In the news
TheCenters for Medicare and Medicaid Services released an interimfinal rule to prevent the misuse or abuse of special enrollment periodsunder the Affordable Care Act as well as to enhance the ability of healthinsurance co-ops to raise capital.
The newregulations limit the circumstances in which someone may qualify for aspecial enrollment period. Additionally, the rule makes changes to theregulations governing the ACA's CO-OP program that will allow the co-ops toenter into new affiliations or capital transactions with other entities.
Thenew regulations will take effect May 11. The CMS will accept comments on therule through July 5.
U.S.commercial P&C insurance composite rate declined 2% on average in April,compared with a 3% drop in March, according to . Personal lines composite rateclimbed 1% in April.
TheU.S. P&C industry reported $6.2 billion in underwriting income in 2015,marking a third consecutive year of underwriting profitability, accordingto an A.M. Best special report. However, pretax operating and net incomedropped year over year in 2015 due to the lower level of underwriting incomeand an 11.2% decline in net investment income.
TheAlabama legislature refused to act on a bill that would have eliminated theavailability of consumerlegal funding in the state. Consumer legal funding is a specialty financialservice that allows plaintiffs pursuing an insurance claim after an accident tosell part of the potential proceeds of the claim for cash now. Insurancecompanies were pushing for HB395 arguing that the legal funding is used to help make ends meet when aclaim is being dragged out.
InM&A news, American InternationalGroup Inc. completed the sale of its adviser business to funds affiliated withprivate equity firm LightyearCapital LLC and Public Sector Pension Investment Board.
agreedto acquire SloanMason Insurance Services, a wholesale insurance broker specializing in coverageplacements for energy and energy-related businesses.
$350 million of 3.00% seniornotes due May 15, 2021, and $250 million of 5.75% senior notes due Aug. 15,2042.
Inearnings news, Enstar GroupLtd. reported first-quarter net earnings attributable to thecompany of $45.5 million, or $2.35 per share, compared with $44.8 million, or$2.32 per share, for the first quarter of 2015.
saw itsfirst-quarter operating earnings fall to $3.74 billion, or $2,274 per class A equivalentshare, from $4.24 billion, or $2,583 per class A equivalent share, in theprior-year period.
andBerkshire Hathaway received approval for rate increases on their workers'compensation business in New York, both of which were among the most impactfulrate increases approved nationally during the month of March, according to anS&P Global Market Intelligence analysis of more than 600 rate filings.
Anactive first quarter of severe weather contributed to elevated losses forpublicly traded, Florida-focused property insurers as they also continue toaddress mounting challenges associated with claim-related litigation, to an S&P GlobalMarket Intelligence report.
In other parts of the world
HongKong's Financial Services Developmental Council proposed the establishment of asystem connecting the bond markets of China and Hong Kong, similar to theprogram linking the stock markets of Shanghai and Hong Kong, Caixin reported. Thesize of China's bond market was estimated at 50 trillion yuan at the end of March,with 320 overseas financial institutions approved to take part in the interbankbond market.
Foreignlife insurers' market share in China increased 0.2 percentage point to 5.8% in2015, while foreign property and casualty insurers' share rose 0.9 percentagepoint to 2.2%, Caixin reported.
The day ahead
, ,FBL Financial GroupInc., HealthInsurance Innovations Inc. and State National Cos. Inc. are expected to report earningstoday.
Earlymorning futures indicators pointed to a higher opening for the U.S. market.
InAsia, the Hang Seng rose 0.23% to 20,156.81, while the Nikkei 225 was up 0.68%to 16,216.03.
InEurope, as of midday, the FTSE 100 was up 0.50% to 6,156.27, and the Euronext100 rose 1.24% to 860.99.
On the macro front
Nonotable reports are due out today.