Monday, October 19, 2009
Pension Prospects Still High
Jakarta, Head of Pension Fund Bureau of Bapepam-LK said Mulabasa Hutabarat dapen insurance industry the opportunity to develop the old days because not all the labor pension program of the company. In addition, not all firms in the country is a good retirement plan benefits must be (DPPK) and the transfer of pension fund management to financial institutions (Pension Fund). He expects turnover administrators Indonesian Pension Fund Association (ADPI) as the container can DPPK dapen industry growth faster still remember the huge potential. "We as an authority expects the new management can run a program that is set at the time of General Assembly yesterday (Wednesday) because it is very open growth opportunities especially when this new 2.8 million which was the cover," he told the press yesterday. He compared the management of overseas dapen able to record assets under management of very large approximately USD 100 triliun.Kondisi abroad, he said, became one fund management drivers in the country. Dapen number Mulabasa admitted at this tends to diminish because of a number of factors shrink. However, the number of participants increased from dapen just 2.5 million participants at the end of 2007 to 2.8 million at December 31, 2008. "There is an increase from the participants despite the number dapen reduced. This increase was not significant because this industry must also be supported by all parties, "he said. Total number of active dapen per May 31, 2009, according to Section Institutional Pension Bureau, consisting of 282 reached 256 DPPK and 26 Pension Fund. As for the number 256 is 42 runs DPPK defined contribution retirement plan (PPIP) and 214 with retirement benefit programs
LEARNING FROM LIFE BAKRIE, Philosophy Ignore Insurance Industry
InfoBank Research Bureau Chief Eko B. Supriyanto, Thursday (1 / 10) in Jakarta, said that, despite the increase, it must be admitted that so far the Indonesian people are still reluctant to buy products because they feel loss insurance to pay premiums. "Usually people just do not feel loss pay premiums or to realize the importance of insurance as being ill or have accidents," said Eko. To address the public mind that Indonesia is still like that, go Eko, insurance companies in Indonesia to create insurance products combined with investment products. This product is attractive to the public because the investment yield so that the premium paid is considered not in vain in the future if the policyholder does not suffer from illness or a disaster. In fact, insurance companies competing to impress gives high yield, such as insurance products offered by Investa Bakrie Diamond Life, which is 13 percent per year. In that case, go Eko, both insurance companies and the people who buy a product that has violated the philosophy of insurance products as protection or protection against life, health or property. "To get the protection it must have cost a premium. This is to be delivered to the public. Not by manipulating the public mind which is still considered a loss to pay the premium, "said Eko. Bakrie Life insurance company in 2005 launched the Diamond Investa, a combination of life insurance products and investments. This product offers investment yields high enough, which is about 1 percent per year. To be able to give that much interest, Bakrie Life to invest more than 80 percent of customer funds in the stock market. Fall of stock prices following the global crisis of late 2008 resulted in Bakrie Life substantial losses. Since July last, Bakrie Life can not pay interest and principal investments maturing customers due to liquidity problems. Besides demanding the return of investment principal as soon as possible, the customer also protested Life Bakrie management policies that invest 80 percent more funds in the stock market. According to some customers, the previous management Bakrie Life declared 90 percent of customer funds will be invested into the bond market, 5 percent of the shares, and 5 percent in the form of deposits. Bakrie Life Director Timoer Soetanto said, what the management of Bakrie Life to invest 90 percent of customer funds in bonds are not binding and is not in agreement. Therefore, loss of Bakrie Life in the stock investment is the responsibility of the Company. But when the composition of the placement of customer funds provided for in the agreement and corporate customers, Timoer said the investment losses will be borne by the customer. Such agreements usually are on the unit-linked insurance products. Timoer added, the company policy to place more than 80 percent of customer funds in the stock market does not violate the rules of the Capital Market Supervisory Agency and Financial Institution. What is important, customer funds are placed in one type of stock no more than 20 percent. Bakrie Life can not specify when the customer funds can be refunded. Scheduling customers fund payment mechanism is being arranged direct management rejected its customers and request funds be paid as soon as they have matured (REI).
Wednesday, October 14, 2009
Services
ISO provides a number of risk-related services to its clients:
1. statistical, actuarial, and claims data
2. development of standardized insurance policy language
3. risk-management information about specific locations
4. fraud identification
5. marketing, loss control, and premium audit
6. catastrophe modeling systems
7. employment screening
8. rating and underwriting rules
9. motor vehicle records
10. litigation and regulatory support
11. mortgage fraud analytics
12. real estate
13. healthcare cost analytics
14. restoration and remodeling-estimation services and software
ISO's databases contain more than 11 billion detailed records relating to insurance and risk management, which form the basis for its information services. ISO employs many members of the Casualty Actuarial Society and other insurance professionals to develop its risk-related products and services.
