he will warn.

Country risk management

It is precisely this interplay between risks which has led Swiss Re to propose ideas to bring more transparency and accountability to the way a nation manages the hazards it faces. Swiss Re recommends that governments create a ‘Country Risk Officer’ function, similar to the private sector’s Chief Risk Officer. The role of this person, group or network would be to co-ordinate the risk assessment and mitigation activities for all hazards, and be the focal point to communicate throughout government – and to the public – on how to address the risks on the table.

The Country Risk Officer model has many benefits. As well as providing better know-how about key risks in the minds of policymakers and the general public, a greater degree of co-ordination in the way hazards New forms of public-private partnership, and stronger co-ordination of risk management by government, will help tackle the cost of natural catastrophes, Swiss Re tells Nordic conference are addressed enables them to be managed more cost effectively. The Country Risk Officer can also interface as needed with the private sector, not only to exchange knowledge about risks, but in taking steps to transfer risk to the insurance industry and capital markets on a commercial footing.

In Swiss Re’s view, greater public awareness of risk, along with improved co-ordination in the way governments respond to the risks presented by natural catastrophes, will help to close the vast gap between economic and insured losses.1

Climate change

As a major reinsurer of natural catastrophe risks, for more than two decades Swiss Re has taken a leading role in understanding the impact of climate change on its business and on wider society. The topic will feature prominently at this week’s NORIS™ conference and, at today’s briefing, David Bresch, Swiss Re’s Head of Sustainability and Emerging Risks, will explain how climate change can affect natural catastrophe (re)insurers.

“Climate change will lead to more frequent and more intense winter storms in Europe, causing increasing levels of damage in the longer term. Winter storm losses are projected to double by the end of this century in Sweden and Denmark and, in many areas of the Nordics, flooding is also a concern. With the concentration of large parts of the population – and many of the larger cities – in coastal areas, Scandinavia is very sensitive to climate change,” he will say.

He will also set out the steps Swiss Re believes necessary for a successful outcome to the post-Kyoto protocol being finalised in Copenhagen this December. A signatory to the Copenhagen Communiqué, Swiss Re supports a reduction in emissions of 20-30% by 2020 and at least 50% by 2050 (versus 1990 levels). The company is also calling for enhanced international action on mitigating climate change and is keen to influence the next steps in climate adaptation – namely to create a framework which governments can use in adaptation strategies on a country and regional level in order to understand the underlying climate risks and the costs of adaptation measures. Adaptation measures include, for example, building defences, improved planning, building regulations and risk transfer and insurance against some of the more extreme weather events. This approach ensures that climate risks can be managed pre-emptively.

1 Insurance covers only a fraction of total losses from natural catastrophes: in 2008, natural catastrophes globally caused total losses around USD 259bn, of which USD 44.7bn (around 17%) were covered by insurance.

AON eSolutions provides asian market the first multi-language risk management information system

Aon eSolutions, provider of award-winning technology-based tools that improve the management of risk, insurance and safety programs, announced today the launch of RiskConsole in China and Japan. The browser-based risk management information system, which allows companies to address risk management issues with greater efficiency, has been successfully utilized in the U.S. for the past five years.

RiskConsole is the first global RMIS able to support the Chinese and Japanese markets with multi-language capabilities. The system allows users to enter, view and report on data in Mandarin and Japanese and can also be translated into other languages, thus streamlining workload and improving productivity. RiskConsole uses claims, exposure, policy and other risk-related information to provide chief risk officers and risk managers with a comprehensive view of organization-wide risk.

With increasing economic pressure and expanding J-SOX regulation, the Japanese version of U.S. regulation Sarbanes-Oxley, companies need to improve their corporate governance practices and better understand their overall risk. In China, the State-owned Assets Supervision and Administration Commission of the State Council has increasingly strengthened its corporate governance code, requiring state-owned enterprises and public companies to transparently control the risks associated with expansion.

“Whether operating on a global level or specifically in Asia, RiskConsole enables organizations to integrate detailed risk data – critical elements of a long-term sustainable risk management plan – into the corporate decision-making process,” said Kathy Burns, CEO of Aon eSolutions. “State-owned enterprises and public companies in China and Japan are looking to forward-thinking solutions to help them manage increasing corporate governance demands, and RiskConsole technology provides an immediate and comprehensive picture of risk enterprise-wide.”

Included within RiskConsole and also available as a stand-alone solution, the Enterprise Risk Management Risk Register module provides organizations with a centralized data repository for enterprise risk information. The platform enables companies to create performance indicators, develop action plans, delegate action items and compare results against risk tolerance.

