• axa insurance,  insurance stock prediction

    Axa insurance stock prices forecast 2013

    Axa insurance stock prices forecast 2013 : AXA Group (CS.PA) Year over year, AXA Group has seen revenues remain relatively flat (€98.9B to €99.0B), though the company was able to grow net income from €2.7B to €4.3B. A reduction in the percentage of sales devoted to cost of goods sold from 105.29% to 86.06% was a key component in the bottom line growth in the face of flat revenues.
    On Dec. 18, 2012, Standard & Poor’s Ratings Services lowered its counterparty  credit and insurer financial strength ratings on the core operating entities  of France-based composite insurer AXA group to ‘A+’ from ‘AA-‘. The outlook is  stable.

    In our base-case assumptions, we expect the group’s underlying earnings to  grow in the mid-single digits over 2013 and 2014, on the back of stable  contributions from its major business segments, continued improvement in the  P/C combined ratio (a measure of underwriting profitability), and steady life
    and savings margins.
    On August 21st, 2012 AXA announced the launch of its 2012 employee share offering (“SharePlan 2012”), a capital increase reserved to its employees worldwide. Over 21,000 employees in 40 countries, representing over 18% of the eligible employees, subscribed to SharePlan 2012.
    AXA Group announced the appointment of Véronique Weill, Chief Operating Officer and member of the Executive Committee, to the Group’s Management Committee as of January 1. Véronique Weill joined the company in June 2006 after having spent more than 20 years at JP Morgan, notably as Group head of Operations for Investment Banking and global head of IT & Operations for Asset Management and Private Clients. She was appointed Group Chief Operating Officer of AXA in December 2009, and is now in charge of Group Marketing, Distribution, IT, Operational Excellence, Procurement and GIE AXA.

    AXA Market share in Asian
    French insurer AXA is keen to expand its business in Singapore and Asia. As part of its growth plans, AXA unveiled its new offices that will house more than 600 of its staff in general and life insurance. Located at 8 Shenton Way, the AXA Tower stands 235 metres with 52 storeys. AXA is also focused on building its presence in Asia, where insurance premiums are expected to grow 17 per cent to US$957 billion in 2015. AXA commands a 9.5 per cent market share in general insurance with health, cargo and motor as its main products. So far, Indonesia and Thailand are AXA’s key Asian markets for life insurance where it enjoys market share of 16 and 6 to 7 per cent, respectively. 

     AXA Group’s Annual Earnings & Annual Revenues
    AXA Group reported annual 2011 earnings of €1.57 per share on 02/18/2012. AXA Group had revenues for the full year 2011 of €86.1B. This was -5.3% below the prior year’s results.

    AXA Fundamentals

    ear Ending Revenue (€ m) Pre-tax (€ m) EPS P/E PEG EPS Grth. Div Yield
    31-Dec-07 86,116.00 7,695.00 213.61¢ 12.5 n/a -11% 111.94¢ 4.2%
    31-Dec-08 84,662.00 406.00 159.43¢ 9.7 n/a -25% 38.18¢ 2.5%
    31-Dec-09 84,646.00 5,564.00 149.00¢ 11.1 n/a -6% 55.00¢ 3.3%
    31-Dec-10 83,390.00 3,826.00 177.00¢ 7.0 0.4 +19% 69.00¢ 5.5%
    31-Dec-11 80,570.00 4,589.00 143.00¢ 7.0 n/a -19% 69.00¢ 6.9%

    AXA Group (CS.PA) Forecasts Revenue

    Revenue (€ m) Pre-tax (€ m) EPS P/E PEG EPS Grth. Div Yield
    31-Dec-12 85,414.50 6,290.86 183.74¢ 7.5 0.3 +28% 73.00¢ 5.5%
    31-Dec-13 87,774.74 6,695.38 198.28¢ 7.0 0.9 +8% 78.40¢ 5.9%

    AXA Group (CS.PA) Forecast Ratios

    Year Ending Revenue/Share Price/Revenue per Share
    31-Dec-12 € 35.76 0.39
    31-Dec-13 € 36.75 0.38

     Data source FactSet Research Systems

     AXA Group (CS.PA) stock chart 1 year
    Axa insurance stock prices forecast 2013