1. statistical, actuarial, and claims data
2. development of standardized insurance policy language
3. risk-management information about specific locations
4. fraud identification
5. marketing, loss control, and premium audit
6. catastrophe modeling systems
7. employment screening
8. rating and underwriting rules
9. motor vehicle records
10. litigation and regulatory support
11. mortgage fraud analytics
12. real estate
13. healthcare cost analytics
14. restoration and remodeling-estimation services and software
ISO's databases contain more than 11 billion detailed records relating to insurance and risk management, which form the basis for its information services. ISO employs many members of the Casualty Actuarial Society and other insurance professionals to develop its risk-related products and services.
Overview
Founded in 1971 in a merger of smaller underwriting service organizations, ISO has developed enormous databases of information about hundreds of millions of individual insurance policies, along with a large volume of public records pertaining to fraud, real property, employment screening, and motor vehicles. ISO also monitors regulatory standards and insurance laws, and makes many filings and other communications with regulatory authorities on behalf of its clients.
ISO became a private, for-profit company in 1997. It is owned by its member insurers and employees, and it does not publish detailed financial statements. In the fiscal year ended December, 2008 ISO's revenues were reportedly over $893.6 million. The organization employs 3,500 people worldwide, and the current chairman, president and CEO is Frank J. Coyne
ISO became a private, for-profit company in 1997. It is owned by its member insurers and employees, and it does not publish detailed financial statements. In the fiscal year ended December, 2008 ISO's revenues were reportedly over $893.6 million. The organization employs 3,500 people worldwide, and the current chairman, president and CEO is Frank J. Coyne
Insurance Services Office
Insurance Services Office, Inc. (ISO), a subsidiary of Verisk Analytics, is a provider of data, underwriting, risk management and legal/regulatory services to property-casualty insurers and other clients. Headquartered in Jersey City, New Jersey, the organization serves clients with offices throughout the United States, along with international operations offices in the United Kingdom, Israel, Germany, India and China.
Tuesday, October 13, 2009
Underwriting and investing
The business model can be reduced to a simple equation: Profit = earned premium + investment income - incurred loss - underwriting expenses.
Insurers make money in two ways:
1. Through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks;
2. By investing the premiums they collect from insured parties.
The most complicated aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. Of course, from the insurer's perspective, some policies are "winners" (i.e., the insurer pays out less in claims and expenses than it receives in premiums and investment income) and some are "losers" (i.e., the insurer pays out more in claims and expenses than it receives in premiums and investment income); insurance companies essentially use actuarial science to attempt to underwrite enough "winning" policies to pay out on the "losers" while still maintaining profitability.
An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss.
Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out. The Association of British Insurers (gathering 400 insurance companies and 94% of UK insurance services) has almost 20% of the investments in the London Stock Exchange.[6]
In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle. [7]
Property and casualty insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the United States, due to unpredictable natural catastrophes, have exacerbated this trend.
Insurers make money in two ways:
1. Through underwriting, the process by which insurers select the risks to insure and decide how much in premiums to charge for accepting those risks;
2. By investing the premiums they collect from insured parties.
The most complicated aspect of the insurance business is the underwriting of policies. Using a wide assortment of data, insurers predict the likelihood that a claim will be made against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they will charge to assume them. Data is analyzed to fairly accurately project the rate of future claims based on a given risk. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used to determine an insurer's overall exposure. Upon termination of a given policy, the amount of premium collected and the investment gains thereon minus the amount paid out in claims is the insurer's underwriting profit on that policy. Of course, from the insurer's perspective, some policies are "winners" (i.e., the insurer pays out less in claims and expenses than it receives in premiums and investment income) and some are "losers" (i.e., the insurer pays out more in claims and expenses than it receives in premiums and investment income); insurance companies essentially use actuarial science to attempt to underwrite enough "winning" policies to pay out on the "losers" while still maintaining profitability.
An insurer's underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium) is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates underwriting profitability, while anything over 100 indicates an underwriting loss.
