Iowa Insurance Commissioner Nick Gerhart the U.S. Department ofHealth and Human Services and the Centers for Medicare and Medicaid Services inthe U.S. District Court in Iowa, alleging that the federal government hasunlawfully withheld millions of dollars owed to .
The downwardtrend of commercial P&C rates across small, medium and large accountscontinued in the first quarter, a market survey by the Council of InsuranceAgents & Brokers found.
"While rates have been down, our members havetold us that the market has increased capacity across the board and for coastalproperty coverage, particularly in the Southeast region," Ken Crerar,president and CEO of the council, said in a statement. "We have beenfortunate to have quiet hurricane seasons the last few years, but there is alot of concern that these new markets will retreat after the first major lossevent."
A new system designed to help insurers tailor theirlife insurance reserves more closely to the risk they hold on their books is inthe final stretch for acceptance by the NAIC, making a Jan. 1, 2017,implementation date likely. The system, called , requires athreshold of 42 states representing 75% of health industry premium volume as of2008 by July 1 to trigger implementation by the first day of 2017. A legalopinion from the NAIC legal division headed by General Counsel Kay Noonan gaveforce to an approach that would allow the required threshold number of statesand the amount of premiums to be met, but legislative action in Louisiana isneeded.
Fidelity& Guaranty Life saw the greatest increase in short interest relative to sharesoutstanding among SNL-covered insurance companies between March 31 and April 15.
The U.S. Court of Appeals for the Third Circuit ruledthat PNC Financial Services GroupInc.'s excess insurer, AXIS Insurance Co., is not liable to cover a $102million settlement the bank reached with plaintiffs in an overdraft classaction, The Legal Intelligencer reported.AXIS Insurance is part of AXISCapital Holdings Ltd.
The plannedexit of UnitedHealth GroupInc.'s UnitedHealthcare from Mississippi's health insuranceexchange in 2017 would affect about 18,200 people who have bought the insurer'sindividual plans, The Clarion-Ledge reported,citing the state's insurance department's estimates. and Magnolia Health are the onlyinsurers offering plans in the state's individual health insurance marketplacein 2017.
AmericanInternational Group Inc. submitted notices of redemption for $4.1 billion of itshedge fund portfolio, Executive Vice President and CFO Siddhartha Sankaran saidduring an earnings call, according to a transcript. He said the insurer hasreceived $1.2 billion of proceeds from the redemptions as of May 3.
Japanese insurers seeking growth continue to look atthe U.S. as an attractiveplace to go shopping for deals, according to a panel of investment bankersattending an M&A conference hosted by law firm Mayer Brown, Bloomberg Newsreported. Japanese buyers' interest in the U.S. is not expected to subside anytime soon.
In deal news, Hellman & Friedman LLC is in with toacquire MultiPlan Inc. for about $7.5 billion, including debt, The Wall Street Journal reported, citing"people familiar with the matter."
The IMA Financial Group Inc. boughtDallas-based insurance brokerage Waldman Bros.
HubInternational Ltd. acquired the assets of First Santa Fe Insurance ServicesInc.
The Non-Admitted Insurance Multi-State AssociationInc. will ceaseto operate by December 2017 as the board decided to dissolve thecorporation, Business Insurance reported.The decision comes after Florida's announcement that it plans to exit from thegroup.
The Reinsurance Association of America electedTransatlantic ReinsuranceCo. President and CEO Michael Sapnar chair of its board.Transatlantic Reinsurance is part of Alleghany Corp.
FM Global's clients are set to receive an estimated$465 million in premiumcredit when they renew their policies between June 30 and June 29, 2017.
VoyaFinancial Inc., Intact Financial Corp., Humana and .
Prudential Financial Inc., , , , , , ,Selective Insurance GroupInc., HeritageInsurance Holdings Inc., James River Group Holdings Ltd., ,Maiden Holdings Ltd.and Assured GuarantyLtd. are also expected to release their financial results today.
Click here to view S&P Global Market Intelligence'ssnapshot of financial results reported May 3 by insurance companies.
Inother parts of the world
Despite the current global market downturn, CEO WonJong-gyu remains committed to his long-term goal of growing the firm intoone of the top three global reinsurers by 2050.
StandardLife Plc unit Standard Life Savings Ltd. agreed to acquireall of the issued share capital of AXA Portfolio Services Ltd., which trades asElevate, from AXAunit AXA UK Plc. Theacquisition is expected to boost Standard Life's assets under administration to£36.4 billion at March-end.
Polish mobile network Plus plans to develop the saleof insurance products via mobile phones, PulsBiznesu reports.The mobile operator will cooperate on the project with Benefia, a companycontrolled by VIG Poland, which will provide it with insurance products andrequired technologies.
The assets of eight nonlisted insurers in Chinasurpassed 100 billion yuan in 2015, thanks to an increase in insurance businessand capital market investment returns, the NationalBusiness Daily reported.
Early morning futures indicators pointed to a loweropening for the U.S. market.
In Asia, the Hang Seng was down 0.73% to 20,525.83.
In Europe as of midday, the FTSE 100 fell 1.23% to6,109.69, and the Euronext 100 dropped 0.88% to 851.71.
Onthe macro front
The ADP employment report, the international tradereport, productivity and costs, Gallup U.S. job creation index, PMI servicesflash index, the factory orders report, ISM non-manufacturing index and the EIApetroleum status report are due out today.