<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Phil Gusman | Insurance Advocate</title> <atom:link href="https://www.insurance-advocate.com/author/phil-gusman/feed/" rel="self" type="application/rss+xml" /> <link>https://www.insurance-advocate.com</link> <description>Since 1889</description> <lastBuildDate>Wed, 12 Dec 2018 13:55:15 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.7.2</generator> <item> <title>Aetna Looks to Acquire Humana for $37B</title> <link>https://www.insurance-advocate.com/2015/08/10/aetna-looks-to-acquire-humana-for-37b/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 10 Aug 2015 01:03:50 +0000</pubDate> <category><![CDATA[Life & Health Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4351</guid> <description><![CDATA[<p>Aetna plans to acquire Humana for $37 billion in a deal that would see Humana stockholders receive $125 in cash and 0.8375 Aetna common shares for each Humana share. After the deal, Aetna’s shareholders would own approximately 74% of the combined company and Humana’s shareholders would own approximately 26%. The combined company would have projected […]</p> The post <a href="https://www.insurance-advocate.com/2015/08/10/aetna-looks-to-acquire-humana-for-37b/">Aetna Looks to Acquire Humana for $37B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Aetna plans to acquire Humana for $37 billion in a deal that would see Humana stockholders receive $125 in cash and 0.8375 Aetna common shares for each Humana share.</span></p> <p class="p1"><span class="s1">After the deal, Aetna’s shareholders would own approximately 74% of the combined company and Humana’s shareholders would own approximately 26%.</span></p> <p class="p1"><span class="s1">The combined company would have projected 2015 operating revenue of around $115 billion, with approximately 56% from government sponsored programs including Medicare and Medicaid. It would also have over 33 million medical members, based on memberships as of March 31.</span></p> <p class="p1"><span class="s1">“The acquisition of Humana aligns two great companies and will significantly advance our strategy of more effectively serving members in a rapidly changing health care industry,” says Mark T. Bertolini, Aetna chairman and CEO.</span></p> <p class="p1"><span class="s1">A Reuters <a href="http://www.reuters.com/article/2015/08/04/aetna-results-ceo-idUSL1N10F16820150804"><span class="s2">story</span></a> quotes Bertolini as telling investors that the antitrust process with regulators has begun. “The process is underway,” he says in the Reuters story. “We’ve engaged in conversations with insurance commissioners, with governors, with Washington.”</span></p>The post <a href="https://www.insurance-advocate.com/2015/08/10/aetna-looks-to-acquire-humana-for-37b/">Aetna Looks to Acquire Humana for $37B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Anthem to Acquire Cigna for $54.2B</title> <link>https://www.insurance-advocate.com/2015/08/10/anthem-to-acquire-cigna-for-54-2b/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 10 Aug 2015 00:02:09 +0000</pubDate> <category><![CDATA[Life & Health Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4348</guid> <description><![CDATA[<p>Anthem, Inc. will acquire Cigna Corporation in a transaction valued at $54.2 billion. The deal involves Anthem purchasing all outstanding shares of Cigna in a cash and stock transaction, and Cigna shareholders receiving $103.40 in cash and 0.5152 Anthem common shares for each Cigna common share. “We are very pleased to announce an agreement that […]</p> The post <a href="https://www.insurance-advocate.com/2015/08/10/anthem-to-acquire-cigna-for-54-2b/">Anthem to Acquire Cigna for $54.2B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Anthem, Inc. will acquire Cigna Corporation in a transaction valued at $54.2 billion.</span></p> <p class="p1"><span class="s1">The deal involves Anthem purchasing all outstanding shares of Cigna in a cash and stock transaction, and Cigna shareholders receiving $103.40 in cash and 0.5152 Anthem common shares for each Cigna common share. </span></p> <p class="p1"><span class="s1">“We are very pleased to announce an agreement that will deliver meaningful value to consumers and shareholders through expanded provider collaboration, enhanced affordability and cost of care management capabilities, and superior innovations that deliver a high quality health care experience for consumers,” says Joseph Swedish, president and CEO of Anthem. “We believe that this transaction will allow us to enhance our competitive position and be better positioned to apply the insights and access of a broad network and dedicated local presence to the health care challenges of the increasingly diverse markets, membership, and communities we serve.”