Insurance companies also earn investment profits on “float”. “Float” or available reserve is the amount of money, at hand at any given moment, that an insurer has collected in insurance premiums but has not been paid out in claims. Insurers start investing insurance premiums as soon as they are collected and continue to earn interest on them until claims are paid out. The Association of British Insurers (gathering 400 insurance companies and 94% of UK insurance services) has almost 20% of the investments in the London Stock Exchange.[6]
In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, as the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held. Naturally, the “float” method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards. So a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "underwriting" or insurance cycle. [7]
Property and casualty insurers currently make the most money from their auto insurance line of business. Generally better statistics are available on auto losses and underwriting on this line of business has benefited greatly from advances in computing. Additionally, property losses in the United States, due to unpredictable natural catastrophes, have exacerbated this trend.
Indemnification
Main article: Indemnity
The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts;
1. an "indemnity" policy and
2. a "pay on behalf" or "on behalf of"[3] policy.
The difference is significant on paper, but rarely material in practice.
An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000)[4].
Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured (the homeowner) would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language[5].
An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'. Generally, an insurance contract includes, at a minimum, the following elements: the parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy.
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims—in theory for a relatively few claimants—and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses (i.e., reserves), the remaining margin is an insurer's profit.
The technical definition of "indemnity" means to make whole again. There are two types of insurance contracts;
1. an "indemnity" policy and
2. a "pay on behalf" or "on behalf of"[3] policy.
The difference is significant on paper, but rarely material in practice.
An "indemnity" policy will never pay claims until the insured has paid out of pocket to some third party; for example, a visitor to your home slips on a floor that you left wet and sues you for $10,000 and wins. Under an "indemnity" policy the homeowner would have to come up with the $10,000 to pay for the visitor's fall and then would be "indemnified" by the insurance carrier for the out of pocket costs (the $10,000)[4].
Under the same situation, a "pay on behalf" policy, the insurance carrier would pay the claim and the insured (the homeowner) would not be out of pocket for anything. Most modern liability insurance is written on the basis of "pay on behalf" language[5].
An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance 'policy'. Generally, an insurance contract includes, at a minimum, the following elements: the parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy.
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many insureds are used to fund accounts reserved for later payment of claims—in theory for a relatively few claimants—and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses (i.e., reserves), the remaining margin is an insurer's profit.
Friday, October 9, 2009
The Abbey, Alliance & Leicester and Bradford & Bingley are to be scrapped
Santander to Rename its UK Banking Brands
The Abbey, Alliance & Leicester and Bradford & Bingley are to be scrapped.
Spanish banking giant Santander is to rebrand all of its major UK High Street brands - Abbey, Alliance & Leicester and Bradford & Bingley.
A total of 1,300 branches will have their names changed to Santander by the end of 2010, in a £12m move.
Any customer of Abbey, Alliance & Leicester or Bradford & Bingley savings will be able to carry out transactions in any of Santander's UK branches.
But one analyst told the BBC the move could be risky.
Santander is the second-biggest banking group in the world after HSBC.
It said it hoped to save about £180m by integrating the three businesses, and that the overhaul reflected the group's policy to operate under a single brand - which is already found in more than 40 countries.
Santander has already incorporated its flame logo into the Abbey branding, and it said that customer feedback suggested its brand would be welcomed in the UK.
"Customers trust us as a global brand and they feel very safe about their savings," said António Horta-Osório, chief executive of Santander's UK businesses.
"It's important for customers who travel around the UK to have 1,300 branches to transact with - and they will have the same product and the same people facing them in the branches."
The move would also allow the UK business to use the "expertise and product developments from Santander's global business," he added.
The first name changes will begin in June, with Abbey credit cards being rebranded, while the renaming of branches will begin next year, with Abbey and B&B first to be overhauled.
However despite the savings it anticipates making, banking analyst Leigh Goodwin said that the policy was a risk and, in his view, a mistake.
"Abbey has good value as a trusted brand in the mortgage and savings arena," he said.
"Staff will be upset and there will be a potential loss of customers."
Santander gained a foothold in the UK banking market in 2004 after buying Abbey for about £8bn, in Europe's biggest cross-border bank takeover.
The deal offered Santander control of Britain's second-largest mortgage lender, with 741 branches and 18 million customers.
The Spanish bank saw further expansion opportunities in 2008, as some UK banks were severely threatened by the global financial crisis.
It bought Alliance & Leicester in a £1.3bn deal aimed at reducing funding pressures on the UK bank and strengthening Santander's local business.
In September, the UK's biggest lender to landlords, Bradford & Bingley, was taken over by the government after the credit crisis had shut off its funding.
Santander stepped in and paid £612m to take control of 197 Bradford & Bingley branches and £20bn in deposits.
