Sep
30
Liberty Mutual Group, based in the US state of Massachusetts, has announced the postponement of the initial public offering (IPO) of Liberty Mutual Agency Corp. (LMAC), citing the lacklustre demand from investors and the uncertain state of the US economy as main causes. Not so long ago it was heralded as the biggest IPO of 2010 in the US, Liberty Mutual Group had initially sought to raise almost US$1.3 billion (EUR 956 million) by selling 64.3 million Class A LMAC shares at an initial price of between US$18 (EUR 13.5) and US$20 (EUR 15) per share.
The retraction of the LMAC IPO by Liberty Mutual joins the many other IPO postponements this year in the US; there have been at least 45 other companies that have either delayed or entirely withdrawn their listing plans, on concerns that the recovery from the longest recessionary period since the 1920s Great Depression is deteriorating. This pessimistic sentiment has already seen the S&P’s 500 Index shed a significant 16 percent from its 2010 highest.
Financial analysts perceive the current volatile environment in the US stock market, compounded by undervalued property-and-casualty insurance stock prices, as unfavourable and may explain why investors would prefer not to take part in the LMAC IPO. Another concern voiced by some investors was the perception that Liberty Mutual Group (LMG) would be benefited more than LMAC, since approximately US$1.2 billion (EUR 882.4 million) would be paid to LMG, as indicated in the prospectus.
During the past few weeks there have been some IPO success stories, and that may have initially encouraged Liberty Mutual to believe that theirs would whet the appetites of investors. However, analysts believe that the current climate in the stock market is not the perfect environment for initial offerings of industry-specific shares, such as Liberty Mutual Agency’s, since the demand for property and casualty insurance has been weakened by the prolonged recession and the persistent high unemployment rate.
No further details were released by Liberty Mutual as to the anticipated length of their LMAC IPO postponement.
Insurance Company mentioned:
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.
Sep
30
Allied World Assurance Launches European Health Insurance Unit
Filed Under Health Insurance, Healthcare, Insurance Company, International Healthcare, Medical Insurance, United Kingdom | Leave a Comment
Allied World Assurance Company Holdings, Ltd. has established a healthcare division through its European operation, Allied World Europe, to sell health insurance solutions in European Markets.
Allied World Assurance, which offers property, casualty and specialty insurance and reinsurance solutions as well as a growing international health insurance unit, intends to use the new European health insurance section to target business specifically in London, as well as throughout the UK and the rest of Europe. The new healthcare solutions division in Allied World Europe will be headed by Rob Wendin, who joined Allied World Europe as Vice President.
Mr. Wendin previously worked as the Managing Director for Health and Life Sciences industries at Marsh, covering Europe, the Middle East and Africa. With over 25 years of experience in multiple facets of health and life related industries, including having been a broker as well as underwriter, Mr. Wendin is now tasked with building Allied World Europe’s healthcare division, including the development of a full health insurance product suite to service European regional needs. He will report to Kirsten Faria, Senior Vice President of International Healthcare and Allied World Assurance’s Bermuda subsidiary.
Kirsten Faria said that “We are thrilled to launch Allied World Europe’s healthcare department to build on our steadily growing international healthcare segment. I am confident that Rob’s extensive experience on both the underwriting and brokerage side will be an invaluable asset as we begin building a strong book of business.”
Insurance Company Mentioned:
Allied World Assurance
Allied World Assurance is a global insurance and reinsurance company headquartered in Bermuda. They have a worldwide network of offices, including numerous major cities in the United States, as well as Hong Kong, London, Singapore and Zug. Allied World Assurance deals with property, casualty, and specialty reinsurance and insurance products.
Sep
29
Improving Medical Tourism Strategy a Central Focus for Dubai
Filed Under Healthcare, International Healthcare, Middle East, UAE Insurance | 1 Comment
The Dubai Health Authority (DHA) was not only the Diamond Sponsor of the 3rd Annual World Medical Tourism and Global Health Congress, which ran from September 22-24, 2010 in Los Angeles, but also walked away from the convention with a Mission of Understanding with the Medical Tourism Association.