About Aon eSolutions
Aon eSolutions is the technology solutions arm of Aon Corporation (NYSE: AOC) and provides award-winning technology-based tools that improve the management of risk, insurance and safety programs. These personalized and configurable best-in-class systems — AonLine, iVOS, RiskConsole and SafetyLogic — each provide measurable value by aggregating data, streamlining business processes and optimizing resources. Visit http://www.aon-esolutions.com for more information.

Gisele Norris appointed at Aon’s Health Care Practice as managing director for the Western region

Aon Corporation’s (NYSE: AOC) health care practice today announced the promotion of Gisele Norris, DrPH, as managing director for the Western region and appointment of Kathryn Meyers as a senior broker to serve its national client base.

In her newly expanded role, Norris will lead the development of innovative risk solutions for health care organizations in the West, overseeing the delivery of Aon’s distinctive health care services and resources to the states of Washington, Oregon, California, Arizona, New Mexico, Idaho, Hawaii, Alaska and Nevada.

“Our clients in the West will directly benefit from Dr. Norris’ 17 years in the business as she expands her leadership role to ensure that the best Aon resources are used to meet client needs as cost effectively as possible,” said Matt Rice, managing director of Aon Health Care.

Meyers, who comes to Aon after having served as underwriting director for CNA Health Pro for the last six years, will be responsible for program design and broking for Aon’s larger health care organization clients. She will play an integral role in new business and product development, and further the practice’s strategy of integrating broking, analytics and alternative risk consulting into its client approach.

Dominic Colaizzo, managing director of Aon Health Care, added: “Kathryn brings a wealth of experience to complement Aon’s existing client service. Our client partners will find immediate value in her experience with broking, underwriting and developing product offerings for medical professional, general liability, alternative risk and excess programs.”

For the past 13 years, Norris has played a principal role in Aon’s National Health Care Practice by providing clients with unparalleled risk and insurance consulting services as well as valuable insight based on her background in epidemiology and health policy – most recently delivered through her role as a primary leader of Aon’s Pandemic Preparedness Task Force. She earned her bachelor’s degree from the University of California at Berkeley, Master of Public Health and Master of Public Administration degrees from Columbia University and Doctorate in Public Health from the University of California at Berkeley.

Prior to her time spent with CNA, Meyers served 12 years in various capacities with Marsh in areas including alternative risk solutions, broking and risk management services. She holds a bachelor’s degree in international business from the College of St. Thomas in St. Paul, Minn. and earned her MBA from Northwestern University’s Kellogg Graduate School of Management in Chicago.

Norris will remain based in the San Francisco area while Meyers will join the Chicago office.

Get prepared for the second wave: lessons from current outbreaks

Monitoring of outbreaks from different parts of the world provides sufficient information to make some tentative conclusions about how the influenza pandemic might evolve in the coming months.

World Health Organisation (WHO) is advising countries in the northern hemisphere to prepare for a second wave of pandemic spread. Countries with tropical climates, where the pandemic virus arrived later than elsewhere, also need to prepare for an increasing number of cases.

Countries in temperate parts of the southern hemisphere should remain vigilant. As experience has shown, localized “hot spots” of increasing transmission can continue to occur even when the pandemic has peaked at the national level.

H1N1 now the dominant virus strain

Evidence from multiple outbreak sites demonstrates that the H1N1 pandemic virus has rapidly established itself and is now the dominant influenza strain in most parts of the world. The pandemic will persist in the coming months as the virus continues to move through susceptible populations.

Close monitoring of viruses by a WHO network of laboratories shows that viruses from all outbreaks remain virtually identical. Studies have detected no signs that the virus has mutated to a more virulent or lethal form.

Likewise, the clinical picture of pandemic influenza is largely consistent across all countries. The overwhelming majority of patients continue to experience mild illness. Although the virus can cause very severe and fatal illness, also in young and healthy people, the number of such cases remains small.

Large populations susceptible to infection

While these trends are encouraging, large numbers of people in all countries remain susceptible to infection. Even if the current pattern of usually mild illness continues, the impact of the pandemic during the second wave could worsen as larger numbers of people become infected.

Larger numbers of severely ill patients requiring intensive care are likely to be the most urgent burden on health services, creating pressures that could overwhelm intensive care units and possibly disrupt the provision of care for other diseases.