In December the group said it was cutting 1,900 jobs across the UK - but has said the rebranding will not lead to branch closures.
Bradford & Bingley still exists as an entity and is owned by the Treasury.
Santander's specialist brands, including the internet bank Cahoot, will retain their identities.
UK banks owned by Santander currently operate under two banking licences.
One covers Abbey, Bradford & Bingley and Cahoot. The other relates to Alliance & Leicester.
This means that savers are 100% covered by the Financial Services Compensation Scheme for up to £50,000 across Abbey, B&B and Cahoot combined. In addition, they are also covered for up to a further £50,000 with A&L.
Santander says this will remain the case up until at least mid-2010, because Abbey and B&B are being rebranded first - meaning that A&L will still be running as a separate business under its own name and its own licence.
The Abbey, Alliance & Leicester and Bradford & Bingley are to be scrapped.
Spanish banking giant Santander is to rebrand all of its major UK High Street brands - Abbey, Alliance & Leicester and Bradford & Bingley.
A total of 1,300 branches will have their names changed to Santander by the end of 2010, in a £12m move.
Any customer of Abbey, Alliance & Leicester or Bradford & Bingley savings will be able to carry out transactions in any of Santander's UK branches.
But one analyst told the BBC the move could be risky.
Santander is the second-biggest banking group in the world after HSBC.
It said it hoped to save about £180m by integrating the three businesses, and that the overhaul reflected the group's policy to operate under a single brand - which is already found in more than 40 countries.
Santander has already incorporated its flame logo into the Abbey branding, and it said that customer feedback suggested its brand would be welcomed in the UK.
"Customers trust us as a global brand and they feel very safe about their savings," said António Horta-Osório, chief executive of Santander's UK businesses.
"It's important for customers who travel around the UK to have 1,300 branches to transact with - and they will have the same product and the same people facing them in the branches."
The move would also allow the UK business to use the "expertise and product developments from Santander's global business," he added.
The first name changes will begin in June, with Abbey credit cards being rebranded, while the renaming of branches will begin next year, with Abbey and B&B first to be overhauled.
However despite the savings it anticipates making, banking analyst Leigh Goodwin said that the policy was a risk and, in his view, a mistake.
"Abbey has good value as a trusted brand in the mortgage and savings arena," he said.
"Staff will be upset and there will be a potential loss of customers."
Santander gained a foothold in the UK banking market in 2004 after buying Abbey for about £8bn, in Europe's biggest cross-border bank takeover.
The deal offered Santander control of Britain's second-largest mortgage lender, with 741 branches and 18 million customers.
The Spanish bank saw further expansion opportunities in 2008, as some UK banks were severely threatened by the global financial crisis.
It bought Alliance & Leicester in a £1.3bn deal aimed at reducing funding pressures on the UK bank and strengthening Santander's local business.
In September, the UK's biggest lender to landlords, Bradford & Bingley, was taken over by the government after the credit crisis had shut off its funding.
Santander stepped in and paid £612m to take control of 197 Bradford & Bingley branches and £20bn in deposits.
In December the group said it was cutting 1,900 jobs across the UK - but has said the rebranding will not lead to branch closures.
Bradford & Bingley still exists as an entity and is owned by the Treasury.
Santander's specialist brands, including the internet bank Cahoot, will retain their identities.
UK banks owned by Santander currently operate under two banking licences.
One covers Abbey, Bradford & Bingley and Cahoot. The other relates to Alliance & Leicester.
This means that savers are 100% covered by the Financial Services Compensation Scheme for up to £50,000 across Abbey, B&B and Cahoot combined. In addition, they are also covered for up to a further £50,000 with A&L.
Santander says this will remain the case up until at least mid-2010, because Abbey and B&B are being rebranded first - meaning that A&L will still be running as a separate business under its own name and its own licence.
Thursday, October 8, 2009
Amlin Acquires Fortis Corporate for €350m
Lloyds of London Insurer announced today that it had agreed to buy FCI from the Dutch Government.
Amlin plc (“Amlin” or the “Group”) is pleased to announce that it has entered into an agreement to acquire Fortis Corporate Insurance N.V. (“FCI” or the “Company”), a leading provider of corporate property and casualty insurance in the Netherlands and Belgium, from the State of the Netherlands (the “Seller”) for €350 million (the “Acquisition”).
Amlin will also announce separately today a placing of 23,502,567 shares, representing approximately 5 per cent. of Amlin’s issued ordinary share capital, to institutional investors, in order to finance part of the consideration that is payable to the Seller (the “Placing”). The balance of the consideration will be funded from Amlin’s existing cash resources.