    AXA Shares Trends & Recommendations

    Key Statistics for AXA Shares

    About AXA Insurance Group
    AXA Group, through its subsidiaries, provides insurance and asset management services. Its Life & Savings segment offers term life, whole life, universal life, endowment, disability, deferred and immediate annuities, and other investment-based products; and critical illness and permanent health insurance products for individual and commercial clients. The company’s Property & Casualty segment provides motor, household, property, and general liability insurance; health products; and engineering services to support prevention policies in companies.
    AXA Group’s International Insurance segment offers coverage to large national and international corporations primarily relating to property damage, third party liability, marine, aviation and transport, construction and financial risk, and directors and officers liability, as well as provides loss-prevention and risk management services. It also offers assistance services, including medical aid for travelers, automobile-related road assistance, home assistance, and health-related services primarily to banking and insurance companies, tour operators, telecommunication operators, and automobile manufacturers, as well as to gas, water, and electricity utilities. In addition, this segment manages a book of reinsurance contracts of variable annuities with guaranteed minimum death and income benefits.
    The company’s Asset Management segment provides investment management and related services to individual investors, and private and institutional clients; research portfolio analysis and brokerage-related services for institutional investors; and equity capital markets services for issuers of publicly traded securities. AXA Group’s Banking segment offers a range of retail banking products, such as current and savings accounts, mortgage loans, and mutual funds. The company operates primarily in Europe, North America, and the Asia-Pacific region. AXA Group was founded in 1852 and is headquartered in Paris, France.
    Axa insurance stock prices forecast 2013, AXA earning estimates 2013, axa revenue predictions 2013, axa shares prices forecast 2013, axa stock rating prices target 2013,
  • Auto Insurance,  Car Insurance,  Insurance

    Auto Insurance Quote Review

    Have you thought about asking for a free auto insurance quote on the internet? Are you concerned because you may not know anything about the company providing the quote? Are you wondering how you can find out about the reputation of the company giving you a quote, especially when it comes to paying out claims?

    This article will tell you how to find out about insurance companies: their financial stability and how many consumer complaints they receive, how to ask for a quote so you can compare apples to apples, and results of online quotes from eight known auto insurance companies.

    How to find out the stability of an insurance company

    The financial stability of a company is rated by A.M. Best and Standard & Poor’s. These companies provide an independent opinion of an insurance companies ability to meet its ongoing policy and contract obligations. The A.M. Best rating is expressed as a letter grade from A++ (the highest) to D. It is recommended that you do not work with companies rating B or lower. The Standard & Poor’s Ratings range from triple A (the highest) to CC. It is recommended that you do not work with companies rating lower than BBB.

    How to find out individual policy holder satisfaction with an insurance company

    Annually J.D. Power and Associates gathers data from policy holders nationwide regarding policy options, pricing, automated phone service and overall satisfaction, with the insurance company providing their insurance. The best rating is 5.

    How to Find Out the Number of Consumer Complaints

    The Department of Insurance for each state provides the general public with consumer complaint ratios. This ratio helps the consumer to identify the number of complaints per number of claims filed. A maximum of forty companies are compared. If more than forty insurance companies have complaints, only the forty companies with the most complaints will be compared. It is recommended that the complaint ratio be checked in three or more states to identify specific insurance company trends. A ratio of less than one hundred is better than average.

    How to ask for a quote so you can compare apples to apples

    A response to the following information must be decided before asking for an auto insurance quote:

        *Car make, model, year, current mileage
        *Deductible amount for collision, comprehension and liability
        *Coverage for medical
        *Purpose for using the car
        *Miles driven per year
        *Number of designated drivers
        *Drivers ages

    What is the result of performing the above steps?

    The Auto Insurance companies used for this Auto Insurance Quote Review are 21st Century, Allstate, Esurance, Geico, Nationwide, Safeco, The Hartford. These companies were selected based on longevity in the business and their familiarity to consumers throughout the United States. The stability, consumer overall satisfaction (Sat.), policy options (Opt.), price (of premium) and automated phone service rated as follows.