</span></p> <p class="p1"><span class="s1">David M. Cordani, president and CEO of Cigna, says,“Our companies share proud histories and an even brighter future. Going forward our new company will deliver an acceleration of innovative and affordable health and protection benefits solutions that help address our health system’s challenges and provide supplemental insurance protection, and health care security to consumers, their families, and the communities we share with them.”</span></p> <p class="p1"><span class="s1">The transaction is expected to close in the second half of 2016, pending approvals.</span></p>The post <a href="https://www.insurance-advocate.com/2015/08/10/anthem-to-acquire-cigna-for-54-2b/">Anthem to Acquire Cigna for $54.2B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Property and Casualty Markets Still Favor Buyers: Marsh</title> <link>https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Sun, 09 Aug 2015 23:31:05 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4346</guid> <description><![CDATA[<p>It’s still a buyer’s market, according to a Marsh webcast titled “The New Reality of Risk.” Featuring experts from Marsh’s Property, Casualty, FINPRO practices, as well as its Market Information Group, the July 22 webcast confirms alternative capital and limited catastrophes are still keeping the property market competitive. Furthermore, casualty remains generally favorable for buyers […]</p> The post <a href="https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/">Property and Casualty Markets Still Favor Buyers: Marsh</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1"> It’s still a buyer’s market, according to a Marsh webcast titled “The New Reality of Risk.”</span></p> <p class="p1"><span class="s1">Featuring experts from Marsh’s Property, Casualty, FINPRO practices, as well as its Market Information Group, the July 22 webcast confirms alternative capital and limited catastrophes are still keeping the property market competitive. Furthermore, casualty remains generally favorable for buyers across all lines except commercial auto liability. Commercial D&O rates are declining, but firming for private and nonprofit organizations, the Marsh experts say.</span></p> <p class="p1"><span class="s1">The experts also say that mergers and acquisitions will likely continue, and that recent M&A activity among insurers will likely not have a substantial effect on overall market capacity, but could lead to capacity being withdrawn from certain areas and redeployed.</span></p> <p class="p1"><span class="s1">See the Marsh webcast <a href="https://event.onlineseminarsolutions.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=1013127&sessionid=1&key=C61DBEAFF3A0B7459BE55D7D29E074A8&sourcepage=register"><span class="s2">here</span></a>.</span></p>The post <a href="https://www.insurance-advocate.com/2015/08/10/property-and-casualty-markets-still-favor-buyers-marsh/">Property and Casualty Markets Still Favor Buyers: Marsh</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Alliant Insurance Services Acquires Preferred Concepts</title> <link>https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 06 Jul 2015 01:13:42 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4021</guid> <description><![CDATA[<p>Specialty brokerage firm Alliant Insurance Services has acquired program underwriter and wholesale broker Preferred Concepts, its fourth MGA acquisition in 2015. Terms of the acquisition were not disclosed. Preferred Concepts, with offices in New York, New Jersey and Connecticut, provides insurance solutions to the real estate industry, offering coverages through three operating units. “As the […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/">Alliant Insurance Services Acquires Preferred Concepts</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Specialty brokerage firm Alliant Insurance Services has acquired program underwriter and wholesale broker Preferred Concepts, its fourth MGA acquisition in 2015. Terms of the acquisition were not disclosed.</span></p> <p class="p1"><span class="s1">Preferred Concepts, with offices in New York, New Jersey and Connecticut, provides insurance solutions to the real estate industry, offering coverages through three operating units. </span></p> <p class="p1"><span class="s1">“As the MGA business continues to experience growth nationwide, Alliant has made a commitment to expanding its reach through the acquisition of companies with proven industry expertise,” says Tom Corbett, chairman and CEO of Alliant, in a statement. “Preferred Concepts has the underwriting discipline and broker-centric service that defines Alliant and solidifies our leadership position in both the real estate and MGA business.”