Key Acquisition highlights
1. Establishes a substantial Continental European platform, providing Amlin with immediate scale in a key strategic market and opportunities for future expansion
2. Positions Amlin as a leading provider of marine, liability and commercial property insurance in the Netherlands and Belgium
3. Expected to enhance earnings and return on equity (“ROE”) in 2009(1) and to contribute to Amlin’s cross cycle target ROE of at least 15%
4. Diversifies Amlin’s portfolio in terms of geography, customer base, business lines and distribution
5. Enhances Amlin’s overall business mix by increasing the proportion of commercial lines insurance
6. Introduces an experienced management team to lead further European growth
7. Increases the scale of the Group’s investment activities and presents scope for significant reinsurance synergies
8. Enlarged Group will retain capital strength and flexibility for further profitable expansion where market conditions are favourable
9. Shareholders’ approval will be sought at a general meeting
Information on FCI
FCI is a leading provider of corporate property and casualty insurance and risk management solutions in the Netherlands and Belgium. Headquartered in Amstelveen, the Netherlands, the Company also has offices in Rotterdam, Antwerp, Brussels and Paris. FCI is regulated by the Dutch Central Bank (the “DNB”) and is licensed to write most lines of non-life business across Europe with the exception of motor (only Belgium and the Netherlands) and credit insurance. Formerly part of the Fortis Group, FCI was created as a result of a merger in 1999 between Fortis-Industrial and Amev-Interlloyd. On 3 October 2008 the Dutch government became the 100% shareholder of FCI as part of the nationalisation of the Dutch entities of the Fortis Group.
Based on market estimates, FCI holds a strong competitive position. In the Netherlands, which represented 63% of gross written premiums (“GWP”) in 2008, FCI targets the co-insurance market. It is the market leader in Dutch marine insurance, and holds a top three position in liability and commercial property insurance. In Belgium, representing 36% of GWP, FCI is the market leader in marine and commercial property insurance and a top three provider of liability insurance.
Amlin plc (“Amlin” or the “Group”) is pleased to announce that it has entered into an agreement to acquire Fortis Corporate Insurance N.V. (“FCI” or the “Company”), a leading provider of corporate property and casualty insurance in the Netherlands and Belgium, from the State of the Netherlands (the “Seller”) for €350 million (the “Acquisition”).
Amlin will also announce separately today a placing of 23,502,567 shares, representing approximately 5 per cent. of Amlin’s issued ordinary share capital, to institutional investors, in order to finance part of the consideration that is payable to the Seller (the “Placing”). The balance of the consideration will be funded from Amlin’s existing cash resources.
Key Acquisition highlights
1. Establishes a substantial Continental European platform, providing Amlin with immediate scale in a key strategic market and opportunities for future expansion
2. Positions Amlin as a leading provider of marine, liability and commercial property insurance in the Netherlands and Belgium
3. Expected to enhance earnings and return on equity (“ROE”) in 2009(1) and to contribute to Amlin’s cross cycle target ROE of at least 15%
4. Diversifies Amlin’s portfolio in terms of geography, customer base, business lines and distribution
5. Enhances Amlin’s overall business mix by increasing the proportion of commercial lines insurance
6. Introduces an experienced management team to lead further European growth
7. Increases the scale of the Group’s investment activities and presents scope for significant reinsurance synergies
8. Enlarged Group will retain capital strength and flexibility for further profitable expansion where market conditions are favourable
9. Shareholders’ approval will be sought at a general meeting
Information on FCI
FCI is a leading provider of corporate property and casualty insurance and risk management solutions in the Netherlands and Belgium. Headquartered in Amstelveen, the Netherlands, the Company also has offices in Rotterdam, Antwerp, Brussels and Paris. FCI is regulated by the Dutch Central Bank (the “DNB”) and is licensed to write most lines of non-life business across Europe with the exception of motor (only Belgium and the Netherlands) and credit insurance. Formerly part of the Fortis Group, FCI was created as a result of a merger in 1999 between Fortis-Industrial and Amev-Interlloyd. On 3 October 2008 the Dutch government became the 100% shareholder of FCI as part of the nationalisation of the Dutch entities of the Fortis Group.
Based on market estimates, FCI holds a strong competitive position. In the Netherlands, which represented 63% of gross written premiums (“GWP”) in 2008, FCI targets the co-insurance market. It is the market leader in Dutch marine insurance, and holds a top three position in liability and commercial property insurance. In Belgium, representing 36% of GWP, FCI is the market leader in marine and commercial property insurance and a top three provider of liability insurance.
