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    AIG will likely now announce the buyer of its Taiwan Nan Shan Life unit at the end of September instead of on Friday, a local newspaper reported, after potential buyers bid below the $2 billion the insurer had hoped for.

    The four buyer groups, including Hong Kong-based Primus Financial and Taiwan’s Chinatrust, have been notified that “the final result of the Nan Shan bidding will be decided in a month,” Chinese-language newspaper Commercial Times said on Friday, citing unnamed sources.

    Nan Shan officials declined to comment on the report.

    Bailed-out U.S. insurer American International Group (AIG) had been expected to announce the result today, according to some local sources and media reports.

    Three of the four bidders for Nan Shan offered less than $1.5 billion each, sources close to the companies said last week.

    The joint bid by investment firm Primus Financial and Hong Kong battery maker China Strategic was one of the highest at between $1.2 billion and $1.3 billion, sources said.

    The other two bidders were Taiwan’s Cathay Financial and a consortium of Carlyle Group and Taiwanese partner Fubon Financial, sources have said.

    Chinatrust Financial, Taiwan’s top credit card issuer, also had submitted a bid for Nan Shan, though no detail on its offer was available.

    The low bids might scuttle the Nan Shan unit’s sale, based on comments made by Robert Benmosche, who last month was named AIG’s new chief executive officer.

    In an interview with Reuters, Benmosche had said he did not favour quickly shedding assets at any price.

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      Some members of insurer AIG’s board are concerned about recent strong comments from their new chief executive Robert Benmosche, the Wall Street Journal said on Wednesday citing people familiar with the matter.

      The newspaper said some members of the board, who installed Robert Benmosche as chief executive last month, plan to discuss how to better manage him during a retreat in mid-September.

      During a closed-door staff meeting in Houston, Texas, last month, Benmosche said New York Attorney General Andrew Cuomo “doesn’t deserve to be in government” and had acted like a “criminal.”

      In March, New York’s top lawman issued subpoenas following news that AIG had paid $169 million in bonuses to employees in its money-losing financial products division. The payments sparked congressional and public outrage, as AIG has received more than $180 billion of federal aid.

      Later, Benmosche said he regretted the comments he made and was trying to bolster a demoralized AIG work force.

      Cuomo sought details about the bonuses, including the names of those who received them, the amounts, and details of employee contracts. His office has not made the data public.

      Benmosche, a former CEO of MetLife Inc and a native New Yorker, prides himself on a reputation for toughness.

      In the past, Benmosche has said he developed a scrappy, can-do approach after his father died young, leaving his mother to pay off a large debt on a family hotel in a Catskills resort town in New York.

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        Fairfax Financial Holdings Limited (TSX and NYSE: FFH) which owns Canadian and US insurers announced today the purchase of a 15% interest in Alltrust Insurance Company of China for approximately US$66 million, subject to final approval by the Chinese Insurance Regulatory Commission (CIRC).

        “We are pleased to be partnering with one of the leading private insurers in China,” said Prem Watsa, Chairman and CEO. “Alltrust has shown tremendous profitable growth over the last five years and we look forward to working with Alltrust’s esteemed Chairman, Henry Du, and his accomplished management team to further develop their business and products, much like we have done with our joint venture in India, ICICI Lombard General Insurance.”

        “After a long and rigorous search, we are excited to partner with a world-class organization that shares our same core concepts of integrity and professionalism,” said Alltrust’s Chairman, Henry Du. “Fairfax and its many businesses and wealth of insurance and investment experience around the world will be of great assistance to us as we look to continue to grow our profitable enterprise throughout China.”

        Alltrust provides a full spectrum of primary insurance products and services in China, including property insurance, liability insurance, surety bonds, short-term health insurance, accident insurance, motor insurance and reinsurance.

        Alltrust is headquartered in Shanghai and was established in September 2004 by a group of large Chinese power conglomerates and industrial groups, including five of China’s largest power groups that generate over 45% of the country’s power supply.

        Alltrust has been profitable since its inception and has over RMB 1 billion in capital. The company has a national network across China with 25 provincial branches and 150 sub-branches and over 4,000 employees.

        Fairfax Financial Holdings Limited is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

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        Australia Post announced today it will enter the insurance sector by offering competitively-priced car insurance online and via the phone. Travel and home and contents insurance will also be on offer in the coming months.

        As part of its expanding financial services, Australia Post will appeal to customers who are looking for ‘value for money’ insurance from one of Australia’s most trusted brands.

        “We know many Australians are looking to move to more competitively-priced insurance but they still want a reputable company behind their policy,” said Group Manager Financial Services Andrew Wiseman.

        “Australia Post has the trust and expertise to meet the needs of customers. We already handle 177 million transactions a year and provide financial services for more than 75 financial organisations.”

        “For us insurance was a logical next step, we are a well-known brand and we have the expertise in the financial services area. The success of this model overseas gives us real confidence in the future of Australia Post Insurance.”

        Other postal organisations offering insurance include France, NZ, Germany, Italy, the UK, Ireland, Singapore and Japan. In the UK, for example, one in every 200 homes and one in 50 cars are insured with UK’s Post Office.

        The announcement comes at a time when vehicle owners are reacting to the financial downturn by reassessing their insurance needs.

        According to a survey by Newspoll this month, vehicle owners in Australia have been hit by the global financial crisis, with as many as 15 per cent reducing their level of cover, switching to a less expensive product or cancelling their insurance altogether, over the last 12 months.

        Australia Post car insurance features a life-time guarantee on all repairs, a Rating 1 protection option, flexible payment terms, choice of repairer, accident hire car option and allows choice of agreed or market value.

        It will promote insurance throughout its extensive retail network – the largest in Australia. To take up insurance, customers can pick up a brochure at a participating Australia Post retail outlet, call the hotline or visit the website.

