Marsh & McLennan Companies announced several changes to its senior management team, including the appointment of Daniel S. Glaser, 50, towards the newly created position of group president and chief operating officer, Marsh & McLennan Companies. Glaser had previously been chairman and chief executive officer of Marsh, a position he assumed in December 2007.

Peter Zaffino, 44, continues to be named president and ceo of Marsh Inc., succeeding Glaser.
In his role as group president and COO, Glaser may have operational and strategic oversight of Marsh & McLennan Companies’ Risk & Insurance and Consulting segments. Additionally, he will have responsibility for that company’s technology, business services, and international and client development functions. Glaser will continue to report to Brian Duperreault, president and ceo of Marsh & McLennan Companies.
Prior to joining Marsh, Glaser had been managing director of AIG Europe (U.K.) Limited, along with a senior vice president of AIG Inc. Glaser joined Marsh in 1982 and spent the very first 10 years of his career in the insurance industry like a Marsh broker.

Zaffino, who's succeeding Glaser as the new president and chief executive officer of Marsh Inc., had been president and chief executive officer of Guy Carpenter, a situation he assumed in early 2008. Prior to being named Guy Carpenter CEO, Zaffino held a number of executive management positions within the firm, including executive v . p ., head of U.S. Treaty Operations and head of Global Specialty Practices. He has more than Two decades of experience within the insurance and reinsurance industry.

Also, Alexander Moczarski, 55, has been named president and chief executive officer of Guy Carpenter, succeeding Zaffino. Moczarski had been president of the international division of Marsh Inc., accountable for operations in all regions of the world outside the U.S. and Canada. Moczarski, who has more than 30 years of experience in the insurance industry, joined Marsh in 1993 from AIG.

Marsh & McLennan Companies may be the parent company of Marsh, the insurance coverage broker and risk advisor; Guy Carpenter, a risk and reinsurance specialist; Mercer, a provider of HR and related financial advice and services; and Oliver Wyman, a management consultancy.

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Germany’s Allianz has reconfirmed its resolve for catastrophe bonds, as a useful and generally accepted approach to transferring some risk to the capital markets. It underlined that commitment using the announcement of the closure of a new cat bond covering US hurricane and earthquake risks, your fourth “takedown under the Blue Fin program by having an issuance size of $40 million.”

In an interview on the Allianz site, Olaf Novak, Chief Risk Officer of Allianz Reinsurance, defined cat bonds generally as “insurance-linked securities which transfer a specified group of natural catastrophe risks in to the capital market. Insurers like Allianz have regional peak catastrophe exposures and these companies spread portions of these risks like European windstorm or US hurricane towards the reinsurance market.”

He also explained that in addition Allianz can “act like a sponsor and spread catastrophe risks for an investor and this means the capital market. Catastrophe bonds are usually multi-year deals. Their trigger mechanism is normally not related to indemnity but more to model losses or perhaps a specific group of event parameters which allows an easy pay-out in case of a qualifying event.”

Like its predecessors, Allianz’ new Series 4 catastrophe bond securities, from Blue Fin Ltd., are “denominated in US dollars and offer investors a coupon of 8.50 % above the yield of US Treasury money market funds.” They cover the “risk of losses from hurricane and earthquake events in the US based on a modeled loss trigger mechanism, and are scheduled to become redeemed in May 2013. As with previous cat bonds under the Blue Fin program, Allianz Re, the reinsurance division of Allianz SE, is responsible for structuring the new transaction.”

Clemens von Weichs, CEO of Allianz Re, explained the capital markets allow us to represent a considerable source of complementary protection for all of us perils. “The occurrence from the March 11 Japanese earthquake and tsunami would be a test for the ILS market, which proved to be who is fit and it is fully functioning. As a repeat sponsor, consistency is a crucial market feature for all of us.”

Novak noticed that the new Blue Fin Series 4 cat bond provides multi-year protection at similar rates as traditional reinsurance from the diversifying source on the fully collateralized basis. The brand new tranche is structured to provide protection against mixtures of medium-sized and enormous events.

