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Humana to exit Alabama, Virginia ACA markets; AIG looking to raise up to $800M in United Guaranty IPO

Inthe news

HumanaInc. will not sell AffordableCare Act health plans in Alabama and Virginia in 2017, Bloomberg Newsreported, citing state regulators. The insurer will continue to offerindividual plans on Tennessee's exchange, but it will pull out ACA-compliantoff-exchange plans. In addition, some products will be withdrawn from Colorado,but it remains unclear whether the insurer will leave the state's ACAmarketplace. The news comes after the insurer warned that it might have toexecute statewide market and product exits both on and off exchange.

AmericanInternational Group Inc. is looking to $700 million to $800 millionthrough the sale of its 19.9% stake in UnitedGuaranty Corp. in an IPO, Bloomberg News reported, citing "peoplefamiliar with the matter." United Guaranty is seeking a valuation ofapproximately $4 billion.

Insured industry losses from the wildfire thatdevastated Fort McMurray in Alberta could touch C$9billion if the entiretown has to be completely rebuilt because of the damage, CBC News reported, citing Bank of Montreal analyst Tom MacKinnon.

The final fiduciary rule in April by the U.S. Departmentof Labor is not likely to have a significant impact on 's JohnHancock business, company officials said.

"I think the industry, in general, was prettypleased with how the final rules came out," said John Hancock Presidentand Manulife Senior Executive Vice President Craig Bromley during a conferencecall. "There are some parties in the industry that would prefer not havethe rules at all, but in terms of the deal of consulting with industry andformulating their final opinion based on that consultation, I think there wascertainly some easing up on some of the most orders, provisions and timelines."

MBIA Inc.has no exposureto the Puerto Rico bonds that recently defaulted, CNBC reported, citing GregDiamond, managing director of media and investor relations.

The insurer earlier that it has under $4 billionin gross par exposure spread across eight different credit profiles. Itsexposure to the Puerto Rico Government Development Bank was fully retired in2015.

AmbacFinancial Group Inc. said CanyonCapital Advisors LLC "misused" the one-time, time-basedrestricted stock unit awardgranted to Ambac Financial President and CEO Nader Tavakoli to inflate the CEO's2016 compensation.

JLT Re commencedmortgage insurance business in North America. JLT Re is part of .

Insurers like AIG and whose financial resultstook a hit from low interest rates and hedge fund losses would have to continuecuttingcosts, according to The Wall StreetJournal's Heard On The Street.

, andEMC Insurance Group Inc.reported theirearnings .

Click hereto view S&P Global Market Intelligence's snapshot of financial resultsreleased May 5 by insurance companies.

Inother parts of the world

RSAInsurance Group Plc CEO Stephen Hester said the company is now muchmore valuable for any new owner in the future, Bloomberg News reports.Hester indicated that RSA's shares have been recovering since last summer, whenan offer from Zurich InsuranceGroup Ltd. for the company fell through following losses at theU.K. firm's general insurance business.

Investment management company BlackRock Inc. has builtup a 5.01% stake in Dutch insurer Nationale Nederlanden, ABM Financial News reports.

The China Insurance Regulatory Commission warned thatmutual help programs on accident and diseases some internet companies areoffering are not insurance products, the ChinaSecurities Journal reported.The regulator also asked insurers to stop cooperating with internet companiesthat are not qualified to conduct insurance business.

The Australian Prudential Regulation Authority hascalled the country's private health insurance sector "prudentially sound,"The Australian reported,citing a report sent to the parliament. APRA also suggested that insurers remainresponsive to an ever-changing environment.

Theday ahead

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

In Asia, the Hang Seng fell 1.66% to 20,109.87, whilethe Nikkei 225 was down 0.25% to 16,106.72. In Europe, as of midday, the FTSE100 was down 0.88% to 6,063.17, and the Euronext 100 had fallen 1.04% to 843.86.

Onthe macro front

The employment situation report, the consumer creditreport and the Treasury STRIPS report are due out today.