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Nebraska insurer quits ACA exchange; insurance M&A struggles to keep up with 2015 pace

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Nebraska insurer quits ACA exchange; insurance M&A struggles to keep up with 2015 pace

In the news

will dropout of the Affordable Care Act's individual insurance marketplace, effectiveJan. 1, 2017. The insurer said it has lost about $140 million since it startedselling individual plans on the health exchange. The move will not affectMedicare Supplement or group plans.

Elsewhere,Highmark Inc. said itwill offer ACA plans in 2017 even as it continues to report losses on that bookof business, Pittsburgh Tribune-Reviewreported,citing HighmarkHealth CEO David Holmberg. The insurer reported a loss of $68million through June 30 for ACA marketplace plans and has suffered losses ofmore than $800 million on its ACA book since 2014.


Anearly insurmountable comparison to a record 2015, in combination with economicvolatility and political uncertainty, has contributed to a sharp year-over-yeardecline in the aggregate value of insurance M&A deals, to panelists speaking on arecent webinar.


Fearsof a potential ACA "death spiral" have increased as insurers pickingup sicker members from failed health co-ops are boosting rates to deal withpotential losses from an unbalanced risk pool, a BloombergNews report noted. AnthemInc.'s significant presence on the ACA marketplaces could leave theinsurer with a larger share of sick exchange members coming from failed co-opsand from insurers withdrawing from the marketplaces, according to the report.


Thepending liquidation of PennTreaty Network America Insurance Co. and American Network InsuranceCo., collectively known as Penn Treaty, is gearing up to be the largest-everinsolvency in the U.S. insurance industry, with hefty projected liabilities forsome states and projected shortfalls that are not yet public, to industry andguaranty association memos.


AnS&P Global MarketIntelligence reviewof rate filings illustrates how some underwriters have begun to addresswearable technology for fitness tracking, such as Fitbit, in their policies.


Andaccording to Politico, Alpine Group Inc. is lobbyingfor Centene Corp.

Financial news in other partsof the world

Asia-Pacific:

Europe:

Middle East & Africa:Algeria's privatization push;Ghana's M&A drive

The day ahead

Earlymorning futures indicators pointed to a lower opening for the U.S. market.

In Asia,the Hang Seng fell 1.56% to 23,317.92, while the Nikkei 225 declined by 1.25%to 16,544.56. In Europe, around midday, the FTSE 100 was down 1.23% to 6,824.25and the Euronext 100 0.68% to 874.99.

On the macro front  

Thenew home sales report and the Dallas Fed's manufacturing survey are due outtoday.