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CNA Gains Access to RSA Global Distribution Network

CNA insurance company has recently entered into an agreement with RSA, formerly known as Royal & SunAlliance, to provide companies based in the US with access to the global distribution network of RSA. Through this agreement, CNA will be able to expand its reach to India, South Africa, Australia and a good number of countries in Latin America. This new agreement with RSA does not discontinue the current 16-year alliance that CNA has with Assicurazioni Generali.

Some of the Latin American countries where RSA has presence include: Argentina, Brazil, Chile, Colombia, Mexico and Uruguay. In addition of Argentina, Brazil, Colombia and Mexico, the presence of Generali in Latin America also covers: Ecuador, Guatemala, Martinique and Panama.

The branch offices of CNA based in the USA will now be able to offer international policies in 142 key countries worldwide, thanks to the combined international relationships with RSA and Generali. In addition to this, agents doing business with CNA will gain access to the full range of their products including Small Business, Professional, Technology and Excess & Surplus, complemented with quality Risk Control and Claim expertise.

In the words of Michael Dower, CNA’s vice president of Underwriting – International, “RSA has one of the largest networks in the insurance industry, including a presence in 34 countries and the capacity to cover risks in an additional 98 countries. This agreement enables CNA to expand its global reach to serve the international business needs of our U.S. producers and customers.”

Insurance Companies mentioned:

CNA

CNA has been serving businesses and professionals since 1897, and is the seventh largest commercial insurance writer and the 13th largest property and casualty company in the US. CNA’s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA’s services include risk management, information services, underwriting, risk control and claims administration.

RSA

RSA has a proud heritage dating back almost 300 years. The current company structure was created in 1996 following the merger of two of the largest insurance companies in the UK, Royal Insurance and Sun Alliance. In 2008 the company shortened their name to RSA and simplified and refreshed their corporate brand. RSA has over 20 million customers worldwide. The Group currently manages GBP 14.3 billion of investments. RSA is a member of the FTSE4Good Index. RSA employs around 21,000 people worldwide.

Assicurazioni Generali SpA

The Generali Group is one of the most significant participants in the global insurance and financial products market. The Group is a leader in Italy and Assicurazioni Generali, founded in 1831 in Trieste, is the Group’s Parent and principal operating Company. Generali is one of the leading global players in the assistance sector thanks to the Europ Assistance Group, active in more than 200 countries with services in the motor, travel, healthcare, home and family sectors. In recent years, the Group has made a significant return to 14 central-eastern European markets and has set up offices in the principal markets of the Far East, including China and India.

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Discovery Acquisition of Standard Life Healthcare Approved

After having received approval from Britain’s Financial Services Authority and the South African Reserve Bank, the acquisition of Standard Life’s health insurance division, Standard Life Healthcare, by Discovery Holdings has been completed, putting PruHealth in a strong position for growth.

The finalized acquisition and integration of the companies over the next few months will make PruHealth a competitor of scale in the UK private medical insurance market, growing the number of people covered up to 700,000 and boosting market share up to 11 percent. The additional business makes PruHealth the fourth largest private medical insurer in the UK.

The integration of the two companies will take some months, and when it arrives it will see a suite of private medical insurance products based upon the best aspects of currently available insurance policies from PruHealth and Standard Life Healthcare. The new product suite is expected to be ready by the end of 2010, but in the mean time PruHealth will continue to service and sell all products from both PruHealth’s and Standard Life Healthcare’s ranges.

While the integration and new product suite is being arranged, there will be no changes to broker arrangements, customer service, existing policies and account management and sales support for products offered by PruHealth and those previous offered by Standard Life Healthcare. If there are any planned changes to a customer’s policy, they will be notified when the policy is up for renewal.

In the transitional period previous Standard Life Healthcare policies will be referred to under a new brand as ‘PruHealth Previously Standard Life Healthcare’, in order to ensure the integration is done smoothly.