“The Blue Fin shelf program enables Allianz to efficiently complement our reinsurance program with non-traditional protection elements on a regular basis,” he stated. “The existing infrastructure means to optimize both lead-time and cost and facilitated the decision to buy more term-aggregate protection.”

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Georgia Gov. Nathan Deal is expected to sign into law a bill requiring that certificate of insurance forms be filed with and authorized by the state insurance commissioner.

Agent groups and insurance businesses have experienced longstanding issues with certificates which are frequently utilized to falsely show proof of coverage or amend the policy to consist of provisions outside the terms of the certificate holders’ policy.

In January, Insurance Commissioner Ralph Hudgens issued a directive restating that certificates are for info purposes only and confer no rights on the certificate holders away from terms of their policies. The directive also reminded agents and policyholders that the intentional misuse of certificate is against the law.

Following Hudgens’ action, the Independent Insurance Agents of Georgia and Expert Agents of Georgia produced some pot job force to assist turn the directive into legislation. “This legislation is extremely essential to our members,” stated Gould Hagle, lobbyist for the Independent Insurance Agents of Georgia. “Its passage will be the culmination of the full year’s function.”

The balance (HB66) was sponsored by Rep. Maxwell Howard and approved by both the Georgia Home of Representatives and Senate, prior to becoming sent to Gov. Deal for his signature.

The bill clarifies that the certificate is really a synopsis of coverage as it exists on the date the certificate is disseminated and it is only intended for informational purposes. The balance also spells out that a certificate isn't an insurance coverage contract or perhaps a document that alters coverage.

If signed as expected by Deal, the bill will make two substantive modifications to present law. Additionally to requiring that certificate forms to be filed with and approved by the insurance commissioner, the brand new law locations certificate holders underneath the regulatory authority of the commissioner to ensure that any violations could be covered under the state’s insurance code.

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U.S. property/casualty insurers’ net income following taxes rose to $34.7 billion in 2010 from $28.7 billion the entire year prior to, with insurers’ rate of return normally policyholders’ surplus growing to 6.5 percent from 5.9 percent.

Policyholders’ surplus rose $45.5 billion, or 8.9 percent, to $556.9 billion at Dec. 31, 2010, from $511.4 billion for 2009.

Contributing to the increases within the insurance industry’s net gain, overall rate of return, and surplus, insurers net investment gains grew $13.8 billion to $52.9 billion this year from $39.2 billion in 2009.

Partially offsetting the growth in investment gains, insurers’ net losses on underwriting grew to $10.four billion this year from $3 billion last year. The combined ratio (losses along with other underwriting expenses per dollar of premium) deteriorated to 102.four percent this year from 101 percent last year, based on business groups, ISO and also the Property Casualty Insurers Association of America (PCI).

The figures are consolidated estimates for all insurers writing a minimum of 96 percent of company compiled by private U.S. property/casualty insurers.

The trade groups stated the outcomes in 2010 show that insurers are “well positioned” to satisfy the requirements of customers and company owners because the economy recovers in the recession. Combining insurers’ $556.9 billion in policyholders’ surplus as of December 31, 2010, their $557.7 billion in loss and loss adjustment expense reserves, as well as their $199 billion in unearned premium reserves, insurers had $1.three trillion to pay claims and meet other contingencies, stated David Sampson, PCI president and CEO.

Michael R. Murray, ISO assistant vice president for monetary analysis, stated insurers “continue to manage substantial headwinds in their core company - underwriting - with costs however to firm in numerous commercial insurance markets regardless of rising loss and loss adjustment expenses.”

Murray stated that within the near term, economic growth could improve the frequency of claims and and because the economy inches closer to full employment, inflation within the harshness of claims might accelerate.

“But economic growth might also spur increases in demand for insurance that absorb excess capacity quicker than investment gains produce it. If it does, insurers can look forward to a finish towards the soft marketplace, accelerating premium growth, and improvement in underwriting outcomes,” Murray stated.
Rate of Return

The industry’s 6.five percent rate of return in 2010 was the web result of negative rates of return for mortgage and monetary guaranty insurers and single-digit rates of return for other insurers. ISO estimates that mortgage and monetary guaranty insurers’ rate of return normally surplus in 2010 was negative 36.6 percent, up from negative 51.7 percent for 2009. Excluding mortgage and monetary guaranty insurers, the industry’s rate of return edged as much as 7.five percent in 2010 from 7.four percent for 2009.

