Apr
30
Canadian Insurer IAG acquires Texas-based American-Amicable Insurance
Filed Under Insurance Company, Life Insurance, USA Health Insurance | 1 Comment
Industrial Alliance Insurance and Financial Services (IAG), a Quebec-based insurance and financial services company has reached an agreement on purchasing all outstanding shares in American-Amicable Holding Inc., owner of U.S. life insurer American-Amicable Life Insurance Company of Texas for C$ 145 million (US$ 144 million).
Industrial Alliance is carrying out the acquisition through their wholly-owned subsidiary in the United States, IA American Life Insurance Company, in an effort to make greater inroads to the U.S. middle-income life insurance market. IAG, which is Canada’s 4th largest life insurer, had an equity issuance in February 2010 which earned them C$ 200 million, about half of which will be used to pay for the purchase of American-Amicable alongside C$45 million in excess capital.
The deal has been well received by analysts and the stock market at large, with IAG shares rising 0.9 % to C$35.37 on the Toronto Stock Market where it is listed. The acquisition of American-Amicable opens new life insurance markets for IAG, as American-Amicable is licensed to sell life insurance products in 49 states and territories, including major American markets such as California, Illinois, Texas, Alabama, North Carolina and Puerto Rico. American-Amicable has about C$ 7.1 billion worth of life insurance policies in force with a compound annual growth rate of approximately 13% over the last five years; Industrial Alliance says that the acquisition could add C$ 0.09 to annual earnings per share.
Companies Mentioned:
American-Amicable Holding Inc.
American-Amicable Holding Inc. is the holding company of American-Amicable Life Insurance Company of Texas which sells middle-income life insurance policies in the United States. The company was founded in 1910 as the American Life Insurance Company in Waco, Texas. Since then it has grown to sell insurance in 49 states and territories and has a client base of over 211,500.
Industrial Alliance Insurance and Financial Services
Industrial Alliance was established in 1892 and sells a broad range of life and health insurance products, as well as various other financial plans and general insurance policies. IAG is Canada’s fourth largest life and health insurance company, with more than C$ 58.4 billion of assets under their management. They have more than 3,400 employees servicing over 3 million Canadians through a network of 16,000 plus agents.
Apr
30
MetLife Q1 Operating Profit Soars
Filed Under Insurance Company, MetLife | 1 Comment
The first quarter operating earnings recently reported by MetLife Inc. reached levels that beat the expectations of analysts in Wall Street, chiefly aided by an increase in investment income produced by the thawing credit markets.
Compared to a year ago, the net investment income grew by 31 percent, from US$3.3 billion (EUR 2.5 billion) to US$4.3 billion (EUR 3.26 billion).
Other contributing factors to the strong results are the 12 percent increase in premium and fee revenue, an 8 percent increase in annuity sales, together with cost reductions, which combined produced a 17 percent increase in operating revenue for the quarter ended 31 March 2010.
The operating profit for MetLife in Q1 grew more than 500 percent compared to the same period last year, when the financial tsunami was destroying most investment income. The US$834 million (EUR 631.82 million) operating profit reported for Q1 2010 is more than six times the amount reported for Q1 2009 of US$131 million (EUR 99.24 million).
This better-than-expected Q1 results achieved through improved business both in the US and Internationally position MetLife positively for continued growth during the rest of 2010.
Insurance Company mentioned:
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Apr
29
Medical Inflation and the Cost of Expatriate Healthcare
Filed Under BUPA, Expat Insurance, HSBC, Health Insurance, Healthcare, International Healthcare, Medical Insurance | 10 Comments
What is the cost of healthcare when an individual gets old? Most expatriates who are not returning to an NHS style system may not anticipate these costs. Individuals living within an NHS system will often have paid 5 – 10% of their annual salaries, up to retirement age, towards the cost of their healthcare – with the understanding that the social support structure will continue to provide assistance, and healthcare, once they have left their jobs.