    J.D. Power and Associates

    Insurance Co. AMBest S&P Sat. Opt. Price Phone

    21st Century A A 3 3 4 2
    Allstate A+ AA- 3 3 3 3
    Esurance A- n/a n/a n/a n/a n/a
    Geico A++ 3As 3 4 4 3
    Nationwide A+ A+ 3 3 2 3
    Safeco A A- 3 2 2 3
    The Hartford A AA- 3 3 4 3

    The number of consumer complaints for these auto insurance companies rated as follows in the states of Illinois, Minnesota, Missouri, Texas and Kentucky.

    The Complaint Ratio for Five States

    Insurance Co. IL MN MO TX KY

    21st Century n/a n/a n/a 199 n/a
    Allstate 55 130 130 165 19
    Esurance n/a 212 212 455 0
    Geico 33 149 128 132 116
    Nationwide n/a 76 76 131 0
    Safeco 29 117 117 71 25
    The Hartford 29 n/a 454 200 54

    The Auto Insurance Quote Sample

    The following information was used for all quotes:

        *2006 Toyota Camry 4dr v6 engine LE
        *50,000 miles
        *Driven under 9000 miles per year
        *Used for pleasure
        *$100 Deductible for comprehensive and collision
        *$250,000/$500,000 Liability & collision
        *$10,000 medical
        *One car and two drivers

    Auto Insurance Quotes

    The following six month policy quotes were received from each of the companies listed below:

    Company Quote

    21st Century $237.68
    AllState $392.00
    Esurance $343.00
    Geico $260.10
    Nationwide $415.40
    Safeco $281.00
    The Hartford $375.00

    Ways To Lower The Premium

    Most insurance companies will offer discounts for the following events:

       * Save driving record for 3 – 5 years
       * No minor infractions for 3 years
        *Anti lock devices installed in your vehicle
       * No DUI for the last 3 – 5 years
       * License not suspended for the past 3 years
        *Good credit rating
        *Car owned rather than leased or financed
        *A second vehicle is also insured
        *Other types of insurance is also purchased from them

    High risk drivers can expect to have a higher premium. Not all insurance companies will insure them. In addition when a high risk driver has an accident, the insured can expect difficulty when attempting to get the vehicle repaired using car manufactured parts. Generally auto insurance companies will pay only for the cheapest parts available.

    Some insurance companies offer a lower premium for the first year as an enticement to encourage you to get your auto insurance coverage through them. So always ask about the second year premium price.

  • Car Insurance,  Following,  Great Advice,  Save Money

    Save Money On Car Insurance By Following This Great Advice

    You want information about auto insurance and you would like to have it in a easy to understand format. If this is the case, this article will be perfect for you. We will lay out some of the most important tips and guidelines in a way that you can quickly digest.

    If you must travel by car for business, try not to use your personal vehicle. Most auto insurers will charge an additional fee on top of your premium for business use. However, do make sure you tell your insurance company if your car is used for business, so that you are covered in case of an accident.

    Find out if you can get a discount on your car insurance rates if you have not made any claims during the last 3 years. Some insurance companies will give you a special discount because you are believed to be less of a risk, due to no recent insurance claims.

    Look for multi-car discounts where ever you can get them. If your teen just started driving, you will save money by putting their car on your policy. Newly married? Get quotes from each insurer for a new combined policy and go with the best company that gives you the best features for your money.

    With auto insurance, the lower your deductible rate is, the more you have to pay out of pocket when you get into an accident. A great way to save money on your auto insurance is to opt to pay a higher deductible rate. This means the insurance company has to pay out less when you’re involved in an accident, and thus your monthly premiums will go down.

    An important auto insurance tip is to always review your driving record prior to seeking price quotes on a new policy. By knowing how many tickets and points are on your state record at any given time, you will be able estimate the impact they are likely to have on the cost of your coverage.

    Did you know that it isn’t only your car that affects the price of your insurance? Insurance companies analyze the history of your car, yes, but they also run some checks on you, the driver! Price can be affected by many factors including gender, age, and even past driving incidents.

    Trying to save money on car insurance? If you are, then a good way to lower your premiums is to increase your car insurance deductible. However, don’t raise the deductible so high that you wouldn’t be able to pay the claim should one arise. To prepare for the unexpected, be sure to set money aside in a savings account and try not to use it for anything else.

    In conclusion, we have provided you some of the most crucial aspects regarding auto insurance. We hope that you not only were able to learn something, but also will be able to apply it. Follow our advice and you will be one step closer to being an expert in this subject.