“Despite the increases in insurers’ net gain and overall rate of return this year, insurers’ outcomes remained subpar,” stated Sampson. He stated insurers’ 6.5 percent rate of return in 2010 was 0.four percentage points much less than their 6.9 percent average rate of return for the past Ten years and 2.6 percentage points much less than their 9.1 % average rate of return for the 52 years from 1959 to 2010. Moreover, insurers’ rate of return remained far below benchmarks such as the 13.9 percent long-term average rate of return for the Fortune 500.
Underwriting Outcomes

Net losses on underwriting grew $7.4 billion to $10.four billion in 2010 as earned premiums fell and loss and loss adjustment expenses (LLAE), underwriting expenses, and dividends to policyholders all rose.

Net written premiums rose $3.7 billion, or 0.9 percent, to $422.1 billion for 2010 from $418.four billion for 2009. But net earned premiums fell $1.8 billion, or 0.four percent, to $420.5 billion from $422.3 billion as a result of prior declines in written premiums.

Net LLAE (following reinsurance recoveries) rose $2.8 billion, or 0.9 percent, to $309.1 billion in 2010 from $306.3 billion last year, largely as a result of greater catastrophe LLAE.

Other underwriting expenses - primarily acquisition expenses; expenses linked with underwriting, pricing, and servicing insurance policies; and premium taxes - rose $2.5 billion, or 2.2 percent, to $119.6 billion this year from $117 billion last year, whilst dividends to policyholders increased $0.3 billion, or 14.4 percent, to $2.3 billion from $2 billion.

ISO estimates that private insurers’ net LLAE from catastrophes striking the United States rose $2.7 billion to $14.three billion for 2010 from $11.6 billion for 2009, with the $11.6 billion for 2009 such as some late-emerging losses from Hurricane Ike in 2008.

Based on ISO’s Property Claim Services (PCS) unit, catastrophes striking the Usa in 2010 caused $13.8 billion in direct insured losses (prior to reinsurance recoveries) for those insurers (such as residual-market insurers and foreign insurers) Up $3.2 billion from $10.6 billion last year but $6.five billion much less than the $20.2 billion average for that Ten years ending 2010.

Noncatastrophe net LLAE rose $0.1 billion to $294.8 billion in 2010 from $294.7 billion for 2009.

Total net LLAE for both 2010 and 2009 was decreased by downward revisions towards the estimated ultimate price of claims incurred in prior years and consequent releases of LLAE reserves. Such downward revisions and releases dropped to $9.7 billion this year from $11 billion in 2009. Excluding those amounts, net LLAE rose $1.5 billion, or 0.5 percent, to $318.8 billion last year from $317.3 billion last year.

“The 0.9 percent improve as a whole business net written premiums in 2010 is definitely welcome news following 3 consecutive years of declines. Moreover - and possibly sending an indication about the nature of issues to come - year-to-year comparisons improved for every from the 3 main subsectors of the business tracked by ISO,” stated Murray.

Net written premium growth for insurers writing predominantly individual lines accelerated to positive three.three percent in 2010 from negative 0.five percent in 2009, with premium growth for insurers writing much more balanced books of company growing to positive 2.1 percent from negative three.6 percent. Premium growth for insurers writing predominantly commercial lines rose to negative 2.7 percent from negative 7.five percent.

Excluding mortgage and monetary guaranty insurers, commercial lines insurers’ net written premiums dropped just 2.2 percent last year, following falling 6.five percent last year.

“The deterioration in underwriting profitability as measured through the combined ratio is really a specific trigger for concern simply because today’s low investment yields together with the long-term decline in investment leverage that helped insulate insurers in the ravages from the monetary crisis and also the Fantastic Recession mean insurers require much better underwriting outcomes just to be as profitable because they as soon as had been,” stated Sampson.

