Risk and regulation
New York Gov. Andrew Cuomo has proposed new consumer protections for life insurance sales, which would adopt a "best interest" standard for licensed sellers of life insurance and annuity products. The proposed Department of Financial Services regulation would require brokers to sell the product that best reflects the customer's interest rather than what is most profitable to the seller.
S&P Global Ratings said some U.S. insurers' capitalization will decline following the tax reform due to the required write-down of their deferred tax assets.
Property and casualty
Chubb Ltd. estimates a one-time benefit in excess of $250 million in the fourth quarter of 2017 as a result of the new U.S. tax law.
Biglari Holdings Inc. on Dec. 19 terminated an agreement to buy all the outstanding capital stock of Pacific Specialty Insurance Co.'s parent company Western Service Contract Corp. and its affiliated agency McGraw Insurance Inc.
Aegon NV reached an agreement to divest a block of its life reinsurance business in Transamerica Reinsurance to Scor SE, in line with its strategic objective to reduce the amount of capital allocated to run-off businesses.
Regulators in Texas approved several noteworthy private-passenger auto rate increases in November, which may lead to a combined net increase of $213.9 million in calculated premiums written in the Lone Star state, according to an S&P Global Market Intelligence analysis.
Life and health
Activist investor Brigade Capital Management opposed the $4.1 billion deal by Humana Inc. and two private equity firms to buy Kindred Healthcare Inc., calling the deal value "disappointing and grossly inadequate."
Aflac Inc. plans to increase its investment by $250 million over three to five years in the U.S. to grow its operation and to expand employee benefits and training programs due to the tax reform bill passed by Congress.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.
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