Insurance Industry News Jobs Financial Services Press Releases

450 jobs to go at Norwich Union at York

2006-09-14T09:50:00.000+01:00

Some staff on their way into work at Norwich Union this morning heard the news breaking on BBC local radio. However many turned up not having heard at all.

The compulsory job losses were announced this morning via the Stock exchange the news has not been formally announced to staff they are hearing the story unfold via online news and radio feeds.

The staffing reductions are as a result of Aviva's offshoring strategy with many of the roles being outsourced to India.

Staff are stunned at the announcement made this morning and the way that the news was broken.

3000 staff are based at Norwich Union's offices in York the 450 staff that are affected are though to be in IT and policy processing.

Further indications will emerge over the coming days.

Aviva - More jobs off to India in cost cutting excercise

2006-09-14T09:24:00.000+01:00

Norwich Union Sees 2,000 Compulsory Layoffs

Yet another 1500 Insurance jobs off to India - IT and policy processing.

LONDON - Norwich Union Executive Chairman Patrick Snowball said that about half of the expected 4,000 job reductions announced on Thursday morning 14th September 2006 will most likely be made through compulsory means.

He added, though, that the company would seek to minimize the number of compulsory redundancies through natural staff turnover and voluntary measures.

Snowball was speaking to Dow Jones Newswires after Aviva PLC (AV.LN) said that it would reduce its 36,000-strong U.K. head count by approximately 4,000 by 2008, with up to 1,000 UK based positions being offshored to India.

Norwich Union, Aviva's U.K. business, plans to improve efficiency to deliver annual cost savings of GBP250 million in 2008, at a cost of GBP250 million by the end of next year, the group said.

Snowball said that Aviva had set aside GBP2.5 million for staff retraining for those hit by layoffs.

The group gave a breakdown of locations for the role reductions: Norwich 850; York 450; Glasgow 250; Sheffield 250; Cambridge 200; Perth 200; Newcastle 200; Eastleigh 200; Stevenage 150; Bristol 150; Worthing 100; Belfast 100; and Birmingham 50.

In addition, it said that 700 of the total role reductions will be across approximately 40 other Norwich Union offices and 107 BSM high street outlets.

There will also be a reduction of around 150 home worker roles.

It is appalling that Aviva staff in my own area of York first heard the news breaking on the local radio on their way into work.

Staff affected looking for Insurance Jobs can find 1000s advertised at

www.insurancejobsboard.com

Skandia CEO Roberts Nearly Tops the Million Mark

2006-04-06T02:05:00.000+01:00

THE new boss of Southampton based financial services giant Skandia earned nearly £1m last year.

Julian Roberts' basic salary was £385,000, with £450,000 paid in bonuses, £133,000 in benefits and £20,000 in pension.

Details of the chief executive's remuneration package - said to be the going rate - are contained in the annual report of Old Mutual.

The London-listed South African life insurer made a successful £3.4 billion hostile bid for the global Skandia group, including the jewel-in-the-crown UK arm, late last year.

Skandia, which employs 1,700 at its split-site UK headquarters in Southampton, officially joined the Old Mutual fold on February 1.

Mr Roberts' £988,0000 compares to the average salary of £37,616 at Skandia in Southampton.

What he earned last year in his capacity as then group finance director of Old Mutual, a post which he held for five years, was similar to that of Skandia UK boss Alan Wilson, who retired at the end of January.

Multi-millionaire Mr Wilson, who established Skandia locally in 1979 to make it an immensely profitable tour de force in the insurance world, was Southampton's highest paid director, earning just over £1m.

In the annual report, Mr Roberts, said:

"I move to my role as chief executive of Skandia, confident in the knowledge that management action taken across all our businesses has created a platform for long-term sustainable growth."

Roberts also sees his basic salary rise by £90,000 this year to £475,000, while Old Mutual chief executive Jim Sutcliffe, who earned nearly £1.5m last year, sees his basic salary go up by £150,000 to £700,000.

The annual report said both increases were considered by Old Mutual's remuneration committee to be "appropriate in the light of comparative market data".
Old Mutual manages £183 billion worth of funds, and last year made an operating profit of £1.2 billion

Skandia UK, which has one million policyholders, has nearly £27 billion worth of funds under management. Last year it made a profit of £160m.

Not A Bad result that’s almost a £1.00 per policy ! Only 22,000 to go !

Staff Call for Standard Life Health Care

2006-04-06T02:00:00.000+01:00

STANDARD Life Healthcare has started recruiting around 240 staff after officially opening its new HQ in Bournemouth on Monday 3rd April

Some 295 FirstAssist staff joined Standard Life Healthcare yesterday after the mutual acquired FirstAssist's private medical insurance business on April 1.

Standard Life Healthcare has transferred its 300-strong HQ function from Guildford to Bournemouth, Some 20 per cent of the Guildford staff have relocated to Bournemouth but the remaining 80 per cent of the jobs will need to be filled by local workers.

And all the new local Standard Life Healthcare staff could get shares if its parent group Standard Life joins the stock market in a £2 billion flotation, it is hoped.

Standard Life Healthcare chief executive Mike Hall said:

"We are waiting to see what the board recommends in terms of shares for employees. The details have yet to be announced."

But he would like to see Standard Life give its award-winning staff "a financial stake" in the business.

It was too early to say what sort of stake he personally would receive in the business, if any, if it floated on the Stock Exchange, he added.