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          AEGON has completed the sale of its Taiwanese life insurance business to Zhongwei Company*.

          The entering by the parties into an agreement for the sale was originally announced on April 22, 2009.

          The decision to sell the Taiwanese life business is a result of AEGON’s strategic priorities to optimize capital allocation and returns.

          The sale resulted in a total negative earnings impact of EUR 385 million in the second quarter of 2009. AEGON expects the sale of its life insurance activities in Taiwan to positively impact future earnings. The sale has no impact on AEGON’s excess capital. At the same time, the scheduled capital contributions to AEGON Taiwan will no longer be required. As a result, the transaction will have an immediate positive effect on the Group’s cash flows. In addition, the sale results in a significant decrease of the long-term interest rate exposure for AEGON, which, in turn, substantially lowers required economic capital.

          * Zhongwei Company Ltd. is a holding company established and funded by a consortium led by the Chairman of Meifu Development and the President of Taiwan Glass Industry. Meifu Development is one of Taiwan’s leading property, construction and real estate management companies. Taiwan Glass Industry, listed in Taiwan, is one of the world’s largest manufacturers of glass

          About AEGON

          As an international life insurance, pension and investment company based in The Hague, AEGON has businesses in over twenty markets in the Americas, Europe and Asia. AEGON companies employ approximately 29,500 people and have over 40 million customers across the globe.

          Key figures Second quarter 2009 First quarter 2009
          Underlying earnings before tax EUR 404 million EUR (22) million
          New life sale EUR 469 million EUR 543 million
          Gross deposits EUR 6.8 billion EUR 8.2 billion
          Revenue generating investments (end of period) EUR 342 billion

          EUR 334 billion

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          A judge on Monday dealt a setback to American International Group Inc. in its legal fight with former CEO Maurice “Hank” Greenberg, ruling that a company he ran did not improperly seize AIG stock from an executive retirement plan.

          Separately, AIG signaled it is looking to mend ties with its former CEO, agreeing to settle their disputes through arbitration. A private settlement could head off the need for AIG to appeal the ruling, laying aside at least one distraction for the struggling insurer.

          U.S. District Judge Jed S. Rakoff in Manhattan upheld an advisory jury decision from July, ruling the Greenberg-controlled investment firm Starr International Co. does not owe AIG $4.3 billion to cover stock taken from the retirement fund after Greenberg’s ouster from AIG in 2005.

          New York-based AIG claimed that the fund was held in an oral trust for use by company employees. Greenberg has argued he could sell the shares because they were controlled by Starr International.

          “The law will not recognize such an oral trust unless the evidence of its creation is unequivocal,” Judge Rakoff wrote Monday. “This is a burden that AIG has not come close to shouldering.”

          The company said Monday that its arbitration proceedings with Greenberg and former Chief Financial Officer Howard Smith will begin no later than Oct. 15 and conclude by March 31. Among the disputes to be settled is AIG’s claim that Greenberg and Smith owe part of the $1.6 billion AIG has paid to settle a range of issues with regulators including the Securities and Exchange Commission, Justice Department and New York Attorney General. The company will consider whether to arbitrate its claims against Starr International after rulings on any final appeals are made.

          AIG said the arbitration won’t include any pending claims by AIG shareholders against Greenberg and Smith.

          Greenberg was ousted from New York-based AIG amid an accounting scandal in 2005. The Securities and Exchange Commission charged both Greenberg and Smith with misstating the company’s earnings.

          But Greenberg, instrumental in AIG’s rise from a small firm to the world’s biggest insurer, could have more to offer AIG as an ally. Rumors of improving relations sent AIG shares surging last week.

          “It does seem to be consistent with some recent signals we’ve had that the company and Mr. Greenberg are trying to settle their past differences,” said Bill Bergman, senior stock analyst for Morningstar Inc. “I think underneath, once they come to some terms, Greenberg brings a network of business opportunities and capital sources that can be help for AIG right now.”

          The company, with former MetLife Inc. CEO Robert Benmosche newly installed at its helm, is trying to sell off assets to pay back the $182.5 billion in government loans it has received since the financial markets collapsed last September.

          Source : Associated Press

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          Marsh, the leading insurance broker and risk adviser, and Munich Re, one of the world’s leading reinsurers, have joined forces to launch a new product guarantee insurance solution tailored for the booming solar panel manufacturing sector in Asia – the first of its kind in the region.

          Leading Taiwanese solar manufacturer NexPower, a client of Marsh Taiwan, is the first company to purchase this innovative solution.

          This unique insurance product, underwritten by Munich Re’s unit MARP, covers the warranties given by NexPower against the risk of performance deterioration in photovoltaic modules for a period of 25 years. The warranty guarantees that the modules will perform to at least 90 per cent capacity in the first ten years and to at least 80 per cent in the remaining 15 years.

          Mr Huichih Ko, Chairman of Marsh Taiwan, said: “This solution offers solar module producers a greater degree of business certainty and allows operators of solar parks to finance photovoltaic installations more easily and with increased flexibility. The solar panel manufacturing sector in Asia is burgeoning, with Taiwan, China and Japan leading the way.

          This insurance policy is designed specifically to meet the needs of this critical renewable energy sector, and fills a much needed gap in the regional marketplace.” In preparing the ground for this concept, Munich Re’s Special Enterprise Risks experts played a leading role in developing the product, which involved a detailed examination of the standards and manufacturing processes used by NexPower. “Measures to counter climate change – in particular the specific expansion of new energy production technologies – open up major business opportunities for insurers, said Christian Scharrer, Risk Analyst at MARP. “MARP has developed unique risk-transfer products especially for complex risks connected with renewable energies, including the performance guarantee cover for which we were able to win over NexPower as our first client in Asia.”