Monitoring for drug resistance

At present, only a handful of pandemic viruses resistant to oseltamivir have been detected worldwide, despite the administration of many millions of treatment courses of antiviral drugs. All of these cases have been extensively investigated, and no instances of onward transmission of drug-resistant virus have been documented to date. Intense monitoring continues, also through the WHO network of laboratories.

Not the same as seasonal influenza

Current evidence points to some important differences between patterns of illness reported during the pandemic and those seen during seasonal epidemics of influenza.

The age groups affected by the pandemic are generally younger. This is true for those most frequently infected, and especially so for those experiencing severe or fatal illness.

To date, most severe cases and deaths have occurred in adults under the age of 50 years, with deaths in the elderly comparatively rare. This age distribution is in stark contrast with seasonal influenza, where around 90% of severe and fatal cases occur in people 65 years of age or older.

Severe respiratory failure

Perhaps most significantly, clinicians from around the world are reporting a very severe form of disease, also in young and otherwise healthy people, which is rarely seen during seasonal influenza infections. In these patients, the virus directly infects the lung, causing severe respiratory failure. Saving these lives depends on highly specialized and demanding care in intensive care units, usually with long and costly stays.

During the winter season in the southern hemisphere, several countries have viewed the need for intensive care as the greatest burden on health services. Some cities in these countries report that nearly 15 percent of hospitalized cases have required intensive care.

Preparedness measures need to anticipate this increased demand on intensive care units, which could be overwhelmed by a sudden surge in the number of severe cases.

Vulnerable groups

An increased risk during pregnancy is now consistently well-documented across countries. This risk takes on added significance for a virus, like this one, that preferentially infects younger people.

Data continue to show that certain medical conditions increase the risk of severe and fatal illness. These include respiratory disease, notably asthma, cardiovascular disease, diabetes and immunosuppression.

When anticipating the impact of the pandemic as more people become infected, health officials need to be aware that many of these predisposing conditions have become much more widespread in recent decades, thus increasing the pool of vulnerable people.

Obesity, which is frequently present in severe and fatal cases, is now a global epidemic. WHO estimates that, worldwide, more than 230 million people suffer from asthma, and more than 220 million people have diabetes.

Moreover, conditions such as asthma and diabetes are not usually considered killer diseases, especially in children and young adults. Young deaths from such conditions, precipitated by infection with the H1N1 virus, can be another dimension of the pandemic’s impact.

Higher risk of hospitalization and death

Several early studies show a higher risk of hospitalization and death among certain subgroups, including minority groups and indigenous populations. In some studies, the risk in these groups is four to five times higher than in the general population.

Although the reasons are not fully understood, possible explanations include lower standards of living and poor overall health status, including a high prevalence of conditions such as asthma, diabetes and hypertension.

Implications for the developing world

Such findings are likely to have growing relevance as the pandemic gains ground in the developing world, where many millions of people live under deprived conditions and have multiple health problems, with little access to basic health care.

As much current data about the pandemic come from wealthy and middle-income countries, the situation in developing countries will need to be very closely watched. The same virus that causes manageable disruption in affluent countries could have a devastating impact in many parts of the developing world.

Co-infection with HIV

The 2009 influenza pandemic is the first to occur since the emergence of HIV/AIDS. Early data from two countries suggest that people co-infected with H1N1 and HIV are not at increased risk of severe or fatal illness, provided these patients are receiving antiretroviral therapy. In most of these patients, illness caused by H1N1 has been mild, with full recovery.

If these preliminary findings are confirmed, this will be reassuring news for countries where infection with HIV is prevalent and treatment coverage with antiretroviral drugs is good.

On current estimates, around 33 million people are living with HIV/AIDS worldwide. Of these, WHO estimates that around 4 million were receiving antiretroviral therapy at the end of 2008.

Willis China recognised best for customer quality service

China Insurance Regulatory Commission in Shanghai Assigns Global BrokerTop Rating in Quality Review for the Second Year Running

Willis Group Holdings (NYSE: WSH), the global insurance broker, announced today that it has once again received the top five-star rating in the China Insurance Regulatory Commission’s (CIRC) review of the quality of licensed insurance brokers operating in Shanghai in 2008.

Of the 70 brokers assessed by the CIRC, only 15 were awarded five stars, with Willis achieving the highest number of points and first place overall. This is the second year in a row that Willis China has been awarded the top five-star rating.

The CIRC evaluated intermediaries in a 360° process that included peer review by insurance companies, clients and other brokers, in addition to the CIRC’s own assessment. Based on this input, companies were then awarded points on their management, integrity, service delivery, quality of work, premium processing and value-added services, including claims.