"I'm an employee as well so I don't know what the details are."

Standard Life members will vote on May 31 whether the business should give up its mutual status and join the stock market. Approval would be needed from 75 per cent of those members voting.

Yesterday Mr Hall and Standard Life Healthcare chief operating officer Bob Watts toured their new Richmond Hill offices, handing out champagne to the staff.

Standard Life Healthcare's new site at Marshall Point brings together workers from Bournemouth, Guildford and Stockport to serve 232,000 customers, making it the third largest private medical insurance provider in the UK.

Standard Life Healthcare was acquired by Standard Life in 1994, changing its name from Prime Health in April 2000.

2006-04-06T01:55:00.000+01:00

Broking News: Doug Smith Joins Willis Mergers & Acquisitions

Doug Smith founder of insurance broker Corporate Risk, has been appointed by Willis Group, the global insurance broker, as non-executive deputy chairman of its mergers and acquisitions practice.

Smith retired from global broking group J&H Marsh & McLennan in September last year, since then he has built up a consultancy company, Eurorisk Partners, which is contracted to Willis to provide his services.

"Willis is potentially another global insurance house in the private equity world. That is the reason I've joined them as opposed to a number of other firms who had approached me," Smith said.

Smith will be working alongside Alistair Lester and Nathan Sewell, who are the co-heads of the international M&A practice for Willis, Smith's remit will focus on broadening the strength and breadth of relationships within the private equity community.

He is also tasked to accelerate the strategic growth and development of the Groups M&A practice, which is focused on the provision of risk and insurance due-diligence services, as well as the provision of specialist M&A-related insurance services to private equity groups and corporations

"I've moved away from pure corporate insurance to talk to private equity houses about risk analysis and identification and how to deal with it," Smith said.

"When you see the amount of money private equity houses have raised and the number of deals going on, you realise there is a tremendous demand for risk management services."

In addition to the provision of his services for Willis, Smith will continue to run Eurorisk.

"We have negotiated with the Waterman Group, which is a quoted company, to help the Waterman Environmental Group on private equity and I will be doing likewise with a pension firm and IT firm," he said.

Smith will continue his roles at various companies, including Martin Currie investment trust and on the board of an AIM-listed, litigation-insurance-based company based in London.

Great Call for Willis thats one acquisition that's sure to yield the dividends at the outset .

Collins JLT's Risk Executive Chairman Resigns

2006-04-06T00:39:00.000+01:00

Jardine Lloyd Thompson

Changes afoot a JLT Risk

British Insurance Broker JLT has announced that Dominic Collins, executive chairman of its Risk Solutions unit, had resigned.The sudden Departure comes only months after having taken up executive responsibility for the unit.

JLT said in a statement on Wednesday 5th APril 06 that Collins had resigned with immediate effect, The statement added that Mark Drummond-Brady will become chairman of the Risk Solutions Unit, JLT's biggest operating unit.

Martin Hiller will become be the Risk Solutions unit's managing director

The company has yet given no explanation for Collins' resignation. He was appointed to the role of executive chairman of the unit in December 2005 following the resignation of Mike Hammond

Risk Solutions is one of the strongest areas of the JLT group and accounted for roughly 40 percent of the group's risk and insurance division's turnover in 2005.

More Information to follow as it breaks.

Name Tags: Dominic Collins, Mark Drummond-Brady, JLT Risk

No Win No Fee Claims

2006-03-27T12:50:00.000+01:00

No Win No Fee Claims Premium Keyword Rich Domain Name for Sale.

http://www.NoWinNoFeeClaims.com

In the competitive arena of No Win No Fee claims consultancy and legal advisors brand your claims advice service with this premium No Win No Fee Claims domain name.

Cost per click advertising costs a fortune by securing a premium domain name your business can stand head and shoulders above the competition in this crowed market place.

Perfect for all mediums this memorable domain is ideally suited to web marketing, tv, radio and print campaigns. No Win No Fee Claims are the primary keywords searched for in the sector and will deliver high quality targetted traffic back to your business.

Why pay up to £6.00 a click on google / overture to gain top positioning bidding for the terms " No Win No Fee " " No win No Fee Claims" " No Fee Claims" on sponsored ads when owning this domain will rank highly in the organic listings for free.

This domain is offered with or without an optimised site build to generate quality traffic to the domain.

Ideally suited for : No Win No Fee Claims, No Fee Advice, No Win No Fee, Personal Injury claims, Accident at work, Traffic accidents, Whiplash, medical negligence, Injury compensation, claims compensation.

Contact melanie@insurancejobsboard.com to discuss this opportunity

Innovation In Online Jobs Search. Niche Publishers Leading the way

2006-03-24T12:43:00.000+00:00

Niche Jobs Publisher InsuranceJobsBoard.com Today released the first of its kind Job search toolbar in the UK. This allows job seekers direct access into the site job search, the ability to read industry news alerts, search the web and communicate direct with the site.

Niche jobs board InsuranceJobsBoard.com the Jobs Portal dedicated to the Insurance and Financial Services sector today announced the launch of its industry specific job search tool bar. This new innovation allows jobs seekers direct access to the site from anywhere in the web and links straight into the search functionality enabling direct and proactive search of the 1000s of vacancies currently advertised.

