Insurance Industry News Jobs Financial Services Press Releases

450 jobs to go at Norwich Union at York

2006-09-14T09:50:00.000+01:00

Some staff on their way into work at Norwich Union this morning heard the news breaking on BBC local radio. However many turned up not having heard at all.

The compulsory job losses were announced this morning via the Stock exchange the news has not been formally announced to staff they are hearing the story unfold via online news and radio feeds.

The staffing reductions are as a result of Aviva's offshoring strategy with many of the roles being outsourced to India.

Staff are stunned at the announcement made this morning and the way that the news was broken.

3000 staff are based at Norwich Union's offices in York the 450 staff that are affected are though to be in IT and policy processing.

Further indications will emerge over the coming days.

Aviva - More jobs off to India in cost cutting excercise

2006-09-14T09:24:00.000+01:00

Norwich Union Sees 2,000 Compulsory Layoffs

Yet another 1500 Insurance jobs off to India - IT and policy processing.

LONDON - Norwich Union Executive Chairman Patrick Snowball said that about half of the expected 4,000 job reductions announced on Thursday morning 14th September 2006 will most likely be made through compulsory means.

He added, though, that the company would seek to minimize the number of compulsory redundancies through natural staff turnover and voluntary measures.

Snowball was speaking to Dow Jones Newswires after Aviva PLC (AV.LN) said that it would reduce its 36,000-strong U.K. head count by approximately 4,000 by 2008, with up to 1,000 UK based positions being offshored to India.

Norwich Union, Aviva's U.K. business, plans to improve efficiency to deliver annual cost savings of GBP250 million in 2008, at a cost of GBP250 million by the end of next year, the group said.

Snowball said that Aviva had set aside GBP2.5 million for staff retraining for those hit by layoffs.

The group gave a breakdown of locations for the role reductions: Norwich 850; York 450; Glasgow 250; Sheffield 250; Cambridge 200; Perth 200; Newcastle 200; Eastleigh 200; Stevenage 150; Bristol 150; Worthing 100; Belfast 100; and Birmingham 50.

In addition, it said that 700 of the total role reductions will be across approximately 40 other Norwich Union offices and 107 BSM high street outlets.

There will also be a reduction of around 150 home worker roles.

It is appalling that Aviva staff in my own area of York first heard the news breaking on the local radio on their way into work.

Staff affected looking for Insurance Jobs can find 1000s advertised at

www.insurancejobsboard.com

Skandia CEO Roberts Nearly Tops the Million Mark

2006-04-06T02:05:00.000+01:00

THE new boss of Southampton based financial services giant Skandia earned nearly £1m last year.

Julian Roberts' basic salary was £385,000, with £450,000 paid in bonuses, £133,000 in benefits and £20,000 in pension.

Details of the chief executive's remuneration package - said to be the going rate - are contained in the annual report of Old Mutual.

The London-listed South African life insurer made a successful £3.4 billion hostile bid for the global Skandia group, including the jewel-in-the-crown UK arm, late last year.

Skandia, which employs 1,700 at its split-site UK headquarters in Southampton, officially joined the Old Mutual fold on February 1.

Mr Roberts' £988,0000 compares to the average salary of £37,616 at Skandia in Southampton.

What he earned last year in his capacity as then group finance director of Old Mutual, a post which he held for five years, was similar to that of Skandia UK boss Alan Wilson, who retired at the end of January.

Multi-millionaire Mr Wilson, who established Skandia locally in 1979 to make it an immensely profitable tour de force in the insurance world, was Southampton's highest paid director, earning just over £1m.

In the annual report, Mr Roberts, said:

"I move to my role as chief executive of Skandia, confident in the knowledge that management action taken across all our businesses has created a platform for long-term sustainable growth."

Roberts also sees his basic salary rise by £90,000 this year to £475,000, while Old Mutual chief executive Jim Sutcliffe, who earned nearly £1.5m last year, sees his basic salary go up by £150,000 to £700,000.

The annual report said both increases were considered by Old Mutual's remuneration committee to be "appropriate in the light of comparative market data".
Old Mutual manages £183 billion worth of funds, and last year made an operating profit of £1.2 billion

Skandia UK, which has one million policyholders, has nearly £27 billion worth of funds under management. Last year it made a profit of £160m.

Not A Bad result that’s almost a £1.00 per policy ! Only 22,000 to go !

Staff Call for Standard Life Health Care

2006-04-06T02:00:00.000+01:00

STANDARD Life Healthcare has started recruiting around 240 staff after officially opening its new HQ in Bournemouth on Monday 3rd April

Some 295 FirstAssist staff joined Standard Life Healthcare yesterday after the mutual acquired FirstAssist's private medical insurance business on April 1.

Standard Life Healthcare has transferred its 300-strong HQ function from Guildford to Bournemouth, Some 20 per cent of the Guildford staff have relocated to Bournemouth but the remaining 80 per cent of the jobs will need to be filled by local workers.

And all the new local Standard Life Healthcare staff could get shares if its parent group Standard Life joins the stock market in a £2 billion flotation, it is hoped.

Standard Life Healthcare chief executive Mike Hall said:

"We are waiting to see what the board recommends in terms of shares for employees. The details have yet to be announced."

But he would like to see Standard Life give its award-winning staff "a financial stake" in the business.

It was too early to say what sort of stake he personally would receive in the business, if any, if it floated on the Stock Exchange, he added.

"I'm an employee as well so I don't know what the details are."

Standard Life members will vote on May 31 whether the business should give up its mutual status and join the stock market. Approval would be needed from 75 per cent of those members voting.

Yesterday Mr Hall and Standard Life Healthcare chief operating officer Bob Watts toured their new Richmond Hill offices, handing out champagne to the staff.

Standard Life Healthcare's new site at Marshall Point brings together workers from Bournemouth, Guildford and Stockport to serve 232,000 customers, making it the third largest private medical insurance provider in the UK.

Standard Life Healthcare was acquired by Standard Life in 1994, changing its name from Prime Health in April 2000.

2006-04-06T01:55:00.000+01:00

Broking News: Doug Smith Joins Willis Mergers & Acquisitions

Doug Smith founder of insurance broker Corporate Risk, has been appointed by Willis Group, the global insurance broker, as non-executive deputy chairman of its mergers and acquisitions practice.

Smith retired from global broking group J&H Marsh & McLennan in September last year, since then he has built up a consultancy company, Eurorisk Partners, which is contracted to Willis to provide his services.

"Willis is potentially another global insurance house in the private equity world. That is the reason I've joined them as opposed to a number of other firms who had approached me," Smith said.

Smith will be working alongside Alistair Lester and Nathan Sewell, who are the co-heads of the international M&A practice for Willis, Smith's remit will focus on broadening the strength and breadth of relationships within the private equity community.

He is also tasked to accelerate the strategic growth and development of the Groups M&A practice, which is focused on the provision of risk and insurance due-diligence services, as well as the provision of specialist M&A-related insurance services to private equity groups and corporations

"I've moved away from pure corporate insurance to talk to private equity houses about risk analysis and identification and how to deal with it," Smith said.

"When you see the amount of money private equity houses have raised and the number of deals going on, you realise there is a tremendous demand for risk management services."

In addition to the provision of his services for Willis, Smith will continue to run Eurorisk.

"We have negotiated with the Waterman Group, which is a quoted company, to help the Waterman Environmental Group on private equity and I will be doing likewise with a pension firm and IT firm," he said.

Smith will continue his roles at various companies, including Martin Currie investment trust and on the board of an AIM-listed, litigation-insurance-based company based in London.

Great Call for Willis thats one acquisition that's sure to yield the dividends at the outset .

Collins JLT's Risk Executive Chairman Resigns

2006-04-06T00:39:00.000+01:00

Jardine Lloyd Thompson

Changes afoot a JLT Risk

British Insurance Broker JLT has announced that Dominic Collins, executive chairman of its Risk Solutions unit, had resigned.The sudden Departure comes only months after having taken up executive responsibility for the unit.

JLT said in a statement on Wednesday 5th APril 06 that Collins had resigned with immediate effect, The statement added that Mark Drummond-Brady will become chairman of the Risk Solutions Unit, JLT's biggest operating unit.

Martin Hiller will become be the Risk Solutions unit's managing director

The company has yet given no explanation for Collins' resignation. He was appointed to the role of executive chairman of the unit in December 2005 following the resignation of Mike Hammond

Risk Solutions is one of the strongest areas of the JLT group and accounted for roughly 40 percent of the group's risk and insurance division's turnover in 2005.

More Information to follow as it breaks.

Name Tags: Dominic Collins, Mark Drummond-Brady, JLT Risk

No Win No Fee Claims

2006-03-27T12:50:00.000+01:00

No Win No Fee Claims Premium Keyword Rich Domain Name for Sale.

http://www.NoWinNoFeeClaims.com

In the competitive arena of No Win No Fee claims consultancy and legal advisors brand your claims advice service with this premium No Win No Fee Claims domain name.

Cost per click advertising costs a fortune by securing a premium domain name your business can stand head and shoulders above the competition in this crowed market place.

Perfect for all mediums this memorable domain is ideally suited to web marketing, tv, radio and print campaigns. No Win No Fee Claims are the primary keywords searched for in the sector and will deliver high quality targetted traffic back to your business.

Why pay up to £6.00 a click on google / overture to gain top positioning bidding for the terms " No Win No Fee " " No win No Fee Claims" " No Fee Claims" on sponsored ads when owning this domain will rank highly in the organic listings for free.

This domain is offered with or without an optimised site build to generate quality traffic to the domain.

Ideally suited for : No Win No Fee Claims, No Fee Advice, No Win No Fee, Personal Injury claims, Accident at work, Traffic accidents, Whiplash, medical negligence, Injury compensation, claims compensation.

Contact melanie@insurancejobsboard.com to discuss this opportunity

Innovation In Online Jobs Search. Niche Publishers Leading the way

2006-03-24T12:43:00.000Z

Niche Jobs Publisher InsuranceJobsBoard.com Today released the first of its kind Job search toolbar in the UK. This allows job seekers direct access into the site job search, the ability to read industry news alerts, search the web and communicate direct with the site.

Niche jobs board InsuranceJobsBoard.com the Jobs Portal dedicated to the Insurance and Financial Services sector today announced the launch of its industry specific job search tool bar. This new innovation allows jobs seekers direct access to the site from anywhere in the web and links straight into the search functionality enabling direct and proactive search of the 1000s of vacancies currently advertised.

Additionally the toolbar functionality features access to job seeker resources such as google search, live industry news, google & yahoo finance, rss feeds and blogs. It's an entirely free download, with no spyware or viruses, does not open pop-ups or hijack searches, and no personal information is required for installation. User trials conducted via jobseekers and advertisers registered with the site have found it to be a superb tool to assist in their job seeking activities and account management.

Commenting on the launch of this new tool Melanie Blakeley, Operations Director at InsuranceJobsBoard said

“We have been amazed with the positive feedback that this product has received during our beta trial and are confident that its launch will be a valuable addition to the site and enhance our communication with our target audience. This unique innovation is the first of its kind in the UK online jobs search sector“.

This recent development continues the trend of InsuranceJobsBoard’s commitment to developing additional services to serve its jobseekers and advertisers such as its sector specific job search engine and the integration of live online help that see this Niche board leading the way in Insurance and Financial Services Recruiting.

About Insurance Jobs Board

Beta site Developed Jan 04
Site Launch March 04

InsuranceJobsBoard.com is the industry’s leading niche jobs portal that services the Insurance and Financial Services Sector.

Driven by an industry specific search engine the site delivers financial Job seekers the lastest vacancies from the leading specialist recruiters and direct employers.

The site advertises in excess of 4500+ industry related jobs.

http://www.insurancejobsboard.com/

http://insurancejobsboard.ourtoolbar.com

Search Tags: Insurance Jobs search, online jobs search, job sites, job toolbar, online recruitment, online publishing, online classifieds, jobs advertising. Insurance Industry, Financial Services Industry

Lee Sutton Joins The Insurance Partnership

2006-03-20T14:49:00.000Z

Appointments

One of the country's fastest-growing commercial insurance brokers has appointed Hull insurance expert Lee Sutton as senior account executive.

With more than 14 years' experience of providing insurance advice to companies in East Yorkshire, he is now focusing on new business development at The Insurance Partnership.

Chairman Ian Hakes said: "He is an extremely experienced insurance broker who has worked at associate director level.

Link>>> Insurance Broking Jobs

He has a well-established network of clients and contacts."We believe his understanding of the insurance needs of businesses in our region, coupled with his technical knowledge and determination to succeed, will enable him to make an effective contribution to our development.

"Born in Willerby and educated at Wolfreton School, Mr Sutton, 32, is married and lives in Kirk Ella.

He said: "In February, The Insurance Partnership was ranked sixth in a list in the Insurance Times of Yorkshire's top 20 independent insurance brokers.

I'm looking forward to being part of that winning team."The Insurance Partnership was established in 1993 and has more than 100 employees and a turnover of more than £30m. The company has offices in Hull, York, Lichfield and Sutton Coldfield.

It works with companies of all sizes in sectors such as professional services, logistics and manufacturing.

It is accredited with ISO9001 for quality assurance and the Investors In People standard and has been authorised by the Financial Services Authority.

Search Tags: Insurance brokers, commercial Broker, commercial Broking, Insurance Broking, Account executive, The insurance partnership, Hull, York, Lichfield, Sutton coldfield, independent Insurance brokers, broking jobs, Insurance broking jobs, yorkshire, west yorks, north yorkshire, easy yorkshire.

L&G Make U-turn over endowment claims

2006-03-20T14:34:00.000Z

Legal & General, the insurer, is to enforce time limits on complaints for mortgage endowment mis-selling.

Until now the company had refused to follow most insurers, which have imposed time bars on mortgage endowment complaints. But in a sudden change of strategy it is writing to its 630,000 endowment policyholders to say that it is to introduce time bars and that, in line with regulatory guidelines, customers will be given six months' notice before the time limit expires.

Under the time bar rule, policyholders have just three years from receipt of their first "red" warning letter - signifying that a shortfall is likely - to complain.

Link: >>> Financial Services Jobs

The insurer said it had sent numerous letters about shortfalls to its mortgage endowment policyholders over the past six years and that by now they should know whether they have a case for compensation or not.

Paul Timmins, L&G's director of customer resolutions, said: "We want to bring a conclusion to the matter - it is time for people to make up their minds."

The decision leaves just Prudential (including Scottish Amicable) and Nationwide Building Society as the only providers not to impose time bars. The Pru and Nationwide said they had no plans to impose time limits but that the situation was reviewed constantly.

Millions of mortgage endowment policyholders are running out of time to complain. Most of the 1.6m customers who received time bar letters from Standard Life and Scottish Widows last year have until the end of May to complain. If they miss the deadline they lose the right to pursue compensation at a later date.

Marianne Fitzjohn of Endowment Justice said: "It is yet another large insurer who breaks their promise to customers to increase their profits, reinforcing the view that trust is an optional extra when dealing with financial services firms."

Search Tags: Endowment complaints, L&G, Legal and General, Endowment mortgage claims, Insurance news, Standard Life, Scottish Widows, endowment policy holders, Misselling, Endowment compensation, Paul Timmins, endowment shortfalls, financial services Jobs, endowment justice, Marianne Fitzjohn,

Legal and General Damaged By Storm Claims Payouts

2006-03-20T13:57:00.000Z

Storm damage claims hit operating profits at Legal & General's household and motor insurance business, much of which is run from Birmingham, last year.

Earnings slumped by more than half to £14 million from £32 million in 2004, even though improved volumes in household and healthcare policies produced a three per cent rise in premium income to £334 million.

Link>>> Claims Jobs

L&G said the "significantly lower" operating profit was a result of higher bad weather claims in the first half of 2005 combined with tougher competition.

The group, which employs about 800 people at its Birmingham insurance centre, said that elsewhere in the book, improved results from accident, sickness and unemployment insurance were offset by increased motor losses and a smaller release of reserves from the mortgage indemnity book.

Overall, however, L&G delighted the City yesterday by announcing better than expected profits on the back of record amounts of new business

Operating profits rose by 43 per cent last year to £1.09 billion - a result that sent shares soaring by seven per cent on a day when the FTSE 100 Index burst through the 6,000 mark.
The results were boosted by strong growth in the UK following a series of distribution deals with banks and building societies to sell Legal products. Life and pensions profits in the UK grew 69 per cent to £801 million.

Legal chief executive Tim Breedon said: "2005 was another record year for Legal & General - record new business and record profits."

L&G announced a dividend of 5.28p - up more than four per cent on the previous year.
Cazenove analyst James Pearce summed up market sentiment, saying: "L&G has delivered a splendid set of figures."

Mr Breedon said yesterday the company had nothing to fear from increased competition in the bulk annuities market.

For years L&G and arch rival Prudential have had the field to themselves but are now facing the prospect of new players moving into the field.

Bulk annuities is a specialised area of operations in which insurers take over company pension schemes.

"If you're in a pension scheme and your employer decides to close it, you'd be looking for a company with financial strength, reliability and long-term commitment to take it over," Mr Breedon said.

"There are new companies wishing to enter the market, but there's quite a long list of desirable characteristics that they need to meet."

With more employers seeking to offload their pension liabilities, the bulk annuity market looks set to grow fast enough to accommodate some new players.

"There's a growing recognition that the market is attractive, which certainly hasn't always been the case. More people will be looking at it, but it's a big market, and a growing one," Mr Breedon added.

Tags: L&G Insurance, Tim Breedon Chief Executive, Ceo, Legal and general Insurance, Insurance claims, storm damage claims, Insurance claims jobs, L&G profits, Birmingham Insurance Jobs, Birmingham claims jobs,

Aviva details £17bn share swap bid for Prudential

2006-03-20T13:50:00.000Z

Insurance giant Aviva has confirmed details of its £17bn proposed offer for Prudential and said it would not be willing to make a hostile offer for the group.

However, Prudential has already rejected the indicative approach and told Aviva, owner of Norwich Union, that it is not prepared to enter talks.

Link >> Jobs In Insurance

Aviva said today’s statement, outlining the prospective offer, “enables both Prudential and Aviva’s shareholders to assess the proposal on an informed basis.” It is proposing an all-share merger of the two groups with 82 new Aviva shares for every 100 Prudential shares held.

The offer is equivalent to 708p per Prudential share, valuing the company at around £17bn. Prudential rose 80 to 752p in early trading, after gaining 44½ on Friday, prompting speculation that Aviva could face a rival bidder

Aviva said it would only proceed with the proposal “on a recommended basis”. However, Prudential said in a brief statement this morning that it “does not consider that the proposal is in the best interests of its shareholders and has rejected it.”

The company added: “The board confirms that it is not in discussions with any party and reaffirms its confidence in Prudential’s future as an independent company.”

The combined group would be a leading global insurer with a market capitalisation of around £36bn and a premium income of around £40bn, Aviva said.

Aviva said cost savings of around £320m per year would be possible.

Richard Harvey, Aviva chief executive, said: “The combination of Prudential and Aviva has a compelling strategic, financial and operational logic. This is a real opportunity to create a leading player in the global savings, investment and insurance market.”

He added: “The group would have significant presence and growth opportunities in Europe, Asia and the US. This is a value-creating proposition for the shareholders of both companies.”
A new management team will be drawn from both organisations, with Mr Harvey as chief executive.

Aviva said it “believes that the combined group would be able to accelerate the growth of its overseas life businesses”.

In the US, Aviva’s business would be integrated into Prudential’s Jackson National Life while in the UK, Prudential’s distribution and customer base would help accelerate the growth of Norwich Union and the RAC. Aviva added that there could be no certainty a formal offer will be made.

Aviva rose 3½ to 850½p in early trading after rising 23½ on Friday.

Tags: Aviva offer prudential, aviva bid, Aviva share price, aviva merger, prudential acquisition,
Jobs in Insurance,

FSA announces next steps on contract certainty in the insurance market

2006-03-20T13:48:00.000Z

The Financial Services Authority (FSA) has put on hold its work to develop rules to bring about contract certainty in the insurance market.

Speaking at the FSA's Insurance Sector Conference today, John Tiner FSA CEO, acknowledged the progress made by the insurance market in meeting the FSA's challenge to achieve contract certainty. The challenge to end the 'deal now, detail later' approach was issued to the market in December 2004.

The FSA gave the market two years to ensure that insurance contract terms are agreed at the time the policies commence. Contract certainty will lead to greater certainty for buyers about what they have bought and for insurers about the risks they are covering, whilst also reducing risks for brokers.

Link>>> Financial Services Jobs

Throughout this period, the FSA has been clear that if the market fails to develop its own solution, it will have to intervene with new rules and requirements. In line with its better regulation agenda, the FSA's preference has always been for the market to find its own solution without the need for regulatory intervention.

Since December 2004 the FSA has been monitoring progress by working with groups representing the market to achieve the goal of contract certainty.

Today's announcement follows the receipt of data from the market showing that it had exceeded its own targets for achieving improvements in contract certainty at the end of 2005.

John Tiner said:

"To demonstrate our good faith in the market's ability to reach its goal, we will not be pressing ahead with our work on the contingency plan of regulatory intervention. We are putting it on the back-burner, although we are not taking it off the stove altogether.
"I would strongly caution against complacency in these next few crucial months; the market must continue to stretch itself to guarantee that the challenge is met by the end of the year….On our part, we will continue to assess progress beginning in the next quarter, not least to see how the market has performed against the challenging 1 January renewal period. We will continue to work with the market in our rôle as over-seer and facilitator, and will not hesitate in consulting on new rules should progress falter."

Two other significant announcements were made at the conference by Hector Sants, the FSA's Wholesale Managing Director.

