Daily Insurance Industry News
 
 
Daily Insurance Industry News
Friday 21st of November 2008
November 20, 2008

FTSE falls as investors fearful of insurance companies

by Kay Murchie

Story link: FTSE falls as investors fearful of insurance companies

The stock market has been volatile of late due to fears of a global recession, however, today, the FTSE 100 has fallen today with well-known insurers suffering heavy falls.
The latest stock market fall slump has renewed fears about the solvency ratios of the big insurance companies, as they may be forced to sell stock into […]



October 28, 2008

Aviva seeks to reassure investors

by David Masters

Story link: Aviva seeks to reassure investors

London-based Aviva Plc, the biggest insurer in the UK by assets, sought to reassure investors today as it posted sales results for the third quarter.
The insurer told shareholders that its capital reserves are ‘very strong’ and reported a 12% rise in life and pension sales during the first nine months of 2008.
New business for the […]



October 27, 2008

NU withdraws Paymentshield unemployment insurance

by Gill Montia