Additionally the toolbar functionality features access to job seeker resources such as google search, live industry news, google & yahoo finance, rss feeds and blogs. It's an entirely free download, with no spyware or viruses, does not open pop-ups or hijack searches, and no personal information is required for installation. User trials conducted via jobseekers and advertisers registered with the site have found it to be a superb tool to assist in their job seeking activities and account management.

Commenting on the launch of this new tool Melanie Blakeley, Operations Director at InsuranceJobsBoard said

“We have been amazed with the positive feedback that this product has received during our beta trial and are confident that its launch will be a valuable addition to the site and enhance our communication with our target audience. This unique innovation is the first of its kind in the UK online jobs search sector“.

This recent development continues the trend of InsuranceJobsBoard’s commitment to developing additional services to serve its jobseekers and advertisers such as its sector specific job search engine and the integration of live online help that see this Niche board leading the way in Insurance and Financial Services Recruiting.

About Insurance Jobs Board

Beta site Developed Jan 04
Site Launch March 04

InsuranceJobsBoard.com is the industry’s leading niche jobs portal that services the Insurance and Financial Services Sector.

Driven by an industry specific search engine the site delivers financial Job seekers the lastest vacancies from the leading specialist recruiters and direct employers.

The site advertises in excess of 4500+ industry related jobs.

http://www.insurancejobsboard.com/

http://insurancejobsboard.ourtoolbar.com

Search Tags: Insurance Jobs search, online jobs search, job sites, job toolbar, online recruitment, online publishing, online classifieds, jobs advertising. Insurance Industry, Financial Services Industry

Lee Sutton Joins The Insurance Partnership

2006-03-20T14:49:00.000+00:00

Appointments

One of the country's fastest-growing commercial insurance brokers has appointed Hull insurance expert Lee Sutton as senior account executive.

With more than 14 years' experience of providing insurance advice to companies in East Yorkshire, he is now focusing on new business development at The Insurance Partnership.

Chairman Ian Hakes said: "He is an extremely experienced insurance broker who has worked at associate director level.

Link>>> Insurance Broking Jobs

He has a well-established network of clients and contacts."We believe his understanding of the insurance needs of businesses in our region, coupled with his technical knowledge and determination to succeed, will enable him to make an effective contribution to our development.

"Born in Willerby and educated at Wolfreton School, Mr Sutton, 32, is married and lives in Kirk Ella.

He said: "In February, The Insurance Partnership was ranked sixth in a list in the Insurance Times of Yorkshire's top 20 independent insurance brokers.

I'm looking forward to being part of that winning team."The Insurance Partnership was established in 1993 and has more than 100 employees and a turnover of more than £30m. The company has offices in Hull, York, Lichfield and Sutton Coldfield.

It works with companies of all sizes in sectors such as professional services, logistics and manufacturing.

It is accredited with ISO9001 for quality assurance and the Investors In People standard and has been authorised by the Financial Services Authority.

Search Tags: Insurance brokers, commercial Broker, commercial Broking, Insurance Broking, Account executive, The insurance partnership, Hull, York, Lichfield, Sutton coldfield, independent Insurance brokers, broking jobs, Insurance broking jobs, yorkshire, west yorks, north yorkshire, easy yorkshire.

L&G Make U-turn over endowment claims

2006-03-20T14:34:00.000+00:00

Legal & General, the insurer, is to enforce time limits on complaints for mortgage endowment mis-selling.

Until now the company had refused to follow most insurers, which have imposed time bars on mortgage endowment complaints. But in a sudden change of strategy it is writing to its 630,000 endowment policyholders to say that it is to introduce time bars and that, in line with regulatory guidelines, customers will be given six months' notice before the time limit expires.

Under the time bar rule, policyholders have just three years from receipt of their first "red" warning letter - signifying that a shortfall is likely - to complain.

Link: >>> Financial Services Jobs

The insurer said it had sent numerous letters about shortfalls to its mortgage endowment policyholders over the past six years and that by now they should know whether they have a case for compensation or not.

Paul Timmins, L&G's director of customer resolutions, said: "We want to bring a conclusion to the matter - it is time for people to make up their minds."

The decision leaves just Prudential (including Scottish Amicable) and Nationwide Building Society as the only providers not to impose time bars. The Pru and Nationwide said they had no plans to impose time limits but that the situation was reviewed constantly.

Millions of mortgage endowment policyholders are running out of time to complain. Most of the 1.6m customers who received time bar letters from Standard Life and Scottish Widows last year have until the end of May to complain. If they miss the deadline they lose the right to pursue compensation at a later date.

Marianne Fitzjohn of Endowment Justice said: "It is yet another large insurer who breaks their promise to customers to increase their profits, reinforcing the view that trust is an optional extra when dealing with financial services firms."

Search Tags: Endowment complaints, L&G, Legal and General, Endowment mortgage claims, Insurance news, Standard Life, Scottish Widows, endowment policy holders, Misselling, Endowment compensation, Paul Timmins, endowment shortfalls, financial services Jobs, endowment justice, Marianne Fitzjohn,

Legal and General Damaged By Storm Claims Payouts

2006-03-20T13:57:00.000+00:00

Storm damage claims hit operating profits at Legal & General's household and motor insurance business, much of which is run from Birmingham, last year.

Earnings slumped by more than half to £14 million from £32 million in 2004, even though improved volumes in household and healthcare policies produced a three per cent rise in premium income to £334 million.

Link>>> Claims Jobs

L&G said the "significantly lower" operating profit was a result of higher bad weather claims in the first half of 2005 combined with tougher competition.