The two announcements form part of the FSA's wider agenda of better regulation - creating a regime that offers greater flexibility to firms and is responsive to changing market needs. They will make the London market an easier place in which to do business and will help to position London as the regulatory platform of choice for the wholesale market, whilst maintaining its high standards.

The announcements were:
the FSA will speed up the process of authorising new insurers in response to market needs at times of pressure, for example following major catastrophes, when new capital becomes available, and ahead of critical market renewal periods. The FSA already has an efficient authorisation process in place, taking an average of 17 weeks to conclude its review of an application. The FSA will accelerate this process for insurers in periods of market pressure, although it will continue to apply the existing standards. Where the FSA has prior knowledge of a group it will authorise a firm within one month of receiving the application. Where the FSA does not have prior knowledge then it will make a decision on an application for authorisation within 10 weeks of receiving an application; and

as part of the FSA's consultation on the Reinsurance Directive later this year, the FSA will consult on the introduction of Insurance Special Purpose Vehicles (ISPVs). Through the consultation, the FSA aims to open up the SPV market here in the UK.

Notes to editors
John Tiner's speech to the conference can be found here, and Hector Sants' speech can be found on the FSA website.

The original challenge to the industry was made in a speech given by John Tiner in New York in December 2004.

Public records of the December 2004, July 2005 and December 2005 meetings between the FSA and senior industry representatives can be found on the FSA website. A further meeting with the industry on 21 March will also be recorded.

ISPVs are special purpose reinsurance vehicles which are fully funded by issuing debt. If the ISPV has to pay out under its reinsurance obligations, the repayment rights of the debt holders are reduced accordingly. Under the Reinsurance Directive, EU member states that want to create an ISPV market can introduce appropriate authorisation and regulatory requirements.

ISPVs are defined in the Reinsurance Directive as: 'any undertaking, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assumes risks from insurance or reinsurance undertakings and which fully funds its exposure to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the reinsurance obligations of such a vehicle'.

The FSA regulates the financial services industry and has four objectives under the FSA/PN/022/200620 March 2006
The Financial Services Authority (FSA) has put on hold its work to develop rules to bring about contract certainty in the insurance market. Speaking at the FSA's Insurance Sector Conference today, John Tiner FSA CEO, acknowledged the progress made by the insurance market in meeting the FSA's challenge to achieve contract certainty. The challenge to end the 'deal now, detail later' approach was issued to the market in December 2004.
The FSA gave the market two years to ensure that insurance contract terms are agreed at the time the policies commence. Contract certainty will lead to greater certainty for buyers about what they have bought and for insurers about the risks they are covering, whilst also reducing risks for brokers.

Throughout this period, the FSA has been clear that if the market fails to develop its own solution, it will have to intervene with new rules and requirements. In line with its better regulation agenda, the FSA's preference has always been for the market to find its own solution without the need for regulatory intervention.

Since December 2004 the FSA has been monitoring progress by working with groups representing the market to achieve the goal of contract certainty. Today's announcement follows the receipt of data from the market showing that it had exceeded its own targets for achieving improvements in contract certainty at the end of 2005.

John Tiner said:
"To demonstrate our good faith in the market's ability to reach its goal, we will not be pressing ahead with our work on the contingency plan of regulatory intervention. We are putting it on the back-burner, although we are not taking it off the stove altogether.

"I would strongly caution against complacency in these next few crucial months; the market must continue to stretch itself to guarantee that the challenge is met by the end of the year….On our part, we will continue to assess progress beginning in the next quarter, not least to see how the market has performed against the challenging 1 January renewal period. We will continue to work with the market in our rôle as over-seer and facilitator, and will not hesitate in consulting on new rules should progress falter."

Two other significant announcements were made at the conference by Hector Sants, the FSA's Wholesale Managing Director. The two announcements form part of the FSA's wider agenda of better regulation - creating a regime that offers greater flexibility to firms and is responsive to changing market needs. They will make the London market an easier place in which to do business and will help to position London as the regulatory platform of choice for the wholesale market, whilst maintaining its high standards. The announcements were:

the FSA will speed up the process of authorising new insurers in response to market needs at times of pressure, for example following major catastrophes, when new capital becomes available, and ahead of critical market renewal periods. The FSA already has an efficient authorisation process in place, taking an average of 17 weeks to conclude its review of an application. The FSA will accelerate this process for insurers in periods of market pressure, although it will continue to apply the existing standards. Where the FSA has prior knowledge of a group it will authorise a firm within one month of receiving the application. Where the FSA does not have prior knowledge then it will make a decision on an application for authorisation within 10 weeks of receiving an application; and

as part of the FSA's consultation on the Reinsurance Directive later this year, the FSA will consult on the introduction of Insurance Special Purpose Vehicles (ISPVs). Through the consultation, the FSA aims to open up the SPV market here in the UK.
Notes to editors

John Tiner's speech to the conference can be found here, and Hector Sants' speech can be found on the FSA website.

The original challenge to the industry was made in a speech given by John Tiner in New York in December 2004.

Public records of the December 2004, July 2005 and December 2005 meetings between the FSA and senior industry representatives can be found on the FSA website. A further meeting with the industry on 21 March will also be recorded.

ISPVs are special purpose reinsurance vehicles which are fully funded by issuing debt. If the ISPV has to pay out under its reinsurance obligations, the repayment rights of the debt holders are reduced accordingly. Under the Reinsurance Directive, EU member states that want to create an ISPV market can introduce appropriate authorisation and regulatory requirements.ISPVs are defined in the Reinsurance Directive as: 'any undertaking, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assumes risks from insurance or reinsurance undertakings and which fully funds its exposure to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the reinsurance obligations of such a vehicle'.

The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness. maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

Tags : Financial services authority press release, FSA press releases, Financial Services and Markets Act 2000, FSA compliance, FSA Regulatory, Financial services jobs, London financial services regulations,

Zurich Financial seeks settlement over insurance probe in US

2006-03-20T13:37:00.000Z

The Swiss insurance group Zurich Financial Services said it had agreed to a 171.7-million-dollar (141.0-million-euro) settlement with some state authorities in the United States over an investigation into industry-wide business practices.

The agreement between the Swiss group's US subsidiary, nine state attorneys-general and one insurance commissioner also includes a new disclosure and compliance regime, Zurich said in a statement.

Link >>> UK Insurance Jobs

"ZAIC (Zurich American Insurance Company) does not admit to any violation of US federal or state laws as part of the settlements," it added Monday.

Some of the agreements on broker compensation and insurance placement practices will need court approval. Negotiations are still underway with other US state regulators or justice authorities, the Swiss firm said.

"We are pleased that todays announcement brings a greater sense of clarity and transparency to the quoting process for our customers in the United States, and we look forward to working collaboratively with our producers and business partners in this new environment," said chief executive James Schiro.

The nine states involved in the agreements with Zurich American Insurance Company under the "Multi-State Agreement" are California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania, Texas, and West Virginia.

Zurich has been the focus of rumours about a takeover bid by US insurance group St. Paul Travelers Companies in recent days. St Paul denied the rumours of a merger Sunday.

Tags: Zurich Financial services news, St Paul Travellers news, Zurich American Insurance Company, Insurance Industry Jobs, UK

Insurance Shares Watch

2006-03-20T13:25:00.000Z

M&A news lifted the insurance sector as well as investor sentiment overall.

St. Paul Travelers refuted that it was in talks with Zurich Financial Services. Zurich Financial gained 1.18%. Swiss Life Holdings and Swiss Re advanced.

Link>>> Jobs In Insurance

Prudential turned down a takeover bid from larger rival Aviva, reported to be about 700 pence per share for value of 17 billion pounds.

Sunday Telegraph reported that French insurance giant AX and AIG of the US are also planning to bid for Prudential, while Aviva was thinking of raising its offer. Prudential soared 11.31% but Aviva shed1.12%.

Royal Sun Alliance, Friends Provident and Legal & General surged 3.05%, 4.22% and 4.18% respectively.

Tags: Aviva, St Paul Travellers, SunAlliance, Legal and General , Friends Provident, AIG Insurance, Prudential insurance, Swiss Life, Swiss Re, Zurich Financial Services, Insurance Industry share prices, Insurance news, share price, Merger, acquisition, Jobs In insurance, Financial services shares, UK share price,

New Insurance Service For eBay Motors

2006-03-20T13:10:00.000Z

eBay Motors has teamed up with Norwich Union to provide a week's free insurance for cars bought on its auction website. Winning bidders can now call Norwich Union once the sale has been confirmed, and in return they will receive a cover note for seven days' comprehensive insurance. Norwich Union will also offer the buyer a quote for a year's insurance cover, but only on a no-obligation basis.

Link >>> Motor Insurance Jobs

"A car is sold every two minutes on eBayMotors.co.uk and we're constantly looking for ways to improve the buying and selling process and provide added peace of mind for the millions of people who head to the site in search of a new car

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Reinsurance firm posts record profit of $23m

2006-03-20T13:02:00.000Z

Trust International Insurance Company BSC, a Bahrain-based reinsurance operator, has announced record results for last year.

The company posted a net profit of $22.8 million, up from $10.8m for the previous year. The profit from underwriting operations improved to $11.4m from $3.4m in 2004. The company's gross premium reached $188.4m compared to $66.5m over the same period.

This major improvement in the overall income and results included the one-off incorporation of the operating figures relating to the company's Corporate Capital subsidiary at Lloyds of London.

Link >>> Reinsurance Jobs

The company's shareholders have approved the distribution of a cash dividend of 8.5 per cent and a stock bonus issue of 25pc, raising the paid up capital to $75m.

"The results are a clear reflection of the strategy we are adopting, which focuses on quality risk selection, widening business coverage and developing a well-balanced book of business from our area of operation," said chairman and chief executive officer Ghazi Abu Nahl.

"We achieved exceptional returns from our investments portfolio, owing to a structured investment policy we have followed and timely capitalisation of key investment opportunities."
The company has branches in Cyprus and Malaysia, with a network of subsidiary and affiliate companies spanning the Middle East, North Africa, Europe and the US.

The company has a paid up capital of $75m, with total shareholders' equity of $252m and total assets of $440m.

Mr Abu Nahl added that in the current favourable market environment, the company is ideally placed to further strengthen its presence and positioning in its core Arab and Afro-Asian markets.

The company announced that work is in progress on the company's new 21-storey tower building in the Diplomatic Area. As the head office, the building will reflect the corporate image and identity of the company in the region and is expected to provide a better platform for further growth and development, as well as a higher level of client and customer service and support.

Tags: Reinsurance news, London Reinsurance news, Trust international, press release, reinsurance jobs, Lloyds of London News, Llloyds Reinsurance market news. London reinsurance Jobs

Prudential rejects Aviva offer

2006-03-20T12:57:00.000Z

LONDON: Prudential, the second-biggest British insurance group, has rejected a takeover bid by bigger rival Aviva, reported yesterday to have been worth $29.86 billion.

A Prudential spokeswoman confirmed yesterday: "The board announces that it received a proposal from Aviva about a possible combination of the two companies.

The board, which has taken independent financial advice, does not consider that the proposal is in the best interests of its shareholders and has rejected it.

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The offer, made Thursday and rejected late Saturday, was an all-share offer worth about 700 pence per share.

Tags : Prudential Insurance Offer, Aviva Insurance offer prudential, London Insurance Jobs

Reinsurance firm posts record profit of $23m

2006-03-20T12:47:00.000Z

Trust International Insurance Company BSC, a Bahrain-based reinsurance operator, has announced record results for last year.

The company posted a net profit of $22.8 million, up from $10.8m for the previous year. The profit from underwriting operations improved to $11.4m from $3.4m in 2004. The company's gross premium reached $188.4m compared to $66.5m over the same period.

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This major improvement in the overall income and results included the one-off incorporation of the operating figures relating to the company's Corporate Capital subsidiary at Lloyds of London.

The company's shareholders have approved the distribution of a cash dividend of 8.5 per cent and a stock bonus issue of 25pc, raising the paid up capital to $75m.

"The results are a clear reflection of the strategy we are adopting, which focuses on quality risk selection, widening business coverage and developing a well-balanced book of business from our area of operation," said chairman and chief executive officer Ghazi Abu Nahl.

"We achieved exceptional returns from our investments portfolio, owing to a structured investment policy we have followed and timely capitalisation of key investment opportunities."
The company has branches in Cyprus and Malaysia, with a network of subsidiary and affiliate companies spanning the Middle East, North Africa, Europe and the US.

The company has a paid up capital of $75m, with total shareholders' equity of $252m and total assets of $440m.

Mr Abu Nahl added that in the current favourable market environment, the company is ideally placed to further strengthen its presence and positioning in its core Arab and Afro-Asian markets.

The company announced that work is in progress on the company's new 21-storey tower building in the Diplomatic Area. As the head office, the building will reflect the corporate image and identity of the company in the region and is expected to provide a better platform for further growth and development, as well as a higher level of client and customer service and support.

Tags : Reinsurance news, Lloyds Insurance London, London Reinsurance,Trust International Insurance Company, Bahrain Reinsurance, Reinsurance Jobs, London Reinsurance employment,

The Broker Network satisfied with record profits

2006-01-13T22:05:00.000Z

LONDON (SHARECAST) - Broker Network Holdings, the network organisation for independent community insurance brokers, said it is “satisfied” with its interim results which have exceeded expectations.

Pre-tax profit for the six months to 31 October jumped 60% to £1.13m on turnover up 56% to £5.85m. Operating profit before amortisation soared 97% to £1.5m.

The group, which floated on AIM in May 2004, said it has completed a further five broker acquisitions, four from within our Network Membership and one non-Member, taking the total number of owned brokers to sixteen.

Progress across the group continues in line with plans, it added, leaving the group well-positioned for the future.

The acquisition plans remain on track and the strength of the network model is undiminished. “I am delighted that we have been able to report another record profit, particularly as there has been some downward pressure on insurance rates during the period,“ said chief executive Grant Ellis. “It demonstrates the strength of our diversified model and its resilience across differing economic cycles.

All divisions of the group are performing well and continue to grow and we look forward to maintaining these levels of expansion.” Chairman Faisal Rahmatallah said, “I am particularly pleased to see that those acquisitions which have been completed are now making a more significant contribution.”

Source : Sharecast.com

CII establishes specialist business development teams

2006-01-13T22:01:00.000Z

The Chartered Insurance Institute (CII) is to introduce a more focussed approach to the way it does business with its key markets by establishing two specialist teams within its business development function.

The teams will concentrate on the financial services market and on the general insurance and international markets to ensure that the CII understands and meets the specific market needs of each sector.

In particular the CII is placing an increasing emphasis on growing its presence in the life and pensions sector. Products and services aimed specifically at the banking and building society markets are being developed and a new Faculty of Life and Pensions is shortly to be formally launched.

Steve Jenkins has joined the CII in the new position of Business Development Director - Financial Services Market to lead this team. He brings over 20 years experience to the role gained at AXA Sun Life, latterly as Head of Strategic Partnerships, where he held a range of sales leadership roles, involving business to business and partnership projects in the adviser and the banking/building society sectors.

Paul Brierley has become Business Development Director – General Insurance and International Markets and will continue to lead the CII’s developments in the insurance and broking sectors. He will also oversee the launch of the CII’s new Faculty of Underwriting and Risk.

Both teams report to CII Group Marketing and Sales Director Lee Gladwell who says, “We have ambitious plans to build on the CII Group’s success and are determined to deliver even greater value to our customers. To do this we need to have the right structure in place and I am delighted to have two market experts in Paul and Steve to drive our strategy forward.” The CII’s business development teams cover all parts of the UK and there are dedicated offices in Dubai and in Singapore to ensure the specific needs of those regions are fulfilled.

Reported on 13/01/2006

Leeds Based Insurer Gauntlet eyes another record

2006-01-13T21:57:00.000Z

LEEDS-based insurance and risk management firm The Gauntlet Group says it has earmarked 2006 as a year of acquisitions.

The group, which recently completed a year of record growth, is determined to continue that trend, according to managing director, Roger Gaunt. He said: "The past 12 months has seen a steady growth in every area of our business, including more staff, new products and a broader range of services, and we want people to know that we are in the market for further expansion.

"Our main aim as we move into 2006 is to identify businesses to purchase so that we can confirm our position as one of the leading organisations in our sector. "We see the acquisition route as an essential part of our overall business plan for the coming year or two. "We need to buy more businesses, especially insurance brokers, but also any organisation that falls under the 'risk management' umbrella".

Last July, the group acquired the goodwill of Horsforth-based W S Whittaker Insurance Brokers Ltd, a company formed in the late 1960s. Mr Gaunt said the addition of further insurance brokers and other risk management consultancies would complement Gauntlet's successful health and safety division.

13 January 2006

Aon gains £436m Weir Group pension scheme mandate

2006-01-12T17:52:00.000Z

12/Jan/06: UK – Aon Consulting has been appointed pension fund administrator to Glasgow-based global engineering company The Weir Group’s defined benefit pension scheme, amounting to £436m (€638m).

According to a scheme spokesperson, the group’s entire £500m pension scheme used to be administered by an in-house team.

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The team will continue to administer the small defined contribution part of the fund. Aon told IPE that the group’s decision to outsource was based on future outlooks and the cost of pension administration.

There was a need to consider ongoing support for pension administration going forward, she said. The scheme will be managed from Aon Consulting’s Glasgow office. Chairman of trustees Stephen Foster said: “We were impressed with the feedback we received on Aon’s administration service from existing clients.

We are also please that the scheme will be administered in Glasgow.” The scheme has 10,000 members.

Source Ipe.com

Levene condemns US barriers to foreign reinsurers

2006-01-12T09:03:00.000Z

LORD Levene of Portsoken, the chairman of Lloyd’s of London, last night said that protectionist trade barriers in the US are costing foreign reinsurance groups more than $500 million a year as he stepped up his campaign for reform of the American market.

Foreign reinsurance groups are required to put up collateral equal in value to their gross liabilities in the US simply to do business in the country

Lord Levene has for five years campaigned for reform, but last night stepped up his fight in a speech to the Insurance Brokers Association of New York. He said: “Conservative estimates suggest the annual costs of meeting the US collateral requirements are in excess of half a billion dollars a year for foreign reinsurers. For Lloyd’s alone, the price tag stands at more than $150 million.”

The Lloyd’s chairman believes that the capital that a reinsurer must put up to do business in any market should be based upon its creditworthiness as determined by rating agencies, rather than its country of origin.

“The illogical demand for collateral based on zip code, not financial health, has helped drive up the costs of reinsurance and restricted critical capacity,” he said. “The events of 9/11 and more recently [Hurricane] Katrina only underscore the unacceptable burden and unintended consequences of these requirements.”

Lloyd’s has been forced to build a trust fund of more than $10 billion to do business in the US after the huge losses incurred in the last hurricane season.

It is understood that Lord Levene has made progress with insurance regulators in the US, who set the standards for doing business state by state. A source close to him confirmed that regulators for New York and other states expected to open a reform debate.

Chief Actuary Donald Duval advises BA to go bankrupt

2006-01-12T08:49:00.000Z

ONE of the City’s leading actuaries lobbed a bombshell into British Airways’ delicate negotiations over its £1.3 billion pension fund deficit by advising the airline to declare itself bankrupt.

Donald Duval, chief actuary at Aon Consulting, said filing for insolvency was the only option for BA if it wanted a permanent solution to its pension deficit

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In a written statement, Mr Duval said: “If Willie Walsh (BA’s new chief executive) is determined to relieve BA of its pension scheme deficit ‘once and for all’, without affecting the firm’s investment back into the business, then the only effective way open to him at present is bankruptcy.”

Delta Airlines and United Airlines in the US had already gone down that route, ridding themselves of pension liabilities by filing for Chapter 11 bankruptcy, and it was “not inconceivable” that BA would consider the same course of action, he said.

BA denounced Mr Duval’s suggestion. “We don’t share Aon’s view and are committed to tackling the pension deficit with our staff,” it said. One source at the airline said the proposal was nonsense because BA was a million miles from insolvency and had cash at the half-year of £1.9 billion.

Last week Mr Walsh told the 35,000 members of the New Airways Pension Scheme that the deficit had to be addressed “once and for all”, so that the airline could achieve its target of 10 per cent operating margins. He made clear that he would not sacrifice investment in the business.
The scale of BA’s pension problems was underlined by a Times analysis, which showed that it was the most vulnerable blue chip with a deficit equivalent to 115.5p per share, more than one-third of its share price. Analysts predict that BA will put £500 million into the fund, with employees bearing the burden of £500 million more through higher contributions and reduced benefits.

Fifteen of the FTSE 100 companies have deficits representing 10 per cent or more of the share price. These include Rexam, Whitbread, ITV and J Sainsbury. The highest proportional deficits after BA are at BAE Systems, British Telecom and ICI.

Source : The Times

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Clive Fortes Senior Actuary Warns of Pensions Shortfall

2006-01-11T20:28:00.000Z

A stark warning has been issued by a senior actuary in the UK insurance sector that companies cannot rely on their insurance coverage to deal with pensions problems.

11 Jan 2006, 09:32 GMT - Speaking in an interview with Reuters, Clive Fortes, partner and head of actuarial practice at consultancy Hymans Robertson, believes that the UK insurance industry does not have the capacity to deal with the pensions shortfalls at the nation's leading companies.

Insurers could not take on companies' entire pension liabilities because they do not have enough high-grade assets to underwrite such a burden, Mr Fortes was reported as saying.

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The negative warning adds to an increasingly bleak picture of the UK company pensions sector and follows hot on the heels of suggestions that the real pensions 'black hole' is more likely three times government figures at GBP150 billion.Meanwhile, Mr Fortes believes the cost of insuring unfunded pension obligations - known as 'buyouts' - at the top 100 UK companies could in itself be GBP150 billion.

