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Blue Cross/Cambia deal dropped; reinsurers' loss budgets eroded; UK's Pru fined

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Blue Cross/Cambia deal dropped; reinsurers' loss budgets eroded; UK's Pru fined

Blue Cross and Blue Shield of North Carolina and Cambia Health Solutions Inc. have mutually agreed to withdraw their regulatory approval request for their proposed merger. The companies previously put the deal on hold following reports about an allegedly alcohol-related traffic accident involving the then-president and CEO of Blue Cross and Blue Shield North Carolina, Patrick Conway.

Prudential PLC and Rothesay Holdco UK Ltd. are appealing a court ruling that prevented a £12 billion bulk annuity transfer between the two companies. Rothesay lodged its appeal with the Court of Appeal on Sept. 27 on the grounds that the judgment by the High Court of England and Wales "contains material errors of law."

Separately, the U.K. Financial Conduct Authority fined Prudential Assurance Co. Ltd., a unit of Prudential, £23.9 million for failures related to non-advised sales of annuities.

FWD Group Financial Services Pte. Ltd. closed its acquisition of Siam Commercial Bank PCL's life insurance business, SCB Life Assurance PCL. Siam Commercial Bank received a total consideration of 92.7 billion Thai baht (US$3.03 billion), which will result in a post-tax capital gain of about 11 billion baht. David Korunić was appointed CEO of SCB Life Assurance.

Australia-based Westpac Banking Corp. is considering a sale of its life insurance unit, Reuters reported, citing two sources. Discussions for the sale are reportedly at a preliminary stage.

The beleagured aviation insurance market is facing a loss of about $130 million related to a fire that severely damaged an Air China plane at an airport in Beijing in August, The Insurance Insider reported.

In other deals, Arthur J. Gallagher & Co. will acquire Bloomfield Hills, Mich.-based LSG Insurance Partners. The transaction is expected to close in the fourth quarter, subject to customary closing conditions. India's Reliance Capital Ltd. completed the sale of its stake in its joint venture Reliance Nippon Life Asset Management Ltd. to Japan's Nippon Life Insurance Co. Korea Development Bank has launched a bid to sell KDB Life Insurance Co. Ltd.

Hurricane Dorian and Typhoon Faxai are estimated to have used up, if not exceeded, the quarterly natural catastrophe budgets of Swiss Re AG, Munich Re Co., Hannover Re, and Scor SE, and Swiss Re is expected to take the largest share of losses for both catastrophe events, followed by Munich Re, Reinsurance News reported, citing analysts at Deutsche Bank.

The Turkish Treasury and Finance Ministry established Turk Reasurans A.S. to contribute to growth and development of the country's insurance sector, Anadolu Agency reported.

Bermuda-based AXIS Capital Holdings Ltd. promoted Martin McCarty to global treasurer from his most recent post of global head of finance operations.

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UK life insurers exposed to no-deal Brexit house-price falls: Insurers' growing interest in equity release mortgages and other illiquid assets means they are at risk if property prices drop after a disorderly exit from the European Union. Ratings analysts, however, believe companies are sufficiently cushioned.

Health stocks slump as impeachment drama revives investors' single-payer worries: The insurance industry underperformed the broader markets as the S&P 500 dropped 1.01% to 2,961.79 for the week ending Sept. 27, while the SNL U.S. Insurance Index fell 1.77% to 1,059.10.

Farmers, USAA hike private auto rates in August; State Farm makes cuts: Regulators approved 15 rate increases for Farmers Insurance units during the month, which may increase the group's written premiums by $25.6 million.

In other parts of the world

Asia-Pacific: US denies report on delisting Chinese firms; Japanese banks in Aramco IPO

Europe: Commerzbank sees more costs; Barclays fined; EC extends Dexia guarantees

Middle East & Africa: Saudi insurers Walaa, MetLife AIG ANB to merge; Kenya expects more bank M&A

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, Hang Seng lost 0.33% to 25,954.81, while the Nikkei 225 dropped 0.77% to 21,878.90.

In Europe, around midday, the FTSE 100 slipped 0.25% to 7,407.99, and the Euronext 100 shed 0.06% to 1,092.48.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

On the macro front

The Chicago purchasing managers index and the Dallas Fed manufacturing survey are due out today.

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