The group, which employs about 800 people at its Birmingham insurance centre, said that elsewhere in the book, improved results from accident, sickness and unemployment insurance were offset by increased motor losses and a smaller release of reserves from the mortgage indemnity book.

Overall, however, L&G delighted the City yesterday by announcing better than expected profits on the back of record amounts of new business

Operating profits rose by 43 per cent last year to £1.09 billion - a result that sent shares soaring by seven per cent on a day when the FTSE 100 Index burst through the 6,000 mark.
The results were boosted by strong growth in the UK following a series of distribution deals with banks and building societies to sell Legal products. Life and pensions profits in the UK grew 69 per cent to £801 million.

Legal chief executive Tim Breedon said: "2005 was another record year for Legal & General - record new business and record profits."

L&G announced a dividend of 5.28p - up more than four per cent on the previous year.
Cazenove analyst James Pearce summed up market sentiment, saying: "L&G has delivered a splendid set of figures."

Mr Breedon said yesterday the company had nothing to fear from increased competition in the bulk annuities market.

For years L&G and arch rival Prudential have had the field to themselves but are now facing the prospect of new players moving into the field.

Bulk annuities is a specialised area of operations in which insurers take over company pension schemes.

"If you're in a pension scheme and your employer decides to close it, you'd be looking for a company with financial strength, reliability and long-term commitment to take it over," Mr Breedon said.

"There are new companies wishing to enter the market, but there's quite a long list of desirable characteristics that they need to meet."

With more employers seeking to offload their pension liabilities, the bulk annuity market looks set to grow fast enough to accommodate some new players.

"There's a growing recognition that the market is attractive, which certainly hasn't always been the case. More people will be looking at it, but it's a big market, and a growing one," Mr Breedon added.

Tags: L&G Insurance, Tim Breedon Chief Executive, Ceo, Legal and general Insurance, Insurance claims, storm damage claims, Insurance claims jobs, L&G profits, Birmingham Insurance Jobs, Birmingham claims jobs,

Aviva details £17bn share swap bid for Prudential

2006-03-20T13:50:00.000+00:00

Insurance giant Aviva has confirmed details of its £17bn proposed offer for Prudential and said it would not be willing to make a hostile offer for the group.

However, Prudential has already rejected the indicative approach and told Aviva, owner of Norwich Union, that it is not prepared to enter talks.

Link >> Jobs In Insurance

Aviva said today’s statement, outlining the prospective offer, “enables both Prudential and Aviva’s shareholders to assess the proposal on an informed basis.” It is proposing an all-share merger of the two groups with 82 new Aviva shares for every 100 Prudential shares held.

The offer is equivalent to 708p per Prudential share, valuing the company at around £17bn. Prudential rose 80 to 752p in early trading, after gaining 44½ on Friday, prompting speculation that Aviva could face a rival bidder

Aviva said it would only proceed with the proposal “on a recommended basis”. However, Prudential said in a brief statement this morning that it “does not consider that the proposal is in the best interests of its shareholders and has rejected it.”

The company added: “The board confirms that it is not in discussions with any party and reaffirms its confidence in Prudential’s future as an independent company.”

The combined group would be a leading global insurer with a market capitalisation of around £36bn and a premium income of around £40bn, Aviva said.

Aviva said cost savings of around £320m per year would be possible.

Richard Harvey, Aviva chief executive, said: “The combination of Prudential and Aviva has a compelling strategic, financial and operational logic. This is a real opportunity to create a leading player in the global savings, investment and insurance market.”

He added: “The group would have significant presence and growth opportunities in Europe, Asia and the US. This is a value-creating proposition for the shareholders of both companies.”
A new management team will be drawn from both organisations, with Mr Harvey as chief executive.

Aviva said it “believes that the combined group would be able to accelerate the growth of its overseas life businesses”.

In the US, Aviva’s business would be integrated into Prudential’s Jackson National Life while in the UK, Prudential’s distribution and customer base would help accelerate the growth of Norwich Union and the RAC. Aviva added that there could be no certainty a formal offer will be made.

Aviva rose 3½ to 850½p in early trading after rising 23½ on Friday.

Tags: Aviva offer prudential, aviva bid, Aviva share price, aviva merger, prudential acquisition,
Jobs in Insurance,

FSA announces next steps on contract certainty in the insurance market

2006-03-20T13:48:00.000+00:00

The Financial Services Authority (FSA) has put on hold its work to develop rules to bring about contract certainty in the insurance market.

Speaking at the FSA's Insurance Sector Conference today, John Tiner FSA CEO, acknowledged the progress made by the insurance market in meeting the FSA's challenge to achieve contract certainty. The challenge to end the 'deal now, detail later' approach was issued to the market in December 2004.

The FSA gave the market two years to ensure that insurance contract terms are agreed at the time the policies commence. Contract certainty will lead to greater certainty for buyers about what they have bought and for insurers about the risks they are covering, whilst also reducing risks for brokers.

Link>>> Financial Services Jobs

Throughout this period, the FSA has been clear that if the market fails to develop its own solution, it will have to intervene with new rules and requirements. In line with its better regulation agenda, the FSA's preference has always been for the market to find its own solution without the need for regulatory intervention.

Since December 2004 the FSA has been monitoring progress by working with groups representing the market to achieve the goal of contract certainty.

Today's announcement follows the receipt of data from the market showing that it had exceeded its own targets for achieving improvements in contract certainty at the end of 2005.