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Marsh New Appointments

2006-01-11T19:58:00.000Z

Marsh Names 3 new Senior Executives

Marsh Inc. has named three executives to its senior management team. The executives are:

James R. Pierce, Jr., chairman, Global Marine & Energy Practice;

Ken Fong, chief human resources officer;

Joseph A. Varnas, global head of operations and information technology.

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Pierce joins Marsh from JLT, where he was executive vice president in charge of several business specialty lines. Previously, he was managing director of Aon Natural Resources and was head of the Marine & Energy Division of Energy Insurance International.

Fong joins Marsh from JP Morgan Chase & Company, where he was senior vice president and human resources executive for Corporate Sector Groups. His 28-year career began in 1978 at General Foods Corporation and includes senior positions in human resources with Chase Manhattan Bank, N.A. in the U.S. and overseas.

Varnas previously was head of product management and global head of IT & Operations for UBS Global Asset Management. During his career, he has held senior positions in asset management, investment research and analysis, and operations with several leading investment management firms. Before joining UBS, he was with Morningstar Investor Services.

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Aviva Press Release 11 January 2006

2006-01-11T19:47:00.000Z

AVIVA RESPONSE TO PRESS SPECULATION

Aviva plc ("Aviva") notes press reports speculating on a takeover proposal for US life insurer, AmerUs Group Co ("AmerUs").

Aviva confirms that it has not made such a proposal and no discussions with AmerUs are taking place.

In line with its strategy for growth in the international long-term savings market, Aviva continues to review value-driven inorganic growth opportunities in the major global long term-savings markets.
- ends -

Enquiries:

Media
Hayley Stimpson, director of external affairs +44 (0)20 7662 7544
Rob Bailhache, Financial Dynamics +44 (0)20 7269 7200

Analysts
Charles Barrows, investor relations director +44 (0)20 7662 8115
Nicole Marques, investor relations manager +44 (0)20 7662 8302

Notes to editors:

· Aviva is the world’s sixth-largest insurance group based on gross world-wide premiums and market capitalisation (at 31 December 2004); it is one of the leading providers of life and pensions in Europe and has substantial businesses in other markets around the world.

· Aviva’s main activities are long-term savings, fund management and general insurance, with world-wide total income of £40 billion and assets under management of £280 billion at 31 December 2004.

· The Aviva media centre at www.aviva.com/media includes images, company and product information and a news release archive.

END

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One of Skandia's Founders Says a Fond Farewell

2006-01-11T19:38:00.000Z

Millionaire guiding light says a fond farewell to Skandia

THE millionaire guiding light behind one of the most incredible business success stories in Hampshire is signing out after 26 years at the top.

Alan Wilson - reputedly the highest paid employee in Southampton out of a city workforce of 117,000 - made a fortune by turning the UK arm of Swedish financial services company Skandia into a market sensation.

His vision and drive also generated wealth and job security for thousands of past and present employees in Southampton and other offices in the UK.

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Wilson was one of the original founders of Skandia UK, starting out from scratch in 1979 with just 25 staff.

He earned the respect of his peers by famously sealing envelopes as part of the "mucking in" process in the early days and he ensured staff were rewarded through bonuses and company bashes that were the envy of rivals.

The UK arm now employs 1,700 in Southampton, with one million pension, investment and life assurance policyholders. Wilson, who lives near Winchester, hit the headlines for making nearly £9m in performance-related bonuses in the early part of this decade, and at one point had a spell off work because of illness, with Nick Poyntz-Wright taking over.

Such was the high regard in which he was held by investors, Skandia's parent company in Stockholm took the unusual step of publicly reassuring them why Wilson needed the time off in case they got the jitters.

Now back to full health, he officially resigns at the end of the month to concentrate on charitable work.

He had been planning to move on for some time.

Wilson ruled out any intention of being involved in the industry commercially, and it is understood that the timing in "not related" to the £3.4 billion hostile takeover bid by South Africa's Old Mutual.

Wilson said: "After 26 years at Skandia, I feel the time is right to move on. It has been a source of great personal satisfaction to build this company from scratch to become a top ten player in the UK, and I now wish to pursue other interests."

Wilson was one of the group who left Abbey Life to establish Skandia in the UK, becoming managing director in 1991, and chairman in 2002.

He was instrumental in turning Skandia into the fastest growing long-term savings and investment company in the UK and in a 14-year period his strategy saw funds under management soar from £1 billion to £25 billion.

Today Skandia UK, which turned in a £160m profit last year, represents 60 per cent of the Skandia group's new business, compared to ten per cent when Wilson became managing director.

Wilson led the company to look for opportunities outside the UK, resulting in its products being sold throughout Scandinavia as well as globally through Royal Skandia. He said: "I am immensely proud of our achievements and I know they will continue under Nick Poyntz-Wright's leadership. I have developed a keen interest in charitable work and I plan to devote more of my time to this.

"Also, I am fascinated by the socio-demographic, economic and political dimensions surrounding retirement, and have plans to see how I can help shape the future of pension provision."
Managing director Nick Poyntz-Wright said "Alan's contribution not only to Skandia's success, but also to shaping the industry, has been immeasurable."

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Aviva denies they are set for AmerUS Group deal

2006-01-11T19:36:00.000Z

LONDON (Reuters) - Aviva (AV.L: Quote, Profile, Research) denied on Wednesday a report it was poised to buy U.S. rival AmerUs Group Co (AMH.N: Quote, Profile, Research) for $3 billion (1.7 billion pounds), but did not rule out the prospect of it making an acquisition.

"Aviva confirms that it has not made such a proposal and no discussions with AmerUs are taking place," Aviva said in a brief statement in response to a report in The Guardian newspaper.

"In line with its strategy for growth in the international long-term savings market, Aviva continues to review value-driven inorganic growth opportunities in the major global long-term savings markets."

By 10:40 a.m. Aviva shares were up 0.5 percent at 718-1/2 pence, not far from Monday's near four-year high of 736p, to value the company at 17.3 billion pounds ($30.5 billion).

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Analysts said the muted reaction to the news reflected that a big insurer such as Aviva is likely to be looking at a number of potential deals at any time, although they said it could signal an increased interest on the competitive U.S. market.

"I don't think it would be a ridiculous move and for Aviva with its good M&A track record it could make a lot of sense but you've got to bear in mind you're not going to buy much of the industry for what you've got to spend," said Marcus Barnard, insurance analyst at SG Securities.
"There's always risk going into a market like that. It's very competitive, but it does give you scope to expand."

INTERNATIONAL INTENTIONS

Aviva has leading market positions in many European countries, but sluggish growth in its core UK market has prompted it to expand in Europe and China, India and elsewhere in Asia.

It generates about half its profits from outside the UK and around 62 percent of life profits come from overseas, although this is almost all from Continental Europe.

The insurer has a U.S. business, based in Boston, providing annuity and other business, which reported life and pensions sales of 393 million pounds in the third quarter of 2005, up 54 percent from a year earlier.

Aviva declined to comment on that part of the report.
Aviva had offered $74 per AmerUS share in cash, according to the Guardian, a 19 percent premium to its closing price of $62.20 on Tuesday, and the newspaper said it might have to offer $80 per share to secure an agreed deal.

The paper said Aviva's interest in the Des Moines, Iowa-based firm came just after AmerUs Chairman and Chief Executive Roger Brooks had retired following 31 years in charge.

AmerUs, which has 620,000 life insurance policyholders and 272,000 annuity owners, said earlier this month it expected a 9 to 13 percent rise in 2006 earnings.

Philip Scott, head of Aviva's international life business, told Reuters in an interview in November the insurer was keen on expanding in countries where it operated and would look at launching businesses in Russia and Taiwan.

The insurer is highly cash generative and analysts said any deal of about 2 billion pounds could comfortably be funded from internal resources and probably a modest debt and equity fundraising.

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Thomas Caroll Brokers advised not to use overseas call centre

2006-01-11T18:42:00.000Z

HIRING the services of an overseas call centre can seriously damage the health of your business, according to extensive research by one of Wales' largest insurance brokers.

A study by Thomas, Carroll (Brokers) Limited of 1,000 of its corporate clients found that nearly 100% rejected the concept of overseas call centres.

Ninety-seven per cent of respondents viewed the increasing use of overseas call centres as a negative business development.

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Paul Gardner, the group's marketing director, said, "This research verifies the anecdotal evidence we have received from customer feedback in recent years. However, the strength of feeling surprised us.

"This is a massive thumbs down from Welsh businesses and I would expect businesses further afield largely to share these views."

Mr Gardner, whose Caerphilly- based firm posted a £19m premium turnover in 2004, questioned how long insurers and brokers could ignore such strong feelings against overseas call centres.

He said, "The debate over the rush to outsource to India and beyond is too often limited to whether the driver is purely cost-saving, or ready access to an educated workforce. Whatever the reason is, the real debate should be whether the sector can continue to ignore customer sentiment."

Thomas, Carroll made a strategic decision not to outsource any of its claims handling,
Mr Gardner said, "This may add some cost to the Thomas, Carroll model but our clients are continuing to respond through their orders and loyalty."

One respondent to their survey said, "If [Thomas, Carroll] set up or use a call centre you will lose my business immediately."

Mr Gardner said, "It challenges those companies who do not plan to use overseas call centres to market this fact more confidently."

A Department of Trade and Industry study found, at the end of 2003, the contact centre industry directly employed 790,000 people.

Spending on centre technology was around £200m.

It found the "typical contact centre worker is female and in her mid-to-late 20s". Salaries accounted for more than 72% of a typical UK contact centre's operating costs, compared to 59% in an Indian operation.

Last week Lloyds TSB said its staff would no longer read from scripts when talking to customers. It followed research showing six out of 10 people thought the use of scripts led to staff failing to answer questions properly, while 55% said they thought it meant the employee didn't listen to their question.

Tags: Thomas Carroll insurance brokers, thomas carroll brokers, insurance outsourcing, indian insurance call centres, insurance industry trends, insurance broking jobs, broker jobs, insurance contact centres

Standard Life seeks to cut costs with remote working

2006-01-11T18:34:00.000Z

Insurer Standard Life is to provide workers with remote online access to corporate applications and data by June 2006

The financial services group wants to retain control of its central data centres in Scotland, while providing remote access to business applications for some 800 international staff, and is working with Citrix to implement the necessary software in the firm’s Edinburgh data centre.

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We expect a 30 to 40 per cent saving in our telecoms costs, as well as a less quantifiable benefit from increased staff productivity,’ said Andrew Gordon, a manager in Standard Life’s IT operations.

The Citrix technology will allow the firm to centrally control the level of user access to data and documents, to reduce security and data protection risks.

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WPS Insurance Brokers Appoints New Director

2006-01-11T18:04:00.000Z

Plymouth firm WPS Insurance Brokers and Risk Services have appointed a new director. Colin Watts FCII joins WPS following an announcement that Aon will soon close its Plymouth office.

Colin has been head of Aon operations in Plymouth for the last 10 years and WPS bosses said he brings a wealth of experience to the firm.

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Colin said: "I am delighted to be joining WPS as they have an excellent reputation of providing quality service to their clients. They have a very experienced team of 36 staff, making them one of the largest brokers in the South West.

WPS are able to offer a wide range of services in addition to the core broking clients require; for example health and safety and business continuity management

"Like me, they are committed long term to providing local service to clients and I believe there are great opportunities for expansion."

Congratulations to Colin on his new appointment and continued success within the Industry.

Tags: WPS Insurance Brokers, Aon Insurance Brokers, Executive insurance jobs, Insurance broking director jobs, broking director appointment, insurance industry moves, Insurance executive jobs, insurance executive appointments,

Munich Re to sell insurance unit for E130 million profit

2005-10-13T11:09:00.000+01:00

International reinsurance giant Munich Re has agreed to sell its Karlsruher insurance subsidiary to German financial services group Wurttembergische Leben for a sum believed to amount to a E130 million profit

As part of the purchase deal for the Karlsruher Insurance Group, Munich Re will also sell its 90%-plus stake in Karlsruher Leben to Wurttembergische.

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Both sides had agreed to maintain silence regarding the purchase price, however Reuters has quoted a Munich Re official saying that the reinsure would book a net income of E130 million, equivalent to $158.1 million, in the fourth quarter.

In explaining its decision to sell to Wurttembergische Leben, Munich Re said the aim was to find a future-oriented solution for all parties concerned.

The new partnership between Wurttembergische and Karlsruher Leben instantly produces a combined entity in Germany's top ten insurers both in life and in the property-casualty business.

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Prudential set to confirm retention of Egg

2005-10-13T11:01:00.000+01:00

UK insurance group Prudential looks set to undertake a significant u-turn by announcing that it is to retain its 79% stake in the online bank Egg.

Prudential's previous CEO Jonathan Bloomer originally put Egg up for sale almost two years ago after a brief but disastrous foray into the French card market.

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Rumors of possible bidders emerged steadily over several months, but it is understood that none of the suitors met the asking price set by Mr Bloomer.

The prospects of a sale receded in 2005 as Mr Bloomer was replaced as Prudential CEO by Mark Tucker. Further market speculation linked Citigroup to a GBP1 billion bid in July 2005, but again this failed to materialize into a concrete deal.

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It now seems that a strategic review undertaken by Prudential's new CEO Mark Tucker is likely to lead to a reversal of the decision to sell Egg. However, press reports suggest that Mr Tucker is expecting Egg to be run as a standalone operation on a day to day basis.

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Highway Insurance snaps up 1st Quote

2005-10-13T10:54:00.000+01:00

LONDON (ShareCast) - Highway Insurance (LSE: HWY.L - news) has added another 60,000 policies to its portfolio with the acquisition of first quote.

Highway Insurance is paying £6.6m in cash for MRB Insurance Brokers, a personal lines intermediary that trades as 1st Quote, with a further £6.5m also payable to the shareholders. A deferred payment may also be payable dependent on certain performance targets being met.
Highway said any deferred consideration payable to MRB shareholders will be satisfied by the issue of loan stock.

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The acquisition adds a further 60,000 policies to Highway bringing the total number of policies handled to over 170,000.

The company added that MRB's previous owner, Martin Brown, remains on the board as a non-executive director while the rest of MRB's senior management will continue to develop the business as part of Highway Retail.

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Ace launches new insurance unit to serve the US energy industry

2005-10-13T10:35:00.000+01:00

Ace USA, the US serving division of Bermuda-headquartered insurer Ace, has created Ace Energy, a new business unit that will focus on catering to the insurance needs of the US energy marketplace.

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Ace Energy will direct its efforts on providing a variety of both property and casualty insurance product for its US energy customers. The business will focus on offering cover for: on shore and off shore oil and gas facilities; power & utility generating facilities; inland marine, on a retail basis; high-challenge facilities, such as mining and custom and excess casualty lines."With the devastating impact on the energy markets caused by the spate of recent hurricanes, there is a heightened need for more and better risk management solutions available to the US energy market," said John Lupica, president and COO of Ace USA. "We feel that, with the resources available to Ace, we can play an important role in serving the needs of customers in this market. To that end, Ace Energy will have full access to Ace's global underwriting and risk management resources."

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39% of financial services companies using open source software - Actuate

2005-10-13T10:25:00.000+01:00

Actuate Corporation (NASDAQ: ACTU), the world leader in Enterprise Reporting Applications and pioneers of the Open Source Business Intelligence project, BIRT (business intelligence reporting tools), today announced the early findings of its Open Source software awareness and adoption survey targeted exclusively at the UK financial services market.

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The survey, which was conducted through Survey.com during September 2005, provides insights and perspective into how financial services organisations perceive Open Source software, its benefits and inhibitors and how they plan to harness the technology in the future. Thousands of senior financial services professionals were targeted to gather input for this unique snapshot of Open Source software adoption trends in the UK.

The financial services market is recognised amongst the UK's largest investors in information technology and is a traditional early adopter of new technologies. Actuate's business intelligence products are widely deployed in 19 of the 21 Fortune 100 Financial Services companies. Their extensive reporting requirements demand real time operational visibility, extensive scalability and comprehensive customer intelligence that supports regulatory compliance and directly increases the loyalty and retention of their customers.

The Actuate survey yielded responses from financial services organisations in the UK with over half its respondents split between the banking and insurance sectors. A sizeable response was also secured from investment banking, asset management and retail banking sectors. The 141 respondents represent large and medium financial services companies with almost half from Global 9,000 organisations (companies with annual revenues greater than $1 billion).

The study concentrates on three key areas; Open Source software awareness and adoption levels, Open Source software benefits and barriers to its adoption; and thirdly Open Source software adoption influences and Open Source Business Intelligence. The survey also addresses the impact that the availability of Open Source Insurance has had on overcoming perceived inhibitors to its adoption.

Survey highlights include:

Open Source software awareness
Only one-fifth of respondents (19%) describe their organisation's level of familiarity with Open Source software as "high", with a further 40.1% rating it as "moderate". One-third of respondents (34.5%) think their organisation's level of familiarity with Open Source software is "low".
Interestingly 62.5% of Investment Banking respondents considered their awareness of Open Source software as "high" which is significantly higher than any other sector in the survey.
Two-fifths of companies (39.4%) are already using Open Source software. A further 5.6% are currently in the process of adopting it, with a similar proportion having plans to adopt. Only 9.2% are not monitoring developments and have no plans to adopt.

Open Source software benefits and barriers to adoption
The main perceived benefits of Open Source software is that there are no licence costs (55%), closely followed by being vendor independent (49.3%) and flexibility (47.1%).

Availability of long term support (58.2%) is seen as the main barrier to adopting Open Source technologies followed by the related issue of availability of long-term maintenance (44.7%).

The proportion of respondents who feel that the benefits of Open Source software outweigh the inhibitors (50%) far exceeds the proportion that does not believe this (18.3%).

Open Source software adoption influences and Open Source Business Intelligence
When asked to describe their company's attitude to the adoption of new technologies, the majority (55.6%) say that they wait until new technology is proven before adopting. One quarter (24.6%) believe that they are early adopters, while only 4.2% view themselves as pioneers. Once again respondents from Investment banking identify themselves as early adopters (68%)

Three quarters of respondents (74.5%) are not aware that there is now insurance available for Open Source software and two-fifths of respondents (38.7%) believe that the availability of insurance will have a favourable/very favourable influence on their thinking about using Open Source software.

Business Intelligence and Reporting Tools are rated as either "Very important" or "Important" to their company by the overwhelming majority of respondents (86.6%). One-quarter (23.9%) say that they are "Likely/very likely" to consider using an Open Source Business Intelligence and Reporting Tool in future.

The survey also covers insights into which Open Source technologies are in use in the distinct financial services sectors and which areas of IT would most benefit from Open Source software adoption.

Mike Thoma is Actuate's Vice President of Product Marketing and is also the company spokesperson for the BIRT project since it was announced in 2004. "We are delighted with the response that we have received from top tier financial services companies who have taken the time to respond to our survey and provide such valuable insight into how they use, and plan to use, open source software. We also welcome the extensive interest that we have received from publishers and journalists and we look forward to releasing the full results in the next few days."

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2005-09-26T20:47:00.000+01:00

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Banks face inquiry over credit insurance 'racket'

2005-09-15T13:23:00.000+01:00

Charity files complaint about policies·
Only 4% can claim and a quarter are turned down

Britain's banks face a government inquiry into the sale of 20m payment protection insurance policies (PPI) after Citizens Advice issued a "super-complaint" against what it calls a £5bn "protection racket".

The charity presented its complaint to the Office of Fair Trading after evidence from its bureaux around the country found that PPI is "very expensive, mis-sold to people who cannot claim on it, and designed to exclude many of the most common situations that can lead to debt".

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Citizens Advice is one of the few consumer bodies allowed to make formal super-complaints. The OFT is required to respond publicly within 90 days, which could trigger a formal inquiry and result in a cap on premiums and exclusions.

The 20m PPI policies in force are believed to be hugely profitable for the banks. Last year the Guardian revealed that Barclays made as much as 20% of all its profits from PPI, with £7 in every £10 spent on PPI going straight on to the bank's bottom line.

A report earlier this year from investment bank CSFB estimated that 14% of Lloyds TSB's profit comes from the sale of PPI policies, and named Barclays, Egg and Alliance & Leicester as relying on the policies for a major slice of their profits.

The policies are designed to cover credit payments in the event of illness or job loss. About 25% of credit card customers and half of loan customers buy payment protection from their bank. But many people who have been persuaded into taking out a PPI later find that they are unable to make a claim. Department of Trade and Industry figures show only 4% of customers claim on it, of whom a quarter are turned down.

Citizens Advice said payment protection insurance is failing many of those who need it most. The insurance can add up to 25% to the cost of financing a loan, increasing the level of customers' debts instead of protecting them.

Research published last week into "best buy" loans and credit cards by moneyexpert.com found that none of the top five firms for cheapest loans of £5,000 and £10,000 over four years make the top five once PPI is included. Banks add as much as £900 in PPI costs on top of interest payments on a £5,000 loan over four years.

David Harker, chief executive of Citizens Advice, said: "Payment protection insurance is sold to borrowers with the ... reassurance that credit repayments will be covered if they fall on hard times. People are lulled into a false sense of security, only to find that far from providing protection against an unexpected drop in income, PPI often just adds to their debt.

"At best the excessive cost for minimal benefits makes it bad value for many people; at worst mis-selling means the most vulnerable are parted from large amounts of money under false pretences and left even more exposed to debt," he said.

Along with a complaint to the OFT, Citizens Advice also urged the Financial Services Authority to develop a PPI policy "setting out the minimum ... standards with which all lenders should comply".

"Policies sold by several well-known mainstream lenders exclude cover for common problems like bad backs and mental health problems that can stop people working," the report said.
Lloyds TSB, Barclays and A&L do not publish profit figures for their insurance business. They argue their products offer good value for the customer.

