In the news
BlueCrossBlueShield of Tennessee Inc. said itwill not offerAffordable Care Act plans on and off the marketplace in the Memphis, Nashvilleand Knoxville regions in the state in 2017. The insurer said it suffered $500million losses in the three years that it has participated in the ACAmarketplace, adding that it could offer plans statewide in 2018 if conditionsimprove.
Elsewhere, Indiana University Health Plans Inc. is withdrawing fromIndiana's ACA individual marketplace in 2017, ModernHealthcare reported, citing the company. James Parker, president ofIndiana University Health Plans, said the move was required "to adapt tonew market dynamics and potential federal responses to" withdrawals byseveral insurers from the health exchanges.
A three-judge panel set to hear the government's appeal of acourt ruling thatrescinded MetLifeInc.'s designation as a nonbank systemically important financialinstitution constitutes two judges appointed by President Barack Obama, TheWall Street Journal reported. According to analysts, the composition ofthe panel suggests a favorable outcome for the Financial Stability Oversight Councilthat seeks to overturn the ruling, the Journalnoted.
The U.S. Court of Appeals for the District of ColumbiaCircuit has scheduled an oralargument for Oct. 24.
A fire at a warehouse of clothing retailer Gap could resultin a gross property direct and facultative insurance loss of $250million to $400 million, according to TheInsurance Insider. Ascot is reportedly the overall lead, with XL Catlin andEndurance Specialty HoldingsLtd. also having lead lines, according to the report.
The manner in which private equity-backed companies continueto consolidate the broker/agency business is not necessarily without precedent.Executives at Arthur J. Gallagher& Co. during the company's investor day Sept. 23 likened theheightened influence of private equity-backed firms to the way in which banksentered insurance distribution in decades past. The company boasts asignificant pipeline of M&A deals despitean environment characterized by competitive pricing for targets.
Financial news inother parts of the world
Middle East & Africa:Attijariwafa comes to Chad; Saudishares rally
The day ahead
Earlymorning futures indicators pointed to a higher opening for the U.S. market.
InAsia, the Hang Seng rose 1.09% to 23,571.90, and the Nikkei 225 was up 0.84% to16,683.93.
InEurope as of midday, the FTSE 100 was down 1.59% to 6,799.63, and the Euronext100 dropped 2.34% to 869.66.
On the macro front
Redbook,S&P Case-Shiller HPI, the consumer confidence report, the Richmond FedManufacturing Index and the State Street Investor Confidence Index are due outtoday.