Menu
iPMI Magazine Is Proudly Sponsored By:
For a healthier journey.

iPMI Magazine Has Moved

iPMI Magazine successfully rebranded to iPMI Global in 2023 and has moved to a new home on the internet. To visit the brand new international private medical insurance business intelligence platform, please go to www.ipmiglobal.com

Employers Add More Financial Well-Being Programs in 2016

A new report from Aon Hewitt reveals that large employers plan to expand the depth and breadth of financial well-being programs in the year ahead.

According to Aon Hewitt’s Hot Topics in Retirement and Financial Well-Being survey of more than 250 U.S. employers, representing nearly 7 million workers:

  • 55 percent of employers currently offer help to workers in at least one category of financial well-being such as budgeting, debt management and the financial aspects of health care 

  • 38 percent provide help in at least three categories

  • By the end of 2016, 77 percent of employers will have at least one financial well-being program and 52 percent will have at least three

“Workers have a wide variety of financial needs and challenges,” explained Rob Austin, director of Retirement Research at Aon Hewitt. “Employers are realizing that they need to provide a range of financial well-being tools and resources to help this diverse workforce and to truly make an impact on workers’ long and short-term savings goals.”

Aon Hewitt also found that most employers (85 percent) say they are creating and adding financial well-being programs because it is “the right thing to do.” Another 80 percent of employers report that their programs are designed to improve employee engagement.

”Workers say they want their employer to provide them with the resources to help them obtain a more secure financial future, and it seems that employers are stepping up to this request,” added Austin. “In 2016, financial well-being programs will cement themselves as part of most employers’ total benefits package.”

Read more...

HCI Group Reports Third Quarter And Nine-Month 2015 Results

Income available to common stockholders in the third quarter of 2015 totaled $7.4 million, or $0.71 diluted earnings per common share, compared with $14.1 million, or $1.23 diluted earnings per common share in the third quarter of 2014.

Gross premiums earned in the third quarter of 2015 increased 16.7% to $103.8 million from $88.9 million in the same period in 2014. The increase was primarily due to the assumption of approximately 6,000 homeowners multi-peril policies and approximately 30,000 wind-only policies from Florida's state sponsored Citizens Property Insurance Corporation in December 2014 and 4,000 primarily homeowners multi-peril policies from Citizens in February 2015.

Premiums ceded in the third quarter of 2015 were $41.1 million, or 39.6% of gross premiums earned, compared with $27.7 million, or 31.1% of gross premiums earned during the same period in 2014. The quarter over quarter increase is primarily due to higher rates implemented by the Florida Hurricane Catastrophe Fund and an overall increase in units of reinsurance purchased for the 2015/16 reinsurance program.

Net premiums earned (defined as gross premiums earned less premiums ceded to reinsurance companies) in the third quarter of 2015 increased 2.5% to $62.8 million from $61.3 million in the same period in 2014.

Investment related losses during the quarter ended September 30, 2015 totaled $0.8 million. In addition, the company recognized a net non-cash charge of $1.9 million due to declines in the fair value of securities owned by the company determined to be other than temporary. The losses are primarily due to material market declines and volatility that occurred during the quarter.  This loss compares with $4.5 million in investment related income in the third quarter of 2014, which included $3.3 million of net realized gains from investment sales.

Losses and loss adjustment expenses during the third quarter of 2015 were $26.2 million compared with $22.0 million in the same period in 2014. We experienced significant weather-related events during the current quarter, which contributed to an increase in the volume of reported claims and losses incurred when compared to the same period in 2014. We also experienced unfavorable development during the quarter attributable to the settlement and further development of older claims.

Policy acquisition and other underwriting expenses in the third quarter of 2015 were $10.7 million compared with $10.0 million in the comparable period in 2014. The increase was primarily attributable to commissions and premium taxes related to the policies assumed in December 2014 from Citizens that have renewed and are included in 2015 premiums.