The Mission of Understanding (MoU) will see the Dubai Health Authority and the Medical Tourism Association both working towards the continued development and build up of the medical tourism sector in Dubai. This may include collaborating on the Dubai Health Authority’s efforts to improve upon its healthcare capabilities, regulations and policies.
The DHA considers private healthcare providers as major stakeholders in the country’s healthcare sector, and seeks to encourage the development of cutting edge healthcare facilities by the private sector. One way Dubai has done this is through projects such as the Dubai Healthcare City (DHCC), which was put into motion by the UAE Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, as a dedicated location for medical providers to provide high quality, patient-centric care. The Dubai Healthcare City now has two hospitals, and more than 90 diagnostic laboratories and outpatient medical centers.
Dubai will host the regional Medical Tourism Congress in February 2011, which will be the first time it is ever held in the Middle East. At the conference in February, the DHA and private sector healthcare providers will showcase their medical centers of excellence in different fields such as surgery, diabetes management and rehabilitation facilities for the global medical tourism industry.
From looking at the patient base, the DHA has seen a trend over recent years showing increasing number of regional medical tourists, traveling to Dubai from other countries in the Middle East for medical treatment. The DHA is hoping that further efforts will increase Dubai’s standing as a medical tourism destination for a broader audience, drawing more international patients from around the world. However, they face stiff competition from countries like Singapore, India, Thailand and a number of South American states which are already well established within the international medical tourism industry.
The CEO of the Health Policy and Strategy Sector of the DHA, Laila Al Jassmi said that “The medical tourism industry generates over 30 billion dollars worth of revenue annually. It is a huge industry globally and Dubai already has many factors that work to its benefit. At the DHA, we are strengthening our policies, regulations and further developing our healthcare capabilities to strengthen the medical tourism sector.
In terms of the GCC region, we are already witnessing an increase in the number of patient base and now we are keen to provide the international patient will lucrative healthcare opportunities in Dubai. At the DHA, we consider the private sector to be a key stakeholder and thus both the public and the private health sector in Dubai will be a part of the medical tourism conference which takes place in 2011.”
Sep
28
New US Healthcare Reform Laws Now in Force
Filed Under Health Insurance, Healthcare, Insurance Company, Medical Insurance, USA Health Insurance | 3 Comments
After the passage of the Affordable Care Act six months ago in the United States, the first raft of new healthcare rules have come into effect, as of Thursday, September 23rd 2010.
While much of the healthcare law has yet to impact the US Healthcare landscape, what has gone into effect on Thursday 23rd are important consumer protection laws known as the Patient’s Bill of Rights. These provisions tend to either prevent US domestic insurance companies from engaging in certain practices, or grant additional rights to patients and insured persons.
One of the more important provisions that have come into effect is the fact that children may stay on their parent’s health insurance plan until the age of 26. Young people in America are a demographic that has high numbers of uninsured individuals, with up to one third of young Americans having no health insurance. The new provision applies to all health insurance plans, allowing parents the choice of whether to keep the children on their health plan until their 26th birthday. However, for employer-based insurance plans, children will only be extended this benefit if they are ineligible for their own employer-based coverage.
In another child related provision, American insurance companies are no longer allowed to either deny coverage to children with pre-existing medical conditions or limit the benefits offered to them, except in the cases of insurance plans that are ‘grandfathered’ in. Currently this provision covers children up to the age of 19, although in 2014, this provision extends to cover Americans of all ages.
Insurers in the United States are also no longer allowed to place lifetime limits on health insurance plans. Some policies in the domestic US insurance market come with coverage limits, whereby once treatment costs reach a certain ceiling, coverage by the insurer is ceased leaving the insured unprotected when they need it most. There were approximately 100 million Americans with insurance plans that had lifetime coverage limits in place, however these limits are now prohibited on all health insurance policies.
