Moody's changed its outlook on the global life insurance industry to stable from negative for 2018, expecting the shift to fee-based products to ease earnings pressures from low interest rates. Additionally, the rating agency has a stable outlook for the global property & casualty insurance sector as growing premiums and strong capital levels offset pressures from the prolonged interest rate environment and raising claims.
USI Insurance Services filed a lawsuit in a Texas federal court against Lockton-Dunning Series of Lockton Cos. LLC for hiring a private risk management team that generated roughly $25 million per year just prior to the completion of its acquisition of subsidiary Wells Fargo Insurance Services USA Inc.
Citizens Property Insurance Corp. increased its budget for reinsurance purchase in 2018 in anticipation of a hardening property catastrophe market, The Insurance Insider reported. The insurer has budgeted for an 8% increase in its private risk transfer costs for 2018, which includes a provision for $100 million of private risk transfer from its coastal account, up $7.3 million from the amount set aside for 2017, according to the report.
Centene Corp. issued its 2018 financial guidance and confirmed its 2017 outlook. For 2018, the company expects total revenue of $60.0 billion to $60.8 billion, EPS of $4.63 to $4.97 and adjusted EPS of $5.47 to $5.87.
An analysis of 18 state workers' compensation systems done by the Workers Compensation Research Institute indicated that medical payments per workers' comp claim in Michigan were among the lowest in the group due to lower prices paid for professional services and lower payments per service for hospital outpatient services.
In capital offerings, Humana Inc. priced a public offering of $800 million senior notes comprised of $400 million 2.500% senior notes due 2020 at 99.946% of the principal amount and $400 million 2.900% senior notes due 2022 at 99.830% of the principal amount.
Kingstone Cos. Inc. priced an offering of $30 million of 5.50% senior unsecured notes due 2022.
Biosimilar makers take a win; EMA recommendations include Ozempic: Drug innovators cannot use state laws to force biosimilar makers through injunctions to disclose details about their products; and Novo Nordisk received a positive opinion for Ozempic from the European Medicines Agency.
Financial news in other parts of the world
Asia-Pacific: Indonesia, Philippines hold policy rates; ASIC to monitor P2P lenders
Europe: ECB, BoE hold rates; Sberbank's new game plan; M&G eyes Bradford & Bingley loans
Middle East & Africa: Emirates NBD Bank exits Lebanon; Mizrahi Tefahot Bank CoCo draws strong demand
Latin America: Bradesco to pick new CEO in February; 4 central banks take rate decisions
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng slipped 1.09% to 28,848.11, and the Nikkei 225 dropped 0.62% to 22,553.22.
In Europe, around midday, the FTSE 100 was up 0.03% to 7,450.49, and the Euronext 100 slid 0.41% to 1,034.23.
On the macro front
The 3-year note settlement report, the 10-year note settlement report, the 30-year bond settlement report, the Empire State Mfg Survey, the Industrial Production report, the Atlanta Fed Business Inflation Expectations report, the Baker-Hughes Rig Count and the Treasury International Capital report are due out today.