Mitchell Ma, CEO, Willis China, said, “We are proud to be recognised for delivering consistently outstanding service to our clients. This award is a testament to the quality of our people and the dedication they show in providing our clients with the best service available. It also reflects our successful investments in broking technology and in the establishment of an operations centre in Shanghai, both of which have driven increased back-office efficiency while freeing up our client-facing staff to focus even more of their time and energy on clients.”

In 2004, Willis purchased a 50 percent equity stake in Shanghai Pudong Insurance Brokers Ltd., a leading Chinese insurance broker. In 2005, Willis increased its stake in the Willis Pudong Insurance Brokers Ltd joint venture to 51 percent, making it the first foreign-controlled broker in China. In 2007, the company name became Willis Insurance Brokers Co. With its extensive network of 20 licensed offices throughout the country and more than 225 Associates, Willis has the largest local network and workforce of all the global brokers in China.

News-insurances hacked the 28th of august

News-insurances.com was attacked by hackers around 10:00 this morning.

Safeguard measures and servers protections have been enagaged and makes the website inaccessible during several hours.

While fixing all the website, you could see some display issues.

All the team of news-assurances.com apologize for this issue.

We look forward to see you on News-insurances.com the first independent media for the insurance industry and consumers

News-insurances staff

Vic Krauze named President of North American Business of Willis

Willis Group Holdings, the global insurance broker, today named Vic Krauze President of Willis HRH, its North American retail business. Krauze will retain his current responsibilities as Chief Operating Officer of Willis HRH and will continue to report to Don Bailey, Chairman and CEO of Willis HRH.

As President and COO, Krauze will be responsible for the day-to-day operations of the business and establishing more consistent business-wide processes and systems for managing growth at the regional level. The National Partners who head each of Willis HRH’s seven regions will now report to Krauze.

Krauze was named COO of the North America business in February 2008 and has played a key leadership role in overseeing the integration of Willis HRH following the company’s acquisition of broker Hilb Rogal & Hobbs (HRH) in October 2008. The integration — which includes combining offices, business processes and systems — is ahead of plan, and is delivering synergy savings in excess of targets.

“Vic has a long track record of success at Willis as a producer, office leader, National Partner and COO of Willis HRH, in which he has led a very successful integration for us,” said Bailey. “In each of these roles, Vic has always delivered. I have no doubt that Vic will make many significant contributions going forward to advance our business and ensure that we continue to deliver the best value and service experience to our clients.”

Krauze joined Willis in January 1997 as a producer and was soon promoted to President and CEO of the company’s Minnesota operations. In July 2003, he was named National Partner of the Great Lakes Region, which became part of the company’s larger Central Region in 2006 under Krauze’s leadership. Krauze began his insurance career in 1989 with Marsh as a marketing specialist and later was responsible for production for both risk management and middle-market clients. Prior to entering the insurance industry, Krauze served 12 years in the U.S. Navy and is a graduate of the University of Minnesota and the University of St. Thomas, where he earned his MBA in Finance.

“I am excited about the great opportunities we have at Willis HRH to serve our clients with a unique combination of global resources and expertise and an unmatched local presence that allows us to deliver those capabilities right where our clients do business,” said Krauze. “Our platform allows us to serve clients of all sizes — from large corporations and middle-market companies to small businesses — with industry and product specialists and a global marketing organization that provides the best access to carriers. That translates into great service for our clients and great growth potential for us.”

Willis HRH is the North American retail brokerage business of Willis Group Holdings. The unit has more than 200 local offices across the United States and Canada, offering a full range of insurance and risk management services, specialist expertise and global resources to large corporate, middle-market and small business clients.

Employers Face 10.5 Percent Health Care Cost Increases

Health care costs are expected to increase on average 10.5 percent in the next 12 months,(1) according to Aon Consulting, the global human capital consulting organization of Aon Corporation.

Aon Consulting surveyed more than 60 leading health care insurers, representing more than 100 million insured individuals, and found that health care costs are projected to increase by 10.4 percent for HMOs, 10.4 percent for POS plans, 10.7 percent for PPOs and 10.5 percent for CDH plans. These are slightly lower than one year ago, when HMO cost increases were 10.6 percent and POS plans were 10.5 percent. PPOs and CDH plans remain steady at 10.7 percent and 10.5 percent, respectively. (See below for trend data from Aon Consulting’s prior health care surveys.)

