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, Health Insurance, Healthcare, HSBC, 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 | 2 Comments
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.
Read the rest of the William Russell expands Dubai team on UAE growth and Health Insurance in Dubai article
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.
Apr
23
Hong Kong Medical Insurance Impasse Resolved
Filed Under Health Insurance, Healthcare, Hong Kong | 3 Comments
An offer made by the Insurance Companies to partially cover pre-existent conditions brings closer to an end its previous stalemate with the Hong Kong Government. This is perceived in general as a positive development towards the implementation of the proposed voluntary medical insurance scheme. Many international health insurance policies currently on the market have their moratorium, or waiting period, established at 2 years from the initial purchase of a medical insurance plan.
The proposal calls for a “waiting period” of three years before claim benefits are given to people with pre-existent conditions. Previously, the insurance sector was calling for a five-year wait.
A group representing the interests of patients fears that a three-year waiting period might be unattractive to potential participants of the scheme.
Coverage of people with conditions such as cancer, diabetes and heart disease had health officials and representatives of the Federation of Insurers deadlocked during their several past meetings. The government position is that people with pre-existent conditions must be allowed to join the scheme, with the insurance sector opposing to doing it on the grounds that the costs would be driven up.
It is envisioned that people with pre-existing conditions would not be covered during the first year, followed by 50 percent coverage during the second year, 75 percent during the third year and full coverage on the fourth year onwards. People staying with the scheme are expected to opt for private services over public hospitals, even though they will have limited coverage during the first three years.
The proposal also includes key elements such as a lump sum package for certain treatments or procedures, lower premiums for young people and those over 65 years old, and a no-claim bonus for participants that stay healthy.
The initial target of the government is to enrol half a million Hong Kong people into the medical insurance scheme with the aim of encouraging the use of private health services and help relieve the overloaded public health sector.
The government will next schedule meetings with the medical community and study operations in other countries before accepting the offer made by the insurers. A public consultation would be expected to be launched towards the end of this year, once the draft of the scheme is formulated.
Bringing perspective on what is mentioned above, the article on Healthcare Finance Reform in Hong Kong makes reference to previous milestones and precedents.
Apr
22
Directors and Officers of embattled Goldman Sachs Group Inc. (GSG) have liability cover provided by American International Group Inc. (AIG). AIG in turn is considering suing Goldman’s for the roughly US$2 billion (EUR 1.47 billion) in losses incurred whilst holding guarantees to Collateralised Debt Obligations (CDOs) issued by GSG.
The Securities and Exchange Commission (SEC) has charged GSG with making mis-statements and omissions in relation to a synthetic CDO, and is suing the New York-based group for fraud in connection with the structuring and marketing of the mortgage-related debt security.
The focus of the SEC civil lawsuit against GSG is centred around a CDO that was tied to the performance of sub-prime residential mortgage-backed securities. The said CDO was structured and marketed in early 2007, when the securities tied to the US housing market were starting to show signs of distress.
According to the SEC, GSG was served with a Wells notice in 2009. The reception of the Wells notice, which is a letter issued by the SEC informing its intentions to begin enforcement proceedings against the recipient, should have been disclosed by GSG to investors. According to GSG the SEC lawsuit is “completely unfounded”.
AIG had insured some CDO transactions carried out by GSG, although these are not the ones cited in the SEC complaint. AIG is considering launching legal proceedings against GSG over losses incurred on US$6 billion (EUR 4.4 billion) of insurance deals on mortgage-backed securities.
Depending upon the results of the SEC civil lawsuit, and provided GSG is found guilty in regards to the disclosure issues, the transactions of AIG and other companies would be scrutinised for similarities with the ruling and then cited to the SEC. A private lawsuit is likely to be filed in the event that irregularities are found, according to sources well-versed with the current situation.
Companies mentioned:
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.
Goldman Sachs Group Inc. (GSG) is a global investment banking and securities firm which engages in investment banking, securities services, investment management and other financial services primarily with institutional clients. Goldman Sachs was founded in 1869, and has offices in all major international financial centres, and provides mergers and acquisitions advice, underwriting services, asset management, and securities services to its clients, which include corporations, governments and high net worth individuals around the world. The firm also engages in proprietary trading and private equity deals. It is a primary dealer in the United States Treasury security market.
