Versicherungen USA...Versicherungen USA Theorie & Empirie Ausgangslage Produkte Politik...

Versicherungen USA

Theorie & Empirie

Ausgangslage

Produkte

Politik

Kundensegmentierung

Vertrieb

20.10.2010 Dr. Johann Vollath 2

Bond Insurers

WSJ MARCH 22, 2010, 5:30 P.M. ET

Latest Headache For Bond Insurers: Muni Issuers Are Suing By Romy Varghese Of DOW JONES NEWSWIRES

Over two decades, the city of Phoenix shelled out more than $75 million in

premiums to three top bond insurers for financial guarantees designed to lower

rates on the city's new municipal bonds. Now, having just closed a quarter-billion-

dollar budget gap, Phoenix officials have sued MBIA Inc. (MBI), Ambac Financial

Group Inc. (ABK) and Financial Guaranty Insurance Corp. in U.S. District Court in

Phoenix, contending that the insurers discriminated against the city because it

isn't a company. The action comes as most bond insurers have been hammered

by losses on complex mortgage securities they guaranteed in the boom years.

Even worse for beleaguered insurers, Phoenix is only the latest client to sue

based on the discrimination claim - and it won't be the last, observers said.

"You're going to have municipalities, as they feel pain, as they get squeezed ...

sue their way out," said Rob Haines, analyst at research firm CreditSights. Bond

insurers guarantee the payment of principal and interest to bond buyers, who

accept lower interest rates in return for the reduced risk. Issuers pay a fee for the

insurance, but the fee was less than what issuers would save in interest costs.


Bond Insurers

In its heyday, bond insurance was so prevalent, covering half of all new muni bonds, that even highly rated municipalities such as Phoenix - rated Aa1 by Moodys Investors Service and triple-A by Standard & Poor's - paid for it. "It would pencil out," said Phoenix finance director Jeff DeWitt. Then came the subprime mortgage crisis. Because of their ventures into those securities, most of the bond insurers lost their triple-A ratings, and were eventually downgraded further. Municipal bonds carrying the insurance from these companies weakened in the market, and the percentage of new bonds with guarantees plummeted, to 7% of new munis this year, according to Thomson Reuters data. Indeed, since mid-2008, most of the bond insurers haven't written new business. Assured Guaranty Ltd. (AGO) is the only so-called legacy insurer guaranteeing new muni bonds under its name and under Assured Guaranty Municipal Corp., the new name of Financial Security Assurance, a rival insurer it bought last year. Meanwhile, lawyers have jumped to action. Several approached Phoenix officials about suing the bond insurers, said DeWitt. The key point to the Phoenix lawsuit, which the city filed on March 11, is the ratings firms' historical practice of holding municipalities and corporations to different standards. Like at least seven California municipalities - Los Angeles, San Francisco, Sacramento, Oakland and Stockton, as well as San Mateo and Alameda counties - Phoenix contends it is a much lower default risk than corporations with identical ratings.


Bond Insurers

As a result, said lawyer Brad Holm, who is leading the suit, insurers charged

Phoenix and other municipalities unfairly higher fees. For Phoenix, he said,

that translates to $20 million in excess fees. "We felt we were being

significantly overcharged for what we got," DeWitt said. Phoenix officials,

who have not specified how much they seek in damages, are basing their

claim on Arizona law that insurance fees must be based on risk analysis,

DeWitt said. DeWitt said the suit, which claims unfair discrimination and

unjust enrichment, wasn't sparked by the city's current fiscal position.

Changes are afoot in the municipal world, however. Moody's Investor

Service said last week that it would move municipal ratings to its global

rating scale beginning in April. MBIA declined to comment on the lawsuit, as

did Ambac, which postponed its earnings report last week. FGIC, which must

come up with a plan to address its insolvency by March 25 or face regulatory

action, didn't respond to requests for comment.


Contingent Commissions

Contingent Commissions in USA wieder zulässig Nach einem Bericht der Financial Times Deutschland (FTD) ist das Verbot

von umsatzabhängigen Zusatzprovisionen („Contingent Commissions―) in den Vereinigten Staaten wieder aufgehoben worden. Gefordert wird nun nur noch eine Offenlegung solcher Zahlungen. Das Verfahren des früheren New Yorker Generalstaatsanwalts Eliot Spitzer gegen den Großmakler Marsh & McLennan Companies (MMC) 2004 hatte enorme Folgen (...). Dabei ging es um den Vorwurf, dass Industrieversicherungs-Makler den Wettbewerb durch Preisabsprachen behindert hatten, indem sie sich für die Empfehlung bestimmter Versicherer Zusatzprovisionen versprechen ließen.

Interessenkonflikt mit Sachwalterstatus?

Diese Contingent Commissions waren daraufhin von der amerikanischen Versicherungsaufsicht verboten worden. Die Verfahren hatten erhebliche personelle und finanzielle Folgen für die betroffenen Maklerunternehmen. Auch in Deutschland wurde über die Folgen dieser Verfahren diskutiert und dabei insbesondere über die Frage, ob es überhaupt sinnvoll ist, dass ein Versicherungsmakler als Sachwalter des Kunden sich von der „Gegenseite― bezahlen lässt (...).



Sektoruntersuchung

Auf europäischer Ebene führte die Diskussion zu einer Sektoruntersuchung

speziell des Industrieversicherungs-Marktes. Danach wurden auch in

Europa Wettbewerbs-Beschränkungen in diesem Marktsegment festgestellt,

die durch fehlende Transparenz der Vergütung hervorgerufen werden (...).

Konkrete Folgen hatte das bis jetzt noch nicht. Allerdings wird damit

gerechnet, dass in der für 2012 anstehenden Novellierung der

Versicherungsvermittler-Richtlinie (...) das Thema Vergütung anders als in

der jetzt noch gültigen IMD-1 eine Rolle spielen wird (...).

Einigung mit der Versicherungsaufsicht

Wie die FTD jetzt meldete, glätten sich derweil offenbar die Wogen in den

USA. Die drei Großmakler Marsh, Aon und Willis hätten sich mit den

zuständigen Aufsichtsbehörden der Staaten New York, Illinois und

Connecticut geeinigt, dass das Verbot der Contingent Commissions

aufgehoben wird. Der viertgrößte Makler Arthur J. Gallagher habe sich

schon im vergangenen Jahr entsprechend mit den Behörden einigen

können.



Die Makler seien nur verpflichtet worden, Contingent Commissions ihren

Kunden gegenüber offenzulegen. Derzeit hätten die drei Maklerfirmen zwar

nicht vor, diese wieder einzuführen.

Doch FTD-Versicherungs-Korrespondent Herbert Fromme berichtet, dieser

Selbstverpflichtung sei „keine allzu lange Haltbarkeit― beizumessen. Denn

Arthur J. Gallagher erwarte bereits wieder zehn Millionen US-Dollar an

Zusatzvergütungen, und der Umsatz- und Ertragsdruck bei den Maklern sei

groß.

Dr. Matthias Beenken VersicherungsJournal 18.02.2010


Krankenversicherung

WSJ HEARD ON THE STREET MARCH 23, 2010

Paying a premium for health insurers By JOHN JANNARONE

Investors hoping for a resolution of the U.S. health-care debate got just what the doctor ordered. Shares of large health insurers such as Aetna and Cigna were up marginally Monday, after rising nearly 10% last week, in the wake of Congress's passage of a health overhaul bill. But while investors may be glad the uncertainty has been resolved, they might want to think through the implications of the overhaul. The biggest concern is how insurers will adjust to the new requirement that they offer coverage to nearly anyone who applies. That means taking on many of the Americans who currently can't get coverage because of pre-existing conditions. Insurers will likely struggle to turn a profit on such customers, potentially dragging margins down. The government's solution is to mandate coverage for everyone—including healthy people—by penalizing those who don't buy insurance. The trouble is that the annual penalty, which will eventually rise to a minimum of $695, may be too small to deter many people from skipping out. In states like New York where coverage is already guaranteed, premiums can be several thousand dollars a year even for healthy individuals. The pain could be most acute for WellPoint, which serves a larger part of the individual market while rivals focus on corporate clients.


Krankenversicherung

Insurers would also be exposed if the government eventually decides to get

more involved in how prices are set. With much of their revenue derived

from Medicare, insurers would have little power to fight such interference.

Then there is the roughly $12 billion in annual fees to be levied on the

insurance industry beginning in 2014. Still, while that looks like a clear threat

to earnings, insurers have plenty of time to find ways to pass the extra costs

on to consumers. One ray of hope: Insurers should soon enjoy a less

competitive environment. J.P. Morgan's John Rex says nonprofit insurers,

which account for 45% of the market, have used lower pricing to vie for

share in recent years. But with some nonprofits seeing their underwriting

margins fall below zero late last year, they are likely to be less aggressive,

he says. Whether that is enough to offset the potential negatives, though, is

far from clear. While health insurance will soon be mandated for individuals,

it should remain optional for investors. …

Printed in The Wall Street Journal Europe, page 32


Krankenversicherung


Produkt LV

WSJ BUSINESS JUNE 21, 2010

Regulators Rein In Murky Life Policies By LESLIE SCISM

The life-insurance business was good to Steven M. Brasner for much of the past decade, so good that he and his wife named their motor yachts after it. Their first, a 34-footer, they christened "Preferred Risk." Its 50-foot replacement: "STOLI on the Docks.― While it rings of vodka, STOLI also stands for "Stranger-Originated Life Insurance"—controversial policies that older people take out and then sell to investors. The investors pay the premiums and collect proceeds when the original owner dies. Mr. Brasner was a sales agent who specialized in such policies. In the years before the financial crisis, he connected aging retirees in need of money with cash-flush hedge funds eager for offbeat investments.