“Aon Consulting conducts a health care trend survey twice a year to forecast the expected future increase in employer-provided health plan claims cost, before any plan changes, based on input from leading health plan actuaries,” said John Zern, Aon Consulting’s U.S. Health & Benefits Practice director. “This data helps employers evaluate the competitiveness of health insurance premium renewals. For employers with self-funded health plans, it helps in developing future claim estimates for budgeting purposes.

“While we’re seeing a slight decrease in the trend rates, it’s still at double digits, and this year, it’s compounded by a struggling economy, lower wage increases, and in some cases, salary freezes.”

Aon Consulting’s U.S. Health & Benefits Chief Medical Officer, Dr. Paul Berger, acknowledges there has been progress in lowering the medical trend rate during the last several years, but emphasizes there’s still significant work to be done. He suggests wellness and health promotion initiatives are critical in the next phase of lowering the medical trend rate.

“Approximately 30 percent of workers have chronic medical conditions, which account for 65 percent of this nation’s medical spend,” said Berger. “Wellness programs provide a strong platform for effectively managing chronic conditions and preventing future problems, but it’s up to the individual to take advantage of the programs offered. Behavior change is never easy, but those willing to make changes in this capacity benefit from better health and lower health care costs.”

Prescription drug costs are expected to increase 9.3 percent, which is slightly lower than the 9.4 percent trend rate one year ago. The specialty pharmacy trend rate is 13.2 percent, up from 12.4 percent one year ago. Aon Consulting points to the sluggish rate of drug adoption across the board, compounded by the FDA’s reduced rate of drug approvals – especially for new molecular entities and biologic products – as the contributing factors leading to this decline.

In addition, health care rate increases for retirees over the age of 65 are projected to be 6.6 percent for Medicare Supplement plans and 7.3 percent for Medicare Advantage plans, down from 7.3 percent and 7.7 percent, respectively, one year ago.

To learn more about this Health Care Trends Survey, click here

Lloyds cuts 200 jobs in general insurance division

Lloyds Banking Group, 43 percent owned by the government, will cut 200 jobs in its general insurance division by the end of January in a shake-up of back office functions, the bank said on Tuesday.

Lloyds, which agreed to buy rival HBOS last year, said it was combining the support operations of Lloyds TSB and HBOS General Insurance, including sales, marketing, actuarial and underwriting operations.

The bank said the jobs would be cut in locations including Wales and Yorkshire.

Analysts have estimated that over 30,000 jobs could be cut as Lloyds integrates HBOS.

The announcement came week after the bank said it was reviewing its decision to close its Cheltenham & Gloucester subsidiary, possibly saving 833 jobs.

“We have no confidence in this bank’s confused strategy,” said Rob MacGregor of the union Unite.

Philip Loney, managing director of Lloyds General Insurance unit said, “We recognise that this is difficult news for our affected colleagues.”

“We are committed to working through these changes with our colleagues carefully and sensitively and will seek to use natural turnover and redeployment wherever possible.”

“This steady stream of announcements and cuts is soul destroying for the workforce at this state-owned bank and it must end,” Mr MacGregor said.

On 30 June, Lloyds said it would cut 2,100 jobs over the next three years and it also announced the closure of all Cheltenham & Gloucester branches in the same month, a decision that it has since decided to review.

Lloyds has been struggling since it bought HBOS last September. HBOS made a loss in 2008 of almost £11bn and the two banks together are expected to make a loss this year.

Lloyds has previously said it had created 1,200 new roles since January.

Aviva helps brokers weather the recession

The credit crunch has resulted in an increase in the number of customers lapsing or reducing their insurance cover, according to brokers responding to Aviva’s recession survey.*

In response, Aviva has produced a practical guide to the recession to provide brokers with valuable hints and tips on how to weather the recession and lessen its impact on customers.

“In order to mitigate the effects of the recession, brokers must get closer to their customers and understand the challenges they are facing, paying particular attention to customers with businesses in sectors under most stress such as the automotive industry, construction and retail,” warns Janice Deakin, corporate sales director at Aviva.

“With customers increasing their propensity to switch, and a higher demand for voluntary excesses and/or reduced cover, brokers with the greatest customer knowledge will be best placed to adapt services and products to meet clients’ changing needs. The stronger the relationship with insurers, the more likely a broker is to hang on to his customer.

“There are a number of likely impacts as a result of the downturn in the economy. Fraud, which according to the ABI, now costs the UK market £1.9bn, is continuing to grow and we expect to see an increase in arson and theft claims, as well as an overall rise in genuine claims as businesses are less likely to absorb smaller claims,” says Deakin.