Apr
21
CIGNA expands International Expat Benefits Business Operations
Filed Under CIGNA, Expat Insurance, Health Insurance, Medical Insurance | 3 Comments
CIGNA is on the lookout for a head of Global Marketing to spearhead the initiative undertaken by CIGNA International Expatriate Benefits (CIEB) announced 3 months ago to offer individual Private Medical Insurance (PMI) to customers around the globe.
CIGNA International will provide local PMI to US citizens in overseas assignments, as well as to other individual expatriates and high net worth individuals. As per details in a CIGNA International press release dated 20 January 2010, Keith Biddlestone will be spearheading the creation of a world-class international individual business and the implementation of the individual PMI strategy on an international scale. CIEB is expected to deploy its new range of international private medical insurance products towards the last quarter of 2010, or the first quarter of 2011.
With over 30 years of international marketing experience, CIGNA is well positioned to not only continue offering expatriate coverage, supplemental insurance products and third-party administration, but bring to fruition this new initiative to market their latest individual international insurance product for both expatriates and local markets.
The timing of this international initiative fits well with the current business scenario in the US, which sees increased profit pressure from investors and taps into the internationally-encouraging business growth rates registered in overseas insurance markets, particularly in Asia and Europe. In Asia, the reforms recently implemented in relation to health insurance regulations have opened the door in China and India for foreign insurers to compete with their local counterparts, whilst Indonesia continues being an attractive proposition given its favourable business climate. In Western Europe, the potential business opportunities are centred around Portugal, Italy, Greece and Spain.
Currently operating in 27 countries, aside from expatriate services, the international segment for CIGNA represents a big and long-established business that continues performing well, even under the challenging economic times the industry has been experiencing lately. Internationally, CIGNA has been focusing on health, life and accident products, particularly in Asia. In other select countries, the focus has been on expatriate benefits and PMI most recently.
In the international scene, private coverage is offered in many countries, although this particular segment is not well developed and offers potential for business opportunities. The coverage usually offered may involve simple indemnity or hospital-reimbursement, which falls short of the goals to provide a more holistic approach in the form of managed care or playing the roll as a third party administrator (TPA).
The total individual insurance market, including supplemental health, PMI and global expatriate products is estimated to be worth US$112 billion (EUR 82.35 billion) and it is expected to continue growing at a compounded rate of 5 percent annually for the next 5 years.
Following on its mantra to cater to the needs of the globally mobile individuals, with this latest offering CIGNA aims to target high-net-worth individuals as well, on a global scale.
Insurance Company mentioned:
CIGNA International is part of CIGNA, a global health service and related insurance company dedicated to helping people improve their health, well-being and sense of security. CIGNA Corporation’s operating subsidiaries in the United States provide an integrated suite of medical, dental, behavioural health, pharmacy and vision care benefits, as well as group life, accident and disability insurance. Outside the U.S. CIGNA delivers access to superior quality health care and related financial protection programs to employers, affinity groups and individuals. CIGNA actively sells in 27 countries and jurisdictions and serves expatriates virtually everywhere in the world. On a global scale, CIGNA serves some 46 million people.
Apr
20
Takeover bid of AXA Asia Pacific blocked by Australian Regulator
Filed Under AXA PPP, Insurance Company | 3 Comments
The takeover bid for AXA Asia Pacific Holdings Ltd. (AAP) by the National Australia Bank (NAB) and the French insurance company AXA SA (AXA) has been blocked by the competition watchdog of Australia, citing the fact that it would reduce competition in the domestic Australian retail investment arena.
Towards the end of last month, NAB had offered US$12.2 billion (EUR 9 billion) to take over the Australian and New Zealand assets of AAP. AXA would have sold to NAB the 53.9 percent of AAP shares it owns, followed by AXA buying back the Asian assets of the target.