Another type of coverage limit placed on plans are annual limits, whereby once an insurer pays out for enough claims to hit the ceiling, the insurer will no longer pay out during that year. While less prevalent than lifetime limits, annual limits are still used by about 14% of small employer plans and 19% of individual plans on the US market. Under the new provisions in force, annual limits will be phased out over the next three years, except for individual plans that are ‘grandfathered’ in. For insurance plan years starting on or after September 23rd, 2010, the annual limit must maintain a bare minimum of US$ 750,000 (EUR 559,800). During the second year, the minimum annual limit is raised to US$ 1.25 million (EUR 932,800), and in the third year annual limit minimum must be at least US$ 2 million (EUR 1.49 million) before all annual limits are banned in 2014.
Also made illegal is the practice where insurers may retroactively cancel your insurance coverage, also known as rescission, for a variety of potential reasons. For all health insurance plans, insurance companies are no longer able to lawfully rescind your insurance coverage, unless it is in the case of fraud or intentional misrepresentation of facts.
Furthermore, anyone buying a new insurance policy is now protected by a number of consumer-friendly provisions in the law. One of these provisions that Americans should be taking advantage of to stay healthy is that insurers must now cover Level A and Level B preventative care, without deductibles, co-insurance or co-payments. This includes immunizations, mammograms, colonoscopies, pre-natal checks and new baby care, to try and encourage Americans to be proactive about keeping themselves healthy, or at least catching serious illnesses early.
The new laws also guarantee the insured the right to both an internal and external appeal over denied claims. Previously, if an insurer declined to either cover a treatment or pay out a claim, in many cases there would be an internal mechanism within the insurance company to appeal the denial of treatment or claim payment, dubious as that might seem. The provisions now guarantee that all new insurance plans must have an internal appeal mechanism, and are now prevented from denying coverage without an opportunity for an external appeal to an independent third party.
People purchasing health insurance plans will now be able to pick their own doctor, which has previously been difficult on occasion due to American health insurance provider networks. One survey reported that three of every four obstetrics and gynecology specialists (OB/GYN) said that patients had to return to their primary physician to be referred back for follow up care. The laws now in force ensure that policyholders have the right to choose their primary physician, the right to choose a pediatrician for their child’s primary care, as well as granting women the right to see an OB/GYN specialist without a referral.
Another provision which affects in-network versus out-of-network issues is that health insurance plans will not be able to make the insured pay more in cost-sharing methods for getting emergency treatment at an out of network hospital. Prior to this law coming into effect, an individual would have to pay excessively higher costs for emergency care that happened outside of their insurance company’s healthcare provider network, making an accident while away from home potentially financially devastating. Insured individuals now have the ability to receive emergency care at out-of-network healthcare providers, while being charged in-network prices.
All of these provisions are now in effect, as of Thursday, 23rd September, 2010, meaning that Americans now have much greater protections and clarifications of their rights in regards to their health insurance policies. However, this is only a small part of the Affordable Care Act which is coming into force and there will be some new developments in early 2011, and more changes to the healthcare landscape within the next four years, so it is always advisable to ensure you remain informed.
Sep
27
AIG Gets IPO Approval, Releases 2010 Profit Estimate for AIA
Filed Under AIG, Hong Kong, Insurance Company | 7 Comments
American International Group Inc. (AIG) has recently been given approval to list its Asian life insurance unit, American International Assurance Group Ltd. (AIA), on the Hong Kong Stock Exchange, as per initial plans announced earlier this year by mid-July 2010. Additionally, AIG has released the estimated annual operating profit of AIA, which should reach at least US$2 billion (EUR 1.5 billion) by the end of the fiscal year ending 30 November 2010.