Based on PCI, in 1986, insurers achieved a 15.1 % rate of return having a combined ratio of 108.1 %. Although insurers’ combined ratio for 2010 was five.7 percentage points much better, their rate of return was just 6.five percent - 8.6 percentage points less than in 1986 - due to declines in investment yields and investment leverage.
Investment Outcomes

Insurers’ net investment income - primarily dividends from stocks and interest on bonds - increased by $0.2 billion to $47.2 billion this year from $47.1 billion in 2009. The $5.7 billion in realized capital gains on investments in 2010 constituted a $13.6 billion swing from insurers’ $7.9 billion in realized capital losses on investments last year. Combining net investment income and realized capital gains, overall net investment gains rose 35.2 percent to $52.9 billion this year from $39.2 billion last year.

Combining the $5.7 billion in realized capital gains this year with $15.6 billion in unrealized capital gains throughout the time, insurers posted $21.three billion in overall capital gains this year - a $6.1 billion improve in contrast to insurers’ $15.2 billion in overall capital gains on investments in 2009.

“Unfortunately, insurers’ net investment income in 2010 was even much more anemic than it appears. The $0.2 billion improve reflects $1.three billion that 1 insurer received from the newly acquired affiliate outside the insurance space,” stated Sampson. “Absent the investment income generated by that acquisition and also the new funds raised to invest in it, insurers’ investment income would have declined in 2010. Prospectively, there's still some risk that insurers’ investment income will decline as they replace maturing bonds paying fairly high yields with new bonds paying lower yields.”

Insurers’ overall capital gains for 2010 reflect developments in monetary markets. The New York Stock Exchange composite rose 10.8 percent this past year, using the Dow Jones Industrial Average, the S&P 500, and also the NASDAQ composite climbing 11 percent, 12.8 percent, and 16.9 percent, respectively, based on Murray. He stated insurers’ investment outcomes also benefited from a decline in realized capital losses on impaired investments, which dropped to $5.9 billion this year from $16.1 billion in 2009.
Pretax Operating Income

Pretax operating income - the sum of net gains or losses on underwriting, net investment income, and miscellaneous other income - fell $7.1 billion, or 15.9 percent, to $37.8 billion for 2010 from $45 billion for 2009. The $7.1 billion decrease in operating income was the web result of the $7.four billion improve in net losses on underwriting, the $0.2 billion improve in net investment income, along with a $0.1 billion improve in miscellaneous other income to $1 billion for 2010 from $0.9 billion for 2009.
Net gain following Taxes

Combining operating income, realized capital gains (losses), and federal and foreign taxes, the insurance industry’s net income following taxes in 2010 totaled $34.7 billion, up from $28.7 billion for 2009. The $6 billion improve in net income was the net result of the $7.1 billion decrease in operating income, the $13.6 billion swing to $5.7 billion in realized capital gains from $7.9 billion in realized capital losses, and a $0.four billion improve in federal and foreign income taxes to $8.9 billion for 2010 from $8.four billion last year.
Policyholders’ Surplus

Policyholders’ surplus increased $45.five billion to $556.9 billion at year-end 2010 from $511.four billion at year-end 2009. Inclusions in surplus in 2010 included insurers’ $34.7 billion in net gain following taxes, $15.6 billion in unrealized capital gains on investments (not included in net income), and $27.four billion in new funds paid in (new capital raised by insurers). Those additions had been partially offset by $31 billion in dividends to shareholders and $1.2 billion in miscellaneous charges against surplus.

The $27.four billion in new funds paid in throughout 2010 was up from $6.6 billion last year and it is the largest quantity of new funds any year since the start of ISO’s data in 1959. The record-high $27.four billion this year included $22.five billion contributed to 1 insurer by its parent, because the insurer absorbed a main acquisition away from insurance space. The prior record high for brand new funds was $18.8 billion in 2002.

Insurers’ unrealized capital gains on investments dropped to $15.6 billion in 2010 from $23.1 billion in 2009.

The $31 billion in dividends to shareholders this year was up $14.1 billion, or 83.6 percent, in the $16.9 billion last year.