John Tiner said:

"To demonstrate our good faith in the market's ability to reach its goal, we will not be pressing ahead with our work on the contingency plan of regulatory intervention. We are putting it on the back-burner, although we are not taking it off the stove altogether.
"I would strongly caution against complacency in these next few crucial months; the market must continue to stretch itself to guarantee that the challenge is met by the end of the year….On our part, we will continue to assess progress beginning in the next quarter, not least to see how the market has performed against the challenging 1 January renewal period. We will continue to work with the market in our rôle as over-seer and facilitator, and will not hesitate in consulting on new rules should progress falter."

Two other significant announcements were made at the conference by Hector Sants, the FSA's Wholesale Managing Director.

The two announcements form part of the FSA's wider agenda of better regulation - creating a regime that offers greater flexibility to firms and is responsive to changing market needs. They will make the London market an easier place in which to do business and will help to position London as the regulatory platform of choice for the wholesale market, whilst maintaining its high standards.

The announcements were:
the FSA will speed up the process of authorising new insurers in response to market needs at times of pressure, for example following major catastrophes, when new capital becomes available, and ahead of critical market renewal periods. The FSA already has an efficient authorisation process in place, taking an average of 17 weeks to conclude its review of an application. The FSA will accelerate this process for insurers in periods of market pressure, although it will continue to apply the existing standards. Where the FSA has prior knowledge of a group it will authorise a firm within one month of receiving the application. Where the FSA does not have prior knowledge then it will make a decision on an application for authorisation within 10 weeks of receiving an application; and

as part of the FSA's consultation on the Reinsurance Directive later this year, the FSA will consult on the introduction of Insurance Special Purpose Vehicles (ISPVs). Through the consultation, the FSA aims to open up the SPV market here in the UK.

Notes to editors
John Tiner's speech to the conference can be found here, and Hector Sants' speech can be found on the FSA website.

The original challenge to the industry was made in a speech given by John Tiner in New York in December 2004.

Public records of the December 2004, July 2005 and December 2005 meetings between the FSA and senior industry representatives can be found on the FSA website. A further meeting with the industry on 21 March will also be recorded.

ISPVs are special purpose reinsurance vehicles which are fully funded by issuing debt. If the ISPV has to pay out under its reinsurance obligations, the repayment rights of the debt holders are reduced accordingly. Under the Reinsurance Directive, EU member states that want to create an ISPV market can introduce appropriate authorisation and regulatory requirements.

ISPVs are defined in the Reinsurance Directive as: 'any undertaking, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assumes risks from insurance or reinsurance undertakings and which fully funds its exposure to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the reinsurance obligations of such a vehicle'.

The FSA regulates the financial services industry and has four objectives under the FSA/PN/022/200620 March 2006
The Financial Services Authority (FSA) has put on hold its work to develop rules to bring about contract certainty in the insurance market. Speaking at the FSA's Insurance Sector Conference today, John Tiner FSA CEO, acknowledged the progress made by the insurance market in meeting the FSA's challenge to achieve contract certainty. The challenge to end the 'deal now, detail later' approach was issued to the market in December 2004.
The FSA gave the market two years to ensure that insurance contract terms are agreed at the time the policies commence. Contract certainty will lead to greater certainty for buyers about what they have bought and for insurers about the risks they are covering, whilst also reducing risks for brokers.

Throughout this period, the FSA has been clear that if the market fails to develop its own solution, it will have to intervene with new rules and requirements. In line with its better regulation agenda, the FSA's preference has always been for the market to find its own solution without the need for regulatory intervention.

Since December 2004 the FSA has been monitoring progress by working with groups representing the market to achieve the goal of contract certainty. Today's announcement follows the receipt of data from the market showing that it had exceeded its own targets for achieving improvements in contract certainty at the end of 2005.

John Tiner said:
"To demonstrate our good faith in the market's ability to reach its goal, we will not be pressing ahead with our work on the contingency plan of regulatory intervention. We are putting it on the back-burner, although we are not taking it off the stove altogether.

"I would strongly caution against complacency in these next few crucial months; the market must continue to stretch itself to guarantee that the challenge is met by the end of the year….On our part, we will continue to assess progress beginning in the next quarter, not least to see how the market has performed against the challenging 1 January renewal period. We will continue to work with the market in our rôle as over-seer and facilitator, and will not hesitate in consulting on new rules should progress falter."

Two other significant announcements were made at the conference by Hector Sants, the FSA's Wholesale Managing Director. The two announcements form part of the FSA's wider agenda of better regulation - creating a regime that offers greater flexibility to firms and is responsive to changing market needs. They will make the London market an easier place in which to do business and will help to position London as the regulatory platform of choice for the wholesale market, whilst maintaining its high standards. The announcements were:

the FSA will speed up the process of authorising new insurers in response to market needs at times of pressure, for example following major catastrophes, when new capital becomes available, and ahead of critical market renewal periods. The FSA already has an efficient authorisation process in place, taking an average of 17 weeks to conclude its review of an application. The FSA will accelerate this process for insurers in periods of market pressure, although it will continue to apply the existing standards. Where the FSA has prior knowledge of a group it will authorise a firm within one month of receiving the application. Where the FSA does not have prior knowledge then it will make a decision on an application for authorisation within 10 weeks of receiving an application; and

as part of the FSA's consultation on the Reinsurance Directive later this year, the FSA will consult on the introduction of Insurance Special Purpose Vehicles (ISPVs). Through the consultation, the FSA aims to open up the SPV market here in the UK.
Notes to editors

John Tiner's speech to the conference can be found here, and Hector Sants' speech can be found on the FSA website.