Times are different now. In April, Florida authorities arrested Mr. Brasner on 22 counts of alleged grand theft, fraud and other offenses tied to $78 million of policies that earned him nearly $2 million in commissions. The state accuses him of lying to insurers about applicants' financial status and their reasons for buying the coverage. If convicted, the 44-year-old could land in jail for decades.


Produkt LV

Mr. Brasner has pleaded not guilty and will "zealously defend" against the

allegations, says Mark Eiglarsh, his attorney. The agent "passionately

maintains his innocence" and "eagerly awaits his opportunity" to present his

side in court, he says. Mr. Brasner declined to comment. Meanwhile, the

Florida agent is a defendant in civil suits filed by insurers seeking to void

many of the policies, and by investors who allege they lost money buying

now-worthless policies. The litigation has taken a financial toll: Last year, the

Brasners surrendered their 50-foot yacht to a lender. And the agent is acting

as his own lawyer in some of the civil suits, in which he denies the

allegations. Mr. Brasner's reversal of fortune is part of a post-bubble

crackdown by state authorities, aimed at the middlemen who played a

crucial role in filling the pipeline for stranger-originated policies. In a frenzy

that bears some similarities to the subprime-mortgage debacle, billions of

dollars of stranger-originated life insurance was sold to senior citizens

between 2004 and 2008 with the intention of selling the policies to investors.

The investors thought they spotted an opportunity in policies that seemed

underpriced; some funds accumulated hundreds of such policies.


Produkt LV

The practice was legal in many states during the prior decade, though disliked by regulators because it skirted the intent of "insurable interest" laws. Those laws prohibit taking out a policy on someone without having a stake in the person's well-being. When hedge funds moved into this area around 2004, however, many insurers did little double-checking of the financial information provided on applications and didn't drill down deeply about buyer's intentions in taking out the policies; they focused on medical underwriting, and some initially welcomed the influx in business, according to insurance-industry executives. State authorities have charged that some agents, in their haste to earn fat commissions, stepped over the line, committing fraud to dupe insurers into issuing the multimillion-dollar policies favored by investors. The most common charge: that agents inflated applicants' wealth to mislead insurers. Insurers typically ask questions about annual income and net worth, in part, to ensure that buyers can afford the premiums. In March, Ohio regulators revoked the license of an agent who allegedly promised a 74-year-old Cleveland woman $8,000 to let him take out $9 million of insurance on her life. The application to Prudential Financial Inc. indicated she had a net worth of $12.5 million. In reality, she and her husband had a net worth of just $2,000 and combined monthly income of $950, according to Ohio officials and Prudential. The agent didn't contest the action and didn't show up at the hearing, according to a spokeswoman for the state's insurance department.


Produkt LV

Minnesota regulators in December penalized an agent who had secured 44 policies totaling $127.8 million on the life of one man. They revoked the agent's license and levied a $250,000 fine. Regulators maintain he misrepresented the total amount of insurance outstanding as the client applied for additional coverage over a several-year stretch. The agent signed a consent order, neither admitting nor denying the allegations. Allegations of wrongdoing by agents and brokers also are common in the more than 200 civil lawsuits filed by insurers around the U.S. involving alleged stranger-originated policies. "It is astounding the extent to which the fraud pervaded" this case, California state Judge John Meyer said last year as he allowed a unit of Lincoln National Corp. to void two policies totaling $20 million that had yielded nearly $900,000 in commissions to several agents. The judge cited a forged signature on the application and a fake letter, purportedly signed by the applicant's long-time accountant, to verify the applicant's net worth at $44 million when it actually was about $100,000. The son of a Wall Street trader, Mr. Brasner graduated from Long Island University in the late 1980s and soon was selling insurance on Long Island. After the Sept. 11, 2001, terrorist attacks, his wife, a lawyer on Wall Street, wanted to move from the area, says Mr. Eiglarsh, Mr. Brasner's lawyer. They settled on Florida, where they had family.


Produkt LV

They moved into a new home, a $1 million Mediterranean-style villa in Davie, Fla., near Fort Lauderdale. In 2006, they added an oceanfront getaway, a $565,000 condo on Hutchinson Island, which became home to the yachts. Mr. Brasner initially sold life insurance for a financial-planning firm in Boynton Beach, then in 2005 opened Infinity Financial Group in the same town. He decorated his office in a New York Yankees theme, including posters of old-timers, jerseys and autographed baseballs, according to Mr. Eiglarsh. Mr. Brasner raised his profile by serving as an occasional spokesman for a Boca Raton weight-loss center that pitched eating a certain type of cookie to suppress hunger. He boasted in a television commercial he lost 115 pounds in six months. In another promotion, he noted that the cookies could be packed into his "hectic business schedule" and had helped transform him from uninsurable to "a preferred risk.‖ He found customers through a low-cost tax preparer who worked in the same office, according to an affidavit filed by Florida authorities in the criminal case. Mr. Brasner also drew at least one acquaintance of his widowed mother in Boynton Beach. "He was very nice. I trusted him," says Elaine Gelch, a Boynton Beach neighbor who took out a $5 million policy in 2006 through Mr. Brasner. She is one of six former clients to give statements to Florida officials for their case.


Produkt LV

According to an affidavit filed by Florida prosecutors, Mr. Brasner's pitch was

that seniors, with no out-of-pocket expense, could make money by taking

out, then selling the policies. Mr. Brasner said they would receive 3% to 5%

of the face value of the insurance once it sold on the secondary market,

which would happen when the policy was two years old and could no longer

be contested by the insurer, the affidavit said. In Florida and elsewhere,

other agents pushing stranger-originated life insurance were offering various

financial inducements to retirees during that period. The problem, however,

was that Mr. Brasner's customers only partially filled out applications, and

then, unbeknownst to them, Mr. Brasner inserted falsehoods about their

wealth and other items into the final applications, according to the affidavit.

Suits filed against Mr. Brasner by insurers and investors in federal and state

courts in Florida and other states make additional allegations. In several

instances, ownership of the policies in short order was changed to insurance

trusts. Such trusts are commonly used by wealthy people in estate planning

involving life-insurance policies to minimize taxes. But here, the trusts were

used to transfer control of the policies to investors while keeping the

insurance companies in the dark, according to suits filed by the insurers.


Produkt LV

It is unclear how many of Mr. Brasner's clients earned money. One policyholder,

whose experience is described in court papers, says she received $150,000 up

front. But for others, the alleged scheme was interrupted before the expected pay

day, when the insurers sued Mr. Brasner, as well as the investors and some

original policyholders for alleged fraud and other wrongdoing. Those suits were

filed in 2008 and 2009 after insurers became alarmed about the surge in

stranger-originated life insurance, and insurance regulators in Florida and other

states warned that dubious schemes were proliferating. "I was devastated,"

recalls Carol Sciolino, 74, of Boynton Beach, of the fraud allegations in a suit

brought by a unit of AXA SA, in federal court in West Palm Beach. "I wouldn't

even steal a piece of gum. To have this happen, it was terrible.‖ Ms. Sciolino, who

took out a $3 million policy through Mr. Brasner in late 2006, has given

statements to both Florida officials and AXA. In visits to the agent's office, she

said in the AXA statement, he had put documents before her, and said, "'This

covers such and such, and you just have to sign here.' " In an interview, she

recalls saying to him: Getting paid to take out life insurance "sounds too good to

be true. Are you sure if I sign these papers, I won't go to jail?" She says she came

to believe the strategy of selling her policy to an investor was legal. Ms. Sciolino

says she "never received one cent" from the transaction.


Produkt LV

Whether or not stranger-originated life insurance was legal is a focus of some of

the civil litigation now pending between insurers and investors in the policies;

Florida's criminal action against Mr. Brasner focuses on the alleged

misrepresentations in the application process. The application materials

submitted by Mr. Brasner's office falsely answered "no" to a question of whether

Ms. Sciolino intended to sell the policy, according to AXA. The materials also

falsely stated that she would pay the premiums herself, when in fact the

premiums were financed with a loan taken out by "The Carol Sciolino 2006 Life

Insurance Trust," according to the insurer's court filings. Ms. Sciolino told AXA she

signed papers to transfer the ownership of the policy to the trust. She said in the

AXA deposition that she was merely following Mr. Brasner's directions. Ms.

Sciolino says she didn't provide false information to Mr. Brasner and that she

wasn't aware it had been submitted to AXA until she was sued. The application

materials listed the retiree's net worth as $5.9 million, the filings show, more than

six times what Ms. Sciolino says is the accurate amount. Mr. Brasner's attorney

declined to comment on any allegations about individual policies. In February,

AXA reached a settlement with Ms. Sciolino, the other senior citizens and the

investors, dismissing them as defendants and voiding their policies. AXA's still

has claims against Mr. Brasner and other insurance brokers involved in the sales.


Produkt LV

According to court records, investors as far apart as Texas and Germany

bought control of policies initiated by Mr. Brasner, including a Deutsche Bank

AG investing entity named GIII Accumulation Trust. In March, the GIII trust

filed for a judgment against Mr. Brasner to cover damages of at least $4.9

million that it said it suffered tied to its purchase of "now entirely worthless"

rights to $30 million of AXA policies that had been voided. GIII said it had

relied on Mr. Brasner's certification that the application materials were

accurate. In a court response, Mr. Brasner denied knowingly providing any

false financial information to AXA, and contended GIII "had the expertise"

and opportunity "to conduct due diligence" prior to buying the ownership

interests. Mr. Brasner's arrest came April 22, when three detectives arrived

at his office in Boca Raton. He was at Palm Beach County Jail for eight

hours as he awaited release on bail, during which prison staff had to call his

doctors to stabilize his blood pressure, Mr. Eiglarsh says. Lately, he has

spent many afternoons poolside at the Hutchinson Island condo, following

medical advice to rest, the lawyer says.

—James Oberman contributed to this article.