Expatriates on the other hand will typically only pay costs associated with current healthcare issues, and not those that will develop further down the road. With medical inflation advancing faster than ever before, and the costs associated with even basic care becoming almost unattainable, how will you fare both overseas, or in your home country, after you have retired?
An expatriate is a person living, or permanently residing in a country other than that of their own culture or upbringing. An expatriate may have legal residence in their chosen home, but it is not their own. The idea of expatriates rose to prominence in the 19th century with the mass emigration of American citizens to Europe, however the roots of the movement have been around for centuries as individuals from all walks of life explore new opportunities and benefits which would not have been available in their home nations. In the modern world, to be an expatriate is no longer to be part of an amusing trend, but to belong to a community of millions covering the planet, occupying every corner of the globe.
Apr
29
Top Insurers in China Maintain Growth Impetus in Q1
Filed Under China, Insurance Company | 3 Comments
Analysts predict that the top 3 Insurance giants in China, China Life Insurance (CLI), Ping An Insurance Group of China (PAIGC), and China Pacific Insurance Corporation (CPIC), will continue the growth momentum in Q1 of this year. The financial results will be released on the 30th of April.
The China Insurance Regulatory Commission (CIRC) released Q1 profit data of the life insurance industry in China as totalling US$1.6 billion (EUR 1.2 billion), an increment of slightly over 38 percent year-on-year.
It is expected by analysts that to increase their market share in the current year, the insurers will focus on banking-insurance cooperation, whilst the life insurance premiums are estimated to grow by about 25 percent.
As a result of internal business restructuring, the market share for life insurance of China Life shrank to 35.7 percent in 2009, compared to the 40.3 percent it realised in 2008. CPIC suffered similar fate, with their market share shrinking to 8.3 percent in 2009 from the 9 percent it maintained in 2008. However, life insurance premiums of both companies have shown a strong rebound in Q1 of this year.
By the end of March of this year China Life Insurance had already realised premiums of US$17.12 billion (EUR 12.97 billion), amounting to a 24 percent raise year on year. PAIGC achieved a corresponding raise of 28.5 percent, equivalent to US$7.46 billion (EUR 5.65 billion), whilst the premiums of CPIC rose 55.8 percent to US$4.54 billion (EUR 3.44 billion), compared to the previous year.
The above projections are in line with previous Q1 life insurance figures released by a unit of PAIGC.
Insurance Companies mentioned:
China Life Insurance Company Limited (China Life) is a People’s Republic of China-based life insurance company. The products and services include individual life insurance, group life insurance, accident and health insurance. The Company operates in four business segments: individual life insurance business, group life insurance business, short-term insurance business, and corporate and other business.
Ping An Insurance (Group) Company of China, Ltd. (Ping An) is engaged in providing a range of financial products and services. The Company focuses on three businesses: insurance, banking and investment. The Company operates in five business segments: life insurance business, property and casualty insurance business, banking business, securities business, corporate and other businesses. The Company’s subsidiaries include Ping An Life Insurance Company of China, Ltd. (Ping An Life), Ping An Property & Casualty Insurance Company of China, Ltd. (Ping An Property & Casualty), China Ping An Trust & Investment Co., Ltd. (Ping An Trust), Ping An Securities Company, Ltd. (Ping An Securities), Ping An Bank Co., Ltd. (Ping An Bank), Ping An Annuity Insurance Company of China, Ltd. (Ping An Annuity) and Ping An Health Insurance Company of China, Ltd. (Ping An Health), among others.
China Pacific Insurance (Group) Co., Ltd. (CPIC) was established on the basis of China Pacific Insurance Co., Ltd., which was founded on May 13, 1991. Headquartered in Shanghai, its registered capital stands at RMB 7.7 billion. The company was listed in Shanghai Stock Exchange on Dec. 25, 2007, with the stock code of 601601 and the stock name of “ China Pacific”. The Company was listed in the Stock Exchange of Hong Kong Limited on Dec. 23, 2009, with the stock code “02601” and the stock name of “CPIC”.