Salaries and wages during the third quarter of 2015 were $5.0 million compared with $4.4 million in the same period in 2014. The increase is primarily attributable to an increase in headcount at the Tampa headquarters.

Other operating expenses, which include a variety of general and administrative expenses, totaled $4.7 million in the third quarter of 2015 compared with $5.2 million in the third quarter of 2014. The decrease was primarily attributable to a $1.0 million decrease in stock-based compensation expense.

Third Quarter 2015 - Financial Ratios

The loss ratio applicable to the three months ended September 30, 2015 (defined as losses and loss adjustment expenses related to net premiums earned) was 41.7% compared with 35.9% in the three months ended September 30, 2014. The increase is attributable to higher reinsurance costs, which impacted net premiums earned, combined with significant weather-related events as well as unfavorable development that increased losses and loss adjustment expenses during the quarter.

The expense ratio applicable to the three months ended September 30, 2015 (defined as underwriting expenses, salaries and wages, interest and other operating expenses related to net premiums earned) was 36.9% compared with 36.2% for the three months ended September 30, 2014.

Expressed as a total of all expenses in relation to net premiums earned, the combined loss and expense ratio to net premiums earned was 78.6% in the third quarter of 2015 compared with 72.1% for the three months ended September 30, 2014.

Nine months Ended September 30, 2015 - Financial Results

Income available to common stockholders for the nine months ended September 30, 2015 totaled $54.8 million, or $4.84 diluted earnings per common share, compared with $48.1 million, or $4.07 diluted earnings per common share, for the nine months ended September 30, 2014.

Gross premiums earned for the nine months ended September 30, 2015 increased 17.2% to $321.2 million from $274.1 million in the same year-ago period.

Premiums ceded for the nine months ended September 30, 2015 were $100.3 million, or 31.2% of gross premiums earned, compared with $83.8 million, or 30.6% of the gross premiums earned, during the same period in 2014.

Net premiums earned for the nine months ended September 30, 2015 increased 16.1% to $220.9 million from $190.3 million in the same period in 2014.

Investment related income in the nine months ended September 30, 2015 was $2.1 million, which was offset by a $3.9 million non-cash charge for declines in the fair value of securities owned by the company determined to be other than temporary. This income amount compares with $8.2 million in investment related income in the nine months ended September 30, 2014, which included $4.5 million of net realized gains from investment sales.

Losses and loss adjustment expenses for the nine months ended September 30, 2015 and 2014 were $65.8 million and $58.9 million respectively.

Policy acquisition and other underwriting expenses for the nine months ended September 30, 2015 were $30.9 million compared with $28.7 million for the nine months ended September 30, 2014.

Salaries and wages during the nine months ended September 30, 2015 were $15.2 million compared with $12.6 million in the same period in 2014.

Other operating expenses totaled $14.0 million for the nine months ended September 30, 2015 compared with $15.9 million for the nine months ended September 30, 2014.

Nine months Ended September 30, 2015 - Financial Ratios

The loss ratio applicable to the nine months ended September 30, 2015 was 29.8% compared with 31.0% in the nine months ended September 30, 2014.

The expense ratio applicable to the nine months ended September 30, 2015 was 30.9% compared with 34.1% in the same period in 2014.

Expressed as a total of all expenses related to net premiums earned, the combined loss and expense ratio to net premiums earned was 60.7% in the nine months ended September 30, 2015 compared with 65.1% in the same period in 2014.

Management Commentary

"Despite the heavy rains in parts of Florida during the third quarter, our geographically diversified book of homeowners' insurance business was again able to produce profitable results," said Paresh Patel, HCI Group's chairman and chief executive officer. "As we look to the remainder of 2015 and beyond, our capital position allows us to patiently seek opportunities to add shareholder value."  

 

Read more...