The initial public offering (IPO) of AIA may raise up to US$15 billion (EUR 11.1 billion) for AIG, with investor road-shows and marketing activities to start on 06 October 2010, followed by the pricing of the shares on 21 October 2010. It is lining up to become the second-biggest IPO of this year. Agricultural Bank of China already claimed the world’s largest IPO title back in August 2010, with a confirmed US$22.1 billion (EUR billion) raised when its shares were listed in the Hong Kong stock exchange in July 2010.
In regards to the operating profit estimates for the fiscal year 2010, AIG cited strong growth in Thailand and Korea, and an increase in insurance premium income realised by AIA that climbed 11.3 percent year-on-year to US$9.32 billion (EUR billion), in the nine months ended 31 August 2010, with Hong Kong accounting for the single biggest share at US$2.1 billion (EUR 1.56 billion), equivalent to a 3 percent increase compared to 2009, as per figures recently released in the unaudited results report.
AIG will likely use the proceeds of the AIA IPO towards the repayment of debt incurred by the US government bailout it received during the global financial crisis. It is estimated that up to half of AIA will be sold by AIG during the formerly mentioned IPO.
Insurance Companies mentioned:
American International Group, Inc. (AIG) is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
The AIA Group is a leading life insurance organisation in Asia Pacific that traces its roots in the region back more than 90 years. It provides individuals and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions. Through an extensive network of more than 320,000 agents and approximately 23,500 employees across 15 geographical markets, the AIA Group serves the customers of over 23 million in-force policies in the region. The AIA Group has branch offices, subsidiaries and affiliates located in jurisdictions including Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.
Sep
27
Aetna Global Benefits expands Executive Healthcare Plan in Africa
Filed Under Aetna, Africa, Expat Insurance, Health Insurance, Medical Insurance | 8 Comments
Aetna Global Benefits (AGB) has announced a new international health insurance plan in Africa as part of their Executive Healthcare Plan lineup, targeted at regionally mobile individuals and groups.
Aetna Global Benefits offers the Executive Healthcare Plan (EHP) line of international health insurance products in partnership with Kenya-based medical insurance provider Executive Healthcare Solutions.
The Executive Healthcare Plans offer three coverage areas, which include the usual Worldwide and Worldwide excluding the U.S. areas of coverage, as well as Africa plus India, Bangladesh and Pakistan.
The new EHP Lifestyle plan includes a number of benefits over and above hospitalization and out-patient treatment, such as routine and restorative dental treatment up to US$ 1000, full refund for vaccinations and inoculations, routine management of chronic conditions, pregnancy and childbirth benefits, newborn cover including congenital anomalies, HIV/AIDS treatment, hormone replacement therapy, home nursing benefits, transportation of mortal remains or local burial costs, and hospital cash benefits.
Like other Executive Healthcare Plans, policyholders have access to Aetna Global Benefits’ Global Health Databank as well as the Health and Wellness Centre. AGB’s Global Health Databank offers the ability to look up medical facilities, medical translation services, city profiles and safety and security information from around the world. The Health and Wellness Centre offers users educational information and resources on health conditions in the region.
Stuart Leatherby, the Aetna Global Benefits Managing Director for the Middle East and Africa said “We are extremely pleased to offer an additional medical plan for customers in the region that provides increased benefits and benefit levels. This demonstrates our continued commitment to providing employers and individuals with a wide range of products and services to address their specific benefit or economic requirements.”
Insurance Companies Mentioned:
Aetna Global Benefits
Aetna Global Benefits, the international business segment of Aetna, is committed to helping create a stronger, healthier global community by delivering comprehensive health benefits and health management solutions worldwide. AGB’s expatriate business is one of the industry’s largest and most prominent US-based international health benefits providers, supporting more than 400,000 members worldwide. The organisation’s health management business collaborates with healthcare systems, government entities and plan sponsors around the world to design and build locally-applied health management solutions to improve health, quality and cost outcomes.
Executive Healthcare Solutions
Executive Healthcare Solutions is a well established Kenyan medical insurance provider, with over 50 years of experience in dealing with international insurance arrangements. Executive Healthcare Solutions has been actively participating in the international private medical insurance market for over 10 years. The company is Aetna Global Benefits and subsidiaries’ principal representative for the Executive Healthcare Plan in Africa, and currently has approximately 10,000 members across Africa.
