MetLife reported a 36% increase in premiums, fees and other revenues from the insurance business outside of the U.S. in the year 2010, mainly due to the addition of about $836 million from ALICO's one month operations. MetLife acquired ALICO for about $15.5 billion from AIG as a part of its strategy to grow internationally. The acquisition has enabled MetLife to serve 90 million customers in over 60 countries and has significantly boosted MetLife's position as a leading insurance company in the U.S, Japan, Latin America, Asia Pacific, Europe and the Middle East.

Continue reading ALICO Accelerates MetLife's International Growth

ALICO Accelerates MetLife's International Growth originally appeared on BloggingStocks on Thu, 24 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Some amazing information has come to light regarding AT&T (ATT), Verizon (VZ), Caterpillar (CAT) and Deere & Co. (DE). It would seem that these companies (among a host of others, I'm sure) have initially determined that dropping health coverage for employees could significantly benefit their bottom lines, and thus benefit investors.

No Surprise Here

As reported by CNNMoney.com, when the health reform bill finally received the president's signature, many large companies began to assess the potential costs of the legislation. At the same time, much was made of the large write-downs that companies took in reaction to changes brought on by the new law.

Continue reading AT&T, Caterpillar, Verizon, and Deere Considered Dropping Health Coverage

AT&T, Caterpillar, Verizon, and Deere Considered Dropping Health Coverage originally appeared on BloggingStocks on Sat, 08 May 2010 13:40:00 EST. Please see our terms for use of feeds.

Catastrophe bond capacity is maturing, and not much of it is coming back. In the first quarter, $1.8 billion in cat bond risk capital matured, and only $508 million returned in the form of new issuances, according to Thomson Reuters. This quarter, $2.77 billion is maturing, and the absence of first-time issuers makes it unlikely that the market will replace it all. More than a billion of it was from State Farm's Merna Re transaction. The successor to it has already been issued, cleverly named Merna Re II, at only a fraction of the previous bond.

Continue reading Catastrophe Bond Issuance Gap Is upon Us

Catastrophe Bond Issuance Gap Is upon Us originally appeared on BloggingStocks on Mon, 12 Apr 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Reinsurance Industry Approaches Record Levels

Reinsurance Industry Approaches Record Levels originally appeared on BloggingStocks on Thu, 08 Apr 2010 09:30:00 EST. Please see our terms for use of feeds.

The first catastrophe bond of the quarter closed on opening day ... and it was a big one. State Farm's Merna Re II transaction was good for $350 million in risk capital, upsized from the earlier reported amount of $250 million. Though large, it doesn't compare to the previous Merna Re catastrophe bond, which set a record at $1.2 billion that remains to be beat.

Merna Re II was oversubscribed, but State Farm only wanted to place $350 million, Thomson Reuters reports (registration required). According to one investor who knew about the transaction, "The deal was oversubscribed at +365 basis points and after being upsized to $350 million." The investor added, "The initial price talk was 365 - 405 bp, but the deal got priced at 365 bp. However, Merna was a simple transaction and State Farm only wanted to place 350 million."

Continue reading State Farm Closes First Cat Bond of Q2

State Farm Closes First Cat Bond of Q2 originally appeared on BloggingStocks on Fri, 02 Apr 2010 12:40:00 EST. Please see our terms for use of feeds.

The first quarter of 2010 will probably go down in history as the worst ever for catastrophe losses.

According to global reinsurance broker Willis Re (WSH), the insurance industry recorded $16 billion in insured losses, from the Chile earthquake and Windstorm Xynthia in Europe, but the largest losses occurred in smaller markets, where it premium volumes aren't as large. Since the third and fourth quarters tend to be the most loss-prone of the year, a quarter that is normally quiet could set the stage for outsized losses.

Continue reading Q1 Catastrophes May Hit Earnings, Won't Change Market

Q1 Catastrophes May Hit Earnings, Won't Change Market originally appeared on BloggingStocks on Thu, 01 Apr 2010 14:20:00 EST. Please see our terms for use of feeds.

The first quarter catastrophes weren't enough to push property-catastrophe reinsurance rates lower. Even though the first quarter was a busy one for catastrophe losses, particularly for global reinsurers, they weren't sufficient to change the market. As a result, the four regions renewing at April 1, 2010 -- the United States, Japan, Latin America and South Korea -- ranged from soft to controlled, according to the latest from Guy Carpenter, the reinsurance arm of Marsh & McLennan (MMC). This comes as no surprise, as indications throughout the run-up to the renewal pointed to an orderly process in which there would be enough capital to support the market's needs.

Continue reading Reinsurance Rates Fall Around the World

Reinsurance Rates Fall Around the World originally appeared on BloggingStocks on Thu, 01 Apr 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading AIG Shareholder Lawsuit Tossed Out of Court

AIG Shareholder Lawsuit Tossed Out of Court originally appeared on BloggingStocks on Wed, 31 Mar 2010 09:00:00 EST. Please see our terms for use of feeds.