Produkt LV


Produkt Sach

Court sides with mill in Fox River cleanup

Companies to be ordered to start paying Fox11online.com Updated: Tuesday, 08 Jun 2010, 9:29 PM CDT Published : Tuesday,

08 Jun 2010, 9:31 AM CDT Reporter: Lou Hillman

A lawyer for the company Appleton, formerly known as Appleton Papers,

Inc., says two insurance companies will have to contribute $5 million each

toward the cleanup of the Fox River. There's been a long-running dispute

over who should pay for the costly cleanup of a 13-mile stretch of the Fox

River. Late last year, a federal judge ruled the company Appleton and its

former owner, NCR, were the two companies responsible for most of the

pollution. They're on the hook for millions of dollars to help pay for the

cleanup of PCB's that were dumped in the river decades ago. PCB's are a

byproduct of carbonless paper production. On Tuesday, however, an

appeals court ruled the insurance companies that covered Appleton when

the PCB's were discharged are liable to help pay the bill. "We believe that

means those two companies are ultimately responsible for $5 million each

toward the cleanup," said Ron Ragatz, an attorney for Appleton.


Produkt Sach

Ragatz said Munich Re AG and Westport Insurance Corporation have fought

in court to not pay their policy limits. A spokesperson for Munich Re AG

declined to comment about the ruling. Westport Insurance Corporation did

not return FOX 11's calls. One of the groups that fought hard to make the

river cleanup happen was the Clean Water Action Council. Curt Anderson,

one of the group's leaders, said he's glad the insurance companies are

being held responsible too. "By not doing their job, they were enablers for

the paper industry ... But the paper industry still paid their premiums so they

should have been covered," said Anderson. The cleanup process started last

year and is on-schedule. Officials say the ruling only affects who has to pay

for it in the end. "Money is being spent as we speak cleaning up the river. A

lot of money is being spent, so we will have to go back to (Brown County)

Judge Zuidmulder at a certain point to ask him to declare that its now time

for Westport (Insurance Corporation) to start paying some of that money,"

said Ragatz. The court decision only affects two of Appleton's nine insurance

companies. The company reached undisclosed settlements with the other

seven. Munich Re AG and Westport Insurance Corporation could still appeal

to the Wisconsin Supreme Court.


Aetna

WSJ HEALTH INDUSTRY APRIL 10, 2010

Aetna Hit by Medicare Compliance Problems By AVERY JOHNSON And DINAH WISENBERG BRIN

Aetna Inc. was suspended from signing up new members for its Medicare Advantage and Medicare prescription-drug plans because the insurer didn't comply with rules about changing drug-plan designs, the government said. The Centers for Medicare & Medicaid Services, or CMS, which oversees the government-run health plans for seniors, said Aetna didn't meet requirements to make sure seniors could continue on their medications during changes to the Aetna plans in 2009 and those offered this year. The sanction, effective April 21, forbids Aetna from courting new business in the lucrative segment of administering privately run health plans for seniors. Even so, the suspension doesn't affect current Aetna Medicare enrollees. And the sanction is unlikely to have a big financial effect on Aetna, analysts said. The open-enrollment period when insurers can sign up seniors for privately run Medicare plans just ended, so Aetna isn't trying to attract new beneficiaries right now anyway except for those just turning 65. The sanctions could present a problem if Aetna hasn't resolved the government's concerns by the fall, when open enrollment begins anew.


Aetna

The company is working with beneficiaries and the government to resolve the

problem quickly, said Fred Laberge, a spokesman for the Hartford, Conn., insurer.

About $5.7 billion of Aetna's $34.7 billion in 2009 revenue came from Medicare

Advantage and prescription-drug plans, according to Goldman Sachs research. A

company such as Humana Inc., which relies on the plans for more than half its

revenue, would be much more heavily affected by such a sanction. Aetna said

20,000 of its 586,000 Medicare Advantage and drug-plan enrollees were affected

by the transition issues. The issue developed as Aetna moved from an open

formulary for prescription drugs in 2009 to a closed formulary this year, the

company said. In an open formulary, patients can be prescribed most any drug,

while a closed formulary restricts the choices of available medications. Some

Aetna customers who were prescribed drugs on the 2009 formulary that were no

longer on the formulary this year didn't received a one-time, 30-day transition

supply of the drugs as required by CMS, Mr. Laberge said. In addition, Aetna's

Web site incorrectly listed prior-authorization and step-therapy requirements for

certain drugs; the company has corrected the site, he said. Medicare plans

overall are experiencing cuts in government reimbursement this year, and

payments to insurers are expected to be flat in 2011, so insurers have been

trimming benefits and taking other steps to maintain margins.


AIG

AIG’s Risk From Storms Rises After Life Divestitures (Update1) By Hugh Son

March 29 (Bloomberg) -- American International Group Inc., the insurer that stayed profitable through the Sept. 11 attacks and Hurricane Katrina, may be more exposed to disasters after divesting life insurance units to repay its government bailout. AIG will be a ―smaller and more focused company‖ after selling American Life Insurance Co. and AIA Group Ltd., divisions that produced more than a third of the firm’s insurance revenue last year, Chief Executive Officer Robert Benmosche told shareholders this month. Catastrophe losses have the potential to drain AIG’s government bailout funds, the New York-based firm said in a February regulatory filing. Former CEO Maurice ―Hank‖ Greenberg built AIG into the world’s largest insurer by using earnings from life units, plane-leasing and consumer finance to balance volatile revenue and claims costs from property-casualty operations. AIG had to sell businesses to help repay the 2008 government rescue needed after losses tied to home loans. ―They definitely will be affected by storms in the future,‖ said Terry Leone, senior insurance analyst at SNL Financial in New York. ―Their overall business will be more tied to the property-casualty cycle than it was in the past.‖


AIG

AIG’s diversity allowed it to post profits after the worst terrorist attack and costliest natural disaster in U.S. history. The insurer recorded net income of $327 million in the third quarter of 2001 even as the strike on the World Trade Center cost the company $820 million. Warren Buffett’s Berkshire Hathaway Inc. had a net loss of $679 million that quarter.

Hurricane Katrina

AIG had $1.57 billion in catastrophe costs in the third quarter of 2005, when Katrina hit the U.S. Gulf Coast. Still, AIG had net income of about $1.7 billion that quarter. Allstate Corp., the Northbrook, Illinois-based home and auto insurer, lost $1.55 billion in the same span. Forecasters at Colorado State University and AccuWeather Inc. have said the Atlantic hurricane season, which begins June 1, will result in more storms than average. Already this year, more than 20 insurers and reinsurers have reported losses of as much as $4.1 billion from the windstorm that struck Western Europe last month and the earthquake in Chile, the fifth- strongest in a century. AIG has yet to report the costs of those catastrophes. Benmosche, AIG’s fourth CEO since Greenberg left in 2005, is selling businesses to repay loans within the firm’s $182.3 billion bailout. Ratings firm A.M. Best is evaluating if the sales of AIA and Alico will reduce AIG’s ability to service its debt, analyst Jennifer Marshall said in a March 3 research note.


AIG

Global Profits

AIG got about $22.8 billion in premiums and fees last year from selling life insurance and retirement products outside the U.S., where AIA and Alico operate. That compares with $5.3 billion from U.S. life units, which Benmosche has said AIG will keep, and $32.2 billion from global property casualty sales. The life units were ―a material provider of earnings to AIG historically,‖ Marshall said. The declining price of commercial coverage ―will continue to challenge profitability at the company’s core property-casualty operating subsidiaries‖ as AIG competes for market share. U.S. commercial insurance rates fell 5.6 percent in the fourth quarter, according to a survey by the Washington-based Council of Insurance Agents and Brokers. Prices have dropped industrywide in every quarter since 2004 and AIG has said it expects the decline to continue this year. Sales growth in 2010 will be driven by increases outside the U.S., the insurer said.

Prudential, MetLife

―The fact that property casualty and life insurance sales aren’t correlated was important for AIG,‖ said Clark Troy, a senior analyst based in Chapel Hill, North Carolina, for Aite Group, a research firm. ―I’d be very surprised if AIG diversified out of life altogether.‖


AIG

The insurer secured deals to sell the two insurers to Prudential Plc and MetLife Inc. for a combined $51 billion. The sales will be completed by year-end, the companies have said. Christina Pretto, an AIG spokeswoman, declined to comment. AIG also completed the sale of its PineBridge Investments fund manager to Pacific Century Group today, the insurer said in a statement. Hong Kong billionaire Richard Li’s Pacific Century agreed in September to pay about $500 million for the subsidiary, which operates in about 30 countries and managed $87.3 billion as of year-end.

Property-Casualty Reserves

AIG set aside more reserves for casualty claims last year, a move that contributed to a $2.3 billion fourth-quarter charge. Fitch Ratings said last month that the charge to cover claims from policies sold in prior years caused concerns about the ―reserve adequacy and underlying profitability‖ of AIG’s property-casualty operations. The company also drew $2.2 billion in the first quarter from a U.S. Treasury Department facility to bolster property-casualty units. AIG used the cash to redeem securities held by insurance subsidiaries, improving liquidity and a measure of capital adequacy watched by rating firms and regulators.


AIG

AIG’s property-casualty operations, rebranded Chartis Inc. last year to

distance the division from AIG, sell coverage for property, worker’s

compensation, corporate boards and ships and airplanes. Chartis operates

in more than 160 countries and jurisdictions, and gets more than 40 percent

of sales from outside the U.S. AIG needed a U.S. rescue in September 2008

after soured derivative bets tied to housing markets drained cash. The

company’s government assistance includes a $60 billion Federal Reserve

credit line, up to $52.5 billion to buy mortgage-backed securities owned or

backed by the insurer, and a Treasury investment of as much as $69.8

billion. …

Last Updated: March 29, 2010 11:33 EDT


AIG

BusinessWeek 14.04.10 17:48 Bloomberg

Fairholme Becomes Biggest AIG Investor After U.S. (Update2) April 13, 2010, 4:41 PM EDT (Updates shares in the sixth paragraph.)