  • Aflac insurance,  insurance stock prediction

    Aflac Inc AFL stock prediction 2013

    best insurance stock – Aflac Inc AFL stock prediction 2013, Aflac Inc AFL insurance stock performance outlook 2013 : Aflac Inc. (AFL) stock traded down 2.53% on Thursday, hitting $52.70. AFLAC has a 52-week low of $38.13 and a 52-week high of $54.93. The stock’s 50-day moving average is currently $52.81. The company has a market cap of $24.711 billion and a price-to-earnings ratio of 8.90.

    Aflac Inc. (AFL)  What most consumers don’t realize is that 80% of Aflac’s business comes from Japan, where it is the number one life insurance company. In the U.S., Aflac is the number one provider of voluntary worksite insurance, and its policies pay cash benefits directly to the insured. One of my favorite things about Aflac as an investment is that the company has one of the best records of dividend increases I have ever come across, with 29 consecutive years of increases.

    AFLAC last released its earnings data on Tuesday, October 23rd. The company reported $1.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.66 by $0.11. The company’s revenue for the quarter was up 14.4% on a year-over-year basis. AFLAC has set its Q4 guidance at $1.46-1.51 EPS. Analysts expect that AFLAC will post $6.61 EPS for the current fiscal year.

    Currently yielding $1.40 annually, or 2.68%, it is a fairly safe assumption that the increases will continue going forward. Also worth noting is that Aflac trades at only 8.2 times 2012 earnings, which are expected to grow considerably going forward. Consensus estimates call for earnings of $6.92 and $7.38 in 2013 and 2014, respectively. Conservatively assuming the P/E ratio gravitates toward the historic average of around 9 times earnings, this gives us one and two year price targets of $62.28 and $66.42.

    AFLAC Stock rating by analyst
    AFLAC (NYSE: AFL) was downgraded by equities researchers at JPMorgan Chase from an “overweight” rating to a “neutral” rating in a report issued on Thursday. They currently have a $54.00 target price on the stock, down from their previous target price of $55.00. The analysts noted that the move was a valuation call.

    A number of other analysts have also recently weighed in on AFL. Analysts at Barclays Capital reiterated an “overweight” rating on shares of AFLAC in a research note to investors on Thursday. They now have a $65.00 price target on the stock, up previously from $58.00. Separately, analysts at FBR Capital reiterated a “market perform” rating on shares of AFLAC in a research note to investors on Monday. They now have a $52.00 price target on the stock. Finally, analysts at Zacks reiterated a “neutral” rating on shares of AFLAC in a research note to investors on Monday, December 24th. They now have a $57.00 price target on the stock.

    Aflac (NYSE:AFL) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+ . The company’s strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

        Despite its growing revenue, the company underperformed as compared with the industry average of 21.6%. Since the same quarter one year prior, revenues rose by 14.3%. Growth in the company’s revenue appears to have helped boost the earnings per share.

        AFL’s debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels.

        The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Insurance industry and the overall market, AFLAC INC’s return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
       
    Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance. Aflac has a market cap of $25.36 billion and is part of the financial sector and insurance industry. The company has a P/E ratio of 8.9, below the S&P 500 P/E ratio of 17.7. Shares are up 25% year to date as of the close of trading on Tuesday.

    Figure Aflac stock chart 1 year

    Aflac Inc AFL stock prediction 2013

     AFLAC Inc.earning growth forecast
    AFLAC Inc. (AFL): Provides supplemental health and life insurance. Market cap at $24.86B, most recent closing price at $53.01. Diluted TTM earnings per share at 6.07, and a MRQ book value per share value at 34.1, implies a Graham Number fair value = sqrt(22.5*6.07*34.1) = $68.24. Based on the stock’s price at $53.23, this implies a potential upside of 28.21% from current levels. PEG at 0.88.

    AFLAC Inc.earning growth forecast 2013-2014

    Over the next five years, the analysts that follow this company are expecting it to grow earnings at an average annual rate of 10.65%.This year, analysts are forecasting earnings increase of 4.36% over last year. Analysts expect earnings growth next year of 4.42% over this year’s forecasted earnings.