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Norwich Union upbeat despite Tesco blow

2005-09-15T13:14:00.000+01:00

Norwich Union remained upbeat yesterday, despite losing an important partnership with Tesco.

The insurance firm said it had been dropped by Tesco from next February as provider of life insurance, in favour of Direct Line.

Tesco's decision ends a five-year deal, during which NU has issued £4bn of policies for the store's customers.

The retailer's personal finance operation has decided it wants to speed up its application procedure and says that Norwich Union is not in a position to do that.

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Tesco, the UK's leading supermarket, is impressed with Direct Line's “extremely advanced procedures”.NU Life spokesman James Evans admitted the firm was “disappointed” but stressed: “In terms of NU Life business, it accounts for less than 1pc.

It's a fantastic brand to be working for but, as part of our overall business, it is very, very small.”He added: “We thought we had put forward a good proposal to Tesco but it became clear that the level of resources they wanted we could not commit to without it affecting other areas of our operations.

We are parting on excellent terms and talking to Tesco about other ideas for the future.”Mr Evans said the Tesco business was handled by about 50 NU staff in Glasgow and 50 staff in Pune, India.“We are quite confident that we will be able to find roles for them.

We are a huge company and there are so many projects on the go at the moment,” he added.NU Life employs 3100 people in Norwich out of a total NU workforce in the city of 8300.

Stuart Neill, spokesman for Tesco Personal Finance, said that the ending of the contract was not through any dissatisfaction with NU.

“In fact, Norwich Union is going to continue to retain all our current customers - and that wouldn't be the case if we were unhappy with its services,” he said.“Our big priority was to make it as fast and as easy as possible for a customer to apply and Direct Line has one of the fastest operations in the market place.”

Direct Line is owned by Royal Bank of Scotland, which also owns half of Tesco Personal Finance.

NU's general insurance arm has a five-year contract with Asda to provide motor, travel and household insurance.

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Halifax launches new pet insurance plan

2005-09-15T09:56:00.000+01:00

15/09/2005

Halifax General Insurance has launched a new five star pet plan, which is designed to cover not only medical costs, but offers a range of services from complementary therapy to compensation for lost or stolen pets.

Pet owners can claim £1,000 of medical cover should their animal fall ill and up to £6,000 on the Halifax Pet Insurance eXtra plan. The two products, Halifax Pet Insurance and Pet Insurance eXtra, start at £3.50 a month for cats and £4.10 for dogs.

Both of the policies have no upper age limit for pets and owners get a ten per cent discount for each additional pet they introduce to the plan.

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Head of products at Halifax pet insurance, John Bennett, said: "Many other providers' policies only offer cover on a per condition basis, meaning that once the limit for vets' fees has been used up there is no further cover available for the conditions already treated.

With Halifax pet insurance, pet owners can now get the necessary long-term treatment for their pets on an annual basis, without having to spend a fortune on vet's fees."The plan offers a lot of benefits for pet owners including advertising rewards for lost or stolen animals plus complementary and alternative therapy for their pets, as well as specialist help for behavioural problems.

The policies even cover against dog-theft in light of research by the British Small Animal Association, which found that around 50,000 dogs are stolen every year. The cost of boarding kennels is also covered and pets are insured for 12 months abroad should they need to travel.
Pet owners will also be compensated for cancelled holidays.

A survey by the RSPCA earlier this year revealed that while three quarters of pet owners surveyed thought pet insurance was important, less than a third were actually insured, meaning that many owners rely on credit cards or borrowed money to cover vet bills.

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Tesco drops life insurance partner

2005-09-15T09:43:00.000+01:00

Tesco Personal Finance is switching from Norwich Union to Direct Line for its life insurance products after a five-year partnership with the company.

The decision was met with some disappointment by Norwich Union, but Tesco says that it wants to switch to Direct Line because the insurance company has a faster application procedure.

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Tesco Personal Finance spokesman, Stuart Neill, said of Direct Line: "They have got one of the better application procedures in the marketplace.

They are not a big insurer. What they do have are extremely advanced procedures."However, Norwich Union will still continue to honour the life insurance contracts it already holds with Tesco Personal Finance.

Direct Line is owned by the Royal Bank of Scotland, which also owns half of Tesco Personal Finance.

Tesco has also announced a new partnership with National Savings and Investments (NS&I) this week.

The supermarket will soon be selling Premium Bonds and Index-linked Savings Certificates as part of the pilot scheme with NS&I.The new products will be available in Tesco stores by the end of the year.

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Largest non-life insurer named 2008 Olympic partner

2005-09-15T09:33:00.000+01:00

BEIJING, Sept. 15 (Xinhuanet) -- PICC Property and Casualty Co. Ltd. was named the official insurance partner of the Beijing 2008 Olympic Games on Thursday.

The largest non-life insurer in China, PICC P&C was the 10th company to join the elite club of the 2008 Olympic partners, following in the footsteps of Germany's automobile giant Volkswagen, Sinopec, PetroChina and Bank of China, etc.

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"Based on our market research of the industries that potential sponsors come from, PICC P&C is possibly the last partner signed by the organizing committee," said Yuan Bin, marketing director of the Beijing Organizing Committee for the 2008 Olympic Games (BOCOG).

With less than three years remaining before the 2008 Olympics opens, it is also for the sake of the partners to give them as more time as possible to promote their brands, said Yuan.

"But there could be exceptions, because maybe some enterprises care about the period just before the Games or the 16 days during the Games period," she said.

According to the deal, PICC P&C will provide insurance protection and financial support for the 2008 Olympics and Paralympics, BOCOG, the Chinese Olympic Committee and the Chinese sports delegations to the Turin 2006 Winter Olympics and 2008 Olympics.

"Insurance, as a means of economic compensation, has always played an important role in ensuring the safe operation of an Olympic Games," said Wang Wei, BOCOG Executive Vice-President and Secretary General, at the signing ceremony.

"With the participation of PICC P&C, the Beijing 2008 Olympics will be safer and more insured," he added.

The Marketing Plan of the 2008 Olympic Games includes partnership, sponsorship, suppliership and licensing programs. Partnership, sponsorship and suppliership grant enterprises four-year exclusive marketing and promotion rights, while the licensing program authorize companies to produce and sell products with the official Olympic logo only after paying royalities to BOCO

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Ace Life aims 10% local insurance market

2005-09-15T09:12:00.000+01:00

Ace Life Vietnam has set an ambitious aim to obtain a 10% share of the insurance market in the next five years even though the latest insurer has only just set up shop.

Ace Life, a US based life and reinsurance giant, obtained an investment license from government officials accompanying Prime Minister Phan Van Khai during his visit to the US late last June.

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The firm was one of two US insurance companies given the green light to found 100% foreign invested insurance firms during the visit.Mr. Lam Hai Tuan, General Director of Ace Life Vietnam, said insurance market was potential in Vietnam and the company would target a specific share even though its rivals set their targets for years.

"We focus on quality as our strategy to integrate the market and gain our goal in the coming year," said Tuan last Wednesday, as he announced the firm's arrival in the country.

Mr. Tuan told VietNamNet Ace Life Vietnam would boost the quality of its executives and local agents, who [in other companies] have previously been criticized for their untruthfulness due to individual benefit.

He added the 100% foreign life insurer would concentrate on segment absent to rivals or their sub segments.Ace Life Vietnam has been licensed for provision of 10 insurance products.

The company launched its first product Monday, said Mr Tuan. Some 85 insurance contracts were signed on the first day to the value of VND500 million. The firm has placed 200 local agents and plans to increase at 5,000 agents in the next five years.

There are some 20 local and foreign insurance companies in Vietnam. These insurers create a turnover of more than VND7.000 billion, of which some VND4,800 billion comes from life insurance. The turnover accounts for 2% of the country's gross domestic products.

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1,000- financial services jobs gain for Wales

2005-09-14T22:40:00.000+01:00

THE financial services sector in Wales has grown by more than 1,000 jobs in the past 12 months, according to data released yesterday.

ING Direct, Picture Financial and Credit Services Europe have set up operations in Wales, while Lloyds TSB Insurance, Zurich, Admiral, Principality and HSBC have expanded their operations.
Wales is now home to 1,800 companies in the financial services sector employing 28,000 people and generating 5% of Welsh GDP.

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Banking and building societies dominate, employing 62% of the financial services workforce, while insurance and pensions companies employ 21%, leaving 17% in operation and supervision.
The number of UK and international firms operating in Wales has been growing since the early 1990s.

In the consumer finance market, Yes Loans has increased its turnover from £300,000 to £3m since it formed in Cardiff three years ago.

Legal & General's second largest operational centre is based in the capital and employs more than 2,000 people.

Adrian Clark, director of distribution, said, "We chose Cardiff because of its superior skills base and we have been very impressed by the calibre of the staff we have been able to recruit.

"Whenever I have placed a recruitment advertisement I've received about 70 applications from suitable candidates, and I've always been delighted when I've interviewed them.

"This compares with an average of just 20 decent applications from other UK offices."

According to Mark Winlow, managing director of Zurich, low attrition rates in Cardiff have had a positive impact on business performance.

He said, "Low attrition means that morale is high, and our training and development costs are considerably reduced. Plus, it improves the quality of our work.

"Our customers can be sure they're dealing with people with experience.
"Our employees can establish real relationships with our clients, which gives us a considerable competitive edge."

Matt Cottle, commercial director at Yes Loans, said, "One third of our staff here are graduates and the vast majority have previous contact centre or sales experience."

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Profit warning hits Misys shares

2005-09-14T22:12:00.000+01:00

Shares in Misys fell by almost 18% after the business software provider issued a profit warning.

Misys said it faced a significant fall in profits in the first half of the year and could not guarantee making up the shortfall in the rest of the year.

This was due to revenues from contracts in the banking sector being spread over a longer period and the cost of increased investment in new products.

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At close of London trade, Misys' shares were down 41.50 pence at 197.25p.

Complex contracts

Misys provides software to businesses, specialising in the banking, healthcare and general insurance markets.

The firm, which employs 6,000 staff, said contracts signed with professional services firms were increasingly complex and revenues were not always paid up-front.

As a result, revenues from certain contracts would be accounted for later than anticipated, leading to a likely drop in first-half profits.

Banking business accounted for 27% of Misys' total sales last year.

"Earnings per share in the first half are likely to be significantly below last year and it is not clear that any profit shortfall in the first half will be fully recovered in the second," said chairman Kevin Lomax.

However, Misys emphasised that its order book was strong and that trading conditions in its key markets had not deteriorated.

Misys made pre-tax profits of £28m on sales of £888m last year.

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Egypt to ready insurance privatisation

2005-09-14T22:03:00.000+01:00

Investment ministry commissions international consortium to help restructure state-owned insurance firms.

CAIRO - Egypt has commissioned an international consortium to restructure its major state-owned insurance companies, opening the way for their privatization, the investment ministry announced Tuesday.

The ministry has selected the Paris-based BNP-Paribas, Egypt's Commercial International Bank (CIB) and the New York-based insurance consultancy firm Milliman to do the job, it said in a statement.

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The consortium will act as a financial advisor and help "restructure the state-owned insurance companies and put them up for sale to the private sector.

"The consortium is due to begin evaluating the companies and suggest how to restructure them as soon as (the government) signs a contract with it," the ministry said, adding that this could happen over the coming weeks.

Egypt's state-owned insurance firms include the Egyptian Reinsurance Company, the Egyptian Insurance Company, Al-Sharq Insurance and the National Insurance Company.

Between them, the four companies have a total investment of 2.2 billion euros and control 80 percent of Egypt's insurance market.

Investment Minister Mahmud Modieddin hinted in June at the need to overhaul public sector insurance firms in a way that would make them attractive for potential investors.

One of the main obstacles impeding the privatization of these firms is the huge investments they have in the real estate market, which hardly makes any profit, Mohammed Yusef, chairman of the national insurance watchdog, said.

The sluggish property market also often holds up capital that could be invested in other areas, he added.

New competition from foreign insurance giants, such as AIG, ACE, Allianz Group and AMIG that have moved into the Egyptian market in recent years, has added to the challenges facing the state-owned companies.

But Yusef argued that in the long term competition would reinvigorate the industry.

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Katrina could wipe out some Lloyd's syndicates

2005-09-14T21:48:00.000+01:00

By Gillian Tett in London and Ellen Kelleher in New York Published: September 14 2005 03:00 Last updated: September 14 2005 03:00

Some of the 62 syndicates in the Lloyd's insurance market could go out of business due to losses arising from Hurricane Katrina, Standard & Poor's, the US credit rating agency, warned yesterday.

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While the full impact of the disaster remains unclear, losses are expected to hit insurers unevenly, leaving some syndicates that have underwritten energy and non-marine property and have a high proportion of US dollar premium income exposed to heavy losses.

"Some Lloyd's syndicates may move down [our assessment] scale, thereby implying there is a greater risk that they may cease to trade . . . [or] they may have to raise capital in order to continue," said Marcus Rivaldi, an analyst at S&P.

He stressed it was too early to say which, if any, syndicates would be affected and added that these losses were unlikely to cause lasting damage to the overall Lloyd's market, although the rating agency was considering cutting its rating.

S&P's estimate of Katrina losses came as industry executives in Monte Carlo expressed concern at the prospect of a squeeze on margins when reinsurers raise rates for next year's cover.

He stressed it was too early to say which, if any, syndicates would be affected and added that these losses were unlikely to cause lasting damage to the overall Lloyd's market, although the rating agency was considering cutting its rating.

S&P's estimate of Katrina losses came as industry executives in Monte Carlo expressed concern at the prospect of a squeeze on margins when reinsurers raise rates for next year's cover.
Most big reinsurers may be able to increase premiums in the short term, but primary insurers may not.

Regulators in Louisiana and Mississippi are expected to bar them from increasing their rates dramatically in the near term. "It's not immediately clear whether insurers will be able to pass their reinsurance costs off to the consumer," said oneanalyst from Moody's, the US credit rating agency.

Fitch, another US rating agency, yesterday forecast that Katrina could represent the largest insured loss in US history, surpassing the $16bn of September 11 2001 and the $22bn cost of Hurricane Andrew in 1992. Estimates for Katrina losses range up to $60bn.

Fitch put ratings of Allstate, State Farm Mutual and Montpelier Re, with two other property and casualty insurers, on watch for a possible downgrade.

S&P said that 30 of the 62 Lloyd's syndicates would need to be monitored closely.

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Katrina brings opportunities for Hiscox

2005-09-14T21:41:00.000+01:00

By Paul J Davies Published: September 13 2005 03:00 Last updated: September 13 2005 03:00

Hiscox, the Lloyd's of London insurer, has reversed its decision to cut the amount of business the company will write next year because the effects of hurricane Katrina will halt the slide in premium rates.

"As always, after disaster, come opportunities," Robert Hiscox, chairman, said. "Reinsurance rates are definitely going up."

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Hiscox stuck to its estimates for net losses of £55m from Katrina and said this could be absorbed by a business in which underwriting was still healthily profitable.

Mr Hiscox said: "Losses, such as hurricane Katrina, strengthen the need for catastrophe and major risk insurance, and there are always opportunities for profit where others fear to tread."
The company yesterday reported market-beating interim pre-tax profit of £88.1m, compared with £60.3m last year, which was restated under IFRS.

Profit was boosted by a £36.9m foreign exchange gain, but most analysts passed over the figure as an effect of the switch to IFRS, which brings together the impact of foreign exchange movements across the group into one line.

Mr Hiscox said there would be further expansion beyond the Lloyd's market business into direct insurance in the UK and Europe.

Profit in the UK retail business, which offers a wide range of insurance for affluent professionals and businesses, doubled from £10.3m to £21.1m in the six months to June 30, on net written premiums up 10 per cent at £75m.

Global markets, which includes the Lloyd's business, saw profit up from £49.5m to £64m, on net premiums written about £60m down, at £233.3m.

The interim dividend was lifted 50 per cent to 2.25p (1.5p), while basic earnings per share were 20.8p (14.9p).

FT Comment

* In the insurance world every storm cloud has a silver lining. Hiscox is hoping the second year in a row of heavy hurricane losses will lead not only to higher premiums but also greater demand for insurance. However, the storm season is not over yet and analysts will wait until beyond the end of September before they start revising profit forecasts. The shares, riding high since the upbeat trading statement in July, and up a further 5.1 per cent to 191p yesterday, are unlikely to see greater upside until the storms have blown themselves out.

Source - www.ft.com

Tags- Hiscox insurance, lloyds insurance jobs, lloyds syndicate jobs, lloyds market, uk insurance jobs,

Lloyd's faces £1.4bn Katrina bill

2005-09-14T21:32:00.000+01:00

Hurricane Katrina could cost Lloyd's of London £1.4bn ($2.5bn), the insurance market said on Wednesday

The sum is a provisional estimate of the likely insured losses from the disaster, although the exact figure is not likely to be known for some time.

Lloyd's said a loss on that scale was containable and would not force individual syndicates out of business.

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Ratings agency Standard's & Poor's has warned that certain Lloyd's syndicates could face severe losses.

S&P has put Lloyd's on its "CreditWatch Negative" list - which could result in a downgrade of its A credit rating - although it said that it did not believe Lloyd's overall solvency would be jeopardised.

Provisional estimate
Experts believe Hurricane Katrina could turn out to be the costliest natural disaster in history with insured losses ranging from between $25bn and $50bn.

Most of the claims are likely to result from damage to oil facilities in the Gulf of Mexico and to commercial and residential property in New Orleans and throughout the affected states.

Lloyd's said the financial impact of Katrina may be similar to that caused by four big storms in the US last year.

Lloyd's arrived at the £1.4bn figure after consulting with agents who manage each of its 62 individual syndicates.

However, it stressed that the full extent of the damage was currently unknown and losses were still occurring.

Contingency planning

Lloyd's has financial safeguards in place, including a Central Fund, to enable claims to be paid in the event of massive catastrophe.

Each syndicate assumes a certain level of losses from a disaster such as Katrina into its business planning.

Lloyd's said the estimated financial cost of Katrina was in line with its own contingency planning for a major storm hitting the Gulf of Mexico.

"The financial position of the Lloyd's market is strong," it said in a statement.

"Based on current information, Lloyd's believes any impact on the Central Fund would be immaterial and there is nothing to suggest that any syndicate would not be able to trade forwards as a direct result of Hurricane Katrina."

Lloyd's single largest payout followed the 11 September attacks in the US in 2001, which led to claims of $3.5bn.

Tags - Lloyds insurance jobs, lloyds syndicate, katrina hurricane, standard & poor, insurance jobs, lloyds syndicate jobs, london insurance market, uk insurance jobs,

Skills Council launches consultation on appropriate exams for advising on securities and derivatives

2005-09-09T16:24:00.000+01:00

Financial Services News,

9th September 2005

The Financial Services Skills Council (FSSC) is to launch a UK-wide consultation process on the third strand of its review of appropriate examinations. The consultation, which begins on Monday 19 September, covers advising on and dealing in investments which are securities and derivatives, as defined in the FSA T&C Sourcebook (TC2.1.4R (1a-c, j-l) inclusive.

The standards provide a specification of the underpinning knowledge required by people advising on and dealing in securities and derivatives, covered by controlled function 21.

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Developed by the industry for the industry, the project has been overseen by a steering group, with the detailed content of the standards developed by practitioners. The FSSC consultation welcomes views from throughout the financial services industry, particularly from firms with advising and dealing functions in securities and derivatives.

The draft specification, together with details of how to respond to the consultation, will be available at www.fssc.org.uk from 19 September. The deadline for feedback is close of play on 19 December 2005, and the FSSC will publish the final appropriate examination standards for advising and dealing roles in February 2006.

FSSC Chief Executive Teresa Sayers said: "This work contributes to one of the main aims of the FSSC – to reflect the needs of the sector in setting up a clear industry-wide, single qualifications framework. We particularly want to hear from the advisers themselves – the people on the frontline – to ensure that the review truly reflects industry needs."

Strand 1 of the examination review, completed in July 2004, covers retail investment advice, mortgage advice, lifetime mortgage activities and long-term care insurance advice. Strand 2 standards, published in June 2005, cover overseeing activities (specified in the Training and Competence Rules TC2.1.4R(2) a-f). Work on the fourth strand of the exam review, on investment management, will begin in January 2006.

Tags- Financial services skills council, financial services news, fssc, financial services jobs, uk

AM Best could cut Rosemont Re's rating

2005-09-09T16:14:00.000+01:00

UK Insurance News

Rosemont Reinsurance Ltd. could see its ratings downgraded by A.M. Best because of concerns that Hurricane Katrina losses, and growing claims from last year’s Hurricane Ivan, could undermine the Bermuda reinsurance company’s financial position.

Rosemont’s UK parent, Goshawk Insurance Holdings Plc. said on Tuesday it expected Rosemont’s Katrina claims to be between $25 million and $30 million. Marine energy losses related to last year’s Hurricane Ivan are also mounting, ratings agency said . At least one other Bermuda company, mutual insurer Oil Insurance Ltd., has been put on negative watch by ratings agency Standard&Poor’s because of concerns related to potential losses arising from Hurricane Katrina.

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Best, in a statement, said it was concerned that Rosemont’s combined Katrina and Ivan losses could negatively affect the company’s 2005 profit projections, as well as bear on Rosemont’s capital adequacy.

Rosemont’s financial strength ratings of A- (Excellent) and the issuer credit ratings of “a-” have been put under review with negative implications, indicating the ratings could be downgraded.

A final decision depends on the outcome of a meeting between Rosemont management and Best officials. Goshawk said this week that Katrina was not expected to reduce its year-end capital position, and that the company could benefit in the long run with the expectation that property-catastrophe reinsurance policies will command a higher price after Katrina, and a run of other catastrophe losses.