The previous Chief Executive Officer of Discovery Health, Neville Koopowitz, has been appointed as the new CEO of PruHealth. Mr. Koopowitz said that “We are proud to be able to bring to clients both the award-winning product innovation and the excellent service history of two leading PMI businesses, and are excited about the opportunity to further develop our presence in the UK market. We are working hard to bring clients a new product suite, building on PruHealth’s wellness expertise and Standard Life Healthcare’s emphasis on outstanding service and comprehensive coverage.”

Insurance Companies Mentioned:

Discovery Holdings

Discovery is a financial services provider based in Johannesburg, South Africa, and was founded in 1992. Discovery offers health and life insurance in different markets as well as investment services and credit cards. They also have a joint venture life and health insurance companies with Prudential called PruHealth and PruProtect, which are structured under the PruProtection banner.

Standard Life plc.

Standard Life was established in 1825 and headquartered in Edinburgh, Scotland. Since its beginnings, Standard Life has expanded into a financial services company offering pensions, life assurance, and investment management to over 6.5 million customers around the globe.

PruHealth

PruHealth is part of a joint venture named Prudential Health Holdings Limited, between Prudential Assurance Company of the UK and Discovery Holdings. The joint venture was started in 2004 and offers private medical insurance in the United Kingdom. Currently Discovery Holdings owns a 75 percent stake in the joint venture while Prudential Assurance holds the remaining 25 percent.

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Taiwanese Regulators Reject Sale of AIG Unit to Primus

The Financial Supervisory Commission (FSC) of Taiwan has recently announced it has rejected the planned purchase of the life insurance unit of AIG in Taiwan by Primus Financial Holdings Ltd. It is believed the FSC had concerns about Primus, which is based in the Cayman Islands, may be backed by funds from mainland China, thus in violation of the Taiwan law that prohibits Chinese investment in the financial sector.

Primus has reiterated it does not have a Chinese sponsor.

Back in October 2009 American International Group Inc. (AIG) had announced the US$2.15 billion (EUR 1.7 billion) sale of Nan Shan Life Insurance Co. to a group of investors led by Hong Kong-based Primus Financial Holdings. Also part of the investors group led by Primus is China Strategic Holdings Ltd., also based in Hong Kong.

An official with the Investment Commission of Taiwan explained that the rejection of the sale was in part due to Primus having recently named several new shareholders during the past few months and that was perceived by the SFC as a lack of stability in their operations.

Upon gaining approval of the sale, China Strategic Holdings had a deal to sell to Chinatrust a 30 percent stake in Nan Shan for US$660 million (EUR 516 million). Chinatrust Financial Holding Co., is the third-largest financial company in Taiwan. Towards the end of June 2010, there was an announcement that China Trust intended to walk away from the Nan Shan deal { http://www.globalsurance.com/blog/chinatrust-walks-away-from-nan-shan-deal-with-aig-128320.html }, and now China Strategic is considering to launch an appeal against the decision of the FSC.

On a positive note, China Strategic has been cleared by the FSC of the Chinese funding rumours.

An appeal can be made to the Taiwanese Cabinet within 30 days of having received the official rejection notice. Neither Primus nor China Strategic have insofar received such official notification.

Companies mentioned:

AIG

The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.

Nan Shan

Nan Shan Life Insurance Company, Ltd. was established in July 1963. After its restructuring in January 1970, Mr. K.K. Tse, the then Chairman of American International Underwriters, became the first Chairman of the company. In forty years, Nan Shan has become a super insurance company with the most professional management, the best operational performance, and a solid financial foundation. Its agency force has been recognized as the best in Taiwan’s life insurance industry.

Primus

Primus is an Asia-based private equity fund focused on acquiring financial services companies. Members of the Primus Group include PFH Partnership Holdings and PMN Capital. Primus is a strategic operator in financial services with significant permanent capital, deep operational experience, and long-term financial capabilities.

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CIGNA acquires Vanbreda International

Philadelphia-based health insurance company CIGNA has announced the recent acquisition of privately owned Vanbreda International, a leading international health insurance company headquartered in Belgium.  The deal between the two companies gives CIGNA unprecedented access to the larger international expatriate health insurance market; the two companies have an estimated 700,000 policyholders worldwide.