A similar deal had been struck with wealth manager AMP Ltd. (AMP), which failed to gain the favour of the independent directors of AAP towards the end of last year.
NAB has six weeks to address the concerns raised by the regulator. Meanwhile, AMP may reformulate a bid that could receive the blessings of both the independent directors of AAP and the competition watchdog of Australia.
Companies mentioned:
AXA Asia Pacific Holdings Ltd. (AAP) is responsible for the Global AXA Group’s life insurance and wealth management businesses in the Asia-Pacific region. We have operations in Hong Kong SAR, China, Singapore, Indonesia, Philippines, Thailand, India, Malaysia, Australia and New Zealand. Established as National Mutual in Australia in 1869, AXA Asia Pacific has grown significantly over time. In 1995, the company demutualised and AXA SA acquired 51% of the company. National Mutual listed on the Australian and New Zealand stock exchanges in October 1996 and adopted the AXA brand in 1999.
AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area.
National Australian Bank (NAB) is a financial services organisation of nearly 40,000 people, more than 1800 branches and service centres, and more than 450,000 shareholders. NAB provides products, advice and services through its major Australian franchise and businesses in the United Kingdom, New Zealand, the United States and Asia. NAB is motivated to make a positive and sustainable impact in the lives of their customers and communities, and so build a business that can deliver on their goal of superior returns to shareholders.
AMP Group (AMP) is one of Australia’s largest retail and corporate superannuation providers, and one of the region’s most significant investment managers with more than A$104 billion in assets under management (as at 30 June 2009), with a market-leading network of more than 2,000 qualified financial planners. AMP Limited has one of Australia’s largest shareholder registers, with more than 820,000 shareholders. Individual investors comprise around 46 per cent of AMP’s shareholder base and live in more than 100 countries around the world. Institutional investors constitute around 54 per cent. AMP traces its heritage back to 1849 as a mutual company, AMP Limited listed on the Australian and New Zealand Stock Exchanges in mid-1998.
Apr
19
IMG renames specialty international health insurance product
Filed Under Expat Insurance, Health Insurance, Insurance Company, Medical Insurance | 3 Comments
International health insurance provider International Medical Group (IMG) has renamed one of their specialty health insurance products, targeted at people traveling internationally to engage in adventure sports, after making additions to the list of activities covered by the policy.
The short term international medical insurance policy, previously known as Patriot Extreme, has been renamed Patriot Adventure to better represent the more general kinds of adventure sports added to the listed coverage items on the policy. IMG’s new additions to the policy include: jungle zip lining, snowmobiling, cave tubing, surfing, trekking, wildlife safaris, wakeboarding and riding motorized scooters or motorbikes. These new additions join a list that already includes such adventure sports as rock climbing, bungee jumping, abseiling, hang gliding and heli-skiing among others.
The Patriot Adventure comes in two varieties; Patriot Adventure International provides cover for U.S. citizens traveling outside the United States, and Patriot Adventure America is for non-U.S. citizens traveling outside their home country. The policy gives members insured under the plan access to a multilingual customer service centers open 24 hours a day, which are capable of handling claims inquiries in almost every language and currency, as well as coordinating emergency medical treatment and services.
Aside from injuries sustained during adventure activities, the policy also covers emergency evacuations, emergency reunions and return of mortal remains. Policyholders have access to over 17,000 international medical facilities and providers when seeking treatment outside the U.S., available through IMG’s International Provider Access.
Companies Mentioned
International Medical Group (IMG)
International Medical Group (IMG) is an Indianapolis, Indiana-based insurance provider which has been focused on providing expatriates and international travelers with high quality health, travel, life and indemnity insurance. IMG has a number of subsidiary companies which allow it to offer flexible products and 24-hour customer services to cover every insurance need in the international community. In their 20 years of business, IMG has grown to become a leading administrator of international insurance products worldwide, with more than a million customers around the globe.
Apr
16
CSR Strategy brings Allianz continued Recognition
Filed Under Allianz, Insurance Company | 4 Comments
By consistently maintaining higher levels of Corporate Social Responsibility (CSR) practices, Allianz has managed to satisfy the requirements defined by the FTSE Group, earning the company a place in the FTSE4Good index for the tenth year in a row.