          The solution provides business certainty to the solar manufacturer’s end customers, with minimum performance guarantees – a powerful differentiator in a competitive marketplace. Mr Semi Wang, CEO of NexPower, said: “For our clients, this insurance solution is a major stepping-stone in financing photovoltaic projects. It ultimately gives operators of solar parks additional economic security in the event of an unforeseen loss in performance of the modules. I am particularly pleased that, in Munich Re, NexPower now has the backing of a renowned and strong partner to support our guarantee of thin-film modules with a product service life of 25 years.” This solution was brought to Asia using the expertise of Bowring Marsh, the specialist international placement division of Marsh.

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          Conseco, Inc. (NYSE: CNO) today announced a plan to consolidate three insurance companies within its Conseco Insurance Group segment.

          Under the plan, two insurance subsidiaries – Conseco Insurance Company and Conseco Health Insurance Company – would be merged into a third subsidiary – Washington National Insurance Company (“WNIC”). Subject to the approval of insurance regulators in Arizona, California and Illinois, Conseco expects to complete the merger in the fourth quarter of 2009.

          “We expect this merger to provide many benefits, chief among which will be to increase Conseco’s total adjusted statutory capital and our consolidated risk-based capital ratio,” said Conseco CEO Jim Prieur. “On a pro forma basis, if the merger and the agreement to coinsure a block of non-core life insurance business (announced on June 25, 2009) had been completed as of June 30, 2009, Conseco’s consolidated risk-based capital ratio would have been 265%, an increase of 18 percentage points.”

          In addition, Prieur said, the merger will:

          • Provide an estimated $2.5 million of annual savings by eliminating the costs to administer and file financial reports and related audits and examinations on two statutory companies and by reducing overall premium tax payments. Offsetting these savings would be approximately $8 million of one-time expenses over the next 12 months, including costs to update and restock forms, update IT systems, modify agent appointments, and complete other changes arising from the merger. (The planned merger would have no other impact on Conseco’s earnings or financial statements under generally accepted accounting principles.)
          • Significantly simplify the structure of Conseco Insurance Group, putting nearly half of its inforce business and all of its new sales activity into a single company.

          Upon completion of the merger, WNIC (domiciled in Illinois) would have approximately $5.3 billion of statutory assets, 925,000 policies in force, $625 million of annual premiums, and $4.3 billion of statutory policy reserves, comprised of specified disease and other supplemental health policies (58%), annuities and other deposits (33%), and life insurance policies (9%).

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          Shares of insurance giant American International Group (AIG.N) soared more than 50 percent last week and they now look overpriced, Barron’s said in its August 31 edition.

          The bailed-out insurer’s shares climbed to $50.23 on Friday, their highest level since a 1-for-20 reverse stock split on July 1, but AIG’s obligations to the U.S. government and the challenges of selling — or maintaining — its various operations still loom large, the newspaper said.

          AIG faces difficulties in selling its overseas life-insurance units and reviving its core property-casualty insurance businesses, Barron’s said.

          The company, which reported a second-quarter profit, is difficult to assess since there are few analysts covering it and its finances are complex but, according to Barron’s, AIG has negative tangible common shareholder equity.

          Investors interested in the company would be better off buying its debt rather than its common shares, the newspaper said.

          The rise last week in part reflected hopes former Chief Executive Hank Greenberg may have a larger role at the company, Barron’s said.

          AIG’s new chief executive, Robert Benmosche, told Reuters in an interview that he had turned to Greenberg for help and support and has been in regular contact with him.

          A short squeeze in AIG’s shares also contributed to the rally last week, as well as optimism that rising markets would help the insurer’s large investment portfolio, Barron’s said.

          Source : reuters

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          Lloyd’s-listed insurer Omega Insurance Holdings reported a light fall in first half pre-tax profits for 2009, but remained optimistic.


          Financial Highlights

          • Profit before tax of $22.9 million (H1 2008: $24.5 million)
          • Profit after tax of $20.6 million (H1 2008: $21.8 million)
          • Premium income of $187.5 million (H1 2008: $185.9 million)
          • Combined ratio of 82.5% (H1 2008: 83.7%)
          • Effective tax rate of 10% (H1 2008: 11%)
          • Interim dividend of 6 cents per share

          Operational

          • Loss ratios reflect limited large loss experience in the first half of 2009
          • Omega US growing rapidly writing $17.1 million in the period (H1 2008: $2.6 million)
          • Omega Specialty direct underwriting growing premium income of $52.1 million (H1 2008: US $33.6million)
          • Completion of £124 million capital raise in January 2009.
          • Successful capacity offer increasing the Group’s share of Syndicate 958 to 34.7% from 16.4% for the 2010 year of account onwards.
          • Admission to the London Stock Exchange Main List occurred on 7 July.
          • AM Best A- (Excellent) rating for Omega Specialty reaffirmed
          • AM Best A (Excellent) rating for Syndicate 958 reaffirmed
          • Firming of rates in our core lines of business continues, giving a positive outlook for the full year 2009 and beyond

          Richard Tolliday, Chief Executive of Omega, commented :“We are pleased that our first-half results demonstrate our ability to deliver attractive returns whilst growing our newer platforms. We close the first half with strong results, continued growth, a successful capacity offer and our move up to the Main List. Omega is well positioned to take advantage of the opportunities the current market place offers.”

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            Aon eSolutions, provider of award-winning technology-based tools that improve the management of risk, insurance and safety programs, announced today the launch of RiskConsole in China and Japan. The browser-based risk management information system, which allows companies to address risk management issues with greater efficiency, has been successfully utilized in the U.S. for the past five years.