CIGNA President, William L Atwell, was positive about the deal between the two insurers, stating that “the acquisition demonstrates CIGNA’s growth strategy to go deep into existing segments, to go global – seeking worldwide opportunities to diversify our earnings stream, build on strengths and serve customer needs – and to go individual, as Vanbreda International has a growing portfolio of international individual business.”

Despite the acquisition of Vanbreda, the company will still continue to operate as an independent business under the leadership of current CEO Rudi Bertels, who said “as we join forces with CIGNA, we look forward to building on our proud legacy of service and adding enhanced capabilities for our customers, such as CIGNA’s leading suite of health and wellness offerings.”

Vanbreda has been a target for CIGNA for some time now as “there is little overlap between our current businesses and capabilities, bringing mutual opportunity to both,” according to Atwell, who also identified the strong “cultural fit” between the two companies as a key motivator for the acquisition.

While CIGNA is a dominant presence in the American health insurance market, providing integrated health services, Vanbreda has a much larger operation in both Europe and Asia. As such, the deal between the two companies is a key component in CIGNA’s global strategy, and a vital part of their plans for worldwide growth.

The last 12 months has seen increased movement in the international insurance market, following in the wake of the 2008-2009 global financial crisis. In a global trend, many insurance providers are looking to expand their global presence, with Europe and the developing markets in Asia being cited as the biggest opportunities for success. The acquisition of Vanbreda by CIGNA is the latest development of this movement.

UBS Bank was the financial advisor to CIGNA for the deal, however financial details of the acquisition have not been disclosed.

Insurance Companies Mentioned

CIGNA

A global health service company dedicated to helping people improve their health, well being and sense of security. CIGNA Corporation’s operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

Vanbreda

With over 50 years of experience in the international medical insurance market, Vanbreda covers a myriad of policyholders worldwide. Headquartered in Belgium, Vanbreda believes in product innovation and superior service to customers.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

China Life Aims to Expand Bancassurance Channel

China Life Insurance Company Limited (China Life), the largest life insurance company in China by premium, has started to shift its sales strategy towards the bancassurance distribution channels. As a first for the company, the bancassurance channel has contributed more than 70% of the company’s insurance premiums for the first half of 2010, becoming a vital premium generator for the company.

Known for having the biggest insurance sales team in the country, China Life has been experiencing growth in the contributions from their bancassurance channel, as per a statement recently released in an interview with Wan Feng, president of this Beijing-based insurance company.

The term ‘bancassurance’ is often used to refer to the Bank Insurance Model (‘BIM’), which describes the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank’s sales channels, including branch offices, in order to sell insurance products. Bancassurance allows the insurance company to maintain smaller direct sales teams as their products are marketed and sold through the bank to customers by bank staff. Replacing the role of an insurance salesperson, bank staff and tellers become the point of sale and contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training.

By the end of June of this year, China Life had approximately 42,700 consumer and wealth management officers assigned to their bancassurance channel, spread over 97,000 branch outlets throughout the country.

China Life intends to accelerate its business expansion during the second half of 2010, to cement its footing in the most populous insurance market in the world, according to details also shared by Mr. Wan.

Insurance Company mentioned:

China Life Insurance

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.

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Aetna Global Benefits Appoints New Head of Middle East Operations

Stuart Leatherby has been appointed as the Managing Director to head up Aetna’s expatriate health insurance business, Aetna Global Benefits, in the Middle East and Africa.

Leatherby has been working with Aetna Global Benefits since 2000, and prior to his promotion he has been working as the head of Aetna Global Benefits’ International Markets Development team where he was responsible for expanding business across new, and preexisting geographical and market segments. In his decade of service at the company, Leatherby has worked in a number of diverse positions with a variety of responsibilities that have included areas such as compliance, technical claims, product development, workflow management, information technology, underwriting and portfolio management.

As the new Managing Director and Head of Aetna Global Benefits business in the Middle East and Africa, Stuart Leatherby will be based in Dubai, United Arab Emirates (UAE), with effect from September 1^st, 2010.

David Corkum, Aetna Global Benefits Group Managing Director, said that “Stuart’s extensive international health insurance experience will serve us well in our continued efforts to provide world-class benefit solutions and service for our valued customers and members in the Middle East and Africa. This region is a strategically important market for our organisation, and Stuart and his team’s efforts will be instrumental in our continued successful growth and expansion.”

