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Tag >> insurance
Commercial insurance prices remained flat for the eighth consecutive quarter, according to Towers Watson's most recent Commercial Lines Insurance Pricing Survey (CLIPS).
At the same time, accident-year loss ratios deteriorated relative to the same period in the prior 12 months.
Not every company is sitting on its hands until the economy improves. Insurance giant Aon is taking on a significant amount of short-term debt to acquire Hewitt Consulting for $4.9 billion and spend on its brand to exploit new opportunities.
The Hewitt deal will help Aon get a firm foothold in human resources and benefits outsourcing, significantly increasing Aon's market share in this area and positioning the company to take on rival insurance broker and consulting big Marsh and McLennan. The move also gives Aon a more balanced mix of insurance brokerage and consulting revenue.
It may be nearly nine years since a major terror attack on US soil. But, US companies are clearly not becoming complacent.
According to a new survey from insurance giant Marsh, 61 percent of firms surveyed by Marsh purchased property terrorism insurance in 2009, up from 57 percent in 2008.
Regulatory reform could ultimately fuel merger and acquisition activity in the financial services sector. But, so far, the lack of clarity on the direction it will take has mostly just hindered deal making.
Still, observers expect there will be many opportunities for deals in 2010 due to continued depressed valuations, divestitures in the insurance sector and additional bank failures. There were 702 problem banks on the Federal Deposit Insurance Corp.'s watch list as of Dec. 31, for instance.
I've previously railed against American International Group for dragging its feet in repaying the $180 billion it owes to the U.S. government, so I need to tip my cap to it for the $35.5 billion deal it struck with Prudential for its Asian insurance division.
And unlike some previous deals, AIG will use a major chunk of cash from the sale of the unit -- $25 billion -- to pay down a credit line it has with the Federal Reserve. (The insurer will take the remaining $10.5 billion in Prudential securities.)
It's a move the company had to make, really, especially as it continues to lobby against the pay caps the government has imposed.
Let's face it. The health care debate has resulted in a frightening amount of mis-information and fear-mongering from both sides of the very wide political aisle.
And while I don't want to inject myself into the politics of the health care debate, I do want to put one key issue into perspective. Opponents of the latest proposal from President Obama-a.k.a. all Republicans--that would require all Americans to purchase health insurance if they don't currently have a policy argue that no one should ever be required to buy insurance, or do anything else, for that matter.
We wouldn't want to suggest that you or your colleagues are terrors behind the wheel. Not executives in your lofty positions.
Then, again, a new study indicates you might not be at your best when at the helm of a car.
Warren Buffett and Berkshire Hathaway skate away again.
A reinsurance subsidiary of Buffett's Berkshire Hathaway has agreed to pay $92.2 million to a number of governmental agencies and investors for its role in a scheme to manipulate the financial results of two other insurance companies in a non-prosecution agreement.
Apparently, Disraeli was wrong. The three types of falsehoods are lies, damned lies, and insurance industry statistics.