</span></p> <p class="p1"><span class="s1">Preferred Concepts will join Alliant subsidiary Alliant Specialty Insurance Services (ASIS), the company’s MGA and program administrator. The executive leadership team of Preferred Concepts will continue to operate the company under its existing name and the client services and business development teams of the company will remain in place.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/alliant-insurance-services-acquires-preferred-concepts/">Alliant Insurance Services Acquires Preferred Concepts</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</title> <link>https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 06 Jul 2015 00:43:34 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4018</guid> <description><![CDATA[<p>InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees. “InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">InVEST, the Independent Insurance Agents and Brokers of America’s classroom-to-career education program, awarded $77,000 in scholarships to 88 students pursuing insurance-related degrees.</span></p> <p class="p1"><span class="s1">“InVEST congratulates the 88 students representing 32 high schools, colleges and universities in 14 states and Washington, D.C., who earned scholarships this year,” says Robert G. Slocum, InVEST board chair, and president of Warwick, R.I.-based The Slocum Agency, Inc. </span></p> <p class="p1"><span class="s1">Two students won the $3,000 Bob Betters Scholarship, established in 2011 and named after Watson Insurance Agency’s Bob Betters, who was appointed to the InVEST board of directors in 2009 and passed away February 2011 after battling brain cancer. The two Bob Betters Scholarship winners were:</span></p> <ul> <li class="p1"><span class="s1">Brooke Coughlin, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Jessica England, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> </ul> <p class="p1"><span class="s1">$2,000 scholarship winners were:</span></p> <ul> <li class="p1"><span class="s1">Rebecca Cleppe, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Claire Collins, William R. Boone High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Quinn Christian Cotilla, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Catherine De Freitas, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Ayme Ibarra, Manatee High School, Bradenton, Fla.</span></li> <li class="p1"><span class="s1">Kalie Rauch, Dryden High School, Dryden, N.Y.</span></li> <li class="p1"><span class="s1">Zachary Shuman, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Matthew Sullivan, Dr. Phillips High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Jeremy Tromer, Marjory Stoneman Douglas High School, Parkland, Fla.</span></li> <li class="p1"><span class="s1">Shawn Varughese, Dr. Phillips High School, Orlando, Fla.</span></li> <li class="p1"><span class="s1">Emilio Ycaza, St. Petersburg Catholic High School, St. Petersburg, Fla.</span></li> <li class="p1"><span class="s1">Nellie Parks, Grossmont Community College, El Cajon, Calif. won the $1,500 scholarship award.</span></li> </ul> <p class="p1"><span class="s1">Twenty-one students won $1,000 scholarship awards, and 51 students won $500 scholarship awards.</span></p> <p class="p1"><span class="s1">Monique Lucas, Roosevelt Senior High School, Washington, D.C.; and Stacey Porter, Roosevelt Senior High School, Washington, D.C., were named $500 Classroom to Career Scholars, which was developed for students who would like to enter the insurance industry immediately after graduating from InVEST. These students are eligible for a $500 reimbursement for licensing or designation expenses.</span></p> <p class="p1"><span class="s1">InVEST provides a hands-on insurance-related curriculum taught in high schools, adult education centers and colleges, designed to give students a working knowledge of the basics needed to pursue careers in the insurance industry.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/invest-awards-88-scholarship-to-students-interested-in-insurance-careers/">InVEST Awards 88 Scholarship to Students Interested in Insurance Careers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Willis, Towers Watson to Join in $18B Merger</title> <link>https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Mon, 06 Jul 2015 00:10:16 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Life & Health Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4011</guid> <description><![CDATA[<p>Willis Group Holdings and Towers Watson plan to merge in an all-stock deal creating a firm with an equity value of about $18 billion. As part of the transaction, Willis shareholders will own 50.1% of the combined company, while Towers Watson will own 49.9%. Towers Watson shareholders will receive a one-time cash dividend of $4.87 […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/">Willis, Towers Watson to Join in $18B Merger</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Willis Group Holdings and Towers Watson plan to merge in an all-stock deal creating a firm with an equity value of about $18 billion.