The current Aetna Global Benefits Managing Director for the Middle East and Africa, Mark Jardin also says that “Stuart possesses a unique combination of strong technical expertise and business experience that will be key to cultivating our consultant, broker and customer relationships, as well as market development activities in the region. I have greatly enjoyed my time in the region and look forward to continuing to assist in Aetna’s international expansion and growth upon my return to the United States.”

Insurance Companies Mentioned:

Aetna

Aetna is a leading global diversified healthcare benefits company head-quartered in the US, serving approximately 35.8 million people with information and resources to help them make better informed decisions about their healthcare. Aetna offers a broad range of traditional and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioural health, group life and disability plans, and medical management capabilities and healthcare management services for Medicaid plans. Our customers include employer groups, individuals, college students, part-time and hourly workers, health plans, governmental units, government-sponsored plans, labour groups and expatriates.

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.

Globalsurance International Health Insurance - Expat Medical insurance products for you and your family no matter where in the world you live.

Allianz Group Profit Up 22% for Year to Date

Allianz Group, the German insurer, has reported a profit of US$4.95 billion (EUR 3.9 billion) for the first-half of 2010, equivalent to a 22% increase over the same period last year. Revenues during the first half of 2010 increased to US$71 billion (EUR 56 billion) from US$63.4 billion (EUR 49.9 billion) during the same period in 2009.

In terms of net income, the corresponding increase achieved by Allianz during the same period year-on-year was 39.5% to US$3.43 billion (EUR 2.7 billion) from US$2.4 billion (EUR 1.9 billion).

Gross written premiums for property and casualty insurance cover increased a 2% year-on-year to US$30.35 billion (EUR 23.9 billion) from US$29.7 billion (EUR 23.4 billion) achieved in the first half of 2009, with the corresponding operating profit amounting to US$2.36 billion (EUR 1.86 billion).

Allianz recorded second-quarter (Q2) of 2010 revenues in the United Kingdom of US$671 million (EUR 528 million), compared to Q2 2009 revenues of US$624 million (EUR 491 million); driven mainly by an increase in policy count in their commercial insurance lines and their new corporate partnerships in the Automotive, Retail and Financial Services industries. Allianz in the UK delivers tailored insurance solutions to these corporate partners and provides a wide range of market-leading general insurance products to companies, brokers and consumers.

The statement released by Michael Diekmann, Chief Executive Officer of Allianz SE, the holding company of Allianz Group, explained: “In a first half-year marked by exceptionally high natural catastrophe losses, our success shows that our diversified approach across business segments and regions is helping us to ensure stable results. In addition, our strong capitalization and conservative capital management underline the reliability for which Allianz is renowned.”

Insurance Company mentioned:

Allianz

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.

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Ping An Achieves Bumper Profits in the First Half of 2010

Ping An Insurance, the second largest insurer in the world, achieved a 27.9 percent increase in net profit in the first half of the year, reaching US1.65 billion (EUR 1.3 billion), attributing it to a steady growth in sales of insurance products and banking services.

The gross written premiums reported for the first half of the year reached US$15.4 million (EUR 12.1 million), representing approximately 15.8 percent of the total written premiums in China during that period.

After acquiring a 30 percent stake in Shenzhen Development Bank, combined with their efforts to promote their own banking services, Ping An Insurance reported profits from its banking unit to the tune of US$182 million (EUR 143 million), compared to the US$95.5 million (EUR 75 million) reported a year earlier, equivalent to an almost one hundred percent increase year-on-year.

Financial analysts had estimated that Ping An Insurance would achieve a Q2 net profit of US$529.4 million (EUR 415.8 million), when it actually achieved a net profit of US$744 million (EUR 584.5 million), beating estimates by a nearly 41 percent.

Despite the low penetration level of insurance in China, which is among the lowest in the world, Ping an Insurance continues moving towards becoming a major bancassurance distributor, combining its banking unit with Shenzhen Development Bank, aiming to get a larger share of the vibrant financial products market.