Katrina, which devastated the US Gulf Coast region on August 29, is feared to have left thousands dead while survivors are reeling from the economic impact which could go as high as $100 billion, making Katrina the most costly catastrophe ever.Many in the area lost their homes and up to 500,000 could be out of jobs, according to reports this week.

Tags - Goshawk Insurance holdings Plc, Rosemont reinsurance Ltd, Bermuda reinsurance, uk insurance jobs, reinsurance jobs, AM Best

UK insurers issue Katrina distress signals

2005-09-09T16:02:00.000+01:00

Insurance News

James Rossiter, Evening Standard 9 September 2005

THE ill winds from Hurricane Katrina blew a chill through the insurance sector today as London-listed Alea put itself up for sale and Goshawk said it needed to raise money to help bolster its finances.

Alea, which runs its insurance and reinsurance book of business out of the Bermudan market, said today it was mulling a sale as it stares down the barrel of losses of up to $30m (£16m) from Katrina.

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The fund-raising difficulties come as the insurance industry braces for what could be its largest-ever bill, estimated at as high as $50bn.

Alea said barely a week ago that it was planning to raise $210m via a rights issue. But ratings agency Standard & Poor today effectively blew a hole in those plans as it cut Alea's credit rating to three points above junk status, from A minus to BBB plus.

The agency is concerned Alea, under new chief executive Mark Riccardelli, does not have enough reserves to pay out on losses on its book from 1999-2001.

Alea today said: 'The board of directors is currently exploring strategic alternatives including the sale of the group.' Alea has Merrill Lynch as an adviser for its possible sale, which could value the firm at £250m.

The A minus credit rating of smaller insurer Goshawk is under review by agency AM Best after the firm warned last week of losses of between $25m and $30m from Katrina.

Goshawk has turned to broker Dresdner Kleinwort Wasserstein to help with 'capital-raising initiatives', expected to be worth at least £10 million. The cash would help Goshawk, which has a £60m market value, cover claims on its existing book of insurance so it can sell new premiums from next January.

Insurance premiums are expected to soar as a result of Katrina, Goshawk said today. Chairman Paul Spencer said: 'Rates went up hugely after 9/11 by between 25% and 100%.'

Alea suitors could include billionaire Warren Buffett, who has a track record for buying up troubled insurers. Alea shares today fell 6p to 134p, giving it a £228m market value, a discount to its underlying book of insurance business worth around 270p per share, or £390m.

Bridgewell analyst Geoff Miller said of Buffett: 'It is the sort of thing which might interest him but he is renowned for paying a fairly mean price to existing shareholders.

Tags - Alea, Goshawk, Bermuda, UK Insurance, Reinsurance, Insurance Jobs, claims, Bermudan insurance market, reinsurance jobs.

Munich Re, Reinsurers May Raise Rates After Katrina

2005-09-09T15:50:00.000+01:00

Insurance News

Sept. 9 (Bloomberg) -- Munich Re and Swiss Reinsurance Co., the world's largest reinsurers, may lead an increase in premium rates for catastrophe coverage after Hurricane Katrina caused an estimated $35 billion in insured losses.

Reinsurers, which help insurers shoulder risks in exchange for premium payments, may seek to push up rates when they meet with clients such as Allianz AG in Monte Carlo starting Sept. 11 to begin negotiating 2006 contracts. They'll convene again in the German town of Baden-Baden in October to complete agreements.

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After Katrina, ``reinsurers in Monte Carlo are in a much better position to argue for improvements in premiums,'' said Andreas Schaefer, an analyst at WestLB Equity Markets in Frankfurt.

The shares of Munich Re and Swiss Re have gained since Hurricane Katrina struck the U.S. Gulf Coast on Aug. 29, partly on speculation the losses will enable reinsurers to bolster prices. Katrina dislodged offshore oil rigs, flattened homes, flooded New Orleans, left hundreds dead and brought commerce on the Gulf Coast to a standstill.

The storm may be the costliest ever, according to estimates from analysts including Risk Management Solutions. UBS AG analysts, in a note to investors Wednesday, raised Swiss Re shares to `buy' from `neutral,' and said Katrina's losses are ``likely to slow down or reverse downward pricing in the majority of reinsurance lines.'' UBS today raised its price forecast for Munich Re shares to 100 euros ($124) from 95 euros.

Shares of the Munich-based reinsurer rose 22 cents, or 0.2 percent, to 92.98 euros at 4:05 p.m. in Frankfurt today. Swiss Re, based in Zurich, rose 60 centimes, or 0.7 percent, to 82.65 francs ($66.05).

Florida Hurricanes

Reinsurance prices rose for three years after the Sept. 11, 2001, terror attacks as companies sought to replenish reserves depleted by claims and falling stock markets. Prices for property coverage jumped by as much as 20 percent in Florida after hurricanes Charlie, Frances, Ivan and Jeanne struck the state in 2004, Fitch Ratings said. The storms caused $22.9 billion in insured losses, according to Insurance Services Office Inc.

Rates in other lines of business, such as aviation and professional liability, have been falling for more than a year. Overall, reinsurance rates fell 1 percent in January, compared with a 4.5 percent increase the previous year and an 11 percent jump in 2003, according to a report from Fitch this week.

Global reinsurance premiums were $176 billion in 2003, with North America accounting for 52 percent and western Europe 32 percent, according to Swiss Re. Munich Re, Swiss Re, Berkshire Hathaway Inc., General Electric Co.'s GE Insurance Solutions and Hannover Re underwrote 46 percent of the total.

`Dramatic Effect'

The effect of Katrina on rates globally may depend on the final value of the loss: a total between $30 billion and $40 billion could have a ``dramatic effect'' on the market, said Charlie Cantlay, deputy chairman of the reinsurance business at Aon Ltd., the U.K. unit of the world's second-largest insurance broker.

Katrina losses may hurt reinsurers more than the four hurricanes that struck the U.S. in 2004 because insurers will pay a single deductible before their reinsurance kicks in, rather than four last year. The Florida Hurricane Catastrophe Fund, composed of a portion of insurers' premiums, paid about $3.4 billion of losses from last year's storms.

Munich Re said on Sept. 2 that claims may exceed an initial estimate of 400 million euros and make it difficult for the company to reach its earnings goal for 2005. The company's profit dropped 74 percent in the second quarter, the first decline in two years, after it increased reserves at its U.S. unit to cover casualty and asbestos claims

Complex' Loss

Spokesman Rainer Kueppers said Munich Re will detail its outlook for rates at a press conference in Monte Carlo on Sept. 11.

Zurich-based Swiss Re said it expects Katrina costs of $500 million, while Hannover Re lowered its earnings forecast for this year and estimated Katrina claims of 250 million euros.

Swiss Re Chairman Peter Forstmoser told reporters at a conference near Zurich yesterday that it's been the ``general experience''

Allianz, Europe's largest insurer, said yesterday that its costs from Hurricane Katrina may total 470 million euros.

Lloyd's of London, the world's biggest insurance market, said it expects ``significant'' claims relating to offshore energy installations in the Gulf, property damage and business interruption. The market hasn't yet released an estimate of its damages. Lloyd's insurer Kiln Plc said yesterday it expects as much as 100 million pounds ($184 million) of claims from the disaster.

``The loss is a complex one, and it will be a substantial length of time before precise forecasts of the ultimate loss can be made,'' Kiln said in a statement.

Moving Capital

Insurers of offshore oil platforms and drilling rigs are likely to demand premium increases of more than 50 percent after the storm, the Wall Street Journal reported yesterday, citing Charles Franks, an underwriter at Kiln.

Katrina will help boost rates for Gulf coast property and energy risks and give prices overall ``a softer landing,'' said Fox- Pitt, Kelton in a note to investors on Aug. 30.

Five U.S. crude-oil refineries accounting for about 6.6 percent of U.S. refining capacity remain shut because of damage from Katrina, according to the companies or the Energy Department.

Katrina may underpin prices beyond the Gulf Coast property and energy markets by prompting companies to shift away from less profitable business to capture higher prices.

``There's a strong possibility that rates will harden in other areas as people move capital to the opportunities they see,'' said Dane Douetil, chief executive officer of U.K.-based insurer and reinsurer Brit Insurance Holdings Plc.

Tags -Munich Re, Swiss reinsurance co, Lloyds of London, Lloyds brokers, Kiln Plc, Brit Insurance holdings, UK, Insurance News, Insurance Jobs, reinsurance jobs, broking jobs,

AIG and John Holman and Sons partner for new travel insurance product

2005-09-09T15:36:00.000+01:00

UK Insurance News

Insurance provider AIG Europe (UK) Limited and independent Lloyd's broker John Holman and Sons Limited are to jointly launch a new travel insurance product available to brokers through a high-tech extranet system. (9/9/2005)

Jon Cooper, travel manager, AIG Europe (UK) Limited said that the new extranet technology is extremely easy to use and has been designed with FSA regulations in mind to guide the broker through the different stages of the sale to ensure compliance without any unnecessary additional paperwork.

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"We are confident that the new product and technology will streamline the travel insurance sales process for brokers and their customers," said Cooper.

The travel insurance product, which will be distributed via John Holman and Sons Limited's network of over 5000 independent brokers and intermediaries, includes annual multi trip, single trip and gap year policies.

According to the company, the new offering reduces administration while ensuring compliance with Financial Services Authority regulations. The Websure extranet technology has been developed by Sheraton Systems Limited in response to FSA rules on insurance sales.

"The system guides the broker through the necessary regulatory steps to selling a policy and allows key facts documents and policy wordings and certificates to be downloaded and printed at the point of sale. The extranet system replaces the traditional 'pad' fulfilment method and eliminates the need for brokers to re-key information and store stocks of pre-printed material," said an official statement.

Tags, AIG insurance company, John Holman Insurance Brokers, FSA, UK, Financial Services Authority, Financial services Jobs,

Glasgow-based Insurance Broker Giles opens office in Chicago

2005-09-09T10:29:00.000+01:00

Insurance News

Giles Insurance, the Glasgow-based commercial broker which is Scotland's biggest independent, has opened an office in Chicago with the ambitious target of building a $100m brokerage within 10 years.

To run the office it has appointed Ayrshire-born Brian Daly, a "senior industry figure" who at one time worked with General Accident in Ayr before moving to the US to work for Allianz.

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Chris Giles, chief executive, said: "We believe we're the first Scottish broker to have a presence in the US, and one of the few regional brokers to do so."

The broker has released annual results showing a 22% rise in revenue to £16.5m, with staff numbers rising by 10%. It has 15 offices across the UK, from Inverness to Croydon, employing more than 300.

Giles said: "At the moment, we are in a soft market and a number of brokers have gone backwards or have put their expansion drives on hold. Our growth has been organic, and we are now the fastest-growing broker in the UK."Previous growth, however, was not all organic, as Giles has completed 23 acquisitions in the past decade.

He said the firm had now received provisional accreditation from Lloyd's of London under the broker accreditation scheme which aims to attract high-quality intermediaries into the Lloyd's market, and along with the start of its US expansion programme, "this illustrates that we are very serious about our ambitions to become a recognised and respected player in the sector".

Tags, Giles insurance brokers, Giles brokers glasgow, chicago, UK insurance jobs, scottish insurance jobs, scotland insurance jobs, glasgow insurance jobs, Lloyds of London.

Aspen Announces Initial Assessment of Losses

2005-09-09T00:56:00.000+01:00

Insurance News

Press Release

Aspen Announces Initial Assessment of Losses Sustained From Hurricane Katrina and the Great New Orleans Flood

HAMILTON, Bermuda, Sept. 8 /PRNewswire-FirstCall/ -- Aspen Insurance Holdings Limited (the "Company") (NYSE: AHL; BSX: AHL BH) today announced its initial assessment of the losses sustained from Hurricane Katrina and the Great New Orleans Flood.

We estimate that our retained losses from Hurricane Katrina after recoveries from our outwards reinsurance program, the impact of outwards and inwards re-instatement premiums and on an after tax basis will be approximately $150 million. Our estimated gross losses from Hurricane Katrina fall within our outwards reinsurance program. These estimates are consistent with our estimate of industry insured losses for Hurricane Katrina which is in the region of $40 billion. We anticipate that the majority of our losses will result from our property reinsurance lines.

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As regards Hurricane Katrina losses, our estimates have been derived primarily on the basis of a contract by contract assessment of the loss, where we have reviewed our exposures in the loss-affected zones within our primary account and a per cedant review against policies underwritten in our reinsurance lines. These estimates are necessarily preliminary and are based upon information available to date, the application of our catastrophe modeling systems, market intelligence, initial tentative loss reports and other sources.

Although we believe the economic loss from the Great New Orleans Flood will exceed economic losses from Hurricane Katrina, our preliminary analysis suggests that the flood losses are substantially uninsured. We expect that Aspen's share of the industry's insured flood losses will be modest compared to Hurricane Katrina.

We also intend to revise our current top line gross written premium growth guidance of 20-25% year-on-year following Hurricane Katrina. We believe that, after allowing for re-instatement premiums and higher rates on renewal business we expected to write in the fourth quarter and potential new business opportunities, our premium growth for the year will exceed our current guidance, although we are currently assessing the extent of the change. We will provide a further update during our third quarter earnings call scheduled for October 28.

Chris O'Kane, Chief Executive Officer, commented, "These events will have far-reaching social consequences and their impact will be felt for years to come in the insurance industry. We are currently evaluating the likely impact on market conditions and on prices on loss impacted and other lines across our business, in particular on-shore and off-shore energy physical damage, major account property insurance and catastrophe exposed property reinsurance. We anticipate that we will see significant price increases in these lines. As a result of North Atlantic Hurricane activity this year and last, our underwriters, actuaries and catastrophe modelers are re-examining the foundations of catastrophe property pricing. Current atmospheric and sea surface temperature cyclical fluctuations lead us to believe that we may be in a period of exceptional turbulence for some years.

Hurricane Katrina and the Great New Orleans Flood are first and foremost humanitarian tragedies. Aspen has made charitable donations to relief agencies when disasters of similar magnitude have occurred in the past and we will do so on this occasion. Our thoughts and sympathies are with those affected by the disaster and their families at this time."

About Aspen Insurance Holdings Limited

Aspen Insurance Holdings Limited was established in June 2002. Aspen is a Bermudian holding company that provides property and casualty reinsurance in the global market, property and liability insurance principally in the United Kingdom and the United States and marine and aviation insurance worldwide through Aspen Insurance UK Limited. Aspen's operations are conducted through its wholly-owned subsidiaries located in London, Bermuda and the United States: Aspen Insurance UK Limited, Aspen Insurance Limited and Aspen Specialty Insurance Company. Aspen has four operating segments: property reinsurance, casualty reinsurance, specialty insurance and reinsurance and property and casualty insurance. Aspen's principal existing shareholders include The Blackstone Group, Candover Partners Limited, Wellington Underwriting plc and Credit Suisse First Boston Private Equity. For more information about Aspen, please visit the Company's website at http://www.aspen.bm.

Application of the Safe Harbor of the Private Securities Litigation Reform Act of 1995:

This press release contains, and Aspen's earnings conference call may contain, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can be identified by the use of words such as "expect," "intend," "plan," "believe," "project," "anticipate," "seek," "will," "estimate," "may," "continue," and similar expressions of a future or forward-looking nature.

All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company's control that could cause actual results to differ materially from such statements. Important events that could cause the actual results to differ include, but are not limited to: the impact of acts of terrorism and acts of war and related legislations; the possibility of greater frequency or severity of or unanticipated losses from natural or man-made catastrophes, including Hurricane Katrina and the Great New Orleans Flood; evolving interpretive issues with respect to coverage as a result of Hurricane Katrina and the Great New Orleans Flood; the effectiveness of the Company's loss limitation methods; changes in the availability, cost or quality of reinsurance or retrocessional coverage; the loss of key personnel; a decline in the operating subsidiaries' ratings with Standard & Poor's, A.M. Best or Moody's; changes in general economic conditions; increased competition on the basis of pricing, capacity, coverage terms or other factors; decrease in demand for the Company's insurance or reinsurance products and cyclical downturn of the industry; and changes in governmental regulation or tax laws in the jurisdictions where the Company conducts business, the total industry losses resulting from Hurricane Katrina and the Great New Orleans Flood, the actual number of the Company's insureds incurring losses from these storms, the limited actual loss reports received from the Company's insureds to date, the Company's reliance on industry loss estimates and those generated by modeling techniques, the impact of these storms on the Company's reinsurers, the amount and timing of reinsurance recoverables and reimbursements actually received by the Company from its reinsurers and the overall level of competition, and the related demand and supply dynamics, in the wind exposed property reinsurance lines as contracts come up for renewal. For a more detailed description of these uncertainties and other factors, please see the "Risk Factors" section in Aspen's Annual Report on Form 10-K for the year ended December 31, 2004, filed with the U.S. Securities and Exchange Commission on March 14, 2005. Aspen undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Source: Aspen Insurance Holdings Limited

Tags- Insurance News, Press Release, Aspen Insurance Holdings, Aspen Re, Bermuda, Bermuda Insurance Jobs, UK Insurance Jobs, property and casualty reinsurance, Aspen Specialty Insurance Company, reinsurance Jobs, catastrophe modeling, Aspen Insurance UK Limited, The Blackstone Group, Candover Partners Limited, Wellington Underwriting plc,

Lloyd's keen to enter Indian Insurance Market

2005-09-08T16:36:00.000+01:00

Insurance News,

Lloyd's keen to enter India Thursday, 08 September , 2005, 15:17 New Delhi: World's largest insurance market Lloyd's on Thursday evinced interest to enter India's booming insurance and reinsurance sectors for which it wants government to amend the rules.

"We are interested in both direct insurance and reinsurance," Lloyd's chairman Lord Peter Levene told the media here on Thursday.

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However, he said Indian legislations permit only foreign companies to enter the insurance sector with an Indian partner.

"Even if we are willing to form a joint venture, the legislation does not allow us, as Lloyd's is a market," he said, adding the London-based insurance powerhouse has taken up the matter with the top government officials.

"We hope the Indian government recognises the Lloyd's structure and eventually allow us to enter the insurance sector," Levene said.

Lloyds, which can underwrite business worth $ 30 billion worldwide annually, is a society of members both insurers and individuals, who underwrite insurance and reinsurance business in over 200 countries.

The 300-year-old London-based insurance powerhouse covers the toughest risks worldwide. Most of the major insurers reinsure their risks with Lloyd's.

Over 40 per cent of the Lloyd's business is concentrated in the UK and Europe, while US occupies about one-third. Asia and other continents comprise less than 25 per cent of its business.

Lloyd's evincing interest to enter India assumes significance, as there are no private reinsurers in India. General Insurance Corporation was converted into national reinsurer four years ago, but it also has to reinsure mega risks in international markets including Lloyd's.

Insurance regulator IRDA has so far granted licence to 13 private life insurers and about 8 general insurers.

Except Reliance and Sahara, all the private players have a foreign partner with up to 26 per cent stake.

No foreign player has evinced interest in entering the reinsurance sector so far, as they have not got the right Indian partners who could underwrite massive risks.

Apart from Lloyd's, major reinsurers like Munich Re, Swiss Re and General Cologne Re are keenly watching the Indian market but does not find it feasible to form a subsidiary here.
Lloyds is also keen to outsource some of its services to India by relocating its back office operations.

Levene, who was here with the business delegation from EU, had talks with some of the leading Indian IT companies

Tags Lloyds Insurance , Munich Re , Swiss Re , General Cologne Re, London Insurance Jobs, Lloyds insurance brokers , UK Insurance Jobs .

Norwich Union aims to grow online sales

2005-09-08T13:27:00.000+01:00

Norwich Union is planning to drive up its online sales to 50% of total orders by 2007, with digital ads playing a vital role in achieving that aim.

The insurance company is kicking off the strategy by boosting its overall brand awareness by up to 5% with a major online campaign this week.

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The online drive is an integrated part of its wider 'Quote me happy' campaign currently running on offline media including TV, outdoor and direct mail. However, all elements are primarily aimed at driving its online quotes and sales.

The campaign, which will run for a month across major portals, includes a landing page on the Norwich Union Web site. It has been designed by interactive agency AKQA with media planning/buying by Harvest Digital.

The interactive ads are designed to engage customers and create greater recall following positive feedback from strategic testing.

Sara Thwaites, ecommerce marketing manager, said, "We aim to increase online orders by 2007, so digital advertising will continue to be a vital part of our marketing strategy."

www.quotemehappy.com

Article source & Copyright © www.nma.co.uk

Tags - UK Insurance jobs, Norwich Union

Capita Group PLC

2005-09-08T13:18:00.000+01:00

Capita Group PLC

06 September 2005 - (rns news)

CAPITA COMPLETES ACQUISITION OF BDML CONNECT FROM BDML GROUP

Capita Insurance Services, part of The Capita Group Plc ('Capita'), announces
that it has completed the acquisition of BDML Connect Ltd from the insurance
group BDML, following the FSA's regulatory approval being granted.

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The acquisition of these operations adds significantly to Capita's current
insurance capabilities and enhances Capita's proposition to the affinity market.
It will also enable Capita to provide distribution opportunities for
underwriters via the BDML panel.

-ends-

For further information please contact:

The Capita Group Plc +44 (0)20 7799 1525
Rod Aldridge, Executive Chairman
Paul Pindar, Chief Executive
Shona Nichols, Corporate Communications Director
Press Office +44 (0)870 2400 488

Notes to Editors:
The Capita Group Plc is the UK's leading provider of integrated professional
support service solutions. The Group's service capabilities encompass customer
services, financial services, human resource services, software services,
systems and strategic support and property services delivered to both public
sector and private organisations. With over 23,000 employees at more than 230
offices across the UK and Ireland, Capita is quoted on the London Stock Exchange
(CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285
million.

