The National Association of Insurance Commissioners, a national standard-setting and regulatory support organization comprised of insurance regulators from across the country, have passed new amendments to the Annuity Disclosure Model Regulation. The regulation determined how insurers released information regarding annuity payments to consumers. Previously, such information was withheld as much as possible by insurers, but the new amendments require that this information be put into the limelight for all to see. Changes to the rule will also require insurers to detail the practices they use in determining annuities and how…
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AIG makes a $2.15 billion dent in its bailout repayments
American International Group Inc. (AIG) has made a payment of $2.15 billion to the U.S. Treasury Department as a partial repayment of the total $182 billion it was provided through the 2008 financial crisis bailout package. The repayment funds were drawn from the proceeds that the company made from the company’s sale of its Taiwan subsidiary called Nan Shan Life Insurance Company Shan to Ruen Chen Investment Holding Co. Nan Shan has been available for sale from AIG since the middle of 2009, when the government of Taiwan halted its…
Read MoreInstitute of International Finance warns European Union regarding upcoming changes to insurance and banking regulations
As the European Union seeks to draft new plans governing the investments made by insurance companies, the world’s largest financial institution has voice concern over the initiative. The Institute of International Finance claims that the new rules being weighed by the EU will encourage insurers to seek out riskier investments. Such practice would put the world’s financial infrastructure in a dangerous position, as the assets most often pursued by insurance companies looking to generate major profit are the ones whose failure is disastrous. The EU is looking to change regulations…
Read MoreCinven buys U.K. Guardian life and pension from Aegeon
Cinven Ltd. has announced that it has purchased the life and pension unit of U.K. Guardian from the Dutch insurance company which owns Scottish Equitable, Aegon NV, for $449 million, in the effort to reduce its expenses within the United Kingdom. According to Aegon, which is based in the Hague, by the end of June 2011, the U.K. Guardian unit had recorded a value of approximately $445 million. Its unit for asset management will still be responsible for Guardian’s approximately $12 billion in assets on Cinven’s behalf. By 2015, Aegon’s…
Read MoreKemper will be the new name for Unitrin
The Unitrin Inc. insurance company made the announcement that it will be changing its name before the end of the month, at which time it will be known as Kemper Corp. Unitrin is based in Chicago, and in 2002 it had purchased the personal lines business from Kemper, another insurer that was still operational at the time. Today Unitrin has announced that its purchase has become the largest unit in the company, having brought in slightly under $1 billion in premiums in 2010. According to Don Southwell, Chairman and CEO…
Read MoreMassachusetts health insurer posts earnings, shows marked increase in profits and narrowing of losses
Despite a tumultuous year, Blue Cross Blue Shield of Massachusetts is reporting high earnings in the second quarter. Thus far, 2011 has proven to be relentless in the number of natural disasters occurring throughout the U.S. While speculations regarding the losses faced by insurance companies have been somewhat grave, the fact of the matter is that many insurers are earning more than they did before the disasters. There can be no doubt that these insurers, most of whom operate in the property market, have, indeed, suffered losses, but their ability…
Read MoreS&P’s downgrade could impact the nation’s insurance industry
Recently, Standard & Poor’s (S&P), a major financial research and analysis company based in the U.S., downgraded the U.S. government debt. The firm now classifies the nation’s finances as having a “negative” outlook. S&P’s actions have spurred the nation’s insurance and finance companies to take another look at their practices and portfolios, keen to spot any compliance violations spawned from the downgrade. The search for such violations has been slow going so far, as the U.S.’ long-term ratings have never before been downgraded. The downgrade has left many major insurance…
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