Continue reading Florida Insurance Bodies to Issue Bonds

Florida Insurance Bodies to Issue Bonds originally appeared on BloggingStocks on Tue, 30 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

Continue reading Catastrophe Bonds: Same but Different in 2010

Catastrophe Bonds: Same but Different in 2010 originally appeared on BloggingStocks on Mon, 29 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

Look for big numbers from the property/casualty sector of the insurance industry for full-year 2009. Light catastrophe losses were a big help, leaving more cash in the coffers to benefit from the recovering financial markets following the September 2008 crisis. Reinsurance companies, in particular, will benefit from the light catastrophe activity of 2009.

Among 52 publicly traded insurance companies, rating agency Fitch reports, the incurred loss ratio fell to 65.8%, a decline of 1.8 percentage points, and the expense ratio increased to 28.5% (up 0.6 percentage points). This caused underwriting profits for the entire group to improve, as indicate by the overall combined ratio of 94.3% for 2009, down from 95.5% in 2008 (a lower combined ratio s a positive development).

Continue reading Strong 2009 Results for Insurance Sector

Strong 2009 Results for Insurance Sector originally appeared on BloggingStocks on Mon, 29 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Lloyd's of London Turns in Record Year

Lloyd's of London Turns in Record Year originally appeared on BloggingStocks on Thu, 25 Mar 2010 09:30:00 EST. Please see our terms for use of feeds.

As with just about every impact of the financial crisis on the insurance industry, the increase in securities class action lawsuit settlements wasn't as bad as the industry expected.

According to a study by Stanford Law School and Cornerstone Research, settlements grew only 39% year over year in 2009. Insurers and reinsurers writing directors and officers insurance in the U.S. are probably relieved to see that the reality didn't reach what they feared. The number could tick higher, though, as these cases work their way through the court system.

Continue reading Insurance Industry Relieved over 2009 Securities Class Action Tally

Insurance Industry Relieved over 2009 Securities Class Action Tally originally appeared on BloggingStocks on Wed, 24 Mar 2010 14:40:00 EST. Please see our terms for use of feeds.

Continue reading U.S. Insurers Addicted to Corporate Bonds

U.S. Insurers Addicted to Corporate Bonds originally appeared on BloggingStocks on Tue, 23 Mar 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Bermuda Readies Itself for New Insurance Regulation in Europe

Bermuda Readies Itself for New Insurance Regulation in Europe originally appeared on BloggingStocks on Mon, 22 Mar 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading Chubb CEO Says Bailouts Cost Insurers Opportunity

Chubb CEO Says Bailouts Cost Insurers Opportunity originally appeared on BloggingStocks on Mon, 22 Mar 2010 10:30:00 EST. Please see our terms for use of feeds.

After weeks of speculation, the financial damage from the Chile earthquake and Windstorm Xynthia in Europe is starting to emerge. According to a recent report by Moody's, 16 global reinsurance companies have reported their net insured losses (before taxes) from the catastrophe event, and the damage has already reached $3.5 billion, increasing an already high tally. The firm expects these events to have a noticeable impact on first quarter results for the industry.

According to the report, the first quarter of 2010's results "will have many moving pieces, including the possibility of favorable loss reserve development." It continues, though, that "we would expect a number of reinsurers to post both operating and net losses for the quarter."

Continue reading Q1 Cats Likely to Have Reinsurance Earnings Impact

Q1 Cats Likely to Have Reinsurance Earnings Impact originally appeared on BloggingStocks on Sat, 20 Mar 2010 14:10:00 EST. Please see our terms for use of feeds.

Now if you blame the media, someone else will have to share in the losses.

Insurance company Aviva (AV) is taking the side of camera-wielding, microphone-thrusting pushy press folks with a new form of protection that will cover everything from electronics to foot-in-mouth syndrome (i.e., liability). The insurance product will be available to a variety of companies, including both online and print publishers, broadcasters, photographers and marketing and advertising companies. So, if you're responsible for the news, the ads or the process of putting them in front of eyeballs, Aviva probably has you in mind.

Continue reading New Insurance Product Protects Media

New Insurance Product Protects Media originally appeared on BloggingStocks on Fri, 19 Mar 2010 12:10:00 EST. Please see our terms for use of feeds.

Merna Re, the largest catastrophe bond of all time, is set to mature in June, and State Farm is already putting together its replacement, the creatively named Merna Re II. The successor, planned for issuance in April, is said to be for $400 million in risk capital, though investor demand could push it as high as $700 million. This still pales in comparison to the $1.2 billion that the original brought in the door.

If State Farm is able to stimulate demand for Merna Re II, which would protect the company from non-California earthquake risk in the U.S., it will be third cat bond to come to market in 2010, which is expected to be a strong year for this form of risk transfer. The cat bond market fell silent after the near-collapse of American International Group (AIG) in September 2008 but was still the third busiest in terms of capital issued in the history of the cat bond market. Heading into 2009, prospects for the cat bond space seemed uncertain, but a robust fourth quarter eventually resulted in a year-over-year increase, driven mostly by repeat issuers.

Continue reading State Farm Planning Monster Cat Bond

State Farm Planning Monster Cat Bond originally appeared on BloggingStocks on Fri, 19 Mar 2010 10:10:00 EST. Please see our terms for use of feeds.

Continue reading From Bermuda: Insurers Need to Ink Mergers with Caution

From Bermuda: Insurers Need to Ink Mergers with Caution originally appeared on BloggingStocks on Tue, 16 Mar 2010 13:30:00 EST. Please see our terms for use of feeds.