“Unoccupied buildings will also present a threat to customers. Buildings under construction or renovation may become mothballed, parts of buildings being unused are at greater risk of flooding and there is potential damage from arson or malicious damage.

“Brokers must encourage customers to put risk reduction procedures in place, such as increased property security, and conduct regular site inspections as situations can change rapidly.

“They should also make sure a customer has adequate sums insured, including Business Interruption cover, and ensure they have an up to date business continuity plan in place.

“But it is not all doom and gloom – some sectors have been fairly resilient, with some even enjoying new growth. In difficult times, people still like to treat themselves so businesses associated with UK tourism, takeaway outlets – even chocolate-making – are succeeding, despite the economic climate!”

A copy of “Your Practical Guide to Recession” can be obtained by emailing theloop@aviva.co.uk

Aviva’s back-up service to be expanded to health insurance

Aviva today announced that their award winning Back-Up service is now available to its individual and small group private health insurance customers. This decision follows the highly successful launch of Back-Up to its own staff and corporate customers.

Back-Up, which is just one of a number of new specialist case management initiatives being introduced by Aviva UK Health, reflects the need  to move away from a traditional “one size fits all” approach to private health insurance claims management to offer customers a truly personalised, expert-led service tailored to their exact needs.

Developed with the UK’s leading professional rehabilitation provider HCML, Back-Up, which utilises evidence based medical guidelines for managing back and neck pain, has proven to significantly improve the speed of recovery and return to work rate for customers. In addition, the number of physiotherapy sessions required has been greatly reduced and far fewer people have needed to be referred to a specialist.

Rather than having to wait to see their GP, customers are referred to the Back-Up service to speak to a dedicated case manager who conducts an in-depth assessment and offers practical and clinical advice and support. A personalised rehabilitation plan is then tailored to their individual needs. Where the customer is part of a group scheme, the case manager can also work with their line manager to advise how they can be helped safely and effectively at work.

Mark Sharpe, clinical development manager at Aviva’s UK Health business, said: “Musculoskeletal conditions are one of the top causes of private health insurance claims, yet they have traditionally been treated with a broad brush six to 10 sessions of physiotherapy approach which gives little consideration to the customer’s exact circumstances. Our Back-Up service bucks this trend.

“Evidence now shows that tailoring treatment plans to the individual’s personal needs, has a far better out-come for all parties – the individual recovers quicker, employers benefit from reduced sickness absence costs and our medical insurance claims costs, and therefore future premium increases, are controlled.

We are extremely proud of our Back-Up service which has already delivered numerous benefits for our customers. The feedback we’ve received is absolutely fantastic and we’re delighted more of our customers can now benefit from this highly valued service.”

150,000 old cars scrapped

Research carried out by Vauxhall Motors has revealed that more than 150,000 old cars have been traded in as part of the government’s ongoing scrappage scheme.

The figures showed that in London, one in ten drivers have exchanged their vehicle for a newer model as part of the scheme, while in areas including Cornwall and East Anglia this figure is closer to one per cent of all motorists.

Anyone trading in their vehicle as part of the scrappage scheme might want to remember to purchase new car insurance, as in many cases newer vehicles can have lower premiums in comparison to older models.

Simon Ewart, from Vauxhall Motors, commented: “We fully support the scrappage scheme and feel that the first ever ‘Cash Car’ is a great way to bring to life the benefits of trading in your old car for a newer, safer and more environmentally friendly model.”

Meanwhile, figures by BCA Pulse recently revealed that the average used car value in the UK has risen by three per cent over the last three months to stand at £6,028 in July – the first time that this figure has exceeded the £6,000 mark.

Hiscox insurance report a 30% profit rise

Hiscox reported a pre-tax profit of £141.4m ($231.4m) in the first half of 2009, up 29.5% from £109.2m in the same period last year.
Financial highlights :

• Record interim pre-tax profit up by 29.5% to £141.4m (2008: £109.2m)

• Gross written premiums increased 41.7% to £906.0m (2008: £639.4m)

• Earnings per share up 53.0% to 33.2p (2008: 21.7p)

• Interim dividend increased by 5.9% to 4.5p (2008: 4.25p) in line with the Group’s progressive dividend policy

• Improved combined ratio before monetary FX of 79.5% (2008: 81.0%)

• Strong annualised return on investments of 7.0% (2008: 1.6%)

• Return on equity 27.5% (2008: 21.8%)

*excludes foreign exchange losses arising on monetary items of £42.8m (2008 : £9.6m profit) and includes an uplift of £59.5m to adjust for the impact of the non retranslation of non-monetary items (2008 : £15.3m), as described in note 19.