</span></p> <p class="p1"><span class="s1">As part of the transaction, Willis shareholders will own 50.1% of the combined company, while Towers Watson will own 49.9%. Towers Watson shareholders will receive a one-time cash dividend of $4.87 per Towers Watson share, and about 2.65 Willis shares for each Towers Watson share. Reports, including a Bloomberg <a href="http://www.bloomberg.com/news/articles/2015-06-30/willis-group-and-towers-watson-agree-to-18-billion-merger"><span class="s2">story</span></a>, say this amounts to Willis buying Towers Watson for about $8.7 billion. </span></p> <p class="p1"><span class="s1">Moody’s Investors Service affirmed Willis’ ratings after the deal was announced and changed the broker’s outlook to stable from negative due to the improved business diversification the combined firm, which will be called Willis Towers Watson, will have.</span></p> <p class="p1"><span class="s1">“The proposed merger would transform Willis by approximately doubling its size and adding a leading benefits consulting operation,” says Bruce Ballentine, Moody’s lead analyst for Willis. “The combined firm would have good financial flexibility, given that Towers Watson carries significantly less debt than Willis,” added Ballentine.</span></p> <p class="p1"><span class="s1">Fitch Ratings placed Willis on Rating Watch Positive, stating, “The transaction creates a larger, more diverse entity with operating franchises in several non-capital intensive fee- and commission-based businesses, including insurance brokerage and consulting services in employee benefits, human resources and risk and capital management. The transaction also creates opportunities to leverage existing Towers Watson relationships to increase penetration in the larger U.S. P&C corporate market and to expand Towers Watson’s international profile.”</span></p> <p class="p1"><span class="s1"> </span></p> <h2>Towers Watson shareholders</h2> <p class="p1"><span class="s1">Some media reports however, suggest Towers Watson shareholders may feel they had the better company even though Willis shareholders will control 50.1% of the combined company. A Wall Street Journal <a href="http://www.wsj.com/articles/willis-group-towers-watson-to-merge-in-18-billion-deal-1435649451"><span class="s2">article</span></a> (subscription required) says Towers Watson shares dropped 8.8% on June 30 when “investors realized what they were actually getting….” </span></p> <p class="p1"><span class="s1">A Forbes article reports, “A look at the structure and timing of Tuesday’s deal indicates that Towers Watson shareholders may be leaving a lot on the table, and entering a transaction with significant strategic risks, all for the benefit of revenue synergies and the tax savings that would come from shifting its corporate tax headquarters to London, where Willis is based.” the article compares the strong growth of Towers Watson’s revenue and share price over the last 12 months to Willis’ “falling profits and relatively stagnant share price over the year.”</span></p> <p class="p1"><span class="s1">A number of law firms have already announced they are investigating Towers Watson’s board for a potential breach in fiduciary duty, contending that the $125.13 for each share of Towers Watson common stock shareholders would receive is too low based on analysts’ valuation of Towers Watson.</span></p> <p class="p1"><span class="s1"> </span></p> <h2>Execs focus on the positives</h2> <p class="p1"><span class="s1">Executives from both Willis and Towers Watson, though, discuss what the combined enterprise can accomplish going forward. John Haley, chairman and Chief Executive Officer of Towers Watson, says in a statement, “We see numerous opportunities to enhance our growth profile by offering integrated solutions that leverage Willis’ global distribution network and superb risk advisory and re/insurance broking capabilities to deliver a more robust set of analytics and product solutions across a broader client base, including accelerating penetration of our Exchange Solutions platform into the fast growing middle-market.”</span></p> <p class="p1"><span class="s1">Dominic Casserley, Willis CEO, says, “The rationale for the merger is powerful—at one stroke, the combination fast-tracks each company’s growth strategy and offers a truly compelling value proposition to our clients.”