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State Farm's Calif. wildfire payouts top $1.3B; 2 health insurers boost outlook

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State Farm's Calif. wildfire payouts top $1.3B; 2 health insurers boost outlook

State Farm has made payments of over $1.32 billion in aggregate homeowners and auto claims resulting from the wildfires in Northern and Southern California in 2017, the (Bloomington, Ill.) Pantagraph reported, citing a company representative. For the wildfires in Northern California, State Farm has paid about $1.2 billion in homeowners claims and $20.7 million in auto claims. Claims for the entire industry totaled $11.8 billion.

WellCare Health Plans Inc. reported fourth-quarter 2017 adjusted net income of $14.2 million, or 32 cents per share, compared to $46.0 million, or $1.03 per share, for the fourth quarter of 2016. The company increased its full-year 2018 adjusted EPS guidance to $9.55 to $9.85 from its previous guidance range of $8.40 to $8.65.

Centene Corp. reported fourth-quarter 2017 adjusted net earnings from continuing operations of $173 million, or 97 cents per share, down from $210 million, or $1.19 per share, in the prior-year quarter. The company also updated its outlook for full year 2018 and now expects adjusted EPS of $6.95 to $7.35, compared to earlier guidance of $5.47 to $5.87.

Yesterday, Everest Re Group Ltd. reported fourth-quarter 2017 net income of $571.0 million, or $13.85 per common share, up from $373.6 million, or $9.08 per common share, in the year-ago period.

Genworth Financial Inc., Genworth MI Canada Inc. and Horace Mann Educators Corp. are also expected to report earnings today.

Justine Handelman, a senior vice president at the Blue Cross Blue Shield Association, emphasized the need for Congress to provide funding for reinsurance to stabilize the Affordable Care Act markets following the repeal of the health law's individual mandate in late 2017, The Hill reported.

Accident-and-health business written by U.S. property-and-casualty insurers represents a relatively limited but, of late, rapidly growing niche thanks to a market entry by one prominent group and a dramatic expansion by another. S&P Global Market Intelligence's newly revised U.S. P&C industry projections contemplate growth in direct premiums written of 4.8% in 2017 and 4.7% in 2018, up from original estimates of 4.3% and 4.2%, respectively.

In deal news, NFP Corp. acquired Ontario-based Capital Benefit Financial Group Inc., a specialist in group benefits and retirement consulting for individuals and businesses in and around Ontario.

Alera Group Inc. acquired Boston-based Spring Consulting Group LLC, an employee benefits and risk management consulting company for undisclosed terms.

Fairfax Financial Holdings Ltd. and asset managers Warburg Pincus LLC and General Atlantic LLC have joined the race to acquire a 26% stake in IndiaFirst Life Insurance Co. Ltd., Mint reported. Germany-based ERGO International AG and Manulife Financial Corp. were also said to be in separate talks to acquire the stake in IndiaFirst Life.

Featured news

Roche, Pfizer bag cancer trial wins; Allergan earnings up: President Donald Trump said building a wall on the border between the U.S. and Mexico and getting tougher on drug dealers, and not convening more blue ribbon committees, would lead to Americans prevailing over the country's opioid epidemic.

Financial news in other parts of the world

Asia-Pacific: Great Eastern in Malaysian M&A talks; Macquarie ups FY'18 profit guidance

Europe: Lloyds to cut 1,000 jobs; Munich Re FY'17 net profit drops

Middle East & Africa: First Abu Dhabi gets Saudi securities licence; Investec selling Irish unit

Latin America:

The day ahead

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

In Asia, the Hang Seng fell 5.12% to 30,595.42, while the Nikkei 225 shed 4.73% to 21,610.24.

In Europe, around midday, the FTSE 100 dropped 2.38% to 7,160.28 and the Euronext 100 fell 2.32% to 1,003.85.

On the macro front

The international trade report, the Redbook and the JOLTS report are due out today.