Capita has secured a number of awards including Best BPO Services Provider 2004.
Further information on The Capita Group Plc can be found at: www.capita.co.uk
Capita Insurance Services is the UK's leading provider of business support
services to the insurance industry offering professional services, operational
solutions and strategic partnerships for insurers, brokers, affinities,
corporates, government and the London market.
The company is an FSA authorisedrepresentative and supports the complete insurance lifecycle from claims reception and policy administration, to specialist services including legal
services, medical evidence services, complex loss adjusting, supply chain
management and the delivery of fully-managed operational solutions both onshore
and offshore. Ranked No.1* in the Insurance Services market in three consecutive
years and with over 41.2% market share (source: HI Europe 2004), Capita
Insurance Services administers in excess of £12bn insurers' liability, employing
nearly 5000 staff across an integrated network of UK business centres.

www.capitainsuranceservices.co.uk

Tags- Insurance jobs, capita insurance services plc, capita group jobs, uk

Strong rise in life and pension fund sales - ABI

2005-09-08T09:55:00.000+01:00

LONDON (Reuters) - Sales of life products and pensions in the UK rose almost 13 percent in the second quarter from the same period last year, resulting in first-half sales growth of 9 percent, above many company forecasts.

The Association of British Insurers (ABI) said on Thursday that sales of life and pension products in the first six months of 2005 rose to 5.5 billion pounds in the first six months from 5.07 billion in the same period last year.

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Last month, major UK life insurers such as Prudential and Legal & General estimated that the British life and pensions market had grown by around 5 percent and by between 2 and 3 percent respectively. Their full-year forecast is for growth of around 5 percent.

"It is good news for savers and the insurance industry that overall savings figures are up. But we must not be complacent," Chris Kenny, the ABI's director of life and pensions, said in a statement.

In the second quarter, sales rose nearly 13 percent to 3 billion pounds. Excluding a large pensions-related deal by Prudential, sales in the second quarter rose 7.3 percent.

Mikir Shah, analyst at Fox-Pitt, Kelton, said employees switching their pensions between suppliers could account for some of the gap between company estimates and actual market growth.

"But leaving aside that, these figures show that the market is in better shape than we thought. We saw that earlier this week when Standard Life reported 10-percent sales growth when they had been expecting a fall in volumes."

Demand in Britain's savings sector is slowing reviving after several years of decline as stock-market returns improve and consumer spending wanes.

Tags Pensions Jobs, ABI, Standard Life, Prudential, Legal & General, life & Pensions Jobs, UK,

Benfield Group sees profits fall

2005-09-08T09:48:00.000+01:00

LONDON (SHARECAST) - Reinsurance broker Benfield Group said first half underlying profit fell by 14% and added that current market conditions remain tough.

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Trading profit fell to £82m from £95.5m, a 10% decline in constant currency rate, while revenue fell 4.5%, or 2.6% in constant currency terms, to £196.2m.

Pre-tax profit fell to £72m from £80.5m. "Current market conditions remain challenging, but our strategy for further strengthening reinsurance production and servicing capabilities and our new venture in corporate risk insurance broking are both progressing well."

The company said as highlighted previously, market dislocation had an adverse impact on its US business in the first three months of 2005 but since then it has seen steady improvement in new business flow.

The interim dividend stays at 3.5p per share.

Tags - Insurance jobs, UK Insurance jobs Benfield Group, Benfield reinsurance brokers,

Insurance probes dampen industry's view of itself

2005-09-07T23:47:00.000+01:00

A wide regulatory probe of the insurance sector, and a string of costly catastrophes, has taken its toll on how the Insurance industry views its own leading lights, according to the results of a peer review released by UK reinsurance magazine Reactions on Monday.

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Reactions, which got a record response this year to its annual awards survey, handed out trophies to its 2005 Awards winners at a special ceremony in London on Monday.

The top insurance spot, as in years past, went to American International Group Inc., after being voted the insurance company of the year despite "numerous investigations, results restatements, ratings downgrades, accusations of wrongdoing, and the departure of its iconic chief executive Hank Greenberg".

Swiss Re was voted the reinsurance company of the year, while AIG scooped up the top reinsurance spot for all regions except Europe where Germany's Allianz was voted the winner.

The results came out following an annual readers' survey conducted by Reactions in a bid to recognise the best insurance and reinsurance companies world-wide, as well as to single out the industry's top executives.

While AIG got good marks, regulatory issues may have led to it snagging the award by a hair, in contrast the last three years when it won by a wide margin.

In 2004, AIG had a 33.7 percent lead on runner-up Axa. But this year's second place holder, Allianz, lost out to AIG by a 6.4 percent margin. And Bermuda-based property-catastrophe reinsurer RenaissanceRe placed third, behind Munich Re and Swiss Re, in the property-catastrophe reinsurer of the year category, after coming in first for the last two years.

Editor Wyn Jenkins said RenRe's slide was an example of the turmoil caused by the regulatory investigations. RenRe lost position likely because of being "hard hit by both Florida hurricane losses" after a costly wave of four deadly storms in 2004, as well as a result of the wide industry probe of finite risk reinsurance.

In February, RenRe said it would restate financial results for 2001 through 2003 to correct accounting errors discovered in connection with the misaccounting of a finite risk policy with Inter-Ocean Reinsurance Ltd., a Bermuda reinsurer that RenRe partly owned.

There was also a shake-up in the broker category with Willis picking up its first award since the Reactions awards were established in 2002.It was named both insurance broker of the year and most innovative insurance broker of the year.

Marsh & McLennan Cos. Inc. has traditionally dominated this category.Marsh may have fallen from grace after a probe led by New York Attorney General Eliot Spitzer, centred on allegations of bid rigging, price fixing and controversial incentive payments at the company.

Benfield won reinsurance broker of year, replicating its success in 2003 and beating Guy Carpenter, which won the award in 2004 and 2002.Benfield also scooped the award for most innovative reinsurance broker.

Standard and Poor's won rating agency of the year for the third year running.LeBoeuf, Lamb, Greene & MacRae was law firm of the year for the fourth year running.

Tillinghast won the consultancy of the year award, for the second year running.

Risk Management Solutions, with the modelling firm being praised for its forward-thinking business approach, including building a model that covers earthquake risk in China, and for being the first modelling firm to open a Bermuda office, regained the risk modelling agency of the year award from AIR Worldwide.

Ramani Ayer, chief executive of The Hartford was named insurance chief executive of the year; and Wilhelm Zeller, Hannover Re's chief was named reinsurance chief executive of the year.

Bermuda reinsurance executive Patrick Thiele, chief executive of PartnerRe, was highly commended in the survey, according to Reactions report.

Tags- Insurance jobs, uk insurance jobs, hartford, marsh jobs, renre, swiss re jobs, aig, reinsurance jobs, uk, insurance employment, insurance brokers, bermuda jobs,

Websites just the job for helping to find employment

2005-09-07T23:37:00.000+01:00

TALKING POINTS PAUL ATKINSON

RECRUITMENT websites have become a vital component in any potential job seeker's armoury.

Whilst traditional, specialist recruitment and search consultancies still command the lion's share of job seeking candidates, online e-recruitment now vies for a significant slice of this lucrative marketplace.

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In 2000, a survey by a UK research company found searching for jobs was the fourth most common use of the internet in the UK, behind e-mail, shopping and booking travel or holidays.
Since then, it has become even more common.

A recent survey, by another research firm, concluded that 91 per cent of Fortune 500 companies in the United States use their own websites for recruiting, up from 79 per cent in 2000.

There is no doubt the internet has changed the way candidates look for and apply for jobs. Companies, too, have adapted to the medium and increasingly expect to advertise jobs online and receive online applications. Online recruitment is now even more popular than internet shopping and e-banking.

All the same, plenty of recruitment sites have gone out of business in the past year, including many IT and financial services. Others have struggled.

Views on the role of the internet in recruitment have totally changed since the first online recruitment sites set up only a few years ago.

In fact, a more topical question in 2005 might actually be "is there such a separate concept as online recruitment or is it now just one integrated channel within the whole recruitment mix", and, just as important, "is the internet fundamentally changing the relationship between the client and the recruitment company?"

There are also those who argue that personality - not technology - still rules and that emotion must be put back into the process of recruiting. Certainly, the internet can be personalised to meet individual needs, but it cannot replace communication between candidate and company.
What has become very apparent is that candidates and clients want more, not less, personal contact.

In a market where there are fewer job opportunities and more candidates, the limitations of the medium are self-evident.

A candidate might go to an online site and apply for ten jobs in around 30 seconds, but the level of commitment to the recruitment process can be negligible when you compare it with the process we all undertook as recently as the mid 90s, when a CV had to be drafted, a covering letter written, an envelope addressed and stamped and then posted.

The candidate's commitment to the whole process generally is lower and they can apply for a lot of jobs easily. You can speculatively apply for hundreds of jobs in the hope that something falls into your lap.

This can result if a huge amount of wasted management time trying to identify both the relevant and committed candidate.

The reality is that this "spray and pray" approach doesn't necessarily work, but the problem is the potential employer gets so inundated with CVs that actually picking out the applicants that have taken time to write a good e-mail covering letter and a good cv is still very difficult - it's a typical information overload scenario.

Thanks to the internet, candidates can now carry out a lot of research on their potential employers before applying for a role and this can be a pitfall for many recruiting companies who are unaware that employing someone is now very much a two-way process.

The internet has, therefore, helped to empower the candidate.

The selection process has not really got any easier. Many tools are now being applied such as assessment centres, psychometric testing, competency-based interviews and video interview technology.

The fact remains the selection process still takes a huge amount of management time and the destiny of whether a candidate wants to work for a company or not, very often lies at the click of a mouse.

• Paul Atkinson, chairman and chief executive of specialist recruitment company Head Resourcing

Tags - Insurance jobs, uk, Insurance recruitment, Head Resourcing, website

Misys and S1 Extend Their Alliance to Build on Early Successes

2005-09-07T23:18:00.000+01:00

LONDON, September 6 /PRNewswire-FirstCall/

Misys Banking Systems(Misys) and S1 Corporation(NASDAQ:SONE) have extended their strategic agreement to incorporate joint retail banking solutions, building on a relationship that has already delivered wholesale banking solutions globally. Misys, with an installed base of 1,200 banks and an extensive sales and services infrastructure, has combined its knowledge and capabilities inbanking with the expertise of S1, a leading global provider of integrated front-office applications for more than 4,000 financial institutions.

The extended relationship to the global market an enterprise-widemulti-channel banking platform that can help financial institutions achieve operational efficiencies, enhanced revenue opportunities, and overall customer satisfaction for banks.

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Already a year old, the Misys/S1 alliance has demonstrated success with12 wins since announcing the alliance last year. "Extending our agreementwith Misys to include S1 retail solutions is an important next step in this alliance, as evidenced by the successes we have enjoyed so far," said James'Chip' S. Mahan III, Chairman and Chief Executive Officer of S1.

"S1'sstrategic relationship with Misys continues to validate that our integrated enterprise applications meet the needs and offer a unique solution for theglobal market."

"The relationship between S1 and Misys is already delivering real results for clients in the marketplace," says Andrew Derrer, CEO of Misys RetailBanking. "Our success in the marketplace comes from the fact that our clients enjoy the best front-office applications and back office systems in one integrated package."

About Misys plc Misys plc (LSE: MSY), the global software company, is one of the world'slargest and longest-established providers of industry-specific software. Founded in 1979, Misys serves the international banking and healthcareindustries and the UK general insurance industry, combining technological expertise with in-depth understanding of customers' markets and operational needs. In banking Misys is one of the top four software providers worldwide and the largest outside the US, with over 1,200 customers, including 90% ofthe world's top 50 banks.

In healthcare Misys is a top five software provider in the US market, serving more than 92,000 physicians in 18,000 practicelocations, 1,250 hospitals and 600 home care providers. In UK general insurance Misys is the market leader in software solutions. Through Sesame, awholly-owned subsidiary, the company is also a leading provider of support services to over 8,000 financial advisers in the UK.

Misys employs over 6500people who serve customers in more than 120 countries. For more information,visit http://www.misys.com/ Misys. Making things that really matter, work better.

About S1 Corporation S1 Corporation is a leading global provider of integrated front-office applications for more than 4,000 banks and insurance providers around theworld. Comprised of applications that address virtually every market segmentand delivery channel, S1 solutions help integrate and optimize aninstitution's entire front office, resulting in increased operational efficiencies, revenue opportunities and overall customer satisfaction. S1 isthe only provider with the proven experience, breadth of products andfinancial strength to empower financial services companies' enterprisestrategies. Additional information about S1 is available at http://www.s1.com/.

S1 International is an operating unit of S1 Corporation focused on delivering corporate banking, call center, CRM and branch applications forthe European, Mid-East and African market. S1 has more than 10 years offinancial software experience in Europe and has enabled some of the earliestand most recent online initiatives.

Forward-Looking Statements This press release contains forward-looking statements within the safeharbor provisions of the Private Securities Litigation Reform Act. These statements include statements with respect to our financial condition, results of operations and business. The words "believes," "expects," "may,""will," "should," "projects," "contemplates," "anticipates," "forecasts,""intends" or similar terminology identify forward-looking statements. Thesestatements are based on our beliefs as well as assumptions made using information currently available to us.

Because these statements reflect our current views concerning future events, they involve risks, uncertainties and assumptions. Therefore, actual results may differ significantly from the results discussed in the forward-looking statements. The risk factors included in our reports filed with the Securities and Exchange Commission(and available on our web site at http://www.s1.com/ or the SEC's web site athttp://www.sec.gov/) provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations wedescribe in our forward-looking statements. Except as provided by law, we undertake no obligation to update any forward-looking statement. Contact Details: Edward Taylor, Financial Dynamics, +44-(0)20-7269-7295, edward.taylor@fd.com

tags - Insurance Jobs, S1, Misys, UK

speed-trap plays key role in Insurancewide.com's business drive

2005-09-07T23:10:00.000+01:00

Newbury, September 7th 2005 - speed-trap Limited, the e-business intelligence company, announces today that Insurancewide.com Services Limited has implemented Prophet, its client-side data collection™ and analysis solution, on the www.insurancewide.com website.

Monitoring and analysis of search and banner advertising plus being able to track every website visitor and purchaser’s behaviour were cited as prime reasons for selecting and using Prophet. These facilities will enable Insurancewide.com to ensure its website is designed and maintained as well as possible to the benefit of its customers and its online sales.

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Charlie Irish, IT Development Manager at Insurancewide.com said: “speed -trap’s client-side measurement technology and reporting provides us with real e-business intelligence right across our online insurance business.

We have full confidence in the validity of the data collected and find the reporting tools simple and easy to use. Prophet enables us to have a complete view of user experience and behaviour and allows our marketing department to view, measure and manage every facet of our business and applications”.

James Harrison, Insurancewide’s CEO added: “As a pure online business it is vital that we get reliable information and statistics to understand the customer’s journey through our site. Prophet is able to record every aspect of a customer’s experience on the site in a secure manner and in accordance with the Insurancewide.com’s strict privacy policy.

We pride ourselves on our simple and easy to use technology. We will now have an even better insight into the workings of our site, more opportunity to optimise our on-line presence and more opportunity to make bottom-line improvements to the business”.

Notes to editors About speed-trap speed-trap is the e-business intelligence company.

The company provides technology and solutions that provide accurate, real-time and complete data on the interactions between customers and web sites. Moving beyond traditional Web Analytics, speed-trap not only provides statistical and business information on activity in the site, but uses the in-depth data provided by its Dynamic Collection™ Technology to give a unique view of visitor experience and customer journeys providing valuable insights into how well online assets are meeting objectives.

Speed-trap’s solutions are being used by businesses to drive and monitor their online marketing activity including the monitoring, measurement and management of their on-line business.

This includes applications such as campaign management, customer segmentation, customer experience monitoring and performance measurement. Other customers are using the technology to monitor key business metrics and drive real-time content management systems. speed-trap was founded in January 2000 and is based in the UK with headquarters in Newbury, Berkshire.

See www.speed-trap.com for further information. About Insurancewide.com

Insurancewide.com is a UK-based internet insurance portal which is authorised and regulated by the Financial Services Authority. It provides consumers access to the largest range of insurers in the UK. The ‘Wizards™’ enable consumers to outline their insurance requirements before being presented with those insurers capable of providing the most suitable product and most competitive quote, significantly reducing the time and cost of purchasing insurance. Insurancewide.com has developed the products in conjunction with 94 Internet enabled insurance distributors to provide customers with clear product explanations, ease of purchase, and simplicity in use.

• It identifies a selection of insurers that have specifically requested a type of customer and therefore can offer a truly competitive quote. • It accesses up to 98% of online motor insurance rates sourced from 67 insurance websites, which in turn access rates from all 34 UK insurers. Media Contacts For speed-trap: Jim Crowther Ad-Lib International Limited Tel: 01189744189 For Insurancewide.com: Zena James Project Associates Tel: 07811 240167)

Keywords- Insurance Jobs, uk, Speed trap, Insurance wide

Charcol launches new buy to let mortgage deals

2005-09-07T23:02:00.000+01:00

Independent UK mortgage broker John Charcol has launched two new exclusive buy to let mortgage deals in conjunction with leading building societies.

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Both deals are available for purchase or remortgage, with all lending in sterling, protecting homeowners from any currency risk.

The first deal, available through Scarborough Building Society, features a low initial rate of 3.49 per cent, and is virtually fee-free, offering a refund in valuation fees, or £350 cashback on a remortgage, plus the limited offer of no arrangement fee.

Offered in conjunction with West Bromwich Building Society, Charcol's second new deal allows up to ten per cent overpayment annually, and features no early repayment charges.

Ray Boulger, senior technical manager at John Charcol, commented: "Buy to let now represents a significant part of the overall market, and we are pleased to have developed some highly sophisticated deals with these lenders that, just five years ago, would have been unheard of for your average buy-to-let investor."

Keywords- John Charcol, Mortgage, Mortgage Jobs

IPE publishes Top 1000 European Pension Funds

2005-09-07T22:54:00.000+01:00

IPE.com 7/Sep/05: EUROPE –
Investment & Pensions Europe has published Europe’s Top 1000 for 2005, a listing of the largest schemes in Continental Europe and the UK.

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The report shows that total assets under management have risen to €2.63trn from €2.34trn. The 36-page report – published with the September edition of IPE – shows that Dutch civil service scheme Stichting Pensioenfonds ABP remains Europe’s largest scheme at €168bn – up from €156bn a year ago.

The fast-growing Norwegian Petroleum Fund is Europe’s second largest fund, at €147bn while the combined value of €66bn of Sweden’s AP funds put them in third place. Dutch health care scheme PGGM and Denmark’s ATP are fourth and fifth respectively. The BT Pension scheme, at €38bn, retains its spot as the largest UK scheme, with the Universities Superannuation Scheme and Scottish Public pensions not far behind. The coal and electricity industry schemes round out the top five in the UK.

One of the common denominators across European pension schemes is a feeling of uncertainty, says IPE Deputy Editor George Coats. “Many are concerned about the interest rate outlook and its impact on fixed income instruments,” he says. “But there is also a clear sense of frustration at the introduction of regulations and legislation ostensibly designed to bolster the sector.” Much of the data comes from the latest edition of ‘International Pension Funds and the Advisers’, or the “Red Book”.

This is published by Aspire, a joint venture between IPE and AP Information Services. The supplement includes comments from Europe’s leading pension schemes as well as detailed analyses of the situation in each country.

For more information, please contact Emma Morgan-Jones on (44) 20 7261 4617 or via email: morgan.jones@ipe.com.

Irish Life Profit Rises 21% on Demand for Pensions

2005-09-07T22:45:00.000+01:00

Sept. 7 (Bloomberg) -- Irish Life & Permanent Plc, Ireland's largest life insurer and mortgage lender, said first-half profit rose 21 percent as demand for pensions and savings products increased and stock-market gains lifted investment returns.

Net income rose to 220 million euros ($274 million) under new European Embedded Value rules, from 182 million euros a year earlier, the Dublin-based company said today in a statement. That beat the 186.4 million-euro median estimate of three analysts surveyed by Bloomberg News.

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Chief Executive David Went and his peers at Ireland's lenders are benefiting as the lowest unemployment in the 12 countries sharing the euro underpins demand for home loans and pensions. Went is trying to keep a rein on costs to counter pressure on margins at its life insurance and lending businesses.

``The strong first half and the continued momentum with the business leaves us well placed for a successful full-year outcome,'' Went said in the statement.

Investment returns at Irish Life's fund business, which was the nation's top pension-fund manager over the past two years, lifted profit by 42 million euros. The Dow Jones Stoxx 50 has gained 15 percent this year, while the S&P 500 has increased 10 percent.

The company had ``growth well ahead of expectations on our investment returns,'' Finance Director Peter Fitzpatrick said in an interview. ``We are riding the crest of a wave on the markets.''

Fund Management
The fund business boosted its assets under management by 14 percent to 24.4 billion euros. The company attracted 75 billion euros in new business, more than double the year-earlier figure.
Irish Life, created from the 1999 merger of the nation's largest life insurer with mortgage lender Irish Permanent, said new pensions and insurance sales to individuals rose 24 percent to 102 million euros. Earnings from new business rose 61 percent to 45 million euros.

``There were good volumes of new business and we have an attractive product mix,'' Fitzpatrick said. ``If you sell more, you absorb more of the fixed costs. The high level of sales helped our margins.''

At the life unit, the margin on new business rose to 20 percent, exceeding the company's full-year target of 17 percent.

The loan book at Irish Life's banking business increased 22 percent to 23.3 billion euros. Mortgage loans at home, which account for the bulk of the company's lending, increased 8 percent, while in the U.K., where the company lends to landlords, loans grew 19 percent.
Mortgages

Irish mortgage lending grew at the second-fastest pace on record in July as rising employment and the lowest interest rates in 60 years bolstered demand for property. The amount lent to homebuyers rose by 1.8 billion euros after increasing a record 2.1 billion euros in June.