Sep
24
South Africa National Health Insurance Scheme Commences in 2012
Filed Under Africa, Health Insurance, Healthcare, Medical Insurance | 331 Comments
South Africa’s ruling party, the African National Congress (ANC) has released more information regarding their plan to mandate universal access to healthcare through a National Health Insurance Scheme.
The Ministerial Advisory Committee on the NHI has produced a document providing a rough outline of the ANC’s National Health Insurance (NHI) scheme, which is ready to be submitted to the ANC National General Council (NGC) for debate. The ANC’s National Health Insurance plan aims to ensure access to healthcare is based on need rather than the ability to pay, with the intention of doing this through a single payer health insurance system. The initiative will take a community-centric approach, with a focus on local primary care networks rather than large-sized hospitals.
South Africa currently spends slightly more than 8% of GDP on healthcare every year, although most of that money is being spent through the private healthcare system, despite the fact that nearly 64% of the South African population relies upon the public system.
The new national health insurance program is expected to cost at least ZAR 128 billion (USD 18.1 billion) in the first year, rising to ZAR 376 billion (USD 53.15 billion) by 2025. Although according to Di McIntyre, the Director of the Health Economics Unit of the University of Cape Town, this would roughly equal the total amount spent on healthcare in South Africa. McIntyre also said that even with the NHI scheme and associated increases in healthcare use, hospital staff and resources over the next 10 to 15 years, healthcare expenditures would still remain at roughly 8% of GDP.
The South African treasury and the Ministerial Advisory Committee on the NHI, which is chaired by Dr. Olive Shisana, the CEO of the Human Science Research Council, has put forward a provisional model for funding the scheme, while they explore potential options. While the main source of revenue would be from South Africa’s general taxation, additional financing may be sought through a surcharge on taxable income, an increased value-added tax (VAT) dedicated to the NHI, payroll taxes for employers and employees, and removal of the presently existing tax credit for medical aids.
The first phase of the project will be rolled out in 2012, and will focus primarily on bringing services to areas with little or no access to quality healthcare. A number of other key areas of attention for the initial roll-out are being discussed in closed chambers by delegates at the NGC. These include investing and rebuilding the country’s public health infrastructure, developing human resources programs to fill the national shortage of qualified health workers, and establishing a national health fund that would be ensconced in the Ministry of Health but operate autonomously, much like the South African Revenue Service in the National Treasury.
Officials are also looking at electronic medical records, such as the e-health system that Singapore has been developing, as a way to manage to reduce the associated management costs of the healthcare system. Members of the Ministerial Advisory Committee were also quick to point out that affluent South Africans would still be able to use private healthcare, through the purchase of private medical insurance and use of private hospitals.
As the Ministerial Advisory Committee has now submitted their proposed program to the ANC National General Council for debate, it will be interesting to see how the continuing process, as government officials are encouraging input from stakeholders in the debate, with ANC Spokesperson Jackson Mthembu saying “If there is one organisation that likes to have people involved in what it does, that’s the ANC. We welcome your contributions on this matter.”
Sep
24
Zurich International Life Releases New Product in the Middle East
Filed Under Income Protection, Insurance Company, UAE Insurance | 3 Comments
Zurich International Life, based in the Middle East, has recently announced the launch of a new life insurance product called Protected Equity Plus (PEP). PEP is a single-premium, investment-linked insurance plan, which offers a guaranteed return upon maturity, even in the event of a stock market collapse in the Middle East.
Some of the characteristics of PEP are that it offers access to equity markets in geographical regions specifically chosen by the Insurer, with the possibility of switching on a quarterly basis free of charge, and the ability to make withdrawals. The guaranteed return of PEP is paid upon the 10th anniversary of the investment, deducting from the total return any prior withdrawals made under the policy.