</span></p> <p class="p1"><span class="s1">The companies also point to the potential for accelerated growth in the health exchange market, where Towers Watson’s product Exchange Solutions — which enables companies to transition an employee or retiree to individual plans — can be marketed to Willis’ “significant middle-market relationships.”</span></p> <p class="p1"><span class="s1"> </span></p> <h2>New structure</h2> <p class="p1"><span class="s1">According to the companies, Willis Chairman James McCann will become Chairman of the combined Willis Towers Watson. Haley will be CEO, and Casserley will be president and deputy CEO. The company’s board will have 12 directors total — six nominated by Willis and six by Towers Watson, including Towers Watson’s and Willis’ current CEOs. Towers Watson CFO Roger Millay will be CFO of the new company.</span></p> <p class="p1"><span class="s1">A Bloomberg story <a href="http://www.bloomberg.com/news/articles/2015-06-30/willis-ceo-entitled-to-17-7-million-golden-parachute-after-deal"><span class="s2">notes</span></a> Casserley, because he would not be the most senior executive at the combined company, is eligible for a compensation package valued at $17.7 million, but he opted against taking it. </span></p> <p class="p1"><span class="s1">The transaction is expected to close by Dec. 31, and is subject to regulatory approvals and approval by both Willis and Towers Watson shareholders.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/06/willis-towers-watson-to-join-in-18b-merger/">Willis, Towers Watson to Join in $18B Merger</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</title> <link>https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Sat, 04 Jul 2015 20:44:54 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <category><![CDATA[Personal Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4008</guid> <description><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p>ACE Limited will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1. ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><img width="250" height="250" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548.jpg 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-100x100.jpg 100w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-150x150.jpg 150w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/greenberg-evan-image-library-e1452791577548-720x720.jpg 720w" sizes="(max-width: 250px) 100vw, 250px" /></p><p class="p2"><span class="s1"><a href="http://www.acegroup.com">ACE Limited</a> will acquire rival The Chubb Corporation for $28.3 billion, or $62.93 per share in cash and 0.6019 shares of ACE stock, the companies announced July 1.</span></p> <p class="p2"><span class="s1">ACE used the term “complimentary” a number of times to describe the two companies in the statement announcing the planned acquisition. ACE Chairman and CEO Evan Greenberg further explains, “We will be well balanced with greater presence and capabilities in product areas that have less exposure to the commercial P&C cycle. We have complementary product strengths – where one of us is not present, the other is. Where one of us is strong, the other is even stronger. Where there is overlap in product, generally one of us is more present at the large end of the corporate market while the other is serving the smaller or mid-market segment.”</span></p> <p class="p2"><span class="s1">He adds the combined company will be able to do more than the two separately, with Chubb enhancing ACE’s ability to serve the upper-middle market while ACE can deliver more products for Chubb’s middle-market clients.</span></p> <p class="p2"><span class="s1">Greenberg concludes, “Together, we will grow more substantially and at a faster rate, producing greater earnings, than we could achieve as two separate companies. We look forward to welcoming the talented Chubb employees and their customers and distribution partners to the ACE family.”</span></p> <p class="p2"><span class="s1">John D. Finnegan, chairman, president and CEO of Chubb, says, “The combination brings together two highly respected and successful companies with complementary capabilities, assets and geographic footprints. We are confident that it will deliver strong value to Chubb shareholders, including an immediate premium and participation in the future growth and profitability of a well-positioned combined company.”</span></p> <p class="p2"><span class="s1">The combined company will transition to operate under the Chubb name globally and be based in Zurich. Greenberg will lead the company as chairman and CEO while Finnegan will serve as executive vice chairman for External Affairs of North America and assist with integration. The company’s board will be expand from 14 to 18 directors with the addition of four independent directors from Chubb’s current board.