    Aflac Inc  Business Summary   
    Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance. The company offers various voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. It also provides loss-of-income products, such as life and short-term disability plans; and products designed to protect individuals from depletion of assets, which comprise hospital indemnity, fixed-benefit dental, vision care, accident, cancer, critical illness/critical care, and hospital intensive care plans in the United States. The company sells its products through sales associates and brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.


    Aflac life insurance market outlook 2013, Aflac life insurance plans 2013, Aflac shares prices forecast 2013, Aflac  earning estimates 2013, Aflac earning growth 2013, Aflac stock rating 2013, Aflac shares prices target 2013

  • insurance news

    Insurance claims from the latest Queensland floods

    best insurance stock – Insurance claims from the latest Queensland floods have already topped $27 million, as river levels continue to rise in large parts of the state. As of Monday morning, “just shy of 3000 claims” had been lodged relating to losses in Queensland, said Campbell Fuller, general manager for communications at the the Insurance Council of Australia.

    The total claimed losses are likely to be “well north of $40 million”, he said. “Rivers are still rising across south-eastern Queensland,” he said, adding that flood waters were yet to peak at Ipswich and much of Bundaberg remained underwater.

    Heavy rain is also falling over much of New South Wales as the remnants of former tropical cyclone Oswald move south.
    The Bureau of Meteorology has posted a severe weather warning for destructive winds, heavy rain and abnormally high tides over a wide area stretching from the Illawarra to the Northern Rivers region.
    The council yesterday declared a catastrophe for large parts of Queensland affected by storms and inundation. The declaration means insurers have set up a taskforce to co-ordinate their response to recovery efforts.
    The floods are the third catastrophe declared so far this year following severe bushfires in south-eastern Tasmania and northern NSW. The council has declared six catastrophes in Queensland for flooding and cyclone damage since 2010, with losses reaching almost $4 billion.
    Insurers and re-insurers have singled out water – either too much or too little of it – as the main risk from extreme weather in Australia.
    The council, in particular, has been calling for increased spending on efforts to limit the damage from flooding, such as the construction of flood levees around flood-prone towns.
    Despite those calls, Mr Fuller said, there had not been much money spent in Queensland since the last big floods there in 2011.
    “I’m unaware of any substantive mitigation that has taken place over the past two years,” he said.
    The ICA has set up a disaster hotline on 1800 734 621 to help people identify their insurer and their coverage, particularly for those unable to access their own records because of the floods Source http://www.watoday.com.au

  • Insurance

    What Is a Free Protection Specialist?

    Most purchasers comprehend that an assurance master can be a colossal asset both when they are chasing down the right security approaches for them and their family and when they truly experience an insurable event and need to archive a claim. In any case, what various clients don’t comprehend is that there are two particular sorts of insurance administrators they may oversee prisoner experts and self-governing security pros. Here is a short delineation of every sort of administrator: 
    Prisoner administrators are security experts who address and make methodologies for just a single protection office. If the back up arrange for that they are prisoner with has assistants, the administrator may have the ability to create systems for those reinforcements additionally, yet they can’t make security approaches for protection organizations outside of that corporate family. 
    Free security administrators are not held prisoner to any single protection organization. This suggests they can create security approaches with an extensive variety of, completely disengaged, wellbeing net suppliers and they can consider the rates and the system sorts of an extensive variety of protection offices when helping you find a course of action. This adaptability empowers them to offer you a significantly more broad decision of insurance decisions than a prisoner administrator may have the ability to. Additionally, that isn’t just basic when you at first shop for insurance, it can in like manner turn out to be potentially the most imperative factor every year when certain sorts of methodologies ought to be restored, in light of the fact that plan reclamations offer you another chance to consider rates and systems and guarantee the one you energize still fits your necessities. 
    Since a master is free instead of prisoner, that doesn’t suggest that he or she can in a split second offer the insurance systems of any wellbeing net supplier. An expert must be approved and named with a back up design before they can offer their thing. That suggests that in case you ask for that a self-ruling master give you the experiences about a particular game plan you saw security net supplier An advance in the midst of a television fight, they will in all probability be not able in case they are not adequately approved and named with that underwriter. In any case, it is decently basic for a free pro to wind up named with another back up design, and your administrator might be accessible to doing all things considered if you require a system that they can’t offer you. 
    An independent administrator isn’t just valuable in finding a combination of sensible premium rates for you; they can moreover help find the best mix of assurance course of action benefits. For example: 
    There are an extensive variety of riders and sorts of techniques that a back up plan can offer. Self-sufficient administrators have a better possibility than find a methodology with riders that suit your necessities. 
    Supporting rules can shift by protection organization which can enhance sure back up plans a fit. For example, we ought to think about catastrophe security. A couple of security net suppliers consider everyone who has taken in any tobacco thing completed the past two years to be a smoker, and charges them smoking rates. Some protection offices, nevertheless, see the rare stogie smoker as a non-smoker for explanations behind premiums. These ensuring contrasts between associations don’t just impact your premiums, they can make the differing between an approach being embraced or declined. 
    A prisoner authority is swindled on account of one back up design whether they have an amazing rating through insurance rating association A.M. Best or a horrible rating. An independent pro can refuse offering procedures from financially uncertain and ineffectually assessed association. 
    Self-ruling assurance authorities are routinely drawn in with helping their clients get a claim check after an insurable event. In that limit, they much of the time know which associations impact the cases to process straightforward and pay quickly and which might be to some degree all the more difficult to investigate.
  • insurance market share