Operational highlights

• All three divisions: Hiscox Global Markets, Hiscox International and Hiscox UK and Europe saw increases in GWP of 41%, 72% and 24%, respectively

• Management strengthened to support profitable growth across all geographies

• Experienced Hiscox USA team set for steady growth

Robert Hiscox, Chairman, Hiscox Ltd, commented:

”This is a great result considering it is after significant accounting losses from foreign exchange differences during the period.  I am writing this in Bermuda as the island battens down the hatches with the onset of Hurricane Bill, but our catastrophe account is well able to withstand a normal hurricane season.  Good underwriting and investing has helped to keep our long term strategy firmly in place, which is to continue to build a first class, balanced, international insurance business to the benefit of our customers, shareholders and staff.”

Peter Bitterlin appointed at XL Insurance as regional energy underwriting manager for Europe and Asia Pacific

XL Insurance, the global insurance operations of XL Capital Ltd, today announced the appointment of Peter Bitterlin as Regional Underwriting Manager for Energy. In his new role he will be heading XL Insurance’s onshore energy team for Europe and Asia Pacific and will be based in London.

Mr. Bitterlin has more than 25 years’ of underwriting experience. In his last position, as Senior Underwriter Energy with Partner Re in Zurich, he focused on refineries and petrochemical risks as well as power generation plants and mining operations on a worldwide basis. Prior to this he worked for Rhine Re and Baloise Insurance Company in Switzerland.

Commenting on the appointment, Gerald Kanis, Chief Property Underwriter – Europe & Asia Pacific for XL Insurance, said: “At XL Insurance we have built up a reputation for high-quality underwriting, loss prevention expertise and providing capacity to the energy market, especially for complex risks. This expertise and focus on service are proving to be real differentiators in the current market. Peter’s skills as an experienced energy underwriter will be of great benefit to our global client base and positions him well to further grow our energy operations across Europe and Asia Pacific.”

XL Insurance’s global energy team has underwriters in London, New York and Bermuda.

AXA to launch its 2009 employee share offering

As each year, the AXA Group offers to its employees, in and outside of France, the opportunity to subscribe to shares issued by way of a capital increase reserved to employees. In doing so, the AXA Group hopes to strengthen its relationship with its employees by closely associating them with the future development and results of the Group.

The 2009 offering, called “SharePlan 2009″, will take place in 40 countries and will involve more than 100,000 employees who will, in most countries, be offered the opportunity to participate in both a classic share offering and a leveraged plan offering.

Shares to be issued :

• Date of the General Shareholders’ Meeting having authorized the capital increase: April 30, 2009.

• Dates of the Management Board’s decisions: June 29, 2009 (principle of the offering), July 29, 2009 (fixing of the booking period) and expected on October 29, 2009 (fixing of the Reference Price and of the dates of the retraction/subscription period).

• Type of share proposed, maximum number: pursuant to (i) resolution 20th adopted by the General Shareholders’ Meeting of April 30, 2009 and (ii) the decisions of the Management Board of June 29, 2009 and July 29, 2009, the offering will consist of the following:

• • An issue, without preferential subscription rights for existing shareholders, of new ordinary shares offered, for all countries, at a subscription price equal to 80% of the Reference Price under the classic share offering and the leveraged plan offering.  The Reference Price is equal to the arithmetical average of the 20 opening stock price quotes for the AXA shares on the compartment A of Euronext Paris S.A. over a period of 20 consecutive trading days, the last of which is the last business day before AXA’s Management Board officially decides to launch the employee share offering, i.e. from October 1, 2009 (inclusive) to October 28, 2009 (inclusive), the Management Board’s decision is expected to take place on October 29, 2009.

• • The maximum number of new shares that may be issued pursuant to the offering is 65,502,183 shares, corresponding to a capital increase of a nominal amount of approximately Euro 150 million.

• • The new shares will be eligible for dividends declared in respect of period as of January 1, 2009.