For investors in the Middle East, PEP offers a rare combination of investment protection and potential for growth; which makes it appealing as a potential safety-net, in addition to providing general peace of mind and value for money on the part of the policyholder. Furthermore, the guaranteed returns are increased when the initial investment amount has grown by at least 10 percent on the 5th anniversary of the plan.
The simplicity of PEP makes it easy for investors in the Middle East to invest their money and frees them from the requirements of having to constantly monitor the performance of their investment. PEP will be launched by Zurich International Life intermediaries within the next few weeks through a series of road-shows across the UAE, Bahrain and Qatar.
The regional director of Zurich International Life in the Middle East, Graham Morrall, said of the Protected Equity Plus plan, “we have seen an encouraging response from our intermediaries so far and they have been particularly impressed with the simplicity of the product’s structure. Our recent Zurich Community Research results showed that many of our investors are still feeling risk-averse, so we are not at all surprised by the majority of respondents’ positive feedback about PEP and its guaranteed element.”
Insurance company mentioned:
Zurich International Life (ZIL) offers life assurance, investment and protection solutions throughout the world* with licensed offices in the United Arab Emirates, Hong Kong, Bahrain, Qatar, Singapore and Taiwan. As part of the Zurich Financial Services Group, ZIL can offer innovative and individual financial solutions. With tailored products and services that meet the requirements of local markets for many years, ZIL ensures to offer truly flexible and portable financial solutions. As part of one of the world’s leading providers of international insurance and investment products, ZIL has a reputation for excellent performance and commitment to the customer. * Not all products are available in all regions.
Sep
22
AIGs Japanese Insurance Business Targeted By Prudential Financial
Filed Under AIG, China, Insurance Company, Life Insurance, USA Health Insurance | 5 Comments
Early reports indicate that Pudential Financial Incorporated is nearing a US$4-5 billion (EUR 3-3.8 billion) deal to take over two Japanese Life insurers from the American International Group Inc (AIG).
Japanese life insurance companies AIG Edision Life Insurance Co and AIG Star Life Insurance Co have been highlighted as possible acquisition targets for the Prudential Financial Incorporated in a deal which could generate up to US$5 billion (EUR 3.8 billion) for AIG. If concluded, the sale would provide a significant contribution towards repaying the US$182.3 billion (EUR 137.3 billion) AIG owes to US taxpayers for the bailout of the company in 2008 following the global collapse of financial markets. Along with other financial institutions, which received government bailouts, AIG received US$182.3 billion (EUR 137.3 billion) from the US government resulting in the company being nearly 80% owned by the US taxpayer.
Prudential is the second-biggest U.S. life insurer and has been present in the Japanese insurance market for more than twenty years. It has been looking to further strengthen their presence in this market following the takeover of bankrupted Yamato Life Insurance Co in May 2009 – which subsequently changed its name to Prudential Financial Japan Life Insurance. If Prudential do acquire the two Japanese life insurers, it will mean that they will increase their presence in the Japanese life insurance market and will utilize their considerable expertise in this industry.
Rumours have been circulating about the potential sale of AIG’s two Japanese life insurance businesses as the US based company looks to create capital to repay the US government loan. Prudential Financial Inc has emerged as the front runner for the acquisition after suspected initial talks stalled earlier this year.
A buyer of the either of the Japanese life insurance companies would obtain a well established Japanese life insurance business. AIG Star Life Insurance Co Ltd provides life insurance coverage and retirement pension plans to individuals and group policyholders. AIG Edison Life Insurance operates as a subsidiary for American International Reinsurance Company Ltd providing life insurance services in Japan, with customers that include large corporations, unions and government agencies. If a takeover does go-ahead, it will see Prudential Financial Japan Life Insurance increasing their reach and life insurance product range in Japan.
AIG has been busy retrenching since the world financial crises took hold, while other rival insurers have been pursuing global expansion by re-positioning and entering new operating channels, as global financial markets stabilise and opportunities for restructuring emerge.