    Insurance industry forecast 2013

    Best Insurance stock – Insurance industry forecast 2013 : be depressed in the near term as a result of downward pressures on investment yields. Overall, the industry remains well capitalized whereby policyholder surplus for the P&C sector stood at $567.8 billion at June 30, 2012, an increase of $17.5 billion from yearend 2011. Policyholder surplus for life and accident & health sector was $318.4 billion June 30, 2012, compared to $310.4 billion at Dec. 31, 2011. In spite of this, both the P&C and life sectors continue to trade below book  value. The NASDAQ Insurance Index was up 4.52 percent for the first nine months of 2012 compared to 11.28 percent for the S&P 500. To counter this lackluster stock market performance, insurance companies are expected to create shareholder value by aggressively relying on share repurchases. Several carriers have recently announced their intention of doing this, and we expect this trend to continue well into 2013.

    On the investment side, the Federal Open Markets Committee has announced its intention to keep interest rates low until mid- 2015. While this is a universal challenge for all insurance companies, it’s a distinct concern for P&C carriers. Their assets must be invested in short-term to medium-term maturities, which have been in a continuous decline (the average five-year and 10-year Treasury yields were 0.6 percent and 1.5 percent, respectively, in July 2012, compared to 1.4 percent and 2.75 percent in July 2011.) On top of this, in recent years, underwriting operations have also been less profitable.
    Fitch Ratings expects combined ratios for 2012 and 2013 to be 101.1 percent and 100.3 percent, respectively. And while this is a marked improvement over 2011, we expect the P&C industry to see continued challenges. In the 1990s, insurance companies saw returns in excess of 7 percent through fixed income securities; today these yields have declined to roughly 5.5 percent. Therefore, we’ve seen a number of insurers exit or re-price unprofitable business lines and revisit their investment allocation and risk tolerance strategies to maintain or enhance the investment yields. In particular, a number of life and annuity

    carriers have made these moves: Hartford, Sun Life and Manulife announced plans to exit the life and annuity business, and AXA and Aegon have offered lump-sum payments to their variable annuity contract holders with rich living benefit guarantees to remove the associated risks from their balance sheets. We expect this trend to continue.

    To bolster investment yields, insurance companies are changing their asset allocation strategy, shifting to distressed asset classes, longer duration bonds, commercial mortgage loans and equities. But this means some companies, according to AM Best, are “deploying cash and short-term investments into lower-quality, high-risk investments” which could negatively impact their capital adequacy ratios and, therefore, their ratings. Yet, one positive impact of the continued lowinterest rate environment for some insurers, at least in the short-term, has been significant unrealized gains on older bond portfolios. But although this has a positive impact on surplus, it has not had much impact from an earnings perspective. Some insurers have opportunistically realized some of these gains, but it comes at the expense of earning lower yields in the future, as well as dealing with asset liability mismatch issues going forward. Download full articel

    short-term investments  2013, investment yields 2013,  insurance companies 2013, Sun Life market 2013, Manulif insurance 2012  AXAinsurance stock 2013
  • insurance news

    Details of IRB Re-Insurance Co Privatization

    Best Insurance stock – Details of IRB Re-Insurance Co Privatization  : The Brazilian government’s National Development Bank, or BNDES, on Wednesday released details of its planned privatization of re-insurance company IRB-Brasil Re, based on an initial public offering of shares.