The premium-to-surplus ratio as of December 31, 2010, was 0.76 - much less of computer was any year from 1959 to 2009 and only about half the 1.49 average premium-to-surplus ratio for the 52 years ending 2010. Similarly, the ratio of loss and loss adjustment expense reserves to surplus by December 31, 2010, was 1.00 - the lowest it’s been because the 0.97 for 1968 and far below the 1.42 average LLAE-reserves-to-surplus ratio within the last 52 years.

“With leverage ratios like these providing simple measures from the amount of risk supported by every dollar of surplus, insurers seem to be exceptionally well capitalized at this point,” stated Murray. “But towards the extent that these same leverage ratios provide insight into insurers’ capacity utilization and also the potential supply of insurance, they help explain why some insurance markets have remained so soft for so lengthy.”
Fourth-Quarter Outcomes

The property/casualty insurance industry’s consolidated net gain following taxes fell 34.6 percent to $8 billion for fourth-quarter 2010 from $12.2 billion for fourth-quarter 2009.

Fourth-quarter 2010 net gain for the whole business consisted of $8.7 billion in pretax operating income and $1.three billion in realized capital gains on investments, much less $1.9 billion in federal and foreign income taxes.

The industry’s fourth-quarter pretax operating income of $8.7 billion was down 21.four percent from $11 billion in fourth-quarter 2009. Fourth-quarter 2010 operating income consisted of $4.2 billion in net losses on underwriting, $12.2 billion in net investment income, and $0.6 billion in miscellaneous other income. Excluding mortgage and monetary guaranty insurers, operating income fell $3.four billion, or 25.three percent, to $9.9 billion in fourth-quarter 2010 from $13.three billion in fourth-quarter 2009.

The $4.2 billion in net losses on underwriting in fourth-quarter 2010 compared with $0.2 billion in net gains on underwriting in fourth-quarter 2009.

Fourth-quarter 2010 net losses on underwriting amounted to three.9 percent of the $106.1 billion in premiums earned throughout the period compared with fourth-quarter 2009 net gains on underwriting amounting to 0.2 percent from the $105 billion in premiums earned throughout that period.

The industry’s combined ratio deteriorated to 105.9 percent in fourth-quarter 2010 from 101.9 percent in fourth-quarter 2009.

The $4.2 billion in net losses on underwriting for fourth-quarter 2010 was following deducting $1.2 billion in premiums returned to policyholders as dividends, with dividends to policyholders up 15.three percent from $1 billion in fourth-quarter 2009.

Loss and loss adjustment expenses rose $4.8 billion, or 6.four percent, to $79.7 billion in fourth-quarter 2010 from $74.9 billion in fourth-quarter 2009.

LLAE for fourth-quarter 2010 included approximately $2.9 billion in net LLAE (following reinsurance recoveries) due to catastrophes punching the Usa, with estimated net catastrophe LLAE growing $2.7 billion from $0.2 billion in fourth-quarter 2009. Excluding loss adjustment expenses, direct insured losses from catastrophes throughout fourth-quarter 2010 totaled $2.8 billion, up $2.6 billion in the direct insured losses from catastrophes throughout fourth-quarter 2009, based on ISO’s PCS unit.

Written premiums rose $1.three billion, or 1.three percent, to $98.9 billion in fourth-quarter 2010 from $97.6 billion in fourth-quarter 2009. The 1.three percent improve in fourth-quarter 2010 followed a 2.three percent improve in third- quarter 2010 and a 1.three percent improve in second-quarter 2010. These increases in quarterly written premiums had been the very first since first-quarter 2007, when written premiums rose 0.8 percent in contrast to their level a year earlier.

The $12.2 billion in net investment income in fourth-quarter 2010 was up 9.6 percent compared with the $11.1 billion in net investment income in fourth-quarter 2009. A lot of the improve in fourth-quarter net investment income was attributable to $0.five billion in income 1 insurer received from the newly acquired noninsurance company.

Combining net investment income and realized capital gains, the business posted $13.five billion in net investment gains in fourth-quarter 2010, up five.1 percent from $12.8 billion a year earlier.

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A lawsuit trying to stop McDonald’s Corp. from offering toys with Happy Meals must be dismissed because parents can invariably not buy the meals for his or her children, the hamburger giant said in a court filing late Monday.