Looking forward to the second half of 2010, Ping An anticipates a slowdown caused by the Chinese government’s efforts to reign in their racing economy, compounded by volatility in the stock market and the overall uncertain outlook of the world economy.

Insurance Company mentioned:

Ping An

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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MetLife Gets Approval for ALICO, DelAm Takeover

The European Commission has given its approval for MetLife’s purchase of AIG subsidiaries American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm), as part of MetLife’s takeover of AIG’s international life insurance business.

MetLife’s purchase of ALICO and associated subsidiaries was agreed upon early in 2010, and the company recently obtained approval to purchase ALICO’s Hungary-based subsidiary, AHICO, from Hungary’s financial markets regulator, PSzÁF, in the beginning of August, 2010.

The European Commission was looking at whether or not MetLife’s takeover of the two companies, ALICO and DelAm, would negatively impact competition in European markets. DelAm is part of AIG’s international life insurance operations. The purchase of DelAm, which provides wealth management services, retirement planning, life insurance and health insurance to individuals as well as commercial and institutional clients was considered not to pose any concerns, especially considering it does not provide services in the EU.

ALICO, which provides life insurance, retirement planning, wealth management, accident insurance and health insurance to individual customers and corporate clients, was found to have some overlap in activities with MetLife by the commission. MetLife and ALICO did overlap in some life insurance products in a few EU Member markets, however the combined market share of MetLife and ALICO in these markets would still be relatively small and the combined company would still face strong competition from other credible companies in the marketplace.

After MetLife’s acquisition of ALICO, it is expected that MetLife will be in a top-five position in many emerging markets, including those in central and eastern Europe, Latin America and the Middle East. MetLife is hoping to wrap up the deal with AIG by the end of 2010.

Insurance 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

The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.

DelAm

Delaware American Life Insurance Company, or DelAm, participates in the accident, life and health insurance business, writing accidental death and dismemberment, group life, long term disability, dental, and medical business as part of AIG’s international life insurance sales operations. It was incorporated in 1964 and is based in Houston, Texas; it is a subsidiary of AIG.

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.

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Bupa Expands Health Care Select Product Line

Bupa has added Health Care Select 3 Plus (HCS3P) as a fifth choice in their Care Select insurance product line, effectively extending their Heartbeat range of plans offered to individuals in search of private medical insurance.

In the scheme of the Heartbeat Range, Health Care Select 1 delivers the most comprehensive cover, whilst Health Care Select 4 brings the lowest level of cover. Health Care Select 3 Plus fits right in between these two levels of medical cover. A specialist plan that provides medical cover for heart and cancer is also included under the Heartbeat Range.

Health Care Select 3 Plus covers the full cost of hospital charges and the fees of consultants for in-patient and day treatment, including cancer treatment. Also covered are the full cost of radiotherapy and chemotherapy, diagnostic tests and therapies for cancer treatment, as well as eligible outpatient cancer drugs. The benefits for outpatient treatment have a coverage ceiling of US$1,550 (EUR 1,220) for the combined cost of consultations, diagnostic tests, physiotherapy and other therapies.

Other benefits in this new HCS3P plan include the cost of a private ambulance up to US$93 (EUR 73) each tip, accommodation for one parent when staying with a child under 12 years of age who is receiving in-patient treatment, plus access to the Bupa health line service. Not covered under this plan are the complementary medicine and psychiatric treatments.

By removing benefits such as psychiatric treatment and limiting the outpatient coverage, this plan reduces the amount paid in the form of premiums, something that clients concerned with the cost of the plan may find reasonable, as not all clients feel that these benefits are necessary.

As a trend, the modular approach in the level of cover offered by insurance product lines, like the Heartbeat Range offered by Bupa, is gaining attention among providers of private medical insurance and other companies are coming out with their respective product offerings.

The following table summarizes the benefits offered by the Health Care Select products in the Heartbeat Range:

Insurance Company mentioned:

Bupa

Bupa is an international health insurance company that provides health insurance for individuals and companies all over the world. Bupa has offices on three continents and over 7 million customers’ world wide. As a provident association Bupa has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world.