            RiskConsole is the first global RMIS able to support the Chinese and Japanese markets with multi-language capabilities. The system allows users to enter, view and report on data in Mandarin and Japanese and can also be translated into other languages, thus streamlining workload and improving productivity. RiskConsole uses claims, exposure, policy and other risk-related information to provide chief risk officers and risk managers with a comprehensive view of organization-wide risk.

            With increasing economic pressure and expanding J-SOX regulation, the Japanese version of U.S. regulation Sarbanes-Oxley, companies need to improve their corporate governance practices and better understand their overall risk. In China, the State-owned Assets Supervision and Administration Commission of the State Council has increasingly strengthened its corporate governance code, requiring state-owned enterprises and public companies to transparently control the risks associated with expansion.

            “Whether operating on a global level or specifically in Asia, RiskConsole enables organizations to integrate detailed risk data – critical elements of a long-term sustainable risk management plan – into the corporate decision-making process,” said Kathy Burns, CEO of Aon eSolutions. “State-owned enterprises and public companies in China and Japan are looking to forward-thinking solutions to help them manage increasing corporate governance demands, and RiskConsole technology provides an immediate and comprehensive picture of risk enterprise-wide.”

            Included within RiskConsole and also available as a stand-alone solution, the Enterprise Risk Management Risk Register module provides organizations with a centralized data repository for enterprise risk information. The platform enables companies to create performance indicators, develop action plans, delegate action items and compare results against risk tolerance.

            About Aon eSolutions
            Aon eSolutions is the technology solutions arm of Aon Corporation (NYSE: AOC) and provides award-winning technology-based tools that improve the management of risk, insurance and safety programs. These personalized and configurable best-in-class systems — AonLine, iVOS, RiskConsole and SafetyLogic — each provide measurable value by aggregating data, streamlining business processes and optimizing resources. Visit http://www.aon-esolutions.com for more information.

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              Admiral achieves another record half year profit coupled with continued good growth. Profit before tax at £105.3 million was 5% ahead of H1 2008, whilst turnover rose 17% to £540.1 million. The Board is declaring a record interim dividend payment of 27.7p per share.

              H1 2009 Highlights

              • Group profit before tax up 5% at £105.3 million (H1 2008: £100.3 million)
              • Interim dividend of 27.7p per share (2008 interim: 26.0p)
              • Group turnover* up 17% at £540.1 million (H1 2008: £463.4 million)
              • Group net revenue up 19% at £243.1 million (H1 2008: £204.0 million)
              • Number of Group customers up 18% to 1.92 million from 1.63 million at 30 June 2008
              • Profit from UK car insurance up 18% to £101.2 million (H1 2008: £86.0 million)
              • UK ancillary income per vehicle steady at £71 (H1 2008: £71)
              • Turnover from outside the UK £24.5 million (up 64%) and 100,500 customers
              • Rastreator.es, our Spanish price comparison site, successfully launched in March 2009
              • Employee Share Scheme – over £4.5 million shares will be distributed to over 3,000 staff based on the H1 2009 result
              • Turnover is defined as total premiums written (including co-insurers’ share) and other revenue


              Comment from Henry Engelhardt, Group Chief Executive               : “Wow! Considering the general economic climate and pathetic investment returns this was an outstanding result. Once again, I’m happy to announce an all-time record for profits; that the business continued its strong growth; and that we will soon pay a record dividend.

              “Key to our success was the great result turned in by the UK car insurance business. We increased the number of customers by 17% by giving a combination of competitive prices and great service. As well as growing the number of customers we increased premium rates by around 5.5% in the first half of 2009, meaning current rates are around 8% higher than 12 months ago.

              “As the UK business goes from strength to strength we have continued to invest in our longterm future by developing our operations outside the UK. Overall we now have over 100,000 customers outside the UK, in Spain, Germany and Italy and these businesses contributed £24.5m of turnover in the first six months of the year. On 30 March we launched Rastreator, our Spanish price comparison site. Looking to the future, we are working on the launch of a direct car insurance operation in the USA, based in Richmond, Virginia, which will be called Elephant. We are also starting work on two further price comparison operations in Italy and France.

              “Confused.com started the year well, increasing revenue against a backdrop of a UK price comparison market which remains highly competitive. “It’s a great set of numbers for the first half of the year, and I’m very pleased to say that, as a result, every member of staff will receive £1,500 of free shares in the Group, worth over £4.5 million in total.”

              Comment from Alastair Lyons, Group Chairman : “With a further advance in first half profits we are delighted once again to be able to declare an increase in our interim dividend, now at 27.7 pence per ordinary share. This represents 97% of after-tax earnings for the first six months of 2009, testament to the strength of Admiral’s capital-efficient cash-generative business model.”

              2009 Interim Results Review
              Admiral’s profit before tax for the six months to June 2009 amounted to £105.3 million, an increase of 5% over the £100.3 million achieved in the same period in 2008. Turnover rose 17% in the period to reach £540 million (H1 2008: £463 million).

              During the first half of 2009, the Group wrote total motor premiums for itself and its underwriting partners of £427 million (H1 2008: £363 million). Compared to 12 months previously UK car insurance customers increased 17% to 1.73 million.

              Admiral’s highly effective direct distribution model is reflected in a UK expense ratio of 17.9% (H1 2008: 18.1%). The UK combined operating ratio for the period was 82.1% (H1 2008: 80.1%). The directors of Admiral continue to believe that the Group’s superior loss and expense ratios will enable it to outperform significantly the UK private motor insurance market.

              Confused.com revenue was up 10% at £40.2 million (H1 2008 £36.6 million), although profits reduced to £11.0 million (H1 2008: £15.6 million).

              The Board has declared an interim dividend of 27.7p per share, which includes a special dividend of 14.9p per share, in addition to its normal final dividend of 12.8p per share, in line with its established policy of distributing at least 45% of post-tax profits. This represents a total interim dividend distribution of £74 million.