By David Henry and Hugh Son

April 13 (Bloomberg) -- Fairholme Capital Management, the investment firm

run by mutual fund manager Bruce Berkowitz, has acquired about 15 million

shares of American International Group Inc. in a bet on a rebound of the

bailed-out insurer. The holding, disclosed yesterday in a regulatory filing,

ranks Fairholmeʼs position as second in size only to the U.S. governmentʼs

stake of about 80 percent, according to data compiled by Bloomberg. The

filing dated Fairholmeʼs holding as of March 31. Fairholme began acquiring

the securities in the second half of 2009 ―as we started to see cash flows of

AIG turn positive,‖ Berkowitz said in a March 15 interview. ―It is still a good

company with a good global brand.‖ The stake was more than 13 million

shares, Berkowitz said that day. Berkowitz was named the U.S. domestic

stock fund manager of the decade in January by Morningstar Inc., a

Chicago-based research firm.


AIG

His firmʼs 15 million shares are valued at about $620 million based on yesterdayʼs closing price of $41.22 on the New York Stock Exchange. The stock has gained about 37 percent this year through yesterday as Chief Executive Officer Robert Benmosche struck deals to sell two life insurance units for about $51 billion to help repay the bailout. The insurer was rescued in 2008 with a package that swelled to $182.3 billion. …

Fairholme has also bought ―hundreds of millions of dollars of the debt‖ of AIG, Berkowitz said in the March 15 interview. AIG has ―done a reasonable job of walling off the remaining risks‖ after a government bailout designed to shield the insurer and banks that did business with the company from losses on mortgage-related securities, he said then. The only AIG investor with a similar-sized stake has been Starr International Co., a company run by former AIG Chief Executive Officer Maurice ―Hank‖ Greenberg. Starr disclosed March 19 that it had agreed to sell as many as 10 million of its 14 million shares of AIG. The next biggest holder, with 6.82 million shares, is fund manager Vanguard Group Inc. of Valley Forge, Pennsylvania, according to data compiled by Bloomberg. …

http://www.businessweek.com/news/2010-04-13/fairholme-becomes-biggest-aig-investor-after-u-s-government.html























AIG

Goldman wins bookrunner role in AIA listing By Francesco Guerrera in New York and Sundeep Tucker in Hong Kong, FT.com

Published: February 11 2010 22:37 | Last updated: February 11 2010 22:37

Goldman Sachs has been chosen as one of the banks that will manage the $10bn-plus listing of AIG’s Asian unit – in spite of the political controversy over Goldman’s actions during the insurer’s near-collapse in 2008. People close to the situation said Goldman was one of seven banks that had been selected as bookrunners for the initial public offering of AIA, AIG’s flagship life insurance division. AIA’s listing on the Hong Kong stockmarket, which is expected later this year, is crucial to AIG’s plans to start repaying the $80bn-plus it owes the US authorities.

Goldman’s selection underlines its strength as an equity underwriter in Asia and the fact that the political storm in the US over its role during AIG’s crisis has not soured its relations with the insurer and its government paymasters. The US government owns 80 per cent of AIG after bailing it out in September 2008. Goldman’s role, alongside Citigroup, Credit Suisse, Bank of America Merrill Lynch and UBS, as well as two Chinese lenders, will ensure that the Wall Street firm shares in the estimated $300m in fees the giant IPO is expected to generate.


AIG

Bookrunners will receive a lower proportion of the fees than Morgan Stanley and

Deutsche Bank, the two global co-ordinators for the AIA share sale. However,

competition for bookrunner roles had been particularly fierce because of the IPO’s

size. It is expected to be the world’s largest this year. Members of Congress have

attacked the government’s decision to rescue AIG and pay its counterparties,

including Goldman, billions of dollars owed under derivatives contracts without

demanding a discount, as a back-door rescue of the banks. Goldman’s critics

have also questioned its aggressive stance in demanding collateral on derivatives

from AIG before the insurer ran into deep trouble in 2008. Goldman has rebuffed

the attacks, saying it would not have lost money had AIG gone under and arguing

that it had not been particularly aggressive in asking for collateral. Both Goldman

and AIG declined to comment on Thursday.

The selection of the seven bookrunners, representing almost every global bank

with capability to assist with the IPO, will come as a huge relief to those involved

as it will also allow them to claim ―league table‖ credit for the large deal. The

overseas arms of China Construction Bank and Industrial and Commercial Bank

of China will also be acting as bookrunners on the IPO. Separately, AIG is close

to announcing the expected sale of Alico, its international insurance arm, to

MetLife for about $15bn.


AIG

FTD.de 08.03.2010, 16:20

AIG tilgt mit Milliardenverkauf Schulden bei der Fed

Mehr als 180 Mrd. $ kostete den amerikanischen Steuerzahler die Rettung

des Versicherungskonzerns AIG. Das Unternehmen verkauft jetzt nach dem

Asiengeschäft auch die ausländische Lebensversicherungstochter - für 15,5

Mrd. $. Der Versicherungskonzern American International Group (AIG)

kommt zur Freude des amerikanischen Steuerzahlers mit seinem

Schrumpfkurs voran. Das New Yorker Unternehmen, das wegen riskanter

Derivatewetten vom Staat mit 182,3 Mrd. $ gerettet werden musste, stößt

seine ausländische Lebensversicherungssparte für 15,5 Mrd. $ an Metlife

ab. Mit dem Erlös wird eine Teilschuld bei der Fed beglichen. Das gaben AIG

und Metlife am Montag bekannt.

Metlife bezahlt 6,8 Mrd. $ in bar und 8,7 Mrd. $ in Aktien für American Life

Insurance (Alico). Finanzieren will Metlife den Baranteil über die Ausgabe

neuer Aktien und Fremdkapital. "Das ist eine größere Transaktion", sagte

Robert Haines, Analyst beim Researchhaus Creditsights. "Das beweist, dass

AIG bei seinen Desinvestitionen Fortschritte macht.―


AIG

Für AIG-Vorstandschef Robert Benmosche - der zuvor Metlife führte - ist das ein weiterer Erfolg. Am 1. März kündigte er bereits den Verkauf der Asientochter AIA an den britischen Versicherer Prudential für 35,1 Mrd. $ an. Damit erfüllt er gegenüber der Fed seine Bringschuld. AIG trat AIA und Alico an die Fed ab, um eine Kreditlinie in Höhe von 25 Mrd. $ abzulösen. Eingerechnet waren damals schon ein Verkaufserlös von 16 Mrd. $ für AIA und 9 Mrd. $ für Alico. Alle Verbindlichkeiten sind damit noch nicht getilgt: AIG schuldet der Fed noch 25 Mrd. $ und dem Finanzministerium noch 40 Mrd. $. Seit der staatlichen Rettung nahm AIG 47 Mrd. $ durch den Verkauf von Unternehmensteilen ein. Trotz der Radikalkur bleibt das Unternehmen einer der größten Anbieter für Versicherungsleistungen für die Industrie. Dabei konkurriert das Unternehmen mit dem Versicherer Travelers sowie Berkshire Hathaway, dem Konzern von Starinvestor Warren Buffett.

Metlife expandiert ins Ausland. 2005 übernahm das Unternehmen Travelers Life & Annuity von der Citigroup und sicherte sich den Zugang nach Japan, Australien und Großbritannien. 2008 kaufte es in Brasilien zu und verleibte sich Odonto A Saudé Empresarial ein, einen Spezialisiten für Zahnversicherungen. Alico hat 20 Millionen Kunden, 12.500 Mitarbeiter und erzielte 2008 einen Nachsteuergewinn von 1,3 Mrd. $.


AIG


AIG

Tucker hire gives AIA big name and experience By Paul J Davies, FT.com Published: July 18 2010 19:22 | Last updated: July 18 2010

19:22

Mark Tucker’s return to the life assurance industry in Asia seems such an obvious move that the biggest surprise is that he was only approached by Robert Benmosche two weeks ago, according to people familiar with the situation. His arrival as executive chairman of AIA will bring the Asian operations of AIG a senior industry figure with plenty of experience of both running a big public company and of the investors, regulators and business practices across the region. Mr Tucker’s appointment could also set nerves jangling at Prudential of the UK, the company Mr Tucker ran for four years until summer 2009, not only because he could help AIA provide a greater competitive threat in the region, but also because it is likely to revive and add fuel to talk that a listed, independent AIA might in the medium term mount a bid for all or part of the UK insurer. It was Mr Tucker who made the Pru synonymous with the Asian growth story that served its shareholders well up to and through the financial crisis, helping to restore the company’s share price faster than other UK rivals, who lacked the same kind of exposure to fast growing markets.


AIG

He has a long history of Asian experience having been sent in 1994 by Mick

Newmarch, the Pru’s then-chief executive, out to the region to build up the

UK group’s businesses there and establish Prudential Corporation Asia. He

stayed for a decade before returning to the UK to become chief financial

officer for HBoS, the UK bank bought by Lloyds Group during the financial

crisis. However he stayed in banking for just a year and was persuaded to

come back to the Pru to take over as chief executive in 2005 when Jonathan

Bloomer was ousted after a controversial £1bn rights issue. At AIA, Mr

Tucker is expected to help try to get the company’s initial public offering

away within three or four months, although the focus is simply to return as

much money as possible to the New York Federal Reserve and US Treasury

as quickly as possible. AIA is the largest pan-Asian insurer and the biggest

foreign insurer in many markets. Mr Tucker has long relationships in most

Asian markets, though particularly useful will be his connections in China,

where AIA has the only 100 per cent-owned license of any foreign company.