</span></p> <p class="p2"><span class="s1">Finnegan adds, “We are pleased that the combined company will adopt the Chubb brand, and view this as an affirmation that both companies share a commitment to the attributes of quality and service the brand represents. We look forward to working together as we create a best-in-class global franchise in P&C insurance.”</span></p> <p class="p2"><span class="s1">A New York Times <a href="http://www.nytimes.com/2015/07/02/business/dealbook/ace-and-chubb-face-headwinds-of-history.html"><span class="s2">analysis</span></a> notes that ACE is paying a premium for Chubb, implying that the acquirer “believes strongly in the revenue gains it is promising.” It goes on to say previous insurance acquisitions, such as Citicorp and Travelers, and Provident and Unum, had similar goals that didn’t materialize as planned.</span></p> <p class="p2"><span class="s1">The Wall Street Journal <a href="http://blogs.wsj.com/totalreturn/2015/07/01/what-the-ace-chubb-deal-could-mean-for-consumers/"><span class="s2">says</span></a> high-net-worth customers will have fewer options for specialized coverages after the deal, but adds that it remains to be seen if prices increase as a result.</span></p> <p class="p2"><span class="s1">The transaction is expected to close Dec. 31.</span></p>The post <a href="https://www.insurance-advocate.com/2015/07/05/ace-to-purchase-chubb-for-28-3b-expects-revenue-to-outweigh-cost/">ACE to Purchase Chubb for $28.3B; Expects Revenue to Outweigh Cost</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Commercial Lines Rates Increase in Q1, but at Slower Pace</title> <link>https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:48:46 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <category><![CDATA[Current News]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3844</guid> <description><![CDATA[<p>Commercial lines rate increases continued, but slowed in Q1 2015, according to Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS). Rates overall were up 2% in the quarter compared to the same period a year ago, the survey notes, with increases in most individual lines in the low single digits. Commercial auto and employment […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/">Commercial Lines Rates Increase in Q1, but at Slower Pace</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Commercial lines rate increases continued, but slowed in Q1 2015, according to Towers Watson’s latest Commercial Lines Insurance Pricing Survey (CLIPS).</span></p> <p class="p1"><span class="s1">Rates overall were up 2% in the quarter compared to the same period a year ago, the survey notes, with increases in most individual lines in the low single digits. Commercial auto and employment practices liability showed the largest increases, according to the survey, although EPLI increases moderated from last year. Commercial property rates “continue to show small but stable price decreases” in Q1.</span></p> <p class="p1"><span class="s1">CLIPS notes that carriers reported a 2% improvement in loss ratios as rate increases offset reported claim-cost inflation in many lines. But Alejandra Nolibos, a director with Towers Watson’s Property & Casualty Insurance practice, notes that “price increases are barely offsetting loss cost inflation in some lines; we may start to see pressure on the bottom line as reserve redundancies dry up.”</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/commercial-lines-rates-increase-in-q1-but-at-slower-pace/">Commercial Lines Rates Increase in Q1, but at Slower Pace</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</title> <link>https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:48:20 +0000</pubDate> <category><![CDATA[Commercial Insurance]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3809</guid> <description><![CDATA[<p>Tokio Marine Holdings, Inc. has agreed to acquire Houston-based specialty insurer HCC Insurance Holdings for $7.5 billion, or $78 per share. Tokyo-based Tokio Marine says the acquisition “significantly enhances [its] operations in the United States, the largest insurance market in the world, and internationally.” A Bloomberg report notes the transaction represents the biggest acquisition by […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/">Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">Tokio Marine Holdings, Inc. has agreed to acquire Houston-based specialty insurer HCC Insurance Holdings for $7.5 billion, or $78 per share.</span></p> <p class="p1"><span class="s1">Tokyo-based Tokio Marine says the acquisition “significantly enhances [its] operations in the United States, the largest insurance market in the world, and internationally.”