    The privatization process will take place via an increase in IRB’s capital. The BNDES set the price of each new share at 2,577 Brazilian reais ($1,263). The government authorized a capital increase of between 2% and 15% for IRB.

    Brazil’s largest banks, including state-run banks Banco do Brasil SA (BBAS3.BR) and Caixa Economica Federal, and private-sector peers Banco Bradesco SA (BBD) and Banco Itau Unibanco SA (ITUB), will almost certainly gain day-to-day control of IRB after the privatization, according to analysts. IRB has a 40% market share in the re-insurance industry in Brazil.
    The federal government, meanwhile, will hold a golden share in IRB. With the golden share, the government will keep a veto power over all key decisions, such as any eventual sale of control.
    Currently, the government has a stake of 50% in IRB, while Bradesco has a 21% stake, Itau Unibanco holds a 15% stake and other small insurance companies a 14% stake.
    The government said that it won’t participate in the capital increase, paving the way for banks to increase their stake in IRB. IRB employees will be allowed to participate in the capital increase, along with the major banks.
    “The process will provide IRB better conditions to compete in the re-insurance market, considering the new regulatory environment in which the IRB no longer enjoys exclusive rights over re-insurance,” the BNDES said in its statement.
    IRB, created in 1939, operated as Brazil’s sole re-insurer until 2008, when the government opened the local re-insurance market to private competitors.
    Under the rules, the government said IRB will have a period of five years in which to list the company’s shares. If the shares aren’t listed by the end of that period, then the company’s controllers will be obliged to buy back any and all shares acquired by employees. Employees can reserve IRB shares from Feb. 4 to Feb. 14.
  • Auto Insurance,  Car Insurance,  car insurance rates,  free home insurance quote,  health insurance,  insurance information

    7 Life Insurance Myths That Can Cost You

    Life insurance is an important part of a well-rounded financial plan. But let’s face it — it can also be confusing. In fact, misunderstandings about life insurance cause many people to skip the coverage altogether, putting their families at great risk for financial hardship. Here, we set the record straight on seven common myths about life insurance.

    Myth 1: Single and young people don’t need life insurance.
    Truth: Your key question should be: Will anyone be worse off financially if I die? Even if you have no dependents, you might leave behind credit card debt, student loans, a car payment or funeral expenses.

    A small life insurance policy would cover these costs. Moreover, buying while you’re young can help you lock in lower rates and guarantee coverage if you develop health problems later in life.

    Myth 2: Only people with kids need life insurance.
    Truth: Chances are your spouse depends on your income, regardless of whether you have children. Could he or she manage to pay the mortgage and all other household bills and debts alone? A life insurance policy could help your partner keep the house and maintain the same standard of living.

    Myth 3: If your employer provides coverage, there’s no need for more.
    Truth: Many corporations provide their employees with free life insurance worth once or twice their annual salary. Similarly, the military’s Servicemembers Group Life Insurance (SGLI) offers great rates on policies up to $400,000. These are nice benefits, but if you leave your company or the military without a separate policy in place, it may be difficult or even too late to purchase one when you need it most.

    Myth 4: Life insurance is too expensive.
    Truth: It probably costs less than you think. For example, a healthy 30-year-old male can get $250,000 of 20-year term coverage for less than $15 per month.1 And as average life expectancies continue to increase, life insurance prices keep going down.

    Myth 5: Insurance policies are all the same.
    Truth: Policies that have similar names may differ substantially in what they cover. So before you buy based on price alone, it pays to read the fine print.

    Myth 6: There’s no reason to insure a stay-at-home spouse.
    Truth: Your stay-at-home spouse may not earn an income, but think of the services he or she may provide for free: child care, meal preparation, housekeeping and more. With that spouse gone, life suddenly gets a lot more expensive. Life insurance can defray the cost of hiring help in your partner’s absence.

    Myth 7: Buying life insurance is a hassle.
    Truth: Today, you can use simple online tools to determine your life insurance needs, compare options and apply on the spot. Explore at your own pace with no high-pressure sales tactics. And if you have questions, call us.