Earlier this year, AIG saw a potential deal worth US$2.15 billion (EUR 1.6 billion) blocked by the Financial Supervisory Commission (FSC) of Taiwan for the sale of the life insurance unit of AIF Taiwan by Primus Financial Holdings Ltd and China Strategic Holdings on the grounds of violation of investment regulations.
Recently American International Insurance (AIA), the Asian arm of AIG, entered into an agreement with Industrial and Commercial Bank of China (ICBC) to form a bancassurance partnership in China to develop a network for sales, marketing, telemarketing and wealth protection services in a deal which will strengthen AIG’s network in this fast growing economy.
There are also early reports that AIG Group Ltd has received approval to list Asian life insurance business American International Assurance (AIA) on the Hong Kong Stock Exchange (HKEX), which could generate up to US$15 million (EUR 11.3 million) from IPOs (Initial public offerings). AIG has progressed to the floatation on the HKEX after the collapse of the US$35.5 billion (EUR 26.7 billion) deal with Prudential earlier this year, which would have seen the British insurer acquiring AIA from AIG. AIG has sought numerous avenues to generate capital to pay back the Group’s US$182.3 billion (EUR 137.3 billion) debt to the US taxpayer after the government bailout in 2008.
In June 2010, the Life Insurance Association of Japan (LIAJ) reported that there were 47 life insurance companies operating in Japan with the main firms being: AIRIO, Midori, Lifenet, SBI AXA Life, Japan Post (Kampo), Hartford Life, ALICO Japan, ING, Manulife, AIG Edison and AIG Star. The Japanese insurance market experienced a premium decline of roughly 58% in 2008, although, in 2006, the total premium income generated in this market amounted to US$363 billion (EUR 273.2 billion) – which was nearly one-sixth of the total world life insurance premium income for the year. The Japanese life insurance market is now facing stiff competition from China and Indian markets; Japan has the oldest age profile population in the world and a declining young population, which has lead to a fall in life insurance customers.
Insurance Companies Mentioned:
AIG
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
AIG Star Life Insurance
AIG Star Life Insurance Co. Ltd. is involved in providing life insurance coverage and retirement pension plans to the individual and group policyholders.
AIG Edison Life Insurance
AIG Edison Life Insurance Company provides life insurance services in Japan. AIG Edison Life Insurance has 8,000 sales agents and 17 bancassurance partners in Japan. The company is also providing new distribution channels for AIG which includes, corporation, unions and government agencies
AIA
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.
Sep
22
Liberty Mutual, the Boston-based American insurance group, has submitted to the Securities and Exchange Commission (SEC) an application to take public Liberty Mutual Agency Corp. (LMAC). According to the details in the IPO application form, Liberty Mutual plans to sell over 64 million shares at between US$18 (EUR 13.5) and US$20 (EUR 15) per share.
A group of independent agents and brokers makes up Liberty Mutual Agency, which distribute property, auto, workers’ compensation and casualty insurance products from Liberty Mutual. Liberty Mutual will retain an 80 percent stake in LMAC, whilst shareholders will own the remaining 20 percent.
Analysts overall agree that the IPO move, considered the biggest in 2010, is a positive one for Liberty Mutual, and will bring a windfall of approximately US$1.7 billion (EUR 1.28 billion), which the insurer could use to fund new acquisitions and settle debt, such as the US$130 million (EUR 97.7 million) it paid back in 2007 for the purchase of the insurance company Ohio Casualty.
Business generated by LMAC contributes significantly to Liberty Mutual coffers, and by itself stands as the 10th largest property and casualty insurance company in the United States.
No concrete date for the public offer has been announced, although it is likely to happen as early as this fall, depending also on the approval by the SEC and response of investors.
Insurance Company mentioned:
Liberty Mutual Group offers a wide range of insurance products and services, including personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire, and surety. Liberty Mutual Group employs over 45,000 people in more than 900 offices throughout the world.
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