Operating profit at Irish Life rose 5 percent to 196 million euros in the first-half.

The company reported earnings for the first time under European Embedded value rules, which estimate the value of fees to be received in the future from products the company has already sold. The rules were introduced to make it easier for investors to compare insurers' earnings.

Irish Life's shares were unchanged at 15.40 euros as of 8:45 a.m. in Dublin. The stock has risen about 12 percent this year. conference at 10:15 a.m. at the company's head office.

Source www.bloomberg.com

Wellington unveils stronger H1 profit, sees Katrina price boost

2005-09-07T22:37:00.000+01:00

LONDON (AFX) - Lloyd's insurer Wellington Underwriting PLC reported forecast-beating first-half profits, and said it expects to benefit from an increase in the cost of insurance as a result of Hurricane Katrina.Wellington said pretax profits from underwriting rose 78 pct on the year to 57.2 mln stg, ahead of the company's previously-flagged estimate of 55 mln stg.

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Total consolidated profits stood at 69 mln stg, beating the company's own forecast of 66 mln stg.The improvement reflected lower than expected claims expenses, stronger investment income, and a rise in the value of the dollar, which boosted sterling-denominated profits from business written in the US.Wellington provisionally estimated its net exposure to Katrina, which devastated the US Gulf Coast on Monday, at 75 mln usd (40.5 mln stg).

That is comparable to the windstorm losses Wellington incurred in 2004, when the south-eastern US was battered by four major hurricanes in quick succession. However, the group said it expected Katrina to reverse a cyclical decline in the price of insurance policies, opening up fresh opportunities in the months ahead.

"Up until Katrina we've been seeing small declines in the overall market, but (Katrina) will change that quite significantly,"

chief executive Preben Prebensen told AFX News. "Our underwriters are seeing this as a much more significant event than last year.

We believe it'll have a broad impact on ratings levels," he said.Wellington's upbeat outlook on ratings tallies with forecasts from sector peer Amlin PLC, which yesterday estimated its total exposure to Katrina at 110 mln usd.

Total insured losses from Katrina are currently estimated at 9-25 bln usd, potentially beating the 20.8 bln usd damages bill left in 1992 by Hurricane Andrew, currently the most destructive hurricane on record.Wellington set an interim dividend of 1.4 pence per share, up from 1 pence in the first half of 2004.

The company added that it was pressing ahead with plans to return the 18 mln stg proceeds of a partial sale of its stake in US insurer Aspen to shareholders through a share buyback programme.

Wellington shares were up 3 pence at 102 pence by 10.00 am.

Source www.afxnews.com

Royal & Sun faces £25m losses

2005-09-07T22:32:00.000+01:00

Royal & Sun faces £25m losses for Hurricane Katrina damage

HURRICANE Katrina is estimated to have inflicted losses of up to £25 million on UK insurance heavyweight Royal & Sun Alliance.

The group said the provisional figure was for claims arising in its marine and global and risk managed portfolios. Although R&SA does not write any new business across the Atlantic, its customers include international organisations that have offices or property in the storm-hit region.

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At the same time, the insurer also provides cover for shipping firms that may have been transporting cargo through the Gulf of Mexico when the hurricane struck. R&SA said the losses were net of money it expected to be able to recover from its reinsurers.

Shore Capital analyst Eamonn Flanagan said: "In the big picture, we wouldn't view £25 million as material. In fact, we believe the event will increase publicity of why you need insurance and this will benefit the sector as whole."

R&SA has pursued a radical overhaul to reduce its exposure to risk in the US, where it recorded an underwriting loss of around £650m two years ago.

Hurricane Katrina is set to become the most expensive ever natural disaster for insurers, with estimates of the total insured losses currently as high as more than £16 billion.

Old Mutual's risky Swedish connection

2005-09-07T19:23:00.000+01:00

Jim Sutcliffe, chief of financial services group Old Mutual, may not look anything like Roger Moore, but he could still be nicknamed 'the persuader'. Faced with opposition to his takeover overtures from the board of Skandia, the Swedish insurer, he switched his attention to some of its biggest shareholders. And they have clearly done a pretty good job of persuading the board to be more accommodating: although last week's offer was not formally agreed by the Skandia board, indications were that it would eventually give its backing.

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Fridrik Johannsson, chief executive of Icelandic investment group Burdaras, which owns 3.5 per cent of Skandia, and is one of two institutions backing the deal, said: 'We believe in a combination of the two companies. We think they will be a stronger financial group.'

Sutcliffe could hardly contain his enthusiasm. 'Combining these two great companies creates a stronger, better balanced group, with increased growth potential and a reduced risk profile. The industrial logic is compelling.'

Persuading Skandia's shareholders is relatively easy. The company has lurched from crisis to crisis since it shocked Swedish public opinion by handing out £170 million in bonuses to senior staff in 2000 and 2001.

It was embroiled in the market timing scandal in the US, which saw a number of fund management groups accused of malpractice over mutual fund sales, paying $100m (£55m) in compensation and fines. It was also accused of overcharging customers and, in its most recent results last month, had to slash the value of its US advisory business, Bankhall, yet again.

And its shares had languished below 35 Swedish kroner (£2.55) for much of the previous five years, until bid speculation emerged, so the prospect of an offer at around SEK42, which Old Mutual is proposing, must seem very attractive.

As Nicholas Byrne, insurance analyst at JP Morgan, observes: 'Skandia's interim results fail to convince us that the business merits the high valuation.'

For Old Mutual shareholders, however, the attractions are less obvious. In its presentation on Friday, the group trumpeted the strategic fit between the two groups, saying there was little overlap between the two businesses, and promised to cut £70m of costs by introducing its own financial disciplines and incentives.

Sutcliffe points out that it even trumps his long-held ambition of having a three-legged business: Skandia is perhaps stronger in the UK than in its home country, giving Old Mutual access to two new markets instead of just one. But others say Old Mutual is so desperate to do a deal it has ignored the risks.

Philip Gibbs at Jupiter Asset Management, is unhappy with the deal and the amount of new equity Old Mutual will have to issue: at SEK43.60 a share, Skandia is valued at about £3.3bn, compared with Old Mutual's £4.7bn. And, while there is no longer the threat of a rights issue, it is planning to use shares for more than 60 per cent of the price, getting a listing in Stockholm in the process.

Sutcliffe has made much of the company's £1bn acquisitions war chest, but that refers to its borrowing capacity: its cash resources are only about £100m. Paying around £1.25bn in cash will leave it with gearing - borrowings compared with net assets - of well over 30 per cent.

Buying Skandia will reduce Old Mutual's dependence on its South African homeland, which accounted for more than 80 per cent of profits last year, despite half its life sales and almost three-quarters of assets under management coming from the US and Britain.

But just a year ago, its strategy was to buy a closed life book - the technical term for a life insurance business that is no longer taking in new customers - now, having been pipped at the post by companies such as Resolution and Britannic (themselves now merged), it has been forced to abandon these ambitions.

Some parts of Skandia do look attractive. In Britain it is one of the favourite suppliers of unit-linked bonds through independent intermediaries. Last year, Skandia's new business sales rose by 43 per cent, more than four times as fast as the average for the market.

But cynics say that is simply because of the higher commissions it pays; if Old Mutual tries to bring these costs in line with the rest of its business, much of its appeal to independent advisers could vanish.

And changes in the market that allow banks to link with more than one life office have already increased competition and, says some analysts, could affect Skandia, whose name is not as well known as British giants like Legal and General or Prudential.

In Sweden, however, its business has been struggling to overcome the poor publicity resulting from the scandals - and there is no guarantee a new owner will mean an end to these problems.
As Old Mutual knows only too well, acquisitions are hard enough in a familiar market; overseas deals can be even more complicated.

Its fund management business was itself caught up in the US market-timing scandal. And, to take another example, it bought broker Gerrard in Britain for £525m, close to the top of the market in 2000, and sold it three years later to Barclays for £210m.

Admittedly it had recouped some of the outlay from other disposals along the way but, all in all, those who doubt whether the Old Mutual/Skandia deal is an unreservedly good thing may be justified in resisting the persuader's charms.

Persuader from the Pru

The head of Old Mutual, Jim Sutcliffe, has long wanted to add a 'third leg' in the UK to balance it US and South African businesses, so it may seem strange that he is courting a Swedish company.
But the UK operations are the jewel in Skandia's crown, accounting for half of it's £3.1 billion value. And 50-year old Sutcliffe has plenty of experience of UK life insurance. Although he was born and educated in the company's South African homeland, his career until he joined Old Mutual five years ago has been as British as they come - for 24 years, before being ousted by then chief executive Sir Peter Davis, Sutcliffe was the Man from the Pru, running its British life business and, before that, it's US operation.

Given that he will now have to add Stockholm to the list of cities he has to visit, it is just as well he lists travelling as one of his interests.

Insurers face $40bn claims after Katrina

2005-09-07T19:19:00.000+01:00

BRITISH and American insurance industries face claims topping $40 billion following the devastation in the wake of Hurricane Katrina.

The figure, leaked to The Observer by sources within the Lloyds of London insurance market, is similar to the hit taken by companies following the terrorist attacks in September 2001. As a consequence, businesses face huge hikes in insurance premiums.

According to a document circulating within Lloyds of London insurance syndicates, the devastation left by the hurricane is equivalent to a worse-case scenario sketched out by Lloyds forecasters two years ago. The forecasters published a paper on the effect on the industry of a major hurricane in the Gulf of Mexico - where Katrina wrought havoc last week.

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The highly secretive department at the Lloyds market, dubbed Department X, has also prepared estimates of the damage that could be caused by an earthquake along the St Andreas fault line in California measuring nine on the Richter scale. In those circumstances, the bill could be five or six times higher. Lloyds of London is expecting a hit of between £1bn and £2bn following last week's carnage, about 25 per cent less than its exposure after 9/11.

Massive claims are expected from oil companies in the Gulf of Mexico after Katrina destroyed rigs and refining equipment along the coast. Other claims will come from casino and club operators in New Orleans. Shipping companies are also among the claimants as well as businesses whose premises were demolished.

Insurance companies with the highest exposure are thought to be Munich Re, Swiss Re, AIG and Berkshire Hathaway, run by legendary US investor Warren Buffett.

Source www.telegraph.co.uk

UK Life Insurance Shows Impressive Growth

2005-09-07T19:16:00.000+01:00

The UK life insurance market has shown impressive growth through individual pension products, says Morgan Stanley.

"We are becoming increasingly relaxed about the protection market," it says.

Points to positive August IFA survey data, stronger mortgage approval data, the Bank of England base rate cut, and comments from Prudential (PRU) and Standard life regarding 2H '05 intentions.

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But warns of increased competition in other product areas. Has an overweight rating for Prudential, equal weight for Friends Provident (FP.LN) and Legal & General (LGEN.LN), and underweight for Aviva (AV.LN). Also underweight on the sector. (DWE)

CII Launches New Contract Certainty Certificate Education Course

2005-09-07T19:09:00.000+01:00

The U.K.'s Chartered Insurance Institute (CII) announced the launch of a new certificate "to help individuals and organizations meet the FSA's [Financial Services Authority] contract certainty challenge."

The CII said the Certificate in Contract Wording is "designed to boost knowledge of the practical application of wordings and the issues associated with them," and to develop the "understanding of the key subjects underpinning contract certainty."

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Mike Pulfer, manager of the CII's London Market Faculty commented: "We are nearly at the halfway point in the FSA's two year challenge to the market to end the 'deal now, detail later' approach.

It is clear that while progress has been made there is still some way to go and this new Certificate is set to play a major part in helping the market achieve its objective."

The bulletin noted: "There are two components to the Certificate which has been developed by the CII's London Market Faculty and the International Underwriting Association, with input from Lloyd's and the trade bodies.

The first is the CII's existing Diploma level Insurance Law (PO5) unit or equivalent, while the second is the new Commercial insurance contract wording unit (P21). Completing both units will result in the award of the Certificate.

Pulfer warned that, although the FSA's deadline may seem to be long way off, "leaving it to the last minute is not an option. Underwriters and brokers need to be up to speed as soon as possible if the market as a whole is to achieve the required level of certainty."

The CII will introduce a new one-day face-to-face training course later this month "to help experienced practitioners who wish to take the new P21 unit at its first examination sitting in October. The course aims to refresh knowledge and give insights into current thinking and is also available for those who are not taking the exam.

A coursebook and update service for the P21 unit will be available from January 2006 for those wishing to take the examination next year. Further details can be obtained at: www.cii.co.uk/cicw.

Companies see closed final salary schemes as burdens

2005-09-07T19:02:00.000+01:00

Growing numbers of companies with closed final salary schemes see them as an "unwanted legacy", according to Aon, a pensions consultancy.

Over time, more of them will want to reduce or shed the cost of the liabilities on which the futures of millions of people still depend.

Of the UK's 200 biggest defined benefit pension schemes no fewer than 50 were now bigger than the market capitalisation of their sponsoring company, Aon found. Almost 90 per cent of those that were closed to new members remained "significantly concerned by the drain on their finances".

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The survey, of the 200 largest pension funds and of 130 companies with closed schemes, showed that 43 per cent of the latter perceived their scheme as "an unwanted legacy" - a figure that rose to 60 per cent where the scheme had been closed to new members for five years or more.

Donald Duval, chief actuary at Aon, said: "That implies they want to get out of them", although he added that the survey found 70 per cent had no exit strategy.

However, "once a scheme has been closed for 10 years, options to get out become more available", he said.

The liabilities to pay out to existing pensioners can be hived off to an insurance company and the scheme more easily redesigned for the remaining members who make up a shrinking percentage of the workforce.

There were a wide range of options available, Mr Duval said, which could include asking employees to contribute more or closing the scheme to further contributions and switching members to money purchase pensions.

Because, after a decade, there would be fewer people in the scheme "any changes are either cheaper for the company to make, or, if they involve reducing benefits, there are fewer people to upset".

Mr Duval added: "I don't think companies will be able to get out of their pension schemes tomorrow. But the fact that so many see them as an unwanted legacy suggest they will start thinking about how to do that."

The costs and risks to companies from pension schemes did not disappear when the fund was closed to new members, he said, and "a company which doesn't have a strategy for managing its pensions legacy properly is likely to get a poorer return on its assets".

Given the size of pension funds, "if the difference is only 10 per cent, this translates into a lost opportunity of £28bn for UK companies".

Aon's warning came as the Trades Union Congress stepped up its campaign for compulsory employer contributions to pensions.

Noting that the EEF, the manufacturers' organisation, had come out in favour of extra compulsion, the TUC said it was the most efficient way of ensuring that people saved enough for retirement.

"Voluntarism is only cheaper to the extent that it fails to get people saving."

FSA condemns insurers scare tactics

2005-09-07T18:57:00.000+01:00

The Financial Services Authority has accused insurance companies of "scaremongering" and using "misleading information" and "unsubstantiated claims" to promote sales of critical illness policies.

Evidence of these problems was uncovered by the FSA's financial promotions monitoring unit, headed by Anna Bradley. The FSA has warned that regulatory action could follow if the firms involved fail to clean up their act.

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The regulator has refused to name and shame the offenders at this stage, but warned that it would conduct further reviews to ensure that promotional material and advertisements met regulatory guidelines in future.

Critical illness plans pay out a lump sum, usually sufficient to pay off the mortgage, if the policyholder is diagnosed with a serious condition such as cancer, heart disease or stroke. Many policies are now sold alongside home loans.

However, these policies have been dogged with criticism in recent years. Premiums have risen sharply amid soaring claims, and insurers have also tried to restrict cover. For example, many newer policies no longer pay out for certain cancers that are detected at a very early stage.

The FSA found evidence that some firms used "unsuitable tactics". These included the use of misleading statistics, where promotional material focused on the likelihood of contracting a certain disease, such as cancer, even though not all forms of the disease in question would have been covered by the policy. Firms also failed to give enough prominence to key terms and conditions or exclusions

Laurence Baxter, the principal policy adviser at Which?, said the consumer group had uncovered a similar catalogue of mis-selling tactics. But he urged the FSA to take tougher action and fine companies that are found to have breached the regulatory guidelines.

The latest research is just one part of the regulator's continuing investigation into critical illness cover. The FSA is also considering a further inquiry into how these policies are sold, particularly as part of a mortgage sale.

Source www.telegraph.co.uk

AMP sells 11% in UKs Henderson

2005-09-07T18:51:00.000+01:00

AMP, Australia’s second-biggest funds manager, has finally ended its troublesome chapter in Britain after selling its 11.3per cent stake in Henderson Group for A$212m ($162m).

AMP spun off its struggling British operations in December ’03, but it retained a stake in HHG, which changed its name to Henderson Group earlier this year after selling its life insurance businesses such as Pearl.

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A string of crises, including top-level resignations, a boardroom shake-up, the costly acquisition of general insurer GIO in 1999 and heavy writedowns on securities losses in Britain during a crippling bear stockmarket had stung the 156-year-old AMP.

AMP, which told its shareholders in May the crisis was over, said on Monday it had sold its Henderson (HGI) stake to a London fund manager and UBS AG, a Swiss investment bank. “HGI shares have traded higher since the demerger and we always believed it would take some time for the market to reflect fair value for the company,” chief executive Andrew Mohl said. The 130.56m shares in the dual-listed HGI were sold for an average price of A$1.625 per share or 67.7 pence, an AMP statement said.

The Australian shares of Henderson were trading down 0.6per cent at A$1.655 by late morning. Shares of AMP, which had valued HGI on its books at A$185m in June, were down 1.4per cent. The stock has underperformed the benchmark S&P/ASX 200 Index by about 3 percentage points so far this year.

AMP said the HGI sale plus gains made from the sale of its life insurance joint venture in India and the exercising of 15m in Suncorp-Metway warrants would be used to “support the planned ’06 capital returns to shareholders”.

When AMP jettisoned its UK operations it received a 15per cent stake to compensate for the capital it had pumped into the UK businesses when the companies split. Its stake was whittled down by not taking part in HGI capital raisings.

AMP posted Australia’s second-worst corporate loss of A$5.54bn for ’03 when its took huge writedowns and provisions, but it has since returned to profit. Henderson, also a fund manager, last month posted a 65per cent rise in first-half pre-tax profit to 35.2m pounds.

Islamic banking expands to more towns

2005-09-07T18:44:00.000+01:00

Lloyds TSB is to offer Islamic banking in more places than ever before. The bank, along with HSBC and The Islamic Bank of Britain, currently offer services to the UK's two-million strong Muslim population. Islamic, or Shariah, law forbids the charging or receiving of interest, making conventional mortgages, overdrafts, and many investment funds off limits.

While shares and dividends are acceptable, speculation is forbidden. Additionally the only companies that are Halal (permissible) to own shares in cannot have income from alcohol, pork-related products, pornography and nudity, conventional financial services, gambling, tobacco, armaments and human or animal genetic experimentation.

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This limits the financial options available to Britain's Muslim population, however there are ways to look after your money while keeping true to your faith. Muslim mortgages, where the home is bought by a bank which then charges rent to the occupier instead of interest, are available - as are Shariah-compliant child trust funds and bank accounts.

And as of today, Shariah services will be on offer from four more Lloyds TSB branches, with many more are set to begin offering similar products by the end of the year.

Gordon Rankin, Lloyds TSB Islamic financial services, said: "This expansion of the pilot is yet another milestone on the road to making Islamic banking available to all Muslims in the UK.

There is now a real choice on the high street for Muslims who want an alternative to conventional current accounts and mortgages and we're proud to be able to give these customers something we know that they will value. "By the end of the year our customers will be able to access Islamic current accounts and home finance in many more branches across the country. We're offering products which not only meet the needs of Muslims, but, are also truly competitive.

The fact we're expanding the pilot is testament to the popularity of our Islamic financial services offering so far." Lloyds branches in Slough, Walthamstow, Stevenage and Barkingside will join the existing 12 branches in the scheme, offering a current account and home finance service, which comply with Islamic Shariah law.

The Children's Mutual offers a Shariah compliant child trust fund, while HSBC is looking into Shariah insurance, pensions and even savings accounts. For believers who would rather not go to a western bank, The Islamic Bank of Britain opened in September last year, offering current accounts, home purchase schemes and savings accounts.

Prudential receives approval to set up fund management joint venture in China

2005-09-07T18:28:00.000+01:00

Prudential plc has received approval from the China Securities RegulatoryCommission (CSRC) to set up a new fund management joint venture in China.

CITICPrudential Fund Management Company will be headquartered in Shanghai and will offer retail investment products nationwide. This funds management operation is Prudential's ninth in Asia and adds to its rapidly growing portfolio of funds businesses.

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Prudential and CITIC will be the two primary shareholders and hold equal stakes in the new joint venture with the balance held by China-Singapore Suzhou Industrial Park Venture Company and Suzhou New District Economic DevelopmentGroup.

Mark Norbom, Chief Executive Prudential Corporation Asia said,

"We are very pleased to have reached this latest milestone in our plan to build a financial services business in China. With the strong support of our partner CITIC we already have an enviable life insurance business in China and our new funds management operation underlines our continued commitment, not only to our very successful partnership with CITIC, but also to the rapidly growing Chinese financial services market."

Ajay Srinivasan, Chief Executive, Fund Management, Prudential Corporation Asia added,

"Prudential has an excellent track record of building successful funds management businesses in Asia. We plan to leverage this extensive experience as we work towards our goal of building a significant and profitable funds management business in China. We are very committed to making a positive contribution to both the Chinese funds management industry and Chinese investors."

About PrudentialPrudential plc is a leading international financial services group, providing retail financial services and fund management in its chosen markets: the United Kingdom, the United States, Asia and continental Europe. Prudential has been writing life insurance in the United Kingdom for over 150years and has had the largest long-term fund in the United Kingdom for over a century.