Munich Re Raises Profit Guidance For 2015 To At Least €3bn, With €1.1bn Profit In Second Quarter

Munich Re posted a consolidated profit of €1,076m for the second quarter of 2015 (same period last year: €762m); the profit for the first half-year amounted to €1,866m (1,703m). The quarterly result was supported by a below-average random incidence of major losses, and a very good investment result. For the current financial year, Munich Re is now aiming for a profit of at least €3bn (previous forecast: €2.5–3bn).

CEO Nikolaus von Bomhard said about the figures: "With a result of around €1.1bn, Munich Re looks back on a very successful second quarter. Despite a persistently uncertain environment, including ongoing competition in reinsurance, the profitability of our core business remains remarkable. After all, our profit of around €1.9bn in the first half of the year was so high that we are likely to exceed our profit guidance of €2.5–3bn for the year if claims experience remains within normal bounds in the second half of the year. We now expect to achieve an annual profit of at least €3bn." He continued: "In order to make sure we retain our competitiveness and profitability in the future, we will increase our efforts to make the most of the opportunities offered by digitalisation, and to open up new business potential by designing innovative solutions."

Summary of figures for the second quarter
In the second quarter, the operating result of €1,818m was well above the figure for the same quarter last year (€1,137m). The amount posted under "other non-operating result" showed a decrease of €207m to –€432m (–225m), mainly due to foreign-exchange effects. Taxes¬ on income totalled €250m (92m). Despite the dividend payment of over €1.29bn in the second quarter, shareholders' equity was at a level similar to that at the end of 2014; the strong increase in the first quarter, and the steep decline in the second quarter were mainly due to developments in market interest rates.

The annualised return on risk-adjusted capital (RORAC) in the first six months amounted to 13.8%, and the return on overall equity (RoE) totalled 11.7%. Since the Annual General Meeting at the end of April, shares with a volume of around €156m have been repurchased as part of the share buy-back programme announced in March.
Gross premiums written increased in the second quarter by 5.2% to €12.5bn (11.9bn). If exchange rates had remained the same, premium volume would have fallen by 4.7% year on year.

Reinsurance: Result of €842m in second quarter

In reinsurance business, the operating result for the second quarter came to €1,435m (845m). The business field of reinsurance accounted for €842m (629m) of the Group consolidated result for the second quarter. In the period from January to June, reinsurance contributed €1,510m (1,397m) to the consolidated result.

The technical result in life reinsurance of €30m (95m) for the second quarter was lower than expected given a series of unconnected one-off effects. By contrast, claims experience in US mortality business and Australian disability business was in line with projections.

Property-casualty reinsurance accounted for €790m (505m) of the result for the second quarter. The combined ratio for April to June totalled 93.3% (101.4%) of net earned premiums; the figure for the half-year was 92.8% (94.1%). As claims notifications for "basic losses" from prior years remained appreciably below the expected level overall, in the second quarter Munich Re was able to release reserves in the amount of around €135m, corresponding to around 3.1 percentage points of the combined ratio for the second quarter. For the first half-year, Munich Re thus released reserves totalling around €300m, or approximately 3.6% of net earned premiums. Munich Re is also continuing to aim to set the amount of provisions for newly emerging claims at the top end of the estimation range, so that profits from the release of a portion of these reserves are possible at a later stage.

Overall loss expenditure for major losses totalled €207m (617m) in the second quarter, and €462m (656m) for the first six months of the year. Natural catastrophe losses in the second quarter amounted to €21m (291m) and man-made major losses to €186m (326m), representing 0.5% (nat cat losses) and 4.3% (man-made losses) of net earned premiums respectively. Heavy rainfall in northern Chile caused considerable flooding, for which Munich Re anticipates expenditure of €45m. The largest man-made loss in the second quarter was €50m from a fire at a warehouse in South Korea.