Homeowners Insurance
We protect the roof over your head and everything under it, especially your sense of security.
State Farm® has been writing homeowners insurance for over 60 years. Today, we insure about 13.5 million homes.
We offer broad protection that you can trust, plus affordable rates, and outstanding service.
The State Farm Homeowners Insurance Policy offers protection for your dwelling, as well as your personal possessions and personal liability.
If something like fire makes your home uninhabitable, State Farm covers the increased costs of a place to live until you can move back in.
We can replace personal belongings at replacement value – not the depreciated value.
Homeowners insurance can help protect you in case of a liability lawsuit against you.
This could occur in a situation where you are held responsible for:
Injury to another person
Damage to another person’s property
This could apply whether the incident occurred within your residence or elsewhere.
State Farm® has been writing homeowners insurance for over 60 years. Today, we insure about 13.5 million homes.
We offer broad protection that you can trust, plus affordable rates, and outstanding service.
The State Farm Homeowners Insurance Policy offers protection for your dwelling, as well as your personal possessions and personal liability.
If something like fire makes your home uninhabitable, State Farm covers the increased costs of a place to live until you can move back in.
We can replace personal belongings at replacement value – not the depreciated value.
Homeowners insurance can help protect you in case of a liability lawsuit against you.
This could occur in a situation where you are held responsible for:
Injury to another person
Damage to another person’s property
This could apply whether the incident occurred within your residence or elsewhere.
Soft Top Drivers Ruining Hearing
Publication Date: Thursday, October 08, 2009
Motorists who drive their convertible with the top down could suffer from serious hearing problems, according to research.
A study from New Cross Hospital in Wolverhampton found that the combined noise of the engine, wheels, air and traffic can reach a peak of 99 decibels and could cause serious hearing loss.
If the prospect of paying more for your car insurance wasn't bad enough, your hearing may also suffer significantly too.
Scientists have found that motorists driving a convertible at 50, 60 and 70mph were consistently exposed to between 88 and 90 decibels of noise.
Philip Michael, who led the research, said: "Long or repeated exposure to sounds over 85 decibels is widely recognised to cause permanent hearing loss."
One remedy for people unwilling to give up the joys of top-down motoring is keeping the car windows raised, said the researchers.
This could significantly reduce noise exposure levels to 82 decibels.
The research was presented at the 2009 American Academy of Otolaryngology-Head and Neck Surgery Foundation annual meeting in San Diego, California.
Motorists who drive their convertible with the top down could suffer from serious hearing problems, according to research.
A study from New Cross Hospital in Wolverhampton found that the combined noise of the engine, wheels, air and traffic can reach a peak of 99 decibels and could cause serious hearing loss.
If the prospect of paying more for your car insurance wasn't bad enough, your hearing may also suffer significantly too.
Scientists have found that motorists driving a convertible at 50, 60 and 70mph were consistently exposed to between 88 and 90 decibels of noise.
Philip Michael, who led the research, said: "Long or repeated exposure to sounds over 85 decibels is widely recognised to cause permanent hearing loss."
One remedy for people unwilling to give up the joys of top-down motoring is keeping the car windows raised, said the researchers.
This could significantly reduce noise exposure levels to 82 decibels.
The research was presented at the 2009 American Academy of Otolaryngology-Head and Neck Surgery Foundation annual meeting in San Diego, California.
Car Theft Scheme Could Prompt Crime
Publication Date: Thursday, October 08, 2009
Police have been forced to rethink a scheme to protect car owners from having valuables stolen after drivers argued it was making their cars more vulnerable.
The initiative, introduced by Kent Police, saw officers attaching yellow bags containing leaflets on to cars which had valuables on display.
But car owners said the brightly-coloured bags were more likely to draw the attention of thieves to items that could be stolen.
Andrew Howard, spokesman for the AA, said: "Fundamentally we see all the reasons why the police are doing this, but they have got to be careful they don't advertise cars with valuable contents to people you don't want to alert or to potential thieves."
With gadgets like satnavs becoming more popular and advanced, it is increasingly important to ensure they are out of sight and the vehicle is protected by car insurance.
Chief Superintendent Mark Salisbury, Kent Police's area commander for West Kent, said the scheme was now being reviewed "because we do not want people to be fearful of becoming a victim of vehicle crime thinking this leaflet is in some way responsible."