It became apparent during the Pru’s attempt to buy AIA that this unique

arrangement was unlikely to be passed on to new owners.


AIG

The Pru aborted its attempt to buy AIA in a more than $30bn deal in early

June after AIG’s board refused to consider a lower price in spite of

recommendation from Mr Benmosche. The accident-prone takeover bid has

led to some shareholders to call for Harvey McGrath, chairman, and Tidjane

Thiam, chief executive, to step down and has emboldened those who want

to see a break-up of the Pru. Mr Tucker was seen by some shareholders as

a perfect potential replacement for Mr McGrath, who has become the focus

of investor demands for change, although it is thought that Mr Tucker has

never formally been approached. He stepped down from the Pru after his

own earlier attempt to buy AIA was scuppered by the company’s US parent

pulling the sale due to the turmoil in financial markets.


AIG

FTD.de 20.07.2010, 10:15

AIG bringt Asiensparte an die Börse Der US-Versicherungsriese erwartet von einem Börsengang seiner

Asientochter AIA Einnahmen von 15 Mrd. Dollar. Das wäre rund die Hälfte des Erlöses, den der Verkauf an den britischen Konkurrenten Prudential gebracht hätte.

von Jörn Petring

AIG will sein Asiengeschäft nach der geplatzten Übernahme durch den britischen Versicherer Prudential nun an der Hongkonger Börse versilbern. Ein Börsengang der Asientochter American International Assurance (AIA) sei die beste Option, sagte Robert Benmosche, Chef des angeschlagenen US-Versicherungsriesen American International Group (AIG). Nach dem 22 Mrd. Dollar großen Börsendebüt der Agricultural Bank of China in der vergangenen Woche zeichnet sich damit gleich das nächste Megadebüt an Chinas Börsen ab. AIG will rund 15 Mrd. Dollar (11,6 Mrd. Euro) mit der für November oder Dezember geplanten Emission einnehmen. Ein gewagter Schritt: Schon beim Börsengang der Agricultural Bank gab es erste Anzeichen dafür, dass die Investoren allmählich gesättigt sind und kein Interesse mehr an weiteren Parkettdebüts haben.


AIG

Schanghais Aktienindex hat seit Jahresbeginn rund ein Viertel an Wert verloren. Zudem drängen weitere kapitalhungrige Banken aus China auf den Markt und wollen noch in diesem Jahr bis zu 60 Mrd. Dollar aufnehmen. Gelingt AIG das Parkettdebüt jedoch wie geplant, wäre dies einer der größten Börsengänge aller Zeiten. Trotz des Riesenvolumens wäre das Geschäft zugleich ein Rückschlag für die US-Regierung. Sie hatte AIG während der Finanzkrise mit 182 Mrd. Dollar gerettet und ist seitdem größter Anteilseigner des Konzerns. Nun pocht die Regierung darauf, dass AIG die Steuergelder so schnell wie möglich zurückzahlt. AIG hat bereits zahlreiche Töchter verkauft, um einen Teil der Staatshilfe zu erstatten. Die mit dem Börsengang angepeilten 15 Mrd. Dollar sind jedoch nur halb so viel, wie der Konzern mit einem Verkauf des Asiengeschäfts an seinen britischen Konkurrenten Prudential eingenommen hätte. Das Geschäft war nach wochenlangen Verhandlungen im Juni gescheitert, weil AIG nicht bereit war, Prudential einen Rabatt von 5 Mrd. Dollar auf den Kaufpreis einzuräumen. AIG hätte AIA für rund 30,5 Mrd. Dollar losschlagen können. Prudential zog schließlich auch auf Druck der Aktionäre die Notbremse. AIG fehlen nun die Milliarden, die der in der Finanzkrise gestrauchelte Konzern eigentlich zur Rückzahlung der Staatshilfen an Washington eingeplant hatte.


AIG

Der Gang der Asiensparte an die Börse soll zudem unter neuer Führung

stattfinden, wie AIG bekannt gab - eine Personalie mit pikanter Note:

Ausgerechnet der frühere Prudential-Chef Mark Tucker rückt an die Spitze

von AIA und löst dort Mark Wilson ab. "Mark Tucker hat Erfahrung mit einem

gelisteten Unternehmen, eine Erfolgsbilanz und Kontakte", sagte AIG-Chef

Benmosche. Bevor Tucker 2005 für gut vier Jahre den Chefsessel des

britischen Konzerns bezog, war er dort jahrelang selbst für das

Asiengeschäft verantwortlich und gilt als ausgewiesener Kenner der Region.

Tuckers Nachfolger bei Prudential, Tidjane Thiam, droht der Rauswurf

wegen des verpatzten AIA-Deals. Wilsons Abgang kam überraschend,

Gründe wurden nicht genannt. Allerdings geht damit das Stühlerücken bei

AIG nur in eine neue Runde: Erst vor wenigen Tagen hatte Chairman Harvey

Golub nach Streitigkeiten mit Konzernchef Benmosche hingeschmissen. AIG

hatte schon vor Prudentials Gebot den AIA-Börsengang durchgespielt. Der

Vorteil gegenüber einem Verkauf: Der Konzern hat weiter Einfluss, sofern er

AIA zumindest teilweise behält. Nach Informationen der Financial Times will

sich AIG nur von mehr als 50 Prozent der AIA-Anteile trennen, ein

Komplettverkauf ist nicht geplant.


AIG

Die Suche nach einem anderen Käufer für die Sparte als Prudential ist zwar

nicht ausgeschlossen, denn prinzipiell ist AIA für alle großen Versicherer

interessant. Asien gilt für Anbieter wie Allianz, Munich Re oder Zurich als

Zukunftsmarkt. Zudem gilt AIA als Filetstück im angeschlagenen AIG-

Konzern, hat 20 Millionen Kunden in 13 Ländern und beschäftigt rund

250.000 Vertreter. Der operative Gewinn beläuft sich auf 2 Mrd. Dollar im

Jahr. Wegen der Finanzkrise und der vermutlich höheren

Kapitalanforderungen in der Zukunft halten viele Unternehmen wie Europas

Branchenprimus Allianz derzeit aber ihr Geld zusammen.


AIG

Banks line up to advise AIA By Robert Cookson in Hong Kong and Paul J Davies in London, FT.com Published: July

21 2010 23:16 | Last updated: July 21 2010 23:16

Goldman Sachs is to join Morgan Stanley and Deutsche Bank as the lead banks for the planned $12bn-$15bn Hong Kong listing of AIA, the Asian businesses of AIG, according to people close to the situation. Morgan and Deutsche were the joint global co-ordinators in the original listing process for AIA, which was halted in March when Prudential of the UK won an agreement with AIG to buy the Asian businesses for $35.5bn. Since that deal fell apart in June, the stricken US insurer has been working to resurrect the initial public offering of AIA. Its plans were given a boost this week when it announced that Mark Tucker, former chief executive of Prudential, was to take over as chairman and chief executive of the Asian group. Some bankers have expressed scepticism that an IPO alone could value AIA at more than $30bn, particularly since markets have become more choppy, and trading in Agricultural Bank of China, which launched the largest ever IPO this month, has proved disappointing. However, it is hoped that Mr Tucker’s connections in the region will attract large strategic investors to put in more than $5bn and help lend a stronger foundation to an AIA flotation.


AIG

Mr Tucker is already in the region talking to AIA staff, regulators and potential investors, according to people familiar with the situation. AIA is determined that more than half of its shares be sold in order to ensure that it gains independence from AIG. Goldman and Morgan Stanley were global co-ordinators on AgBank’s $22.1bn dual-listing in Hong Kong and Shanghai. A successful float of AIA should mean the two US banks stand to earn big fees from two Asian listings this year even though they have already agreed to take a 30 per cent cut in what they were set to earn from the AgBank float. In the earlier AIA listing plan, Goldman had a more junior bookrunner role alongside Citigroup, Credit Suisse, Bank of America-Merrill Lynch and UBS, as well as two Chinese lenders. It has not yet been decided which banks would win bookrunner roles this time, but bankers said it would be interesting to see whether Credit Suisse would win a similar role after its London branch had simultaneously acted as sole adviser to Prudential in the negotiations over its agreed deal to buy AIA. Goldman has continued to win important roles in AIG’s business in spite of the political controversy over the investment bank’s actions during the insurer’s near-collapse in 2008. The bank was one of the main advisers to AIG throughout Prudential’s takeover attempt, alongside Citigroup and Blackstone.


AIG

AIG calls on investors for stakes in AIA By Henny Sender and Francesco Guerrera in New York and Jamil Anderlini in Beijing,

FT.com Published: August 11 2010 23:07 | Last updated: August 11 2010 23:07

AIG has approached some of the world’s biggest investors with a view to

them taking stakes in AIA, the US insurer’s Asian operation, with strong

interest from China, according to people familiar with the matter. As a result,

AIG is considering placing as much as 30 per cent with institutional investors

and wealthy tycoons, rather than offering minor stakes in the initial public

offering, they added. The likeliest cornerstone investors are sovereign

wealth funds. But Chinese insurance companies and some of China’s

largest banks are said to be looking at both taking stakes and financing

others, although it is unclear whether the Chinese Banking Regulatory

Commission would approve. China’s insurers are not allowed to invest more

than 15 per cent of their assets overseas and no more than 10 per cent in

one public company, China’s industry regulator said on Wednesday. China’s

State Council will decide which bidders to allow. ―Everything is in flux,‖ said

one person involved in the process. ―The funding for these investments is

unprecedented.‖


AIG

The SWFs to have expressed an interest in AIA include the Singapore funds

GIC and Temasek, as well as several Gulf SWFs, including those of Abu

Dhabi, Kuwait and Qatar. However, the outcome will depend at least in part

on bankers’ valuation of AIA. ―If the price is reasonable, there will be interest

from within the region,‖ said one investor considering taking a stake. ―They

want the market to believe there is huge interest but not many investors

have the balance sheet to even think about it.‖ The investor thought the

value of AIA’s IPO could be about $26bn, in line with comparable public

insurance companies, or about 1.2 times book value. However, AIG and its

masters in the US government hope to raise at least $30bn.