Since its inception back in 2001 by the Financial Times and the London Stock Exchange (FTSE) Group, the FTSE4Good Index measures the performance of companies based on globally-recognised standards of corporate responsibility.
The stringent social and environmental criteria that companies must comply with to be part of the FTSE4Good Index demand that companies demonstrate proficiency in the following five areas: Working towards environmental sustainability, developing positive relationships with stakeholders, upholding and supporting universal human rights, ensuring good supply-chain labour standards, and countering bribery. In a yearly basis, companies are requested to answer a detailed questionnaire that evaluates their performance in these areas.
Allianz is one of the longest standing FTSE4Good companies and has been included in both the European 50 and Global 100 indices since 2001.
Insurance Company mentioned:
Allianz Group is one of the leading global services providers in insurance and asset management. With approximately 153,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence.
Apr
15
Chinese Insurance Regulator licences Scor to expand Operations
Filed Under China, China insurance, Health Insurance, Life Insurance | 5 Comments
Scor SE, has been granted a composite reinsurance license by the China Insurance Regulatory Commission (CIRC) that will allow the company to add life and health insurance services to their current non-life business.
The CIRC approved Scor SE to engage in non-life insurance business in October 2006, although the company actually started underwriting in China in 2008. In January 2010 their Beijing branch saw an additional capital injection of US$15 million (EUR 11 million), with the approval of the CIRC as well.
With the rapid expansion of the life and health insurance business in China, the extended license granted by the CIRC better positions Scor SE to benefit from the strong growth in demand for reinsurance. Clients in China will benefit from tapping into the expertise of Scor SE in the areas of innovation, capital management and risk selection.
With a presence of over 35 years in China, Scor SE will continue expanding its operations, aided by the additional license granted by the CIRC.
Insurance Company mentioned:
SCOR is now a multinational Group, born from the merger between the SCOR Group, with its strong presence in France and the United States, Revios, which was based in Cologne, and Converium, whose headquarters were in Zurich. The new SCOR group had to take this polycentric situation into consideration in terms of its organisational structure, in order to align this with the diverse cultural practices attached to the three former companies. The Group also had to factor in the details of its 2007 statutory reorganisation around three Societas Europeae in paris, as well as the fact that SCOR Global Investments, the Group’s third operating company, was created at the beginning of 2009 and is also adopting Societas Europaea status. SCOR therefore decided to structure its entities around six life and non-life management platforms or Hubs, attached to which are the subsidiaries and branches of the geographic area in question.
Apr
15
Aviva Continues Asian Insurance Expansion
Filed Under Auto Insurance, Aviva | 4 Comments
Aviva, the fifth largest insurance group in the world, has continued the expansion of their Asian operations with an online car insurance service in Singapore.
With the Singaporean car insurance market having risen 21.5% in premiums last year, Aviva’s new online service is meant to offer lower cost motor insurance coverage by eliminating the costs of commission and administration processes.
Aviva plans to make their new service as flexible as possible by offering a variety of optional coverage choices to consumers online, with quotes taking about 60 seconds to generate. Coverage options include: higher excesses, personal accident coverage, additional named drivers, identity theft and loss of keys protection, among others.
Aviva says the service includes on-site ‘accident support’ to distinguish its claims service from competitors. Accidents can be reported to Aviva’s dedicated hotline all day every day, after which ‘accident support’ personnel will arrive on scene within 20 minutes, anywhere in Singapore, to help take photographs, complete paperwork and take down witness statements. Customers are then hailed a complimentary taxi to take them home.
According to Aviva, all policies are able to be modified or renewed at any time and customers are given the “Go Green” option, where they can save SGD$25 by receiving their policy documents through their email.
The company plans to follow on their re-entry into the Singaporean general insurance market by introducing home and travel insurance services at a later date.
Companies Mentioned
Aviva
Europe’s fourth largest insurance company, with more than 300 years of experience in the global insurance industry, Aviva is committed to the safety and satisfaction of it’s customers.