The lawsuit accuses McDonald’s of unfairly using toys to lure children into its restaurants. The plaintiff, Monet Parham, a Sacramento, California mother of two, charges the company’s advertising violates California consumer protection laws.

The Happy Meal is a huge hit for McDonald’s - making the company one of the world’s largest toy distributors - and spawning me-too offerings for the most part other fast-food chains.

One recent and incredibly successful Happy Meal promotion was a tie-in with the popular DreamWorks Animation film ”Shrek Forever After.” The meals included toy watches fashioned following the movie’s characters Shrek, Donkey, Gingy and Puss in Boots.

McDonald’s utilization of Happy Meal toys also has are categorized as fire from public health officials, parents and lawmakers who are frustrated with rising childhood obesity rates and weak anti-obesity efforts from restaurant operators, which are largely self-regulated.

Parham, who filed suit last December, is represented by the Center for Science within the Public Interest, a nutrition advocacy group.

Within the lawsuit, Parham admits she frequently tells her children “no” when they ask for Happy Meals, McDonald’s said in Monday’s court filing.

“She wasn't misled by any advertising, nor did she depend on any information from McDonald’s,” said the organization.

McDonald’s had the suit gone to live in federal court, but the plaintiff plans to fight to get the case back before a California state judge.

Should Parham’s lawsuit be permitted, it would spawn a number of other problematic legal proceedings, McDonald’s said.

“In short, advertising to children any creation that a young child asks for however the parent does not want to buy would constitute an unfair trade practice,” the organization said.

Stephen Gardner, litigation attorney for that public interest group, said McDonald’s is using a cookie cutter method of dismissing the lawsuit, with one key difference.

“What differs about this motion is the fact that McDonald’s has chosen at fault the victim - stating that it’s all Monet Parham’s fault if she doesn’t force her daughter to ignore the onslaught of McDonald’s marketing messages,” Gardner said.

“McDonald’s makes a lot of money by going around parents direct to kids, and it really wants to continue with that strategy.”

Most food companies have pledged to not advertise straight to children, but it is largely up to the to police its own actions on that front. Industry also has argued that government tries to limit advertising crimp free speech protections.

The U.S. food industry has successfully fended off obesity-related lawsuits for years, including helping proceed state laws that ban obesity-related lawsuits.

The proposed class action lawsuit in U.S. District Court, Northern District of California, is Parham v. McDonald’s Corporation et al, 11-511.

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An anonymous donor has bought a $50,000 insurance coverage to assist an Oklahoma lady maintain her pet kangaroo as being a treatment pet.

The Damaged Arrow Town Council is thinking about an exotic animal ordinance exemption that might permit Christie Carr to maintain the partially paralyzed red kangaroo named Irwin inside town limits.

Council could vote Might three on the proposal that might permit exotic animal proprietors to maintain their pets if they acquire a newly-created permit. The permit would need them to possess a liability insurance coverage for just about any injuries inflicted through the animal, certification that the animal has sufficient housing for its well being and meet all federal and state suggestions for licensing, amongst other provisions.

“It’s incredible for somebody to become as generous as that,” Carr stated, including that she had no details about who purchased the liability insurance coverage for Irwin. “I cannot believe the assistance.”

Carr stated she couldn’t have afforded to buy this type of coverage as well as contemplated shifting from Damaged Arrow to carry on caring for your animal.

“That was the greatest hurdle I noticed,” she stated. “It’s not a certain offer however, but we’re nearer.”

Councilman Richard Carter stated the ordinance exemption is created to permit Christie to maintain Irwin inside town limits whilst safeguarding residents from possible hurt the animal may trigger.

“We understand it is not within the class of the pit bull or Rottweiler, but we nonetheless require to safeguard the public,” Carter stated.

Native to Australia, wholesome male fantastic red kangaroos can develop as much as seven ft (2.1 meters) tall, weigh much more than 200 lbs (ninety kilograms) and bound twenty five ft (eight meters) inside a single leap.

Simply because Irwin was neutered and it is partially paralyzed following operating right into a fence, he isn't meant to obtain larger than fifty lbs (23 kilograms), his veterinarian stated.

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