Conditions relating to subscription :

• Beneficiaries of the offering: unless local law requires otherwise, the individuals eligible for the offering are:

• • Employees having an employment contract (open-ended or fixed-term) with one or more of the eligible AXA entities, members of an employee savings scheme, who are on the payroll on the first day of the booking period, and having as at the last day of the retraction/subscription period at least three months of prior continuous or discontinuous service over the period running from January 1, 2008 to the last day of the retraction/subscription period, pursuant to Article L.3342-1 of the French Labor Code;

• • Former employees of eligible entities (retired or semi-retired from these entities), having kept assets in an Employee Stock Ownership Funds (FCPE) and/or securities in a nominative account within the AXA International Employee Stock Purchase Plan (Plan International d’Actionnariat de Groupe or P.I.A.G.) or the AXA French Employee Stock Purchase Plan (Plan d’Epargne d’Entreprise de Groupe or P.E.E.G.);

• • As well as general insurance agents in France having an individual mandate with an entity member of the P.E.E.G. and who market the products of such entity. This agreement must have come into effect for at least three months on the last day of the retraction/subscription period, pursuant to Articles L.3342-1 and D.3331-3 of the French Labor Code.

The companies eligible for the offering are those that have enrolled in the P.E.E.G. or in the P.I.A.G. including the amendments thereto.

• Existence or not of preferential subscription rights for existing shareholders: the issue will be without preferential subscription rights for existing shareholders, in favor of members of an employee savings scheme pursuant to the provisions of Article L.225-138-1 of the French Commercial Code.

Terms of subscription:

• For the classic offer (other than in Italy, South Korea, Spain, and the United States) the new shares will be subscribed through FCPEs of which the employees will receive units. The employees will have direct voting rights at AXA’s general shareholders’ meetings. In Italy, South Korea, Spain, and the United States, the shares will be subscribed directly by employees and will be held in registered accounts. They still have direct voting rights.

• For the leveraged plan other than in the United States, the new shares will be subscribed through FCPEs of which the employees will receive units. The employees will have direct voting rights at AXA’s general shareholders’ meetings. In the United States, the shares will be subscribed directly by employees  and will be held in registered accounts.

• Investment limit: in accordance with Article L.3332-10 of the French Labor Code, aggregate voluntary contributions by each eligible employee may not exceed one-fourth of that eligible employee’s annual gross compensation or pension benefits1, as the case may be (such investment limits could be lower pursuant to local laws). The investment limit for the leverage offer, within the limit of the quarter of the employee’s annual gross compensation or pension benefits, is calculated after taking into account the complementary contribution of the banking partner (Société Générale).

• Minimum holding period of shares: eligible employees will be obliged to hold their shares or fund units for a period of approximately five years, i.e. until April 1, 2014 in France, until July 1, 2014 for the rest of the world and until December 12, 2014 in Belgium, except in the case of a specified early exit event.

Timetable for the offering :

• Unknown subscription price booking period: from September 1, 2009 (inclusive) to September 16, 2009 (inclusive).

• Fixing period to determine the Reference Price: from October 1, 2009 (inclusive) to October 28, 2009 (inclusive) (subject to the fixing of the retraction/ subscription period by the Management Board at its meeting of October 29, 2009).

• Retraction/subscription period: expected to run from November 2, 2009 (inclusive) to November 6, 2009 (inclusive), subject to the decision of AXA’s Management Board.

• Date of capital increase: expected on December 11, 2009.

Hedging transactions
The implementation of the leveraged plan may lead the financial institution acting as the counterparty to the swap transaction (Société Générale) to undertake hedging transactions prior to the implementation of the plan, in particular as from the beginning of the fixing period and over the entire course of the plan.

Listing
Listing of the new shares on the compartment A of Euronext Paris S.A. (Euroclear France Code: 12062) and on the New York Stock Exchange in the form of American Depositary Shares (ADS), each ADS representing one ordinary AXA share, will be requested as soon as possible after the capital increase expected on December 11, 2009 and will be completed at the latest by December 31, 2009 on the same line as the existing shares.

Other information
The regulations and information notices relating to the Funds through which the employees may participate in the offering received the approval of the AMF
(Autorité des marchés financiers) on July 31, 2009. This press release is intended to satisfy the requirements of the regulation, pursuant to Article 212-4 5° of the AMF’s General Regulations and Article 14 of Instruction n°2005-11 dated December 13, 2005. The offering will take place in France and outside France, including in the United States where the offering has been registered with the Securities and Exchange Commission (“SEC”) on a Form S-8 on July 31, 2009, n° 333-160927.

Contact for employees
For questions relating to the present share offer, please contact your Human Resources Department.

1 As regards general insurance agents in France, only their professional incomes declared as income tax with regard to the past year will be taken into account.

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