The original challenge to the industry was made in a speech given by John Tiner in New York in December 2004.

Public records of the December 2004, July 2005 and December 2005 meetings between the FSA and senior industry representatives can be found on the FSA website. A further meeting with the industry on 21 March will also be recorded.

ISPVs are special purpose reinsurance vehicles which are fully funded by issuing debt. If the ISPV has to pay out under its reinsurance obligations, the repayment rights of the debt holders are reduced accordingly. Under the Reinsurance Directive, EU member states that want to create an ISPV market can introduce appropriate authorisation and regulatory requirements.ISPVs are defined in the Reinsurance Directive as: 'any undertaking, whether incorporated or not, other than an existing insurance or reinsurance undertaking, which assumes risks from insurance or reinsurance undertakings and which fully funds its exposure to such risks through the proceeds of a debt issuance or some other financing mechanism where the repayment rights of the providers of such debt or other financing mechanism are subordinated to the reinsurance obligations of such a vehicle'.

The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness. maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.

The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

Tags : Financial services authority press release, FSA press releases, Financial Services and Markets Act 2000, FSA compliance, FSA Regulatory, Financial services jobs, London financial services regulations,

Zurich Financial seeks settlement over insurance probe in US

2006-03-20T13:37:00.000+00:00

The Swiss insurance group Zurich Financial Services said it had agreed to a 171.7-million-dollar (141.0-million-euro) settlement with some state authorities in the United States over an investigation into industry-wide business practices.

The agreement between the Swiss group's US subsidiary, nine state attorneys-general and one insurance commissioner also includes a new disclosure and compliance regime, Zurich said in a statement.

Link >>> UK Insurance Jobs

"ZAIC (Zurich American Insurance Company) does not admit to any violation of US federal or state laws as part of the settlements," it added Monday.

Some of the agreements on broker compensation and insurance placement practices will need court approval. Negotiations are still underway with other US state regulators or justice authorities, the Swiss firm said.

"We are pleased that todays announcement brings a greater sense of clarity and transparency to the quoting process for our customers in the United States, and we look forward to working collaboratively with our producers and business partners in this new environment," said chief executive James Schiro.

The nine states involved in the agreements with Zurich American Insurance Company under the "Multi-State Agreement" are California, Florida, Hawaii, Maryland, Massachusetts, Oregon, Pennsylvania, Texas, and West Virginia.

Zurich has been the focus of rumours about a takeover bid by US insurance group St. Paul Travelers Companies in recent days. St Paul denied the rumours of a merger Sunday.

Tags: Zurich Financial services news, St Paul Travellers news, Zurich American Insurance Company, Insurance Industry Jobs, UK

Insurance Shares Watch

2006-03-20T13:25:00.000+00:00

M&A news lifted the insurance sector as well as investor sentiment overall.

St. Paul Travelers refuted that it was in talks with Zurich Financial Services. Zurich Financial gained 1.18%. Swiss Life Holdings and Swiss Re advanced.

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Prudential turned down a takeover bid from larger rival Aviva, reported to be about 700 pence per share for value of 17 billion pounds.

Sunday Telegraph reported that French insurance giant AX and AIG of the US are also planning to bid for Prudential, while Aviva was thinking of raising its offer. Prudential soared 11.31% but Aviva shed1.12%.

Royal Sun Alliance, Friends Provident and Legal & General surged 3.05%, 4.22% and 4.18% respectively.

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New Insurance Service For eBay Motors

2006-03-20T13:10:00.000+00:00

eBay Motors has teamed up with Norwich Union to provide a week's free insurance for cars bought on its auction website. Winning bidders can now call Norwich Union once the sale has been confirmed, and in return they will receive a cover note for seven days' comprehensive insurance. Norwich Union will also offer the buyer a quote for a year's insurance cover, but only on a no-obligation basis.

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"A car is sold every two minutes on eBayMotors.co.uk and we're constantly looking for ways to improve the buying and selling process and provide added peace of mind for the millions of people who head to the site in search of a new car

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Reinsurance firm posts record profit of $23m

2006-03-20T13:02:00.000+00:00

Trust International Insurance Company BSC, a Bahrain-based reinsurance operator, has announced record results for last year.

The company posted a net profit of $22.8 million, up from $10.8m for the previous year. The profit from underwriting operations improved to $11.4m from $3.4m in 2004. The company's gross premium reached $188.4m compared to $66.5m over the same period.

This major improvement in the overall income and results included the one-off incorporation of the operating figures relating to the company's Corporate Capital subsidiary at Lloyds of London.

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The company's shareholders have approved the distribution of a cash dividend of 8.5 per cent and a stock bonus issue of 25pc, raising the paid up capital to $75m.

"The results are a clear reflection of the strategy we are adopting, which focuses on quality risk selection, widening business coverage and developing a well-balanced book of business from our area of operation," said chairman and chief executive officer Ghazi Abu Nahl.

"We achieved exceptional returns from our investments portfolio, owing to a structured investment policy we have followed and timely capitalisation of key investment opportunities."
The company has branches in Cyprus and Malaysia, with a network of subsidiary and affiliate companies spanning the Middle East, North Africa, Europe and the US.