He said: "They are designed to look like parking tickets so they don't advertise the fact that the vehicle is vulnerable." He added there had been a 20% reduction in thefts from vehicles during the first three months the leaflets were used.
Police have been forced to rethink a scheme to protect car owners from having valuables stolen after drivers argued it was making their cars more vulnerable.
The initiative, introduced by Kent Police, saw officers attaching yellow bags containing leaflets on to cars which had valuables on display.
But car owners said the brightly-coloured bags were more likely to draw the attention of thieves to items that could be stolen.
Andrew Howard, spokesman for the AA, said: "Fundamentally we see all the reasons why the police are doing this, but they have got to be careful they don't advertise cars with valuable contents to people you don't want to alert or to potential thieves."
With gadgets like satnavs becoming more popular and advanced, it is increasingly important to ensure they are out of sight and the vehicle is protected by car insurance.
Chief Superintendent Mark Salisbury, Kent Police's area commander for West Kent, said the scheme was now being reviewed "because we do not want people to be fearful of becoming a victim of vehicle crime thinking this leaflet is in some way responsible."
He said: "They are designed to look like parking tickets so they don't advertise the fact that the vehicle is vulnerable." He added there had been a 20% reduction in thefts from vehicles during the first three months the leaflets were used.
Tuesday, October 6, 2009
Principles of insurance
1. A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.[2] The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, proportionally the actual results are increasingly likely to become close to expected proportions. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
2. Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.
2. Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.
Senate Finance Committee Rejects the Public Option
Wednesday September 30, 2009
As a kid, prior to being old enough to drive, I remember sitting in the back seat of an old station wagon while adult relatives discussed Ohio moving to mandatory auto insurance. See, at the time, auto insurance was optional. That meant when some truly horrific accidents happened those involved could not pay their hospital and repair bills because the other guy was uninsured.
But, what I remember most, was hearing a claim by some insurance industry representative that auto insurance rates would decline by 25% or more if everyone was required to purchase auto insurance. I recall an uncle stating that claim was a lie. Seemed harsh. Harsh, but prescient. Ohio did pass mandatory auto insurance, rates never declined, and competition was non-existent.
Don't get me wrong, mandatory car insurance is a necessity and a great public policy decision. But, without a public option, or an extremely limited option that kicks in only after some pretty extreme circumstances, the poor cannot afford to drive to jobs increasingly far away and the law makes criminals out of the uninsured -- just look at your local court's docket.
Yesterday, encouraged by the leadership of a Senator who represents fewer Americans than reside in my county, the Senate Finance Committee rejected a public insurance option as part of health reform. This could be considered an effort at bi-partisanship, or one could look at who the Chairman's top contributors are and draw your own conclusions.
In the face of a personal mandate and requirement on business to carry health insurance, it is not reform for there not to exist a viable public option readily available and affordable. In my market, premium rates vary so dramatically that there is really no reason to the rates. One insurer requires over $800 per month, while comparable coverage (limited to a pretty decent HMO) exists for $242 per month including a dental plan. $800, and I am not in business. $242, and I am in business and could afford an employee and provide that health benefit. The public option needs to exist in order to allow people to actually afford this envisioned mandate.
As a kid, prior to being old enough to drive, I remember sitting in the back seat of an old station wagon while adult relatives discussed Ohio moving to mandatory auto insurance. See, at the time, auto insurance was optional. That meant when some truly horrific accidents happened those involved could not pay their hospital and repair bills because the other guy was uninsured.
But, what I remember most, was hearing a claim by some insurance industry representative that auto insurance rates would decline by 25% or more if everyone was required to purchase auto insurance. I recall an uncle stating that claim was a lie. Seemed harsh. Harsh, but prescient. Ohio did pass mandatory auto insurance, rates never declined, and competition was non-existent.
Don't get me wrong, mandatory car insurance is a necessity and a great public policy decision. But, without a public option, or an extremely limited option that kicks in only after some pretty extreme circumstances, the poor cannot afford to drive to jobs increasingly far away and the law makes criminals out of the uninsured -- just look at your local court's docket.
Yesterday, encouraged by the leadership of a Senator who represents fewer Americans than reside in my county, the Senate Finance Committee rejected a public insurance option as part of health reform. This could be considered an effort at bi-partisanship, or one could look at who the Chairman's top contributors are and draw your own conclusions.