Private equity firms are also interested, although there are obstacles. Their

own investors generally balk when buy-out firms take minority stakes in

public companies. Moreover, private equity groups like to put a lot of debt on

the companies they buy – difficult to do when taking smaller positions. There

is still a question as to whether AIA will be able to hit the October to

November window for its IPO. The timetable requires a filing in Hong Kong

by early September.


Ambac

Ambac warns of potential loan default FT.com - Reuters

NEW YORK, June 8 – Ambac, the bond insurer whose toxic assets were seized by Wisconsin state regulators in March, said it could default on its loan obligations and was still considering filing a prepackaged bankruptcy. The company, which has had trouble writing new business since losing its triple-A credit rating in 2008, said in a US Securities and Exchange Commission filing on Tuesday that ―as early as the second quarter of 2010‖ it may decide not to make interest payments on its debt, which could result in a default. Holders of some of Ambac’s $1.24bn senior debt have formed an ad hoc committee and will try to push the company into a prepackaged bankruptcy, people familiar with the matter told Reuters. Ambac shares fell as much as 16 per cent in extended trading following the news. The bondholders’ committee, which includes hedge funds Centerbridge Partners, Halcyon Capital Management, Mangrove Partners and Camden Asset Management, is looking to use a prepackaged bankruptcy to exchange their debt for equity in the company, the sources said. The sources declined to be named because the details are not public.


Ambac

Such a swap could give the bondholders significant stock ownership of a

reorganised Ambac and likely wipe out current equity, these people said.

Ambac said in the regulatory filing that it could consider raising additional

capital, restructuring through a ―prepackaged bankruptcy‖ or filing a

traditional bankruptcy without agreements from creditors. ―While

management believes that the Company will have sufficient liquidity to

satisfy its needs through the second quarter of 2011, no guarantee can be

given that it will be able to pay all of its operating expenses and debt service

obligations thereafter, and its liquidity may run out prior to the second

quarter of 2011,‖ Ambac said. The ad hoc bondholder committee has hired

Morrison & Foerster as legal counsel and investment bank Lazard as

financial adviser, the sources said. Wisconsin state regulators took over

about $64bn of Ambac’s worst assets in March. The insurer, along with rivals

such as MBIA, has been battling crippling losses from risky mortgage

securities amid the financial crisis. Up until now Ambac’s negotiations with

counterparties, have largely helped it deal with liabilities of its principal

operating unit, Ambac Assurance. But the company has not yet formally

addressed debt issues at its holding company, Ambac Financial.


Ambac

Ambac said late on Monday that it has commuted its remaining $16.4bn of

exposure to collateralised debt obligations of asset-backed securities at its

operating company. The company will pay $2.6bn in cash and issue $2bn of

surplus notes, as part of an agreement with counterparties, it said. The

holding company could use the bankruptcy process to resolve its debt

issues, without putting the operating company into bankruptcy and without

necessarily affecting any agreements made by the operating company.

Ambac said in the regulatory filing, that it was unlikely Ambac Assurance

would be able to make dividend payments ―for the forceable future‖ and that

the company’s liquidity and solvency are ―largely dependent‖ on such

dividend payments. A possible default or missed interest payment is often a

touch-off point for companies to begin serious negotiations with bondholders

and other creditors. In order to do a prepackaged bankruptcy, the company

would have to successfully negotiate agreements with a majority of its

creditors, including bondholders. Prepackaged bankruptcies have become

more popular in the past few years as a quicker route through the

bankruptcy process. …


Cool Springs Life

Rockstar wird Vertreter Von Norbert Kuls, New York 12. April 2010

Gene Simmons gibt dem konservativen Image von Versicherungsvertretern

einen neuen Anstrich. Wenn der Bassist der Rockband Kiss mit seinem

neuen Projekt Erfolg haben sollte, müssen sich Amerikaner einen

Versicherungsmann künftig als wild geschminkten, blutspuckenden Dämon

in schwarzen Lederhosen vorstellen. Simmons, der in dieser Montur auf der

Bühne auftritt, hat im vergangenen Monat zusammen mit Partnern aus der

Assekuranzbranche den Lebensversicherer Cool Springs Life Equity

Strategy gegründet. Normale Lebensversicherungen, die auch ein Herr

Kaiser verkaufen könnte, gibt es dort allerdings nicht. Cool Springs richtet

sich ausschließlich an Leute wie Simmons, reiche Stars aus Unterhaltung

und Sport mit einem persönlichen Vermögen von mindestens 20 Millionen

Dollar. Die Policen haben einen Wert von mindestens 10 Millionen Dollar

und sollen den Stars bei der steuerlichen Behandlung ihres Nachlasses

helfen.

Ungeschminkte Wahrheiten


Cool Springs Life

„Wir sind nicht wirklich die am besten informierten Leute, aber weil wir hart

gearbeitet haben und der amerikanische Traum weiter lebt, war es uns

möglich, reich zu werden―, sagte der 60 Jahre alte Simmons bei Interviews

in amerikanischen Wirtschaftssendern, wo er zwar ungeschminkt, aber

immerhin mit Sonnenbrille auftrat. Die Strategie von Cool Springs basiert auf

der Erwartung, dass in Amerika die Erbschaftsteuer wieder eingeführt wird.

Für vermögende Amerikaner wäre in diesem Fall eine Lebensversicherung

attraktiv, weil der Sparanteil der Police während der Laufzeit steuerfrei

bliebe. Nach dem Tod des Versicherungsnehmers müssten auf die

Auszahlung zudem keine Nachlass-, Geschenk- oder Einkommensteuern

gezahlt werden. Cool Springs verspricht potentiellen Kunden zudem, dass

sie die enormen Prämien für die Versicherungen nicht aus eigener Tasche

zahlen müssen. Der Versicherer arrangiert für Kunden einen Kredit für die

Prämienzahlungen, die bei älteren Leuten bis zu 300.000 Dollar im Jahr

betragen können. Der Kredit wird dann entweder während der Laufzeit der

Police aus dem Sparanteil der Versicherung oder nach dem Tod des Kunden

aus der ausgezahlten Versicherungssumme zurückgezahlt.


Cool Springs Life

Zins- und Steuer-Jonglage

Einige Finanzplaner halten die Finanzierung von Prämienzahlungen

allerdings für risikoreich, da das nur funktioniert, wenn das angesparte

Kapital der Versicherung mehr abwirft, als Kreditzinsen kosten. Wenn die

Zinsen steigen sollten oder sich die Steuergesetze ändern, könnte der Plan

möglicherweise nicht aufgehen. „Die Finanzierung von Prämien ist ein

Glücksspiel, bei dem die Gewinnchancen nicht auf Seiten des

Kreditnehmers sind―, sagt David Barkhausen, der den Versicherungsberater

Life Insurance Advisors leitet. Aber Simmons, der schon selbst eine

Versicherung abgeschlossen hat, ist natürlich zuversichtlich. Neben

Simmons stehen hinter Cool Springs Life Equity erfahrene

Assekuranzmanager wie David Carpenter, der für die große Gesellschaft

Transamerica tätig war. Die Versicherungsleute brauchten einen schillernden

Front-Mann, um ihre gewünschte Klientel zu erreichen. Sie kamen auf

Simmons, der eines der Gründungsmitglieder über eine geschäftliche

Beziehung mit einer Wall Street-Bank kannte. „Manager von

Lebensversicherungen haben kein Publikum―, gibt Carpenter zu.


Cool Springs Life

Bei Gene Simmons sei das anders. „Gene eilt zudem der Ruf voraus, ein

Genie für Vermarktung und Verkaufsförderung zu sein―, fügt er hinzu. In der

Tat ist Simmons ein geschäftstüchtiger Mann, der die Marke Kiss auf vielen

Kanälen verbreitet. In Lizenz gibt es Kleidung, Wein und Schmuck mit dem

Logo von Kiss. In North Carolina gibt es ein „Kiss-Café―, es gibt eine Kiss-

Briefmarke, einen Kiss-Comic. Außerdem hat Simmons schon fünf Staffeln

einer Reality-Fernsehserie über das Leben seiner Familie produziert - „Gene

Simmons Family Jewels―. Es ist zu vermuten, dass er in den nächsten

Folgen mit seiner Partnerin, einem ehemaligen Playboy-Model, auch über

Versicherungen reden wird.

Dies ist ein Ausdruck aus www.faz.net.


Cool Springs Life


Genworth

Genworth-Aktie verzeichnet starke Kursgewinne Von Ben Steverman 29. März 2010

Vor einem Jahr steckten nur wenige Unternehmen in ähnlichen Schwierigkeiten wie Genworth Financial. Wie andere Lebensversicherer musste Genworth mit ansehen, wie der Wert seiner Investitionen in der Hitze der Finanzkrise dahinschmolz. Es ging die Angst um, „dass viele dieser Unternehmen ihre Zahlungsfähigkeit einbüßen würden―, erinnert sich Bret Howlett, Aktienanalyst bei Standard & Poor's. „Und Genworth stand ganz oben auf der Liste.― Doch Genworth hatte - als einer der wenigen Anbieter von Lebens- und Hypothekenversicherungen - noch ein weiteres Problem: Sein amerikanisches Hypothekengeschäft erlitt enorme Verluste, als Hauseigentümer im Zuge der schlimmsten Eigenheimkrise reihenweise ihre Kredite nicht mehr bedienen konnten. „Genworth bezog Prügel von beiden Märkten―, meint Morningstar-Analyst Jim Ryan. Am 9. April schickte Washington Genworth dann auch noch vom Regen in die Traufe, als Genworths Antrag auf Rettungsgelder aus dem Troubled Asset Relief Program abgelehnt wurde. Doch wie sich dann herausstellte, bedurfte Genworth dieser Hilfe gar nicht.