The company has a paid up capital of $75m, with total shareholders' equity of $252m and total assets of $440m.

Mr Abu Nahl added that in the current favourable market environment, the company is ideally placed to further strengthen its presence and positioning in its core Arab and Afro-Asian markets.

The company announced that work is in progress on the company's new 21-storey tower building in the Diplomatic Area. As the head office, the building will reflect the corporate image and identity of the company in the region and is expected to provide a better platform for further growth and development, as well as a higher level of client and customer service and support.

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Prudential rejects Aviva offer

2006-03-20T12:57:00.000+00:00

LONDON: Prudential, the second-biggest British insurance group, has rejected a takeover bid by bigger rival Aviva, reported yesterday to have been worth $29.86 billion.

A Prudential spokeswoman confirmed yesterday: "The board announces that it received a proposal from Aviva about a possible combination of the two companies.

The board, which has taken independent financial advice, does not consider that the proposal is in the best interests of its shareholders and has rejected it.

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The offer, made Thursday and rejected late Saturday, was an all-share offer worth about 700 pence per share.

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Reinsurance firm posts record profit of $23m

2006-03-20T12:47:00.000+00:00

Trust International Insurance Company BSC, a Bahrain-based reinsurance operator, has announced record results for last year.

The company posted a net profit of $22.8 million, up from $10.8m for the previous year. The profit from underwriting operations improved to $11.4m from $3.4m in 2004. The company's gross premium reached $188.4m compared to $66.5m over the same period.

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This major improvement in the overall income and results included the one-off incorporation of the operating figures relating to the company's Corporate Capital subsidiary at Lloyds of London.

The company's shareholders have approved the distribution of a cash dividend of 8.5 per cent and a stock bonus issue of 25pc, raising the paid up capital to $75m.

"The results are a clear reflection of the strategy we are adopting, which focuses on quality risk selection, widening business coverage and developing a well-balanced book of business from our area of operation," said chairman and chief executive officer Ghazi Abu Nahl.

"We achieved exceptional returns from our investments portfolio, owing to a structured investment policy we have followed and timely capitalisation of key investment opportunities."
The company has branches in Cyprus and Malaysia, with a network of subsidiary and affiliate companies spanning the Middle East, North Africa, Europe and the US.

The company has a paid up capital of $75m, with total shareholders' equity of $252m and total assets of $440m.

Mr Abu Nahl added that in the current favourable market environment, the company is ideally placed to further strengthen its presence and positioning in its core Arab and Afro-Asian markets.

The company announced that work is in progress on the company's new 21-storey tower building in the Diplomatic Area. As the head office, the building will reflect the corporate image and identity of the company in the region and is expected to provide a better platform for further growth and development, as well as a higher level of client and customer service and support.

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The Broker Network satisfied with record profits

2006-01-13T22:05:00.000+00:00

LONDON (SHARECAST) - Broker Network Holdings, the network organisation for independent community insurance brokers, said it is “satisfied” with its interim results which have exceeded expectations.

Pre-tax profit for the six months to 31 October jumped 60% to £1.13m on turnover up 56% to £5.85m. Operating profit before amortisation soared 97% to £1.5m.

The group, which floated on AIM in May 2004, said it has completed a further five broker acquisitions, four from within our Network Membership and one non-Member, taking the total number of owned brokers to sixteen.

Progress across the group continues in line with plans, it added, leaving the group well-positioned for the future.

The acquisition plans remain on track and the strength of the network model is undiminished. “I am delighted that we have been able to report another record profit, particularly as there has been some downward pressure on insurance rates during the period,“ said chief executive Grant Ellis. “It demonstrates the strength of our diversified model and its resilience across differing economic cycles.

All divisions of the group are performing well and continue to grow and we look forward to maintaining these levels of expansion.” Chairman Faisal Rahmatallah said, “I am particularly pleased to see that those acquisitions which have been completed are now making a more significant contribution.”

Source : Sharecast.com

CII establishes specialist business development teams

2006-01-13T22:01:00.000+00:00

The Chartered Insurance Institute (CII) is to introduce a more focussed approach to the way it does business with its key markets by establishing two specialist teams within its business development function.

The teams will concentrate on the financial services market and on the general insurance and international markets to ensure that the CII understands and meets the specific market needs of each sector.

In particular the CII is placing an increasing emphasis on growing its presence in the life and pensions sector. Products and services aimed specifically at the banking and building society markets are being developed and a new Faculty of Life and Pensions is shortly to be formally launched.

Steve Jenkins has joined the CII in the new position of Business Development Director - Financial Services Market to lead this team. He brings over 20 years experience to the role gained at AXA Sun Life, latterly as Head of Strategic Partnerships, where he held a range of sales leadership roles, involving business to business and partnership projects in the adviser and the banking/building society sectors.

Paul Brierley has become Business Development Director – General Insurance and International Markets and will continue to lead the CII’s developments in the insurance and broking sectors. He will also oversee the launch of the CII’s new Faculty of Underwriting and Risk.

Both teams report to CII Group Marketing and Sales Director Lee Gladwell who says, “We have ambitious plans to build on the CII Group’s success and are determined to deliver even greater value to our customers. To do this we need to have the right structure in place and I am delighted to have two market experts in Paul and Steve to drive our strategy forward.” The CII’s business development teams cover all parts of the UK and there are dedicated offices in Dubai and in Singapore to ensure the specific needs of those regions are fulfilled.