In the face of a personal mandate and requirement on business to carry health insurance, it is not reform for there not to exist a viable public option readily available and affordable. In my market, premium rates vary so dramatically that there is really no reason to the rates. One insurer requires over $800 per month, while comparable coverage (limited to a pretty decent HMO) exists for $242 per month including a dental plan. $800, and I am not in business. $242, and I am in business and could afford an employee and provide that health benefit. The public option needs to exist in order to allow people to actually afford this envisioned mandate.
Thursday, October 1, 2009
Shop for Car Insurance Online
Customers choose to shop for Progressive car insurance online and offline for our extensive offering of coverages, specialized claims service and competitive rates. Car insurance coverages include Bodily Injury and Property Damage Liability, Comprehensive, Collision, Rental Reimbursement, Roadside Assistance, and much more. If you're thinking about shopping for car insurance online, over the phone or in person, we're here to help — no matter your age. In fact, on top of our in-depth information about car insurance in general, Car Insurance for Teens section offers pointers specifically for younger drivers who want to learn more about driving and online car insurance.
You can even view a car insurance comparison chart to see how other car insurance companies in your state compare to Progressive.
You can even view a car insurance comparison chart to see how other car insurance companies in your state compare to Progressive.
Car Insurance Basics
When shopping for online car insurance, the right information can go a long way. We give you the insurance basics — and more — to help you make informed decisions and to better understand your car insurance coverages and service options.
Why buy renters insurance?
Renters insurance protects you in situations that everyone can face: fire, theft, water damage and other unforeseen circumstances — situations your apartment owner's policy doesn't cover.
Why buy condo insurance?
Home insurance isn't your only option when it comes to protecting your belongings. When you own a condominium, you — not your condo association — are responsible for what's inside your condo. That's why having a personal condo insurance policy is important.
What is home insurance?
Homeowners insurance, or home insurance, compensates you for losses to your home and your possessions inside it, so purchasing a homeowners policy provides added security for your investment. Home insurance also protects you if you're legally liable for someone's injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.
Home Insurance
Protect your house — and your possessions — with home insurance through Progressive. For homeowners, insurance protection is an important aspect of homeownership. Buying home insurance means buying protection for your home — both inside and out.
Progressive Home Advantage, underwritten by select homeowners insurance companies, offers home insurance, condo insurance and renters insurance to new and existing Progressive customers.
If you already know what kind of home insurance policy you need, get a home insurance quote today! Or, learn more about:
Homeowners Insurance
Condo Insurance
Renters Insurance
Progressive Home Advantage, underwritten by select homeowners insurance companies, offers home insurance, condo insurance and renters insurance to new and existing Progressive customers.
If you already know what kind of home insurance policy you need, get a home insurance quote today! Or, learn more about:
Homeowners Insurance
Condo Insurance
Renters Insurance
Progressive Focuses on Your Needs
Since 1937, Progressive has provided automobile insurance to millions of customers. Today, we're one of the largest automobile insurance groups in the country, and we've earned that spot through competitive insurance rates and superior customer and claims service. For automobile insurance — and so much more — choose Progressive.
Get An Auto Insurance Quote. Then Get More
With so many automobile insurance companies out there, choosing the right company for your automobile insurance needs is paramount. A Progressive Direct car insurance quote includes car insurance rate comparisons, money-saving tips, automatic discounts, payment plans and more. Go ahead — find the auto insurance rate you're looking for. We'll help you every step of the way.
Automobile Insurance Features
A Progressive auto insurance policy comes loaded with extra features — 24/7 live support, local response claims service and our unique concierge level of claims service — at no extra cost. Plus, some Progressive automobile insurance coverages involve perks like Total Loss Replacement, Accident Forgiveness, Pet Injury Coverage and more.
Automobile Insurance and Other Types of Vehicle Insurance
Progressive offers automobile insurance to customers across the U.S. We also provide motorcycle insurance, boat insurance, RV insurance and more.
Customers choose Progressive automobile insurance for our extensive coverage options, specialized claims service and competitive rates. Auto insurance coverages include Bodily Injury & Property Damage Liability, Comprehensive, Collision, Rental Reimbursement, Roadside Assistance and much more. If you're thinking about automobile insurance, motorcycle insurance or RV insurance to protect you and your vehicle, we can help.
Customers choose Progressive automobile insurance for our extensive coverage options, specialized claims service and competitive rates. Auto insurance coverages include Bodily Injury & Property Damage Liability, Comprehensive, Collision, Rental Reimbursement, Roadside Assistance and much more. If you're thinking about automobile insurance, motorcycle insurance or RV insurance to protect you and your vehicle, we can help.
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