Apr
29
ALGICO ceases underwriting new casualty and property policies
Filed Under AIG, Health Insurance, Income Protection, Insurance Company, Life Insurance, Medical Insurance, MetLife | 1 Comment
Member of the American International Group (AIG), American Life and General Insurance Company (ALGICO) will no longer underwrite new casualty and property insurance policies in Trinidad and Tobago as of May 1, 2010.
The decision to stop issuing new policies comes as a result of AIG subsidiary ALICO’s sale to MetLife, which is part of AIG’s global restructuring plan to pay back the American government for the US$ 182 billion bailout in 2008. Alico is the majority stakeholder in American General and Life Insurance Company and in light of the impending sale to MetLife, AIG, Alico and ALGICO deliberated over the fate of ALGICO’s property and casualty insurance business, finally coming to the decision to no longer underwrite policies.
ALGICO says that all policies already in force are perfectly safe and says that claims will continue to be processed in the usual manner. ALGICO has informed the Central Bank of Trinidad and Tobago, as well as the Banking, Insurance and General Workers Union (BIGWU) of the change, and is in the middle of notifying policyholders, brokers, agents and shareholders of the decision. As a result of the decision, an unknown number of employees are to be laid off from ALGICO, which is in contact with BIGWU in order to organize appropriate severance packages for their outgoing employees.
ALGICO will continue its other lines of business, including writing and renewing life, accident, annuities and health insurance for individuals as well as group health, life and pension plans. As part of the integration of Alico into MetLife, ALGICO is planning to increase the number of life insurance products it offers and broaden its distribution channels in an effort to concentrate on life and retirement products where MetLife is an industry leader.
Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
Alico
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
ALGICO
American Life and General Insurance Company (Trinidad and Tobago) Limited was incorporated in Trinidad and Tobago in 1977 to assume combined control of Alico’s local life insurance portfolio as well as American International Underwriters’ general insurance business. The company is a member of the American International Group and has an asset base of US$ 1 billion.
MetLife Inc.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Apr
28
Standard Chartered Bahrain to offer insurance for SMEs through Allianz Takaful
Filed Under Allianz, Health Insurance, Income Protection, Medical Insurance, UAE Insurance | 3 Comments
Standard Chartered Bank Bahrain is expanding its offerings targeted at Small and Medium Enterprises (SMEs) by rolling out new insurance products and services through their strategic partner in the region, Allianz Takaful.
The business centric products include office insurance, key person insurance (also known as key man insurance or keyman insurance), group health insurance, as well as corporate savings and pension schemes. Products such as office insurance and key person insurance are designed to protect a business’ assets, financial, human or otherwise, while group health insurance and pension schemes both act as a way to ensure the long term health and wellbeing of staff as well as a perk to help recruit and retain quality staff.
By specifically aiming their new products and services at companies and corporations, business owners, and professionals in Bahrain, Standard Chartered and strategic partner Allianz Takaful are not only trying to open new business avenues, but also providing tools that will help SMEs expand their businesses while managing business risks.
Standard Chartered’s Regional Head of Consumer Banking for the Northern Gulf, Levant and Oman, B. Chandrasekhar said that the “SME sector is one of the key contributors to country’s economic growth and has significant future growth potential therefore we are pleased to be partnering Allianz Takaful, a major global financial services provider with best in class product offerings. As the first Bank in Bahrain, celebrating 90 years this year, the launch reinforces the Bank’s continuous commitment especially to the SME segment in the Kingdom while focusing on the encouragement to SME players for further achievement. Our international network of presence in over 70 countries gives us a distinct advantage to assist the SMEs in Bahrain go global. This, we believe, will go a long way in ensuring we have here for our customer’s successful business growth and expansion.”
Companies Mentioned:
Standard Chartered Bank Bahrain
Standard Chartered Bank Bahrain was the first bank in Bahrain, having been set up there in 1920. Over the years it has grown to the point where it now has the most extensive network among foreign international banks with 5 branch offices and 1 sales center in the country. Standard Chartered Bank Bahrain is the Bahraini branch of Standard Chartered Bank PLC which was established after a merging of the Standard Bank of British South Africa and the Chartered Bank of India, Australia and China, which were both founded in the mid 1800s.