Gross premiums written in the reinsurance business field increased by 8.3% year on year to €7.1bn (6.6bn) in the period from April to June. If exchange rates had remained the same, premium volume would have fallen by 5.7%. In the life reinsurance segment, gross premiums written increased in the second quarter by 9.6% to €2,704m (2,467m), while premiums in property-casualty reinsurance showed a total increase of 7.5% to €4,404m (4,097m). If exchange rates had remained the same, premium volume in both reinsurance segments would have declined.

The renewals as at 1 July 2015 involved a volume of treaty business of approximately €2.3bn, mainly from the USA, Australia, Latin America, and global clients. Pressure on prices, terms and conditions remained high, in particular for natural catastrophe covers, which accounted for about 20% of these renewals. The decline amounted to 2.1% (previous year's renewals as at 1 July 2014: –3.6%); this could be the first indication of a stabilisation in prices. Premium volume remained almost constant, as Munich Re was able to take advantage of selective opportunities in individual markets, but gave up some business in other areas due to pricing pressures. Torsten Jeworrek, Member of Munich Re's Board of Management, said: "Thanks to our strict cycle management, our portfolio remains profitable even after the price falls in recent renewal rounds."

ERGO: Result of €219m in second quarter

The operating result for the ERGO field of business from April to June increased to €361m (257m), while the consolidated result for the second quarter climbed to €219m (111m). ERGO generated a result of €318m (264m) for the period from January to June.

The combined ratio in the Property-casualty Germany segment improved in the second quarter to 93.4% (95.3%); it deteriorated in the ERGO International segment to 100.4% (97.5%).

Total premium income across all lines of business decreased by 3.6% in the second quarter and totalled €4,297m (4,458m), while gross premiums written decreased by 2.9% to €3,935m (4,053m) in the same period. In the Life and Health Germany segment, gross premiums decreased by 4.9% to €2,315m (2,434m), and in the Property-casualty Germany segment they were slightly below the previous year at €638m (648m). In the ERGO International segment, gross premiums increased slightly by 1.1% to €982m (971m).

ERGO CEO Torsten Oletzky commented: "Our half-year results were very good, even if they cannot simply be projected for the year as a whole. I am sure that we will easily meet our results guidance for 2015, provided that we continue to implement our rigorous profit-oriented business policy.”

Munich Health: Result of €15m in second quarter

Munich Health’s operating result in the second quarter was €22m (35m); the consolidated result was €15m (22m). Munich Health generated a result of €38m (42m) for the period from January to June.

The combined ratio was 99.8% (98.8%) for April to June, and 100.1% (99.3%) for the first half-year.

Munich Health's gross premiums written showed a year-on-year increase of 14.9% to €1,424m (1,239m) in the second quarter due to positive exchange-rate impacts.

Investments: Investment result of €2.5bn in second quarter

With a carrying amount of €236.2bn, total investments (excluding insurance-related investments) as at 30 June 2015 were almost unchanged from the year-end 2014 figure of €235.8bn.

For the period April to June 2015, the Group's investment result (excluding insurance-related investments) showed a year-on-year improvement of 6.5% to €2.5bn (2.4bn). Changes in the value of derivatives had a negative effect of –€133m for the second quarter, which was significantly less negative than in the first quarter of the year (–€706m). The rise in interest rates in the second quarter had a negative impact on interest-rate hedging instruments, whilst equity-based derivatives increased in value due to changes in share prices. The balance of gains and losses on disposals excluding derivatives was around €810m. The investment result represents an overall annualised return of 4.1%.

Munich Re's equity-backing ratio at 30 June 2015 fell to 4.0% (31 December 2014: 4.3%) including equity-linked derivatives. Fixed-interest securities, loans and short-term fixed-interest investments continued to make up the largest portion of Munich Re's investments with a share of around 88% at market value.

The Group’s asset manager is MEAG, whose assets under management as at 30 June 2015 included not only Group investments, but also segregated and retail funds totalling €14.3bn (13.9bn).