Apr
14
JV in China sought by US Health Insurer
Filed Under China, DKV, Health Insurance, Insurance Company, USA Health Insurance | 3 Comments
WellPoint Inc., a health benefits provider in the US, is looking for a joint venture (JV) partner in China to set up a health insurance company by 2011. Angela Braly, the president and CEO of the company, has recently visited China to meet potential partners and the Chinese regulator in charge of this industry.
The characteristics sought in the JV partner include sharing the same vision as WellPoint and may not necessarily be an insurance company.
Back in 2004, the German private health insurer DKV Deutsche Krankenversicherung AG, acquired a 19.9 percent stake in the PICC Health Insurance Co., the first health insurer in China.
Given the current progress with the implementation of their health reforms, China is becoming increasingly attractive for foreign insurers looking to take a share of business in this huge market, particularly the private health insurance segment, which is quickly becoming an important complement of the insurance programmes undertaken by the Chinese government.
According to figures from the China Insurance Regulatory Commission, health insurance premiums for the first two months of this year reached US$1.6 billion (EUR 1.17 billion), which amounts to a 34 percent increase compared to the same period in 2009.
Insurance Companies mentioned:
WellPoint is the largest health benefits company in USA, with more than 33 million members in its affiliated health plans. As an independent licensee of the Blue Cross and Blue Shield Association, WellPoint serves members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as the Blue Cross Blue Shield licensee in 10 New York City metropolitan and surrounding counties and as the Blue Cross or Blue Cross Blue Shield licensee in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), and Wisconsin. In a majority of these service areas, WellPoint does business as Anthem Blue Cross, Anthem Blue Cross Blue Shield or Empire Blue Cross Blue Shield (in the New York service areas). WellPoint also serves customers throughout the country as UniCare.
DKV Deutsche Krankenversicherung AG (DKV) is the largest private health insurer in Europe and operates in seven European countries. With over 7.6 million customers and premium income of over EUR 5 billion. As an international health care manager, DKV offers to their customers the best possible medical and non-medical services – at all times and around the globe. In Europe, DKV’s successful activities extend from Spain and Italy over Luxembourg, Belgium to Norway and Sweden (joint venture). In 1997/1998, Victoria, Hamburg-Mannheimer and D.A.S. merged with DKV to form the ERGO Insurance Group. ERGO is one of the major insurance groups in Europe; the majority shareholder is Munich Re.
PICC Health Insurance Company Limited (PICC) was officially launched on Apr 8, 2005 as the first professional health insurance company. PICC Health is a modern shareholding insurance enterprise sponsored jointly by PICC Group, DKV, the largest private health insurance company in Europe and other famous enterprises. PICC Health has actively introduced international advanced technology extensively consolidating external social resources and strives to provide the broad masses of people with health security, implementation of health management, which has been leading the professional health insurance market in order to realise the health of public and the harmony of society.
Apr
13
Q1 Premiums of US$7.5 billion reported by Ping An Life Insurance Unit
Filed Under China, Life Insurance | 3 Comments
Ping An Life Insurance Company of China Ltd (PALICC) reported accumulated written premiums of US$7.47 billion (EUR 5.5 billion) for the first quarter of this year. PALICC is the life insurance unit of Ping An Insurance, which is second only to China Life Insurance (CLI), the Number 1 life insurance company by market value.
In addition to those of PALICC, Ping An released accumulated written premiums of other subsidiaries for the first quarter, including Ping An Property & Casualty Insurance Company of China, Ltd of US$2.22 billion (EUR 1.65 billion), Ping An Health Insurance Company of China Ltd of US$7.43 million (EUR 5.47 million) and Ping An Annuity Insurance Company of China Ltd of US$192.8 million (EUR 141.8 million).
Ping An did not provide any comparative figures for the first quarter of 2009. By comparison, China Life Insurance recently estimated a minimum premium growth during 2010 of 5 percent, which amounts to a conservative improvement over the 3.9 percent it actually achieved during 2009, citing increased competition.
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.
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