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              Global Special Risks, LLC (GSR), a leading US excess and surplus lines broker serving the Energy industry and a unit of Faber & Dumas, the third-party wholesale insurance broker, today announced the formation of a strategic alliance with Lloyd’s insurer Chaucer Syndicate 1084. The two firms have joined forces to provide a more efficient underwriting platform for the primarily land-based oil and gas operators throughout North America.

              The product distribution network and high quality front-end services offered by GSR, which has offices in New Orleans, Dallas and Houston, will combine with the proven underwriting expertise of Chaucer Syndicate 1084. This new initiative will enhance the services of both firms to clients by streamlining quoting and policy issuance processes.

              Helen Tarr, located in the GSR Houston office, will represent Chaucer Syndicate 1084. Tarr, formerly of GSR, brings a wealth of experience to the Chaucer underwriting team. She is a graduate of the University of Bath, U.K. and has obtained her Associateship of the Chartered Insurance Institute. She has nine years of insurance experience, and commenced her career at Willis in London, where she spent two years in the Aerospace and Aerospace Reinsurance divisions broking to both underwriters at Lloyd’s and to international markets.

              Tarr then joined GSR in 2002, first based in London then relocating to the Houston office shortly thereafter, where she was responsible for placing Operator’s Extra Expense coverage for GSR’s exclusive Upstream Energy insurance product, Wellsure for numerous North American clients, while developing GSR’s book of Canadian business.

              Rick Burns, President of GSR, said, “As our industry continues to evolve, this strategic alliance gives GSR the ability to offer the top notch products and services that our clients demand. Helen has a deep knowledge of our business and our clients and is ideally positioned to ensure seamless delivery of services.”
              Chris White, Head of Energy, Chaucer Syndicate 1084, said, “Our alliance with Global Special Risks significantly increases our US presence. It will enable us to service our existing clients directly from the US and to generate new business opportunities.”

              About Faber & Dumas
              Faber & Dumas provides specialist wholesale services in a number of areas including property, accident & health; fine art, jewellery and specie; kidnap and ransom, bloodstock; energy; construction; cargo and casualty lines. For more information on GSR, please visit: www.globalspecialrisks.com.

              About Chaucer Syndicates Limited
              Chaucer Syndicates Limited is the Managing Agency of Chaucer Holdings PLC, a specialist insurance and reinsurance group listed on the London Stock Exchange. Chaucer provides the capital and expertise required to underwrite business at Lloyd’s, the world’s leading insurance and reinsurance market.
              At the core of the business are Syndicate 1084, which underwrites marine, aviation, energy, property, specialist lines and motor insurance, and Nuclear Syndicate 1176. Syndicate 1084 is rated ‘A’ (Excellent) by A.M. Best.

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              UK-BASED insurer Amlin has reported gross written premiums of £950.1m for the first half of 2009, up from £715.5m in the same period last year.

              Highlights :

              • Annualised first half return on equity of 27.4% (H1 2008: 20.6%), above our long term target of 15%
              • Profit before tax up 29.0% to  £177.1 million (H1 2008: £137.3 million)
              • Record profit after tax of £167.0 million, up 54.5% (H1 2008: £108.1 million)
              • Underlying profit before tax, excluding foreign exchange impact of net non-monetary liabilities and gain on Amlin Bermuda sterling assets, up 52.8% to £210.8 million (H1 2008: £138.0 million)
              • Combined ratio 73% (H1 2008: 67%) with an underwriting contribution of £135.3 million (H1 2008: £148.7 million)
              • Improved investment return of 1.6% (H1 2008: 0.7%) generating an increased investment contribution of £53.1 million (H1 2008: £22.5 million)
              • Earnings per share increased 54.4% to 35.2p (H1 2008: 22.8p)
              • Interim dividend increased 8.3% to 6.5p per share (H1 2008: 6.0p per share)
              • Acquisition of Fortis Corporate Insurance N.V. (now Amlin Corporate Insurance N.V.) completed on 22 July 2009: integration proceeding well
              • Pricing environment continuing to improve in line with expectations

              Charles Philipps, Chief Executive, commented as follows: “We have had an excellent first half both in terms of results and the development of the Group with the acquisition of ACI. We have already benefited from improvements in catastrophe exposed lines and Amlin is exceptionally well positioned to grow into better market conditions when similar positive trends emerge in the other classes in Amlin’s portfolio.”

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                About 215,000 policy holders with the Aviva insurance company have been given extra time to accept a special payment.

                They will now have until 21 September to decide if they want the money.

                Aviva said that in the “reattribution” process for two of its with-profits funds, 78.5% of the one million savers involved had voted, with 96% accepting.

                Most are being offered between £200 and £1000 to relinquish any future claim to a share of surplus money in the funds that hold their investments.

                “As a result of this huge response we’ve made arrangements to accept votes through September so that any remaining eligible policyholders don’t miss out on this deal,” said a spokeswoman.

                “All eligible policyholders who want to benefit from this offer need to vote now,” she added.

                The original deadline was 21 August.

                ‘Inherited estates’

                The total payout will be worth at least £500m to the investors, though this revised sum is much lower than initially suggested, after the slump in share and property values experienced during the past two years.

                The money is being offered as a way of resolving the ownership of the funds’ so-called “inherited estate”.

                This is the money that has been built up as a surplus cushion in two of Aviva’s huge with-profits funds over many decades.

                These investments are used to pay people with endowment, pension and other with-profits investment policies.

                The two funds affected are the CGNU Life and CULAC.

                Those savers who vote yes should receive their money this November.

                Those who vote not to accept the offer, or fail to vote at all, will receive nothing but will keep their entitlement to any future redistribution of their funds’ “inherited estate”.

                Aviva has said though that any such move is highly unlikely.