Reported on 13/01/2006

Leeds Based Insurer Gauntlet eyes another record

2006-01-13T21:57:00.000+00:00

LEEDS-based insurance and risk management firm The Gauntlet Group says it has earmarked 2006 as a year of acquisitions.

The group, which recently completed a year of record growth, is determined to continue that trend, according to managing director, Roger Gaunt. He said: "The past 12 months has seen a steady growth in every area of our business, including more staff, new products and a broader range of services, and we want people to know that we are in the market for further expansion.

"Our main aim as we move into 2006 is to identify businesses to purchase so that we can confirm our position as one of the leading organisations in our sector. "We see the acquisition route as an essential part of our overall business plan for the coming year or two. "We need to buy more businesses, especially insurance brokers, but also any organisation that falls under the 'risk management' umbrella".

Last July, the group acquired the goodwill of Horsforth-based W S Whittaker Insurance Brokers Ltd, a company formed in the late 1960s. Mr Gaunt said the addition of further insurance brokers and other risk management consultancies would complement Gauntlet's successful health and safety division.

13 January 2006

Aon gains £436m Weir Group pension scheme mandate

2006-01-12T17:52:00.000+00:00

12/Jan/06: UK – Aon Consulting has been appointed pension fund administrator to Glasgow-based global engineering company The Weir Group’s defined benefit pension scheme, amounting to £436m (€638m).

According to a scheme spokesperson, the group’s entire £500m pension scheme used to be administered by an in-house team.

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The team will continue to administer the small defined contribution part of the fund. Aon told IPE that the group’s decision to outsource was based on future outlooks and the cost of pension administration.

There was a need to consider ongoing support for pension administration going forward, she said. The scheme will be managed from Aon Consulting’s Glasgow office. Chairman of trustees Stephen Foster said: “We were impressed with the feedback we received on Aon’s administration service from existing clients.

We are also please that the scheme will be administered in Glasgow.” The scheme has 10,000 members.

Source Ipe.com

Levene condemns US barriers to foreign reinsurers

2006-01-12T09:03:00.000+00:00

LORD Levene of Portsoken, the chairman of Lloyd’s of London, last night said that protectionist trade barriers in the US are costing foreign reinsurance groups more than $500 million a year as he stepped up his campaign for reform of the American market.

Foreign reinsurance groups are required to put up collateral equal in value to their gross liabilities in the US simply to do business in the country

Lord Levene has for five years campaigned for reform, but last night stepped up his fight in a speech to the Insurance Brokers Association of New York. He said: “Conservative estimates suggest the annual costs of meeting the US collateral requirements are in excess of half a billion dollars a year for foreign reinsurers. For Lloyd’s alone, the price tag stands at more than $150 million.”

The Lloyd’s chairman believes that the capital that a reinsurer must put up to do business in any market should be based upon its creditworthiness as determined by rating agencies, rather than its country of origin.

“The illogical demand for collateral based on zip code, not financial health, has helped drive up the costs of reinsurance and restricted critical capacity,” he said. “The events of 9/11 and more recently [Hurricane] Katrina only underscore the unacceptable burden and unintended consequences of these requirements.”

Lloyd’s has been forced to build a trust fund of more than $10 billion to do business in the US after the huge losses incurred in the last hurricane season.

It is understood that Lord Levene has made progress with insurance regulators in the US, who set the standards for doing business state by state. A source close to him confirmed that regulators for New York and other states expected to open a reform debate.

Chief Actuary Donald Duval advises BA to go bankrupt

2006-01-12T08:49:00.000+00:00

ONE of the City’s leading actuaries lobbed a bombshell into British Airways’ delicate negotiations over its £1.3 billion pension fund deficit by advising the airline to declare itself bankrupt.

Donald Duval, chief actuary at Aon Consulting, said filing for insolvency was the only option for BA if it wanted a permanent solution to its pension deficit

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In a written statement, Mr Duval said: “If Willie Walsh (BA’s new chief executive) is determined to relieve BA of its pension scheme deficit ‘once and for all’, without affecting the firm’s investment back into the business, then the only effective way open to him at present is bankruptcy.”

Delta Airlines and United Airlines in the US had already gone down that route, ridding themselves of pension liabilities by filing for Chapter 11 bankruptcy, and it was “not inconceivable” that BA would consider the same course of action, he said.

BA denounced Mr Duval’s suggestion. “We don’t share Aon’s view and are committed to tackling the pension deficit with our staff,” it said. One source at the airline said the proposal was nonsense because BA was a million miles from insolvency and had cash at the half-year of £1.9 billion.

Last week Mr Walsh told the 35,000 members of the New Airways Pension Scheme that the deficit had to be addressed “once and for all”, so that the airline could achieve its target of 10 per cent operating margins. He made clear that he would not sacrifice investment in the business.
The scale of BA’s pension problems was underlined by a Times analysis, which showed that it was the most vulnerable blue chip with a deficit equivalent to 115.5p per share, more than one-third of its share price. Analysts predict that BA will put £500 million into the fund, with employees bearing the burden of £500 million more through higher contributions and reduced benefits.

Fifteen of the FTSE 100 companies have deficits representing 10 per cent or more of the share price. These include Rexam, Whitbread, ITV and J Sainsbury. The highest proportional deficits after BA are at BAE Systems, British Telecom and ICI.

Source : The Times

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