Outlook for 2015: new Group profit guidance of at least €3bn

In the first six months of the year, some reporting segments saw results that varied from forecasts, which also have an impact on the annual results – for example, inherent random fluctuations in the incidence of major losses, or the investment result. Munich Re is amending its forecast as follows with respect to the figures stated in the first quarter report published in May 2015.

In property-casualty reinsurance, Munich Re is aiming for a combined ratio of around 96% of net earned premiums in 2015. The consolidated result in reinsurance for 2015 should be at least €2.5bn (previously: at least €2bn).

ERGO is expected to achieve a combined ratio for property-casualty insurance of 95% (previously 93%) in Germany, and 99% (previously 97%) internationally.

After the first half-year was below expectations for life reinsurance business, Munich Re now anticipates a technical result of around €300–350m. We expect the technical result for future financial years to once again be in the region of €400m.

Munich Re now anticipates a return on investment of around 3.3% (previously: at least 3%).

Munich Re is aiming for a consolidated result of at least €3bn, subject to claims experience with regard to major losses being within normal bounds and to its income statement not being impacted by severe currency or capital market developments, significant changes in fiscal parameters, or other exceptional factors. This means the Group would exceed its previously stated profit range of €2.5–3.0bn.

Read more...

Welcome To iPolicy Magazine: For International Expatriate Medical Health And Travel Insurance Brokers Agents And Intermediaries

Welcome To The 1st Issue Of iPMI Magazines Medical Health Travel and Expatriate Insurance Broker And Intermediary Report, iPOLICY.

 

Rounding up the last quarter's most important International Medical and Health Insurance Plan and Product News, iPOLICY is the essential digital report designed specifically for International Health Insurance Brokers and Intermediaries.

Read iPolicy by iPMIM now, click here.

Welcome To The 2nd Issue Of iPMI Magazines Medical Insurance Broker And Intermediary Report, iPOLICY.

 

Rounding up the last quarter's most important International Medical and Health Insurance Plan and Product News, iPOLICY is the essential digital report designed specifically for International Health Insurance Brokers and Intermediaries.

Read iPolicy Issue 2 by iPMIM now, click here.

Welcome To The 3rd Issue Of iPMI Magazines Medical Insurance Broker And Intermediary Report, iPOLICY.

 

Rounding up the last quarter's most important International Medical and Health Insurance Plan and Product News, iPOLICY is the essential digital report designed specifically for International Health Insurance Brokers and Intermediaries.

Read iPolicy Issue 3 by iPMIM now, click here.

For more International Private Medical Insurance Magazine medical insurance, health insurance, medical assistance, expatriate healthcare insurance and risk-protection news go to ipmimagazine.com

Read more...

The International Banker Free Industry News Subscription Offer

http://theinternationalbanker.com

Pick up your free subscription to The International Banker Digital Enews letter - simply follow the link below and fill in the quick form. Qualified banking and financial services industry professionals are granted access to a wealth of Banking and Finance industry news, articles, interviews, videos, podcasts, case studies and intelligence.

http://theinternationalbanker.com/banking-finance/index.php/en/subscribe-the-international-banker

Get all the news 1st, delivered to your inbox daily. Registered subscribers may keep one-step-ahead and get a dedicated inside track on industry movements, technology developments, market features and in-depth industry analysis, as it happens, from where it happens.

About The International Banker

Launched January 2013 The International Banker is a digital journal dedicated to the Global Banking and Financial Services Industry News and Intelligence. Published by the team behind iPMI Magazine, The International Banker provides daily cross-border banking and finance industry information.

http://theinternationalbanker.com/banking-finance/index.php/en/subscribe-the-international-banker

Read more...
Subscribe to this RSS feed

Medical, Healthcare, Expatriate And Travel Insurance

A guide to leading international medical, healthcare, expatriate and travel insurance underwriters, companies, providers, operating within leisure, expatriate and corporate travel business markets, globally.

  •