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                Fitch Ratings has today changed WWK Lebensversicherung a.G.’s (WWK Leben) and subsidiary WWK Allgemeine Versicherung AG’s (WWK Allg.) Outlook to Negative from Stable. Their Insurer Financial Strength (IFS) ratings have been affirmed at ‘A+’. Furthermore, the agency has again assigned WWK Leben and WWK Allg. the Fitch Financial-Strength- Seal, which is given to financially strong insurers.

                The Negative Outlook reflects the deterioration in WWK Allg.’s underwriting profitability caused by its loss-making motor business. WWK Allg.’s weakened net combined ratio of 112% in 2008 (compared to 105% in 2007) reflected a EUR4.9m underwriting loss and a 26% reduction in equalisation reserves. In the past, WWK Allg. generated a relatively small portion of premiums compared to its parent; however, in recent years the company has strongly grown its P&C business and in particular its motor book (117% revenue growth in 2008). Fitch considers that WWK Allg.’s unprofitable motor book has started to weaken WWK Allg.’s capitalisation and believes that WWK Allg. could become a drag on WWK Leben since support may be required in future.

                However, the affirmation of WWK Leben’s rating reflects the strong performance of the life insurer in 2008, despite the global financial crisis and an overall difficult operating environment. The implementation of a hedging programme in August 2007 considerably reduced the company’s equity exposure at an early stage of the financial crisis and led to a relatively resilient investment result in 2008. The hedged equity exposure amounted to 0.6% of total invested assets at FYE08. Currently the company does not intend to expand its strategic equity exposure, which Fitch views as a positive. Like its peers, the group built up a corporate bond portfolio in Q109 amounting to 7% of WWK Leben’s investment portfolio and 14% of WWK Allg.’s investment portfolio at end-April 2009. Fitch expects the group to achieve a better investment performance compared to peers in 2009.

                In Fitch’s view WWK Leben’s capitalisation is supportive of the current rating level. Unrealised gains increased to EUR187.8m (2007: EUR111.2m) and shareholder funds to EUR160.8m (2007: EUR155.8m) at end-2008. As a proportion of actuarial reserves, at 3.9% WWK Leben’s shareholder funds remained significantly above market average. In Fitch’s stress testing calculation the decrease in unrealised gains on equities and the decrease in free RfB (Ruckstellung fur Beitragsruckerstattung) is more than offset by the considerably reduced equity exposure.

                Fitch notes that WWK Leben was able to offset the decrease in its unit-linked new business by strong sales in other lines of business such as long-term disability in 2008. Further, WWK Leben has responded to the changing market environment by introducing a hybrid product in 2009.

                WWK Leben operates as the parent company of the group and is managed in the legal form of a mutual insurance company. The group offers a range of products in the life and non-life insurance sectors through an exclusive distribution network of agents, independent financial advisers and multi-line agents. Fitch views WWK Allg. as core to and fully integrated with the group.

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                Novae Group plc today announces the formation of Novae Re, a new unit writing an international and predominantly reinsurance account. The new unit, which is made up of 12 senior, experienced underwriters and 8 actuarial and support staff, is led by Gunther Saacke, previously Head of Reinsurance at Endurance, the Bermudan (re)insurer.

                The unit will write new business with effect from 1 January 2010 and will be integrated with the Group’s existing reinsurance business. Novae Re will offer a materially expanded range of reinsurance products, including specialist classes such as agriculture and engineering, which have traditionally not come to the London market.

                These classes will further diversify the Group’s product range, and will shorten the tail of the Group’s book overall. In 2010 the unit is anticipated to write gross premium income of c. £100 million, and will be looking to grow the premium income thereafter subject to market conditions. In 2009 the incremental cost of the new unit, including establishment and other items, is not expected to exceed £3 million. For 2010 and subsequent years the annual core cost impact at a Group level is expected to be around £7 million.

                The formation of the new unit remains subject to FSA and Lloyd’s approval. The Group expects to fund Novae Re from a combination of existing Group resources and new debt facilities.

                Matthew Fosh, Novae’s Chief Executive, today commented: “The formation of Novae Re brings a combination of strategic benefits. It diversifies our product range; it allows more efficient allocation of capital and begins to utilise the surplus capital across the Group. It also shortens the tail of our business overall.”

                0 0

                Young motorists opting for third-party only motor insurance in a bid to save money may find that this is no longer the way to cut the cost of their premiums, according to moneysupermarket.com.


                • Young motorists pay much more for third-party only motor cover
                • Renewals season underway – shop around for the best value motor insurance policy for you, says moneysupermarket.com

                The price comparison site analysed the average cost of annual motor insurance policies for male and female motorists across the age-scale. The research reveals, despite offering the lowest level of cover, third-party only is the most expensive option for motorists, especially younger drivers, followed by third party, fire and theft. Fully comprehensive policies offer the most level of cover yet the lowest premiums1.

                The research found on average third-party only cover for a driver under the age of 21 is £1,434 and 50 per cent more expensive than opting for fully comprehensive insurance at £955 (see table below for what is included in third-party only, third party, fire and theft and fully comprehensive cover). The average premium for third-party fire and theft costs £1,118 and 17 per cent over the cost of fully comprehensive cover.

                Steve Sweeney, head of motor insurance at moneysupermarket.com, said: “This research shatters several myths. Traditionally motorists might assume a third-party only policy will be cheaper because of the reduced levels of cover, but in recent years, drivers with a more ‘risky’ profile, such as younger motorists, have opted for this cover to keep the cost of motoring down. Providers have reacted to this perceived increase in risk by driving up the cost of third-party only cover. It really does pay to shop around and do the research to find the best car insurance policy at the best price.”