Allianz Takaful
A fully owned subsidiary of the Allianz Group, Allianz Takaful was established in March 2009 and is headquartered in Bahrain. Allianz Takaful is the Allianz group’s first foray into the Gulf Cooperation Council or GCC, and offers Shariah-compliant products and services.
Apr
28
Prudential Shareholders may derail AIA Deal
Filed Under AIG, Insurance Company | 1 Comment
The possibility of breaking up Prudential appears to be gaining momentum now that a key shareholder of the British insurer raises the prospect of opposing the US$35.5 billion deal to buy AIA Group Ltd. Financing of the deal would be partially funded by a giant US$21 billion share sale, which another top investor of Prudential expressed reservations that the rights issue may not gain approval during the upcoming Extraordinary General Meeting for shareholders.
Should Prudential investors be opposed to the rights issue, it would be perceived as a vote of no-confidence in the strategy employed by the management of the company.
An alternative suggested by Prudential investors is to breakup the company, disposing of all business carried out in the UK, to concentrate on the development of business done in Asia. The key investors are reportedly drumming up support from other large investors to express their opposition to the massive size of the rights issue, the perceived high price being paid to acquire AIA and potential integration risks for such a large takeover.
Previously heralded as a deal likely to tip the balance of the insurance business atmosphere in Asia, the newest hurdle raised by investors may cause delays in the purchase or even undo the initial deal, perceived by many as a much needed one for AIG.
Companies mentioned:
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
Apr
27
William Russell expands Dubai team on UAE growth
Filed Under Expat Insurance, Insurance Company, International Healthcare, Medical Insurance, UAE Insurance | 1 Comment
William Russell’s distribution deal with the Dubai Insurance Company is paying off, with large demand for William Russell’s Global Plans spurring the company to add additional staff to the Dubai-based team.
The partnership sells William Russell’s Global Health, Global Life and Global Income Protection products, underwritten by Dubai Insurance Company, which are targeted at small and medium sized expatriate employers and individual expatriates in the Gulf Cooperation Council (GCC). In the first quarter of 2010, new group sales have grown 53% over the same period last year and the renewal rate has been at 100% for all plans since November 2009.
With high demand from companies in the United Arab Emirates looking to insure their expatriate employees, William Russell is expanding their office to accommodate the new business, adding a relationship manager for corporate accounts and a claims administrator. Doreen Mboss joins the business as a Corporate Account Manager to maintain and increase business through her client-facing position. Previously, all out-patient claims were processed through William Russell’s UK home office, but with the addition of another claims administrator, eligible out-patient claims will now be processed and paid locally in the Dubai office.
The new additions to William Russell’s Dubai office mean increased levels of service to clients in the area. Customers remain able to freely choose their preferred source of medical treatment, while their claims will now be managed in local currencies within the geographical area, which should expedite claims processing and payment. Group Global Health members are offered access to the Neuron direct settlement network, allowing them cashless access to healthcare facilities in the GCC area.
Companies Mentioned:
William Russell is an international health insurance company, focused on providing health, life and income protection products to expatriates across the globe. Based in the United Kingdom, William Russell opened its doors in 1992 as a family-run company and since then has grown into an international company that does business with people of every nationality in over 180 countries around the world. They have central offices in the UK, Indonesia and Dubai and offer their customers a 24/7 emergency medical assistance hotline.
Dubai Insurance Company
Incorporated in 1970 by the decree of the Ruler of Dubai as a Public Shareholding Company, the Dubai Insurance Company operates as a one-stop insurance shop in the GCC region, selling general, life and health insurance policies.
Apr
27
Great Eastern of Singapore Aims to Acquire Pacific Insurance of Malaysia
Filed Under Insurance Company, Life Insurance | 3 Comments
The Central Bank of Malaysia, Bank Negara Malaysia has given the go ahead for Great Eastern Holdings (GEH) of Singapore to start negotiations with investment holdings parent PacificMas Berhad (PMB) to acquire Pacific Insurance Berhad of Malaysia. The transaction involves the acquisition of all the issued and paid-up share capital at an undisclosed price and subject to the terms and conditions to be resolved during the negotiation.