</span></p> <p class="p1"><span class="s1">A Bloomberg report <a href="http://www.bloomberg.com/news/articles/2015-06-11/tokio-marine-rises-after-7-5-billion-deal-to-buy-hcc-insurance"><span class="s2">notes</span></a> the transaction represents the biggest acquisition by a Japanese insurer.</span></p> <p class="p1"><span class="s1">Tokio Marine says HCC represents its “most significant acquisition since it acquired Delphi Financial Group, Inc. in 2012, and Philadelphia Consolidated Holding Corp. and Kiln Ltd. in 2008.”</span></p> <p class="p1"><span class="s1">HCC underwrites more than 100 classes of specialty insurance products, including D&O, agriculture, primary casualty, aviation, surety, sports and entertainment disability/contingency and public risk.</span></p> <p class="p1"><span class="s1">Tokio Marine notes the acquisition gives it access to more insurance markets, and Tsuyoshi Nagano, Tokio Marine president, also speaks highly of HCC’s performance. “Tokio Marine has great respect for the consistent profitability that HCC has achieved under the leadership of its highly experienced management team,” he says. “With shared values and the continued support from the management team, we will build a long and successful partnership together.” <span class="Apple-converted-space"> </span></span></p> <p class="p1"><span class="s1">HCC CEO Christopher J.B. Williams says, “With Tokio Marine, HCC gains an international footprint to expand our diverse portfolio and expertise globally, a financial foundation on which to compete with larger insurers and the opportunity to offer our clients expanded coverages.”</span></p> <p class="p1"><span class="s1">The acquisition is subject to the approval of HCC’s shareholders and regulatory authorities, and is expected to close in Q4 2015.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/tokio-marine-acquires-specialty-insurer-hcc-insurance-holdings-for-7-5b/">Tokio Marine Acquires Specialty Insurer HCC Insurance Holdings for $7.5B</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Cybersecurity Measure Defeated in Senate Amid Procedural Spat</title> <link>https://www.insurance-advocate.com/2015/06/30/cybersecurity-measure-defeated-in-senate-amid-procedural-spat/</link> <dc:creator><![CDATA[Phil Gusman]]></dc:creator> <pubDate>Tue, 30 Jun 2015 02:47:24 +0000</pubDate> <category><![CDATA[Current News]]></category> <category><![CDATA[Risk]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=3806</guid> <description><![CDATA[<p>Senate Democrats defeated a bill designed to strengthen cybersecurity measures, objecting to Republican efforts to attach the proposal to a larger defense-policy bill, The New York Times reports. The Times article, “Senate Rejects Measure to Strengthen Cybersecurity,” written by Jennifer Steinhauer, notes that the cyber measure is similar to one that passed the House in […]</p> The post <a href="https://www.insurance-advocate.com/2015/06/30/cybersecurity-measure-defeated-in-senate-amid-procedural-spat/">Cybersecurity Measure Defeated in Senate Amid Procedural Spat</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p2"><span class="s1">Senate Democrats defeated a bill designed to strengthen cybersecurity measures, objecting to Republican efforts to attach the proposal to a larger defense-policy bill, <i>The New York Times</i> <a href="http://www.nytimes.com/2015/06/12/us/politics/senate-rejects-measure-to-strengthen-cybersecurity.html?_r=0"><span class="s2">reports</span></a>. </span></p> <p class="p2"><small> </small><span class="s1">The <i>Times</i> article, “Senate Rejects Measure to Strengthen Cybersecurity,” written by Jennifer Steinhauer, notes that the cyber measure is similar to one that passed the House in April. But the article adds that Democrats objected to Senate Majority Leader Mitch McConnell’s decision to attach the measure to a broader bill that Democrats oppose, which would allow military spending to exceed caps by tapping into $38 billion in war funds.</span></p> <p class="p2"><span class="s1">The failure to pass the cybersecurity measure, notes the article, comes amid news of compromised data for at least 4 million current and former government workers, in an attack apparently targeting Social Security numbers and other personal information.</span></p> <p class="p2"><span class="s1">Read the full <i>New York Times</i> article <a href="http://www.nytimes.com/2015/06/12/us/politics/senate-rejects-measure-to-strengthen-cybersecurity.html?_r=0"><span class="s2">here</span></a>.</span></p>The post <a href="https://www.insurance-advocate.com/2015/06/30/cybersecurity-measure-defeated-in-senate-amid-procedural-spat/">Cybersecurity Measure Defeated in Senate Amid Procedural Spat</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> </channel> </rss>