                Here is some tips to younger drivers to cut motor insurance costs :

                • Shop around – The Association of British Insurers says you can save 35 per cent by comparing as few as five insurance providers.
                • Buy online – Many car insurance providers offer discounts to customers that buy online.
                • Mileage limit – Consider a mileage limit or to only drive at certain hours of the day.
                • Car security – Make sure you have an alarm and immobiliser.
                • Drive a car with a smaller engine – A newer, more reliable car that is less likely to be used by ‘boy racers’ will have a cheaper premium. Aim to drive a car like this for at least two years after passing your test – and forget about turbo-charged cars, with big spoilers, fat tyres, alloy rims and other “sexy” extras.
                • Parents – If at all possible, avoid being added to a parent’s insurance policy. It prevents you from building up your own no-claims bonus. And if you are the main driver or registered keeper of the car, DO NOT insure it in your parents’ name and put yourself down as a named driver. This is known as “fronting” and in the event of an accident it could mean the claim is not paid. Moreover, the younger driver can be charged with driving without insurance.
                • Pass Plus – This is a certificate where a young driver who has already passed his or her driving test receives specific lessons in night, motorway and town traffic driving; achieving Pass Plus can earn significant discounts (as much as 35%) on your car insurance.

                Notes to Editors:

                Fully Comprehensive

                Third Party Fire & Theft

                Third Party

                Fully comprehensive will cover all damage and injury to anybody involved in an accident.

                Third Party Fire and Theft will cover the costs of any damage or injury you cause to anybody else, it also covers your vehicle against accidental fire or theft.

                Third Party will cover the costs of any damage or injury you cause to anybody else.

                Fully comprehensive vs. third party insurance
                1Full breakdown of tables showing spread of policies by age and gender

                YY Gender Fully Comp Third Party Third Party

                (Fire and Theft)

                Average
                17-21 Male £     1,188.57 £     1,763.31 £     1,214.85 £   1,388.91
                Female £        721.73 £     1,104.74 £        719.30 £      848.59
                17-21 Total £        955.15 £     1,434.02 £        967.07 £   1,118.75
                22-25 Male £        573.12 £     1,058.41 £        708.55 £      780.03
                Female £        401.52 £        743.70 £        485.81 £      543.68
                22-25 Total £        487.32 £        901.06 £        597.18 £      661.85
                26-29 Male £        415.83 £        778.96 £        510.75 £      568.51
                Female £        331.29 £        653.52 £        386.45 £      457.09
                26-29 Total £        373.56 £        716.24 £        448.60 £      512.80
                30-39 Male £        282.32 £        626.58 £        405.99 £      438.30
                Female £        276.24 £        606.80 £        394.18 £      425.74
                30-39 Total £        279.28 £        616.69 £        400.09 £      432.02
                40-49 Male £        348.96 £        809.73 £        550.98 £      569.89
                Female £        363.13 £     1,070.86 £        717.86 £      717.28
                40-49 Total £        356.05 £        940.29 £        634.42 £      643.59
                50-59 Male £        338.42 £        840.41 £        602.83 £      593.89
                Female £        306.93 £        882.28 £        607.41 £      598.87
                50-59 Total £        322.67 £        861.34 £        605.12 £      596.38
                60-65 Male £        229.44 £        605.64 £        493.06 £      442.72
                Female £        190.97 £        491.27 £        393.56 £      358.60
                60-65 Total £        210.21 £        548.46 £        443.31 £      400.66
                66+ Male £        235.39 £        592.50 £        401.80 £      409.90
                Female £        201.34 £        532.26 £        361.05 £      364.88
                66+ Total £        218.36 £        562.38 £        381.43 £      387.39
                Ave £        400.33 £        822.56 £        559.65 £      594.18

                Sourced by http://www.moneysupermarket.com/ 17.08.2009
                Scenario: Research based on 1.5m motor insurance quotes between July 8th and August 17th 2009.

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                Standard Life has just added the latest commercial property to its SIPP platform bringing the total number of properties under management to 1000 in less than five years.

                Alistair Hardie, Head of SIPP, Standard Life said: “Our SIPP has been a fantastic success since launch and commercial property has clearly captured the imagination of many investors. Smashing through the 1000 property barrier in less than five years is astonishing, and demonstrates the broad appeal of SIPP for long-term financial planning.

                “We have helped syndicates, Doctors, Dentists and other professional people purchase their own commercial premises via a SIPP. Our size, scale, expertise and rock-solid dependency, coupled with unrivalled service, have helped make us a market leader.”

                Standard Life has a dedicated in-house specialist property team who aim to make the purchase of commercial property via the SIPP as simple, efficient and safe as possible. The team work alongside solicitors and property managers to help manage the risk and avoid unnecessary costs and delays associated with purchase.

                Paul Richardson, Managing Director at Concept Financial Planning commented: “I have placed a good deal of business with Standard Life because of the huge amount of experience the company has in this market. The service is phenomenal and working with partners that understand what my clients and I require in the commercial property market within SIPP really sets Standard Life apart, making the whole process easy, timely and painless. Service is everything. I simply won?t place SIPP property business anywhere else.”

                SIPP Property Fast Facts:

                • Total gross value of properties under management, £291 million
                • Single property with the highest value, £6 million
                • Average gross property value, £294,535
                • Single property with the smallest valuation, £30,000
                • 416 mortgages charged against properties, with a total value of £62.3 million
                • 564 properties are held through syndicate purchase
                • Quickest property purchase was in Scotland, with a turnaround time of four weeks (quickest in England was five weeks)
                • Property portfolio consists mainly of offices, shops, industrial units, dental practises, pubs and storage units

                With respect to the economic outlook for the commercial property market, Hardie commented: “We believe that confidence is returning to the commercial property market, although we anticipate further downward pressures in returns for current holders of UK property over the next twelve months. However, longer term investors, particularly those with equity holdings, should begin to look more closely at the property market.”