Once the acquisition negotiations between GEH and PMB are concluded, the deal is required to obtain approval from the Ministry of Finance, with the supporting recommendation of Bank Negara Malaysia.
The ultimate holding company of both PacificMas Berhad and Great Eastern Group is the Oversea-Chinese Banking Corporation Limited (OCBC) of Singapore.
Back in November 1999, Great Eastern Life underwent restructuring and was acquired by Great Eastern Holding. GEH in its capacity as the wholly owned parent in turn merged with the Overseas Assurance Corporation in December 2000.
Further announcements will be made by Great Eastern Holdings at a later date.
Companies mentioned:
Great Eastern Holdings (GEH) is the largest insurance group in Singapore and Malaysia, with more than US$29 billion in assets and 2.6 million policyholders. GEH received the Singapore Brand Award consecutively from 2002 to 2005. Lion Capital Management, a subsidiary of GEH, is one of the largest asset management companies in Southeast Asia, with assets under management exceeding US$22 billion. Great Eastern is a subsidiary of OCBC Bank, Singapore’s longest established local bank, with a network of 313 branches and representative offices in 15 countries and territories.
Incorporated in May 1963 and with headquarters in Kuala Lumpur, PacificMas Berhad is principally engaged in investment holdings and the provision of management services to companies within the group. Its subsidiaries participate in general insurance business, unit trust funds and asset management, leasing, hire-purchase and other related financial services, property investment and management. PacificMas Berhad became a member of OCBC Group following the completion of the takeover of PacificMas Berhad by OCBC Capital (Malaysia) Berhad, a wholly owned subsidiary of OCBC, in April 2008.
Apr
26
BUPA International’s call center gets internet age solution
Filed Under BUPA, Expat Insurance, Health Insurance, Insurance Company, Medical Insurance, Technology | 3 Comments
BUPA International’s Brighton-based call center is to get a new communication management system, supplied, executed and managed by Azzurri Communications.
Azzurri’s information management solution, which is based on Avaya’s Communication Manager platform, will assist the 600 advisers and staff at BUPA International’s call center in effectively communicating with customers around the world 24-hours a day. Given that customers can reach the call center at any time via telephone and email, the information management system allows BUPA to coordinate and keep track of communications between customers and staff
By amalgamating traditional analogue, digital and internet-based exchanges into a seamless communications system, BUPA can provide more flexible, responsive administration leading towards better customer service experiences for their customers around the world. The solution holds the capacity to handle the communications rolling in from the thousands of individual customers BUPA International has around the world, and its ability to synchronize information coming through multiple channels means that correspondence with customers will be focused and coordinated.
The communication management platform will be supported by a data center in Staines, Middlesex, where precautions have been taken to make it as resilient as possible, ensuring a minimum of down time or lost data in unexpected circumstances. With the communication processing and administration concentrated in the data center’s servers, BUPA International will have the ability to roll out the platform’s applications to other call centers worldwide in the future.
Stuart Pennington, a Project Manager at BUPA International says that “We have more than 800,000 customers around the world, all in different time zones, who can contact us at any time by phone and email. Our multi-lingual advisers need a robust, well supported and flexible IP-based communications solution which enables them to provide high levels of customer service round the clock. We also need to be able to deliver multi-channel or integrated contact management, so we can link phone and email conversations to individual customers. Azzurri has the experience and scale to offer the global support we need.”
Companies Mentioned:
BUPA International is the expatriate health insurance arm of Brighton-based BUPA, a provident association offering health insurance and other healthcare solutions. After starting in the expatriate health insurance business in 1971, BUPA International now provides international health insurance to more than 800,000 clients in over 190 countries, with customers including some of the world’s biggest companies. Their international health networks offer access to more than 200,000 medical providers around the globe, and direct settlement services with more than 7,500 hospitals and clinics.
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