Genworth

Die Aktie des Unternehmens, die am 6. März 2009 bei 84 Cent aufschlug, ging am Freitag mit 17,53 Dollar aus dem Handel. Die Kursentwicklung des Papiers liegt seitdem mit einem Zuwachs von 1797,6 Prozent vor allen anderen im Standard & Poor's 500-Index. Sie schlägt den Gesamtindex um mehr als 1700 Punkte. Genworth wurde am 25. Mai 2004 aus General Electric ausgegliedert. Der Aktienkurs liegt immer noch unter dem damaligen Ausgabekurs von 19,50 Dollar.

Die Rückkehr der Versicherungen

Was Genworth zur Comeback-Aktie des Jahres machte, waren zunächst einmal durchschlagend verbesserte Marktbedingungen. Innerhalb weniger Monate kam die gesamte Versicherungsbranche wieder auf die Beine, als die Wunden der Kreditmärkte verheilten und die Anleihen in ihren Bilanzen wieder an Wert gewannen. Die Versicherer im Lebens- und Krankenversicherungs-Index des S&P 500 erstarkten zwischen ihrem Tief vom 9. März 2009 und ihrem Hoch vom 16. September 2009 um satte 276 Prozent. Bis Juli hatte Genworth seine im Jahr 2009 fälligen Schulden getilgt und konnte den Anlegern berichten, dass die nächsten langfristigen Schulden erst Mitte 2011 fällig werden würden.


Genworth

Doch selbst nachdem sich diese Verbesserungen gezeigt hatten, kletterte die Genworth-Aktie weiter, und ganz besonders seit Anfang dieses Jahres. (Die Aktie hat seit dem 1. Januar 49 Prozent zugelegt.) Diesmal scheint der Grund ein unerwartet lebhafter Optimismus im Hinblick auf das amerikanische Hypthekengeschäft von Genworth zu sein. Am 23. Februar verkündete Genworth-Chef Michael Fraizer auf einer Anlegerkonferenz, dass die angeschlagene Hypothekenversicherungssparte ab Mitte 2011 wieder schwarze Zahlen schreiben könnte. „Einige positive Signale sind unverkennbar, wie zum Beispiel ein Rückgang der Zahlungsausfälle, die Verringerung der Rücklagen für Zahlungsausfälle, die Nutzeffekte aus Schadensbegrenzungsmaßnahmen und insbesondere die Ausweitung der Programme der amerikanischen Regierung zur Darlehensmodifizierung―, so Fraizer. Ein Genworth-Sprecher erklärte, dass keine Führungskräfte für Interviews für diesen Artikel zur Verfügung ständen.

Kritischer Blick auf Hypothekenausfälle

Auf einer Konferenz am 2. März gab Kevin D. Schneider, Leiter der Hypothekenversicherungssparte von Genworth, bekannt, dass die Hypothekenausfälle nicht mehr im selben Tempo zunähmen wie bisher.


Genworth

Im vierten Quartal 2009 stieg die Zahl der Hypothekenausfälle um 7,3 Prozent; im dritten Quartal waren es noch 14,4 Prozent gewesen. Am 24. März erreichte die Aktie ihren höchsten Stand seit Juli 2008, wobei sie um 4,2 Prozent zulegte, nachdem die Bank of America erklärt hatte, sie erwäge den Verzicht auf den Kapitalbetrag einiger ihrer Hypotheken. „Je geringer die Zahl der Zwangsvollstreckungen, desto günstiger für die amerikanischen Hypothekenversicherer―, erklärt Howlett von S&P. Zum Hypothekenversicherungsgeschäft, so Howlett, „herrscht die Auffassung, dass das Schlimmste überstanden sein könnte.― Am 25. März gab die Genworth-Aktie um 2 Prozent nach, worin sich die Sorge widerspiegelte, dass sich die Probleme für die amerikanischen Hypothekenversicherer doch noch verschärfen könnten. Ryan von Morningstar merkt an, dass das Programm der Bank of America lediglich 45.000 Kreditnehmer betrifft. Dabei geht die Zahl der potenziellen Hpothekenvollstreckungen in den Vereinigten Staaten in die Millionen. Man hofft, dass andere Kreditgeber dem Beispiel folgen und das BofA-Programm übernehmen. „Es ist gut gemeint―, so Ryan, „aber ein Tropfen auf den heißen Stein.―

Analysten warnen vor den verbliebenen Risiken


Genworth

Analysten warnen, dass Genworth ein riskantes Unternehmen bleibe. „Genworths Ertragssituation ist noch sehr verschwommen―, schrieb Citigroup-Analyst Colin Devine am 22. März. Er sagt voraus, dass das Hypothekenversicherungsgeschäft des Unternehmens nicht vor 2013 rentabel sein werde, zwei Jahre später, als der Unternehmenschef selbst es voraussieht. Die Zunahme der Zahlungsausfälle mag sich verlangsamt haben, aber die Zahlungsunfähigkeiten setzen weiterhin Rekordmarken, so Devine. Auch wenn Genworth überlebt hat - das Jahr 2009 hat seine Spuren hinterlassen. Zum Beispiel haben Sorgen über die Kreditwürdigkeit des Unternehmens die Attraktivität seiner Annuitäten und anderer Versicherungsprodukte beschädigt. „Wenn Verbraucher Versicherungen kaufen, dann wollen sie es bei jemandem tun, dessen Finanzen stimmen―, erklärt Howlett. Das Rating-Haus A.M. Best, das die finanzielle Stärke von Versicherungsgesellschaften bewertet, vergibt ein „A―-Rating, oder Ausgezeichnet, für Genworth Life & Annuity Insurance, schätzt aber die Aussichten des Unternehmens negativ ein. „Es ist definitiv ein Unternehmen mit hohem Risiko―, urteilt Howlett. „Es bleibt abzuwarten, wie stark sein Franchise-Wert auf Dauer gelitten hat―, schrieb Devine. Genworths Führungskräfte klingen da optimistischer. Sie verweisen darauf, mit welchem Erfolg sie verschiedene Sparten wieder auf Kurs bringen. „Wir werden aus dieser schwierigen Konjunkturphase stärker und klüger hervorgehen, als wir hineingegangen sind―, erklärte Schneider am 2. März. Steverman ist Reporter für den Investing Channel der BusinessWeek. Dies ist ein

Ausdruck aus www.faz.net.


Genworth


Hartford

WSJ BUSINESS APRIL 1, 2010

Hartford Repays $3.4 Billion in TARP Aid BY JOHN KELL

Hartford Financial Services Group Inc. became the latest company to repay

federal funds it received under the Troubled Asset Relief Program, as it paid

$3.4 billion to the Treasury Department to repurchase preferred shares.


MBIA

WSJ FEBRUARY 12, 2010

MBIA Denied in Bid to Halt Class-Action Suit By JAY MILLER

A U.S. federal judge denied MBIA Inc.'s motion to dismiss a class-action fraud case brought after the company decided to split its bond-insurance unit in the wake of a meltdown in credit markets. A decision in state court on a motion to dismiss a similar case brought there could come next week. MBIA's shares closed down 4.9% to $4.84 Thursday, while rival bond insurer Ambac Financial Group Inc. closed up 7.1% to 60 cents.

A year ago, MBIA divided the operations as part of an attempt to restart its business of selling financial guarantees on bonds issued by cities, water authorities and other public-finance entities. Its main unit was left with fewer claims-paying resources for its troubled mortgage exposures, and was downgraded by several credit-ratings firms. Banks, investment funds and other policyholders balked at the plan when they were left holding contracts with what they argued was a financially weaker insurer when MBIA transferred about $5 billion in capital from its main unit to another company that guarantees only U.S. municipal bonds. MBIA also moved about $537 billion of U.S. public finance exposure in force to the new company, called National Public Finance Guarantee Corp.


MBIA

A group of hedge funds, including Aurelius Capital Partners LP and funds managed by Fir Tree Partners, brought the lawsuit. Plaintiffs' lawyer David W. Ichel, a partner at Simpson Thacher & Bartlett LLC, said he wants to move forward now to the discovery process. Among other information, Mr. Ichel will seek MBIA's internal loss data, communications, emails, and other documents that shed light on MBIA's internal projections for losses on guarantees they wrote. Mr. Ichel said those documents could help uncover that MBIA knew that transferring capital to its newly launched municipal insurer would leave its legacy insurer insolvent, or without adequate capital to pay claims. Mr. Ichel will also request MBIA's documents relating to its submissions to the New York State Insurance Department seeking approval of the restructuring. But MBIA spokesman Kevin Brown said the company disagrees with the federal court ruling and is waiting for a ruling on its motion to dismiss a similar case in New York state court. A ruling is expected on Wednesday in that case, which was brought by a group of banks that also oppose the restructuring. The New York State Insurance Department has said that case "is nothing more than a disguised challenge to the Superintendent's approval of Transformation and should be dismissed," Mr. Brown said. "We expect the New York state courts to reach the same conclusion, at which time we will ask Judge [Richard J.] Sullivan to reconsider his decision.― —Serena Ng contributed to this article.