                  0 1

                  As layoffs and downsizing dominate the news and the world grapples with its greatest economic challenges, Bill Graham`s Salisbury Underwriting Services Inc. announced today that Salary Gap Insurance, a new protective tool for workers to safeguard against loss of wages, is now available through Tobell Insurance Services Limited based in London. Salary Gap Insurance will bridge the difference in income for up to two years for workers who are involuntarily dismissed and re-employed at jobs that pay less than their previous yearly income. It`s the newest financial product to emerge as a result of the troubled economy, and a clear indicator that working families everywhere must go beyond traditional emergency savings funds to insure their lifestyles aren`t disrupted through unexpected career turbulence. This product is currently available in Holland through TAF B.V. and is entitled TAF WerkloosheidsPlusplan. Tobell also intends to launch Salary Gap Insurance in the UK shortly.

                  “In Holland the government has adopted a very rigorous approach to encourage unemployed workers back to work,” said Neil Smith, Managing Director of Tobell Insurance Services Limited. “The advantage of this approach is that the percentage unemployed in Holland is lower compared to other countries in the EU. But of course, the downside is that unemployed people are likely to be pressured
                  to accept new employment at a lower salary level. That`s why TAF WerkloosheidsPlusplan is an ideal product for the Dutch market.”

                  The concept of Salary Gap Insurance was developed from an idea originally proposed by North Carolina entrepreneur, businessman and attorney Bill Graham, who recognized years ago that the employment market in the United States was becoming increasingly uncertain. Graham observed that employees lived in a persistent state of anxiety due to the changing job market. As a result, even salaried employees who were able to build a solid relationship with an employer through many years of service had concerns regarding their long-term employment. With the acceleration of the world`s economic downturn, Graham has convinced many insurers that the perfect storm was developing in the market place for Salary Gap Insurance to be a viable and profitable offering. Moreover, Graham saw there was a clear need on the part of working families for additional protection as they endured market forces beyond their control with enormous risk bearing on their careers and future earnings and the safety and soundness of the household budget.

                  “I realized that a trend was developing. After people dealt with their dismissal, they were faced with the harsh reality of earning less when they finally landed another job,” explained Bill Graham. “You could go out and find another job, but if you are now bringing home less, it could likely turn your life upside down and be an extraordinary stressor on your family and your health. It made perfect sense that we build an insurance product that dealt with this issue, as this is a problem affecting workers across the globe.”

                  Graham established Salisbury Underwriting Services Inc (“SUS”) to develop the concept and service all Salary Gap Insurance policies.

                  How it works:

                  TAF WerkloosheidsPlusplan alleviates stress and anxiety at home and in the workplace by providing individual employees with supplemental income in the event they are pressured to accept lower paid employment following their involuntarily dismissal. TAF WerkloosheidsPlusplan will be sold as an extension to standard unemployment insurance or as a stand-alone protection. In these circumstances, TAF WerkloosheidsPlusplan pays a percentage of the difference in salaries between the two jobs. The goal is to keep the insured in the same financial position that existed prior to dismissal. The benefits can be used to pay for anything the insured needs, including day-to-day household expenses, health insurance premiums, mortgage or car payments, or even educational expenses for retraining.

                  The target market for the product is a wage earner within the €25,000 and €100,000 range.

                  The Basic Cost:

                  The cost of Salary Gap Insurance varies depending on how much protection the policy holder wishes to obtain.

                  The average expenditure for Salary Gap Insurance is on par with auto and homeowners policies and in many cases may be less expensive, according to information gathered from The Bureau of Census, the Insurance Information Institute and other sources. The pricing also compares favorably with most life insurance and disability insurance policies.

                  According to The Bureau of Economic Analysis, the trend in personal savings in the USA has dropped from 5% of a person`s income in the mid 90`s to 0% in 2005. In the European Union the savings rate was 7% in 2005. Nevertheless, Salary Gap Insurance augments savings protection while supporting financial planning. However, it is by no means suggested that policy holders or any workers save less money.

                  About Bill Graham and Salary Gap Insurance:

                  Graham recently spearheaded one of the largest grassroots movements in North Carolina history, which brought 75,000 North Carolinians forward to sign a petition and 1,000 people to a downtown rally in Raleigh. The Raleigh News & Observer recently wrote that Graham`s “crusade against the state gas tax has hit a nerve across North Carolina.” North Carolina has as a result or the gas tax movement capped North Carolina`s gasoline tax, resulting in hundreds of millions of dollars in savings for North Carolina taxpayers.

                  Graham devised the concept of Salary Gap Insurance years ago when the Pillowtex (formerly Fieldcrest Cannon) plant, a textile mill where he worked during college as a young man, closed after operating for over 100 years. While reflecting on what would happen to the thousands left jobless by the plant closing, Graham had an epiphany which became the blueprint for Salary Gap Insurance. After developing and refining the product for more than five years and numerous discussions with major insurers, the economic climate created a particularly ripe time for Salary Gap Insurance to emerge.

                  About Tobell:

                  Tobell Insurance Services Limited is an insurance broker based in London established in May 2007 by Messrs Neil Smith and Michael Till.

                  Tobell specializes in affinity products and wholesale insurance policies (including Extended Warranty, Financial GAP & Credit Life) for Administrators, Banks, IFA Networks and Motor Dealers throughout the UK, Europe and the Middle East. Tobell also handles After The Event (“ATE”) insurance through its subsidiary Consul Underwriting Services Limited.

                  About TAF:

                  TAF B.V. is a market leading provider of personal insurance products (including Term Life, Accident Sickness & Unemployment and Impaired Annuity) in Holland. TAF B.V.`s products are distributed via its extensive network of IFAs.

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