Today, Prudential has over 16 million customers worldwide and over £214 billion (as of 30 June 2005) of funds under management. In the United Kingdom Prudential is a leading life and pensions provider offering a range of retail financial products. M&G is Prudential's UK & European Fund Manager, with around £133 billion of funds under management (as at 30 June 2005). Jackson National Life, acquired by Prudential in 1986, is a leading provider of long-term savings and retirement products to retail and institutional customers throughout the United States.

Egg plc, in which Prudential has a 78 per cent shareholding, provides banking, insurance and investment products through its internet site www.egg.com. Prudential is the leading European-based life insurer in Asia with life insurance operations in twelve countries.

In addition to its Asian life insurance operations Prudential has asset management businesses in India, HongKong, Japan, Taiwan, Malaysia, Singapore, Korea, Vietnam and China managing over£26 billion in Asia sourced funds under management (as of 30 June 2005). Four of the nine asset management businesses have top five market rankings based on funds under management (India, Hong Kong Mandatory Provident Fund, Malaysia,Singapore as of 31 May 2005).

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*Prudential plc, a company incorporated and with its principal place of business in the United Kingdom, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout theworld. It has been in existence for over 150 years and has over £214 billion in assets under management, as at 30 June 2005. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.

About CITIC Group (China International Trust and Investment Corporation)

CITIC was established on October 4 1979 by Rong Yiren. The creation of CITIC was initiated and approved by Deng Xiaoping, chief architect of China's reform. CITIC is a window on the way China has opened to the outside world. Since itsinception, CITIC has always adhered to the principle of innovation. In line with government laws, regulations and policies, CITIC has attracted and utilised foreign capital, introduced advanced technologies, and adopted advanced and scientific international practices in operations and management.

CITIC has established successful, strong performing businesses in many fields. As a result, CITIC has made significant contributions to the country's reform and opening up drive and has improved China's reputation both domestically and abroad.CITIC has grown into a large multinational conglomerate. It now owns 44 subsidiaries in countries including Hong Kong, the United States, Canada,Australia and New Zealand.

The company has also set up representative offices inTokyo, New York and Frankfurt. CITIC's core business ranges from financial services to service industries. By the end of 2004, CITIC had total assets of over RMB 701.6 billion (Approximately £47bn as at 31 December 2004)

About China-Singapore Suzhou Industrial Park Venture Company (CSVC)

CSVC specialises in funding the development of new high-tech enterprises in China. Based in Suzhou, the company offers a range of services including venture capital funding, loan guarantees, mergers and acquisition and advice on initial public offers.

The company also provides project management assistance to the companies it has funded including international economic and technicalexchange. About Suzhou New District Economic Development Group (SND)SND primarily focuses on the development and management of real estate in newindustrial areas in Suzhou. It has other businesses including real estate brokerage, public recreational facilities developments and a travel agency.

UK's Goshawk sees Katrina claims at $25-30 mln

2005-09-07T18:23:00.000+01:00

UK-listed Goshawk Insurance Holdings Plc (GOS.L: Quote, Profile, Research) said on Tuesday it expected claims of $25 million to $30 million from Hurricane Katrina.

It said the claims were not expected to reduce Goshawk's year-end capital, but it said the company was still exposed to further catastrophes before the end of the year.

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As a result of the imapct of Katrina on the insurance industry, however, Goshawk is likely to benefit from substantially increased prices and terms and conditions on the business it does for 2006, the company said.

Katrina, which devastated large parts of the U.S. Gulf Coast and may have left thousands dead, may be the costliest natural catastrophe in history.

£2m windfall for Admiral staff

2005-09-07T18:16:00.000+01:00

MOTOR insurance group Admiral yesterday posted its best-ever half-year core profits, as well as confirming that its 1,600 staff will share in a £2m-plus share windfall.

The Cardiff and Swansea-based group, which last year floated on the London Stock Exchange, reported a 17% surge in core profits for the first half of 2005 up from £48.6m to £56.9m on 2004 - core profit is operating profit less charges for staff share schemes and bonuses paid in lieu of dividends.

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It also revealed a 19% half year hike in group turnover to £319.3m.
At the end of the reporting period - June 30 - Admiral also drove up its customers on the first half of 2004 by 49,000 to 1,057,000.

Of its various motor insurance brands, its online vehicle elephant.co.uk continues to lead from the front with a 38% and growing share of the group's customer base. When the company floated last year Admiral staff received an on average equity windfall of £39,000.

With financial targets achieved in the first half of this year, staff will receive a further round of 400 shares at a current value of around £1,500 - although they cannot be sold for three years.
Subject to targets being achieved again for the second half of this year, staff will be in line for a similar share bonus.

Yesterday Admiral's Chicago-born chief executive Henry Engelhardt said he was delighted with the progress of Admiral, which he described as "pound for pound" being one of the most profitable motor insurance companies in the UK.

On the industry's key performance indicator of combined ratio Admiral has a 86.5% rating - which in effect means for every £1 of revenue it generates it incurs costs - including paying claims - of 86.5p. The industry average is for a loss-making ratio of around 105%.

Mr Engelhardt said, "Not only did we make a record core profit, but we did this in an environment of declining market profitability. Furthermore, we raised our rates in the period [around 3%] and yet we were still able to grow our premium income and customer numbers.

"In the short term we plan to maintain a significant combined ratio advantage over the market average and continue to grow our book of business. As part of our longer-term strategy we continue to investigate opportunities for business outside the UK

"Elephant [which has around 400,000 customers] is our biggest brand and has had another good six months, but Admiral also picked up again. None of our brands performed badly, but those two were probably the best."

Mr Engelhardt said the impact of increased oil prices was unlikely to impact on the sector.
"The increase in petrol prices could reduce the amount of people who drive and therefore reduce the number of accidents," he said.

"But the reality is that most people are very reluctant to give up the use of their car."
However, he said the fallout from Hurricane Katrina in America was likely to see capital being taken out of the insurance sector.

He added, "We saw that after September 11 and the result was that the upside of the cycle was extended by about a year."

The upside is achieved as a result of capital out being driven out of the sector, allowing insurance companies to charge higher premiums.

"We will have to wait and see, Hurricane Katrina could have a beneficial indirect impact on the UK motor insurance sector," said Mr Engelhardt.

He added, "We are confident that we will be able to continue to grow and make money, even though it is the harder side of the cycle and is not easy out there."

The company's stand alone motor insurance broker Confused was also trading positively, he said.

"Confused is doing well and is an important part of our business."

However, he said if an offer came in for the business it would have to be considered - but stressed there were no plans to put Confused up for sale.

He added, "We are not the biggest, but pound for pound we are probably the most profitable motor insurance company in the UK."

Admiral Group has around 4-5% of the UK's market share. Mr Engelhardt said, "There is a real feeling at the moment that getting to 15% of the market doesn't represent any kind of a block. However, above that then growth becomes more difficult, but that is still along way off for us."

LIC plans to penetrate EU market

2005-09-07T18:13:00.000+01:00

NEW DELHI: Life Insurance Corporation on Wednesday charted a 3-pronged strategy to increase its presence in Europe, including a direct entry or through joint ventures.

The country's largest insurer is also eager to "co-brand" some of its insurance and pension product with European players to enter that market, LIC managing director K Sridhar said at the sixth India-EU Business Summit here. "We have three models for entering EU.

One is direct entry. Second is through a joint venture with a local partner. The third is to operate as broker of a local company," he said. LIC, which is perhaps the largest insurer in terms of number of policies now at over 16 crore, has decided to increase its foothold in EU despite the fact that it is a matured market and is dominated by all the global majors.

The state-owned insurer is now present only in the UK, but is keen to enter other European nations where there are growth opportunities. As part of the expansion plans, LIC has decided to foray into overseas markets where New India has operations.

The government has provided Rs 280 crore to LIC in the budget for seed capital required for its overseas ventures. Apart from EU, the state-owned insurer plans to enter Australia and New Zealand markets.

Sridhar said LIC has presence in Gulf nations through its arm LIC International (Bahrain). "We will soon start operations in Saudi Arabia, where our joint venture company will sell both life and general insurance products," he said.

QBE Insurance Says Katrina Claims Within Allowances

2005-09-07T18:08:00.000+01:00

QBE Insurance Group Ltd., the second- biggest underwriter in the Lloyd's of London insurance market, said its net claims from Hurricane Katrina are ``within allowances'' for large losses and catastrophes.

The Sydney-based insurer reaffirmed in a statement today an earlier forecast for an insurance margin as high as 16 percent in 2005. The margin is underwriting profit plus investment returns as a percentage of premium income.

U.S. insurers such as Allstate Corp. and St. Paul Travelers Cos. may face record losses after Hurricane Katrina flattened the Gulf Coast and flooded New Orleans. Insurance claims will be $20 billion to $35 billion, Risk Management Solutions Inc., a California-based consultant to the insurance industry, has said.

The estimate suggests claims from Katrina may surpass the $20.8 billion of insured losses from Hurricane Andrew in 1992, the U.S. insurance industry's most expensive catastrophe.

``A $50 billion-type event might cost QBE A$250 million ($192 million) to A$300 million pretax net of reinsurance,''

Tony Jackson, an analyst at Macquarie Bank Ltd., said in a report last week. ``However, that's before contemplating the A$1.3 billion of premium set aside for such losses.''

Shares Rise
QBE's profit in the six months ended Dec. 31 rose 51 percent to A$500 million, even after A$230 million of net claims from four U.S. and Caribbean hurricanes in the half and A$80 million of claims from the Dec. 26 tsunamis in Asia.

Shares in QBE, Australia's biggest property and casualty insurer, closed 21 cents, or 1.2 percent, higher to A$17.21 in Sydney.

Most of QBE's insurance cover for windstorm damage in the U.S. is in Florida, rather than Louisiana and Mississippi, and excludes flood risk, Macquarie's Jackson said.

He rates QBE ``outperform'' with a 12-month stock price target of A$18.65.

Brit Insurance Yield Is Attractive -ABN Amro

2005-09-07T18:04:00.000+01:00

ABN Amro says Brit Insurance (BRE.LN) 1H is as strong "as expected.

" Notes the shares continue to offer an "attractive" yield at over 7%, supporting its add rating.

Sees potential for a return of capital shareholders, subject to the CULS (Convertible Unsecured Loan Stock) conversion and market conditions.

Says profits are underpinned and the impact of Hurricane Katrina look "manageable," with the initial estimate at GBP82.4M. Shares -0.3% at 89p. (PBA)

Business contributing to insurance fraud

2005-09-07T18:01:00.000+01:00

A syndicate of major insurers, the ABI, and insurance industry partners have conducted a major investigation into the scale and nature of commercial insurance fraud.

Too little is known about commercial insurance fraud. To plug this gap, the syndicate asked MORI to survey people responsible for insurance in 1,100 companies. Three hundred employees from a range of occupations were also interviewed.

The survey, which is being released tomorrow, will suggest that the most costly frauds are those which are either entirely bogus or staged.

Invented or staged claims are relatively low in volume, but higher in cost, because the costs of the claims are generally higher. It will also demonstrate that companies were as likely to be the victims of fraud as the perpetrators

The financial cost to the Insurance industry when the figure is released, will be of significant concern to all in commerce as the cost of such fraud is borne by the honest majority of policyholders.

CCH INSURANCE SERVICES Provides Micro Site to Help Insurers Identify Compliance Changes in Gulf States in Wake of Hurricane Katrina

2005-09-07T17:23:00.000+01:00

CCH(R) INSURANCE SERVICES, a part ofWolters Kluwer Corporate & Financial Services division and the insuranceprofessional's first choice for regulatory compliance solutions, announced today the availability of a new micro site summarizing regulatory compliance information for insurers responding to catastrophe in the wake of Hurricane Katrina.

This web site ( http://www.insurance.cch.com/katrina ) is being provided free of charge as a public service to insurers.

"Affected states are now issuing requirements and other directivesspecifically related to this catastrophe," Joe Bieniek, compliance manager for CCH INSURANCE SERVICES, said. "We want to provide insurers with a resource that will help them easily determine what is required in Alabama, Florida,Louisiana, and Mississippi so they can respond to claims quickly, avoid confusion, and maintain compliance"

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CCH INSURANCE SERVICES' staff of compliance professionals are closely monitoring news releases, statements, and other directives from the affectedstates and then posting relevant information on the CCH INSURANCE SERVICESsite as it becomes available.

This includes contact information for the affected states, links to more information being issued by the states, andlinks to the full text of referenced citations from NILS INSource(TM), the leading insurance regulatory research tool.

"The damage caused by Hurricane Katrina is immeasurable," Tony Boschetto, director for CCH INSURANCE SERVICES, said.

"We wanted to make it easier forinsurers by helping them to find critical regulatory compliance informationrelated to the disaster quickly and in one location."

CCH INSURANCE SERVICES is attending the Louisiana Department of Insurance's emergency summit in Atlanta on Wednesday, September 7, 2005. A summary of that event and how it impacts insurers from a regulatory compliance perspective will be posted to the new insurer resource page at http://www.insurance.cch.com/katrina on September 8.

About CCH INSURANCE SERVICES CCH INSURANCE SERVICES, a part of Wolters Kluwer Corporate & Financial Services division, is the leading provider of insurance-focused compliance tools, research, analysis, and forms. With more than 140 years of insurance regulatory experience, CCH INSURANCE SERVICES offers some of the industry's most highly respected brands-NILS INSource, ComplianceWare(R), UniformAuthenticForms(TM), and AuthenticWeb(TM). CCH INSURANCE SERVICES provides a complete compliance solution, from research and market conduct analysis toforms processing and integration.

To learn more about CCH INSURANCE SERVICES,visit http://www.insurance.cch.com or call 800.481.1522.

Wolters Kluwer is a leading multinational publisher and information services company. The company's core markets are spread across the health, corporate services, finance, tax, accounting, law, regulatory, and educationsectors. Wolters Kluwer has annual revenues (2004) of euro 3.3 billion, employs approximately 18,400 people worldwide, and maintains operations across Europe, North America, and Asia Pacific. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Its depositary receipts of shares are quoted onthe Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100indices.

All trademarks are the property of their respective owners.
SOURCE Wolters KluwerWeb Site: http://www.insurance.cch.com

Scottish Widows in jobs to India Row

2005-09-07T16:35:00.000+01:00

INSURANCE firm Scottish Widows is to outsource 125 jobs to India. The Edinburgh-based firm said the jobs will be back-office roles and would not involve customer contact work.

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'There will be no compulsory redundancies as a result of this work and our aim is to minimise the impact on our people,' said the company. 'However there will be some internal re-assignments and moves across our client services function in support of this work.

'Any reduction in roles will be managed through natural turnover, the reduction in temporary agency employees and a decrease in overtime.'

Trade union Amicus said offshoring was 'short-sighted cost-cutting' and of no benefit to the UK economy. 'We are concerned that this is another example of the 'follow my leader' approach that many financial organisations have taken,' said national officer David Fleming.

The union said workers were 'shocked and concerned' about the announcement.
Steve Tatlow, assistant general secretary of the Lloyds TSB Group Union added: 'It is unacceptable that the work of staff in Edinburgh is being made redundant merely because they can be replaced by workers paid a fraction of the salary in India.'

Insurance firms braced for billions of losses in claims

2005-09-07T15:59:00.000+01:00

INSURANCE companies are facing a nervy few weeks as the full effects of Hurricane Katrina become known, with the bill for damages expected to take a chunk out of full-year profits.

The total cost of the catastrophe is expected to top $25 billion (£13.6bn), with many analysts predicting that the estimate could go higher. The bill for the Lloyd's market was being put at around £1bn yesterday, although it will be some time before a clear picture emerges.

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In previous hurricanes, most claims have come from home-owners for property damage. But in Katrina's case, the impact on companies operating onshore and offshore in the Gulf of Mexico has been far more marked. That means that commercial insurers such as Lloyd's will pick a greater proportion of the tab.

Robert Hartwig, chief economist of the Insurance Information Institute, the central US statistics body for the industry, said: "With the hurricanes last year, only about a third of the claims cost was from businesses. For Katrina we should have between 40 and 45 per cent of claims being commercial."

German reinsurance giant Hannover Re has already warned that the cost of the disaster will pull its profits lower. The firm said it was "extremely unlikely" that its full-year net profit would reach its previous forecast of €430-470 million (£292.5-320m).

The company insisted it would meet "at least" the 2004 level of €309.1m, but that is a around third lower than previous expectations.

Hannover Re acts to cover insurance firms against the cost of big claims. It is the fourth-biggest reinsurance group in the world.

The tsunami that devastated parts of Asia at Christmas cost Lloyd's just £100m - partly due to the low penetration of policies in those regions.

Brit Insurance CEO says Katrina largest ever loss

2005-09-07T15:28:00.000+01:00

Hurricane Katrina is the costliest disaster ever, with the insurance industry slice of the clean-up bill reaching as much as $50 billion (27.2 billion pounds), the chief executive of Brit Insurance (BRE.L: Quote, Profile, Research) said on Tuesday.

"Be in no doubt this is the largest insured loss that has ever occurred. The trouble is we have no idea how big it will be," Dane Douetil, Brit Insurance Holdings Plc's CEO, said in a conference call with reporters.

The ultimate insured loss is likely to be far above what is currently being estimated by experts, he said. "It would be more prudent to work on an industry loss of nearer $50 billion than it would $35 billion."

But a Lloyd's of London senior executive sought to play down talk of such a big industry loss. "So far Dane is the only one who's said that," Rolf Tolle, the market's franchise performance director told Reuters on the sidelines of an industry meeting in London.

At the moment, the industry's claims are likely to come in at the top end of the current loss range, at around $30-35 billion, Fitch Ratings analyst Chris Waterman said at the meeting.
At that level, the earnings of reinsurers, who are expected to take the brunt of the claims, will be badly hit, but their capital bases are not expected to be impaired, Waterman said.

"It is more likely to be an earnings issue rather than a balance sheet issue for the (reinsurance) industry," Waterman said. "It won't be a major capital issue."

Reinsurers had been set to make bumper profits in 2005 on the back of strong underwriting results, good investment income and relatively low claims, before Katrina hit.
If insurers' bill for Katrina did top $50 billion then the industry's financial muscle could be weakened, Tolle said. "At more than $50 billion it may become a balance sheet issue, but it isn't clear yet for which insurers."

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The insurance industry has never had to deal with the range and complexity of claims that are likely to come from the damage wrought by Katrina, which devastated the U.S. Gulf Coast last week and may have killed thousands.

"You have buildings standing in water for what could be up to 80 days, which is the time period they're thinking of before they can get the flood water out. What you're now talking about is constructive write-off for virtually all the buildings,"

Douetil said Normally if a hurricane hits an area, buildings that have been damaged but not destroyed can be repaired. But because of the widespread flooding that accompanied Katrina, many thousands of homes may effectively have to be destroyed and rebuilt.

Pollution caused by chemicals and other substances that have been washed out of factories by the floodwater may also cost a lot of money to clean up, Douetil added.

"This is the kind of loss that nobody has any experience of," Douetil said.
Brit said it was too early to put a figure on its own claims from the hurricane.

Three other UK insurers said they were braced for claims from the disaster.

Wellington Underwriting (WUN.L: Quote, Profile, Research) said it expected claims of about $75 million,

while Royal & Sun Alliance (RSA.L: Quote, Profile, Research) said it expected claims of about 25 million pounds.

Goshawk Insurance Holdings (GOS.L: Quote, Profile, Research) said its claims were likely to be $25-30 million.

Source Reuters

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Transport for London says Pool Re covers it against terrorism damage

2005-07-12T09:58:00.000+01:00

Transport for London (TfL) has said it is insured againstterrorism-related property damage by Pool Re, the government-backed reinsurerset up especially to provide cover against terrorist explosions.

The announcement confirms that Thursday's bomb blasts on the London transportnetwork, in which at least 52 people died, are likely to give rise to the first claims against Pool Re since the IRA's mid-1990s London bombing campaign.

In a statement, TfL added that it is not insured against business interruption,in common with most railway companies.There is as yet no firm indication of the total cost of the attacks to theinsurance industry.

There were a total of four explosions, three on the Londonunderground and another on a bus travelling through the centre of the capital. Claims are expected both for physical damage and for business interruption costs.

The Lloyds of London insurance market has said any loss to its members will be"limited," and that it expects any claims against them for property damage to be"minimal".

On Tuesday, the London underground's Circle Line remains suspended, while King'sCross St. Pancras station is operating with reduced facilities. There are disruptions also on the Metropolitan, Piccadilly, District, and Hammersmith &City Lines.

Pool Re, funded by annual premiums from UK property insurers, is believed to be well financed as it has not had to make any payouts for several years.

The company covers all claims above a maximum of 75 mln stg per event, or 150 mlnstg per year. The government has pledged to step in if Pool Re's own funds are exhausted.

Pool Re was set up at the government's instigation in 1993 after a spate of IRAbombs led commercial insurers to withdraw from the market for terrorism cover.

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Royal Liver Insurance Scoops British Insurance Award

2005-07-12T09:54:00.000+01:00

ROYAL Liver has beaten the cream of the insurance industry to scoop Marketing Initiative of the Year at the 2005 British Insurance Awards.

The award went to the Liverpool company's cutting edge e-only protection service Progress - the UK's first virtual life office. It was presented at a ceremony at London's Albert Hall.

Progress is an extension of Royal Liver's traditional business, according to chief executive Steve Burnett, who said: "It is a great testament to the hard work, creative vision and innovation of the team, which mirrors the culture across the whole of Royal Liver."

It is Royal Liver's second major award of the summer, with its nationwide financial services advice company Park Row winning the Financial Advisor Life and Pensions IFA of the Year.

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