Metlife

NY subpoenas MetLife, Pru on soldier death benefits Thu, Jul 29 2010 By Jonathan Stempel

NEW YORK (Reuters) - New York's attorney general has subpoenaed MetLife Inc and Prudential Financial Inc as part of a probe into whether life insurers are defrauding families of deceased military personnel by siphoning off millions of dollars of death benefits for themselves. "It is shocking and plain wrong for these multinational life insurance companies to pocket hundreds of millions in profits that really belong to those who have lost family members and have already suffered immensely," the attorney general, Andrew Cuomo, said in a statement. Cuomo announced the subpoenas of the largest U.S. life insurers on Thursday, one day after the U.S. Department of Veterans Affairs said in a published report that it had begun its own investigation into the issue. Prudential confirmed late on Thursday it is in talks with the department to address its concerns. At issue is whether the insurers, rather than pay out lump sums to military families upon the deaths of policyholders, instead would keep money in potentially risky accounts they controlled, known as retained-asset accounts, while paying out low yields to surviving families.


Metlife

Cuomo said the insurers reportedly earned upward of 4.8 percent annually on these accounts, but paid families interest as low as 0.5 percent, less than the rates they might find at their local banks. The insurers' accounts, moreover, are not guaranteed by the Federal Deposit Insurance Corp, Cuomo said. MetLife spokesman John Calagna declined to comment, saying the New York-based insurer has yet to see the subpoena. Bob DeFillippo, a spokesman for Prudential, said the Newark, New Jersey-based insurer will cooperate with Cuomo. The Department of Veterans Affairs did not return requests for comment about its probe, which Bloomberg News had earlier reported.

LOW RATES, NON-GUARANTEED ACCOUNTS

The attorney general said the subpoenas seek data on how and when beneficiaries learn about the terms and conditions of retained-asset accounts, and data on the differences between interest earned by insurers and beneficiaries. In a statement issued Wednesday, the American Council of Life Insurers, a trade group, said retained-asset accounts help grieving military families. "Not surprisingly, financial matters may not be the first thing on their minds," it said, "and retained asset accounts provide a secure place for life insurance policy proceeds to be held until the money is needed.‖ Cuomo, a Democrat, is the front-runner to become New York's next governor in the November election. … (Reporting by Jonathan Stempel in New York; Additional reporting by Dan Wilchins;

Editing by Lisa Von Ahn and John Wallace)


Primerica

Alte Bekannte Die Lebensversicherung Primerica kehrt an die Börse zurück. Vor gut zwanzig Jahren

machte Citigroup-Architekt Sandy Weill die Gruppe zum Kernbestandteil seines Finanzimperiums. Ab 1989 waren die Aktien von Primerica an der New York Stock Exchange für einige Jahre kotiert. Doch kurz nach der Übernahme der damaligen Travelers Insurance 1993 wechselte die Gesellschaft den Namen zu Travelers Group.

Seither hat sich im weit verzweigten Firmengeflecht viel verändert: Auf dem Höhepunkt des Allfinanz-Booms schlossen sich 1998 Travelers Group und das Bankunternehmen Citicorp zum integrierten Finanzgiganten zusammen. Die erhofften Synergien zwischen Bank- und Versicherungsgeschäft blieben allerdings weitgehend Wunschvorstellung. Deshalb trennte sich Citigroup nach der Jahrtausendwende zunächst vom Nichtlebengeschäft und dann auch von der Leben-Einheit Travelers Life & Annuity.

Nun öffnet sich auch Primerica wieder dem Börsenpublikum. Gemäß einer Eingabe an die Börsenaufsicht SEC wird Citigroup nach dem Initial Public Offering (IPO) zunächst noch eine Minderheitsbeteiligung von 32 bis 46% halten, weitere 23 bis 33% am Kapital übernimmt in einem separaten Deal die Private-Equity-Gesellschaft Warburg Pincus. Später will Citigroup ganz aussteigen. Dem Publikum werden die Valoren voraussichtlich zum Preis von 12 bis 14 $ je Aktie angeboten, was Analysten als günstig bezeichnen. 2009 erzielte Primerica 2,2 Mrd. $ Einnahmen und 495 Mio. $ Gewinn. Über ein Netz von rund 100 000 Versicherungsagenten vertreibt das Unternehmen vor allem Vorsorgeprodukte an Privathaushalte.

JB, FuW Nr. 25, 31.03.2010, p. 30


Prudential Financial

WSJ BUSINESS AUGUST 7, 2010, 12:06 A.M. ET

Veteran Affairs Clarifies Controversial Life-Insurance Program By LESLIE SCISM

The U.S. Department of Veterans Affairs is dispatching letters to 10,000 beneficiaries of life-insurance policies of military members to clarify the workings of now-controversial money-market-like accounts for death benefits. Also, the department is convening a working group to examine issues related to the life-insurance program, run through Prudential Financial Inc. "We continue to work with the VA to address the concerns that have been raised," a Prudential spokesman said.

Separately, the National Association of Insurance Commissioners, a group of state regulators, said Friday it plans to establish a special working group to study the matter. Regulators have said they want to make sure consumers aren't confused about their ability to immediately withdraw all the money and move it elsewhere, and that they understand the accounts are backed by state guarantee funds for insurers instead of federal banking protections.

The money-market-like funds have been in use at many insurers since the 1980s. They were thrust into the spotlight last month when the mother of a solider killed in Afghanistan gave media interviews saying she felt misled. New York Attorney General Andrew Cuomo has launched an industrywide probe into the accounts.


Prudential Financial

Insurers promote the accounts as a useful service for people too bereft to make quick financial decisions; critics paint them as vehicles for insurers to delay payment and earn investment gains on the funds.

Under the military program, Prudential automatically puts proceeds from policies in the money-market-like accounts and gives the beneficiaries checkbooks for withdrawing the money. They can immediately write a check for the full amount to deposit elsewhere, if they want. For beneficiaries who prefer receiving an old-fashioned check in the mail, they can specifically request it, and a small percentage do so each year, according to Prudential. The burden is on the beneficiary to request that option. The accounts pay beneficiaries an interest rate in line with the money-market industry, and Prudential's guarantees a minimum rate. That minimum currently is 0.5% a year.

Prudential has provided life insurance for the military under a no-bid contract since 1965, and introduced the Alliance Account program for military members in 1999 "in an effort to better serve beneficiaries," the letter to military beneficiaries says. Since then, more than 60,000 Alliance Accounts have been opened "and successfully managed" for military beneficiaries, the letter says, adding that money currently in accounts "is secure and available to you." The military currently offers coverage of up to $400,000 per person. —Erik Holm contributed tot his article.


WellPoint

WellPoint under fire for insurance price hikes By Alan Rappeport in Washington, FT.com Published: February 24 2010 15:01 | Last

updated: February 24 2010 19:13

Angela Braly, WellPoint chief executive, came under fire from a US congressional committee on Wednesday over the health insurer’s attempt to hike premiums by as much as 39 per cent while reaping billions in profit and enjoying lavish executive retreats. Ms Braly, who runs the biggest US health insurance company by membership, is under pressure because of soaring rate increases at Anthem Blue Cross, a California subsidiary, that were set to take effect next month. The increases have drawn public ire amid the healthcare reform debate and have come to symbolise why the system is broken. ―Raising our premiums is not something we wanted to do,‖ Ms Braly said in prepared remarks. Calling the increases ―unfortunate‖, Ms Braly blamed the rising cost of medical care, an ageing population and that young people are reducing insurance coverage because of the weak economy, raising prices for others

WellPoint was placed in the position of playing down its $2.7bn fourth-quarter profits and explaining why the costs of its services far exceed inflation.


WellPoint

Ms Braly argued the 39 per cent increase was being mischaracterised

because it only reflects rate hikes for individuals purchasing their most

expensive package and accounts for the impact of ageing. Meanwhile, she

said the company’s profits were in line with, or weaker than, most of its

competitors.

Henry Waxman, the California Democrat who heads the committee, scolded

WellPoint executives for spending $27m on retreats in 2007 and 2008. Mr

Waxman also revealed internal documents that the company was asked to

hand over which showed WellPoint pushing customers into ―less generous‖

plans and inflating premiums to give them a bigger cushion for negotiating

and making concessions.

Attention fell on Anthem earlier this month after a consumer backlash

against the increases. According to the Center for American Progress Action

Fund, WellPoint is trying to impose double-digit rate increases in 11 US

states this year.


WellPoint

Ms. Braly denied the allegations and shot back at Mr. Obama for spreading "false information." Health and Human Services Secretary Kathleen Sebelius has called on states to investigate WellPoint's pricing practices. And last Thursday, the Senate Finance Committee asked Ms. Braly for a detailed account of how the errors occurred. Ms. Braly is frustrated by the flap with the administraton, and is working to quiet fears and get back to running her company. "The goal is to have a positive relationship with the government at all times," she said in an interview at her offices. Last week, Ms. Braly met with the company's managers in Brooklyn, N.Y., where several hundred gathered to ask questions and a few thousand tuned in to a television feed. There, she was grilled about the company's reputation and why it was being singled out by the government. A day later, Ms. Braly faced another round of questions from the company's top brokers, who gathered for an annual meeting and pressed her on how it would repair relations with the administration. The same day, Ms. Braly dispatched her strategy lieutenant, Bradley Fluegel, to New York to handle queries from institutional investors. WellPoint's stock fell almost 10% on April 30, the day after the company disclosed mathematical errors in its California rate filing, and it hasn't rebounded.


WellPoint

Jay Nogueira, vice president at one of the company's top 10 shareholders, T.

Rowe Price, said the stock won't bounce back until investors were convinced

that there isn't another chapter in the hostility with the government. "These

guys are not dealing well with the public limelight," said Mr. Noguiera.

WellPoint and the administration are now trying to downplay the recent

fracases. Ms. Sebelius gave a speech Friday about a mile from WellPoint's

headquarters, and said at a press conference that she will continue to keep

the pressure on insurers and that WellPoint "has been a leader and a major

player and we look forward to working with them.―


WellPoint


Versicherungen USA...Versicherungen USA Theorie & Empirie Ausgangslage Produkte Politik...

Documents

Transcript of Versicherungen USA...Versicherungen USA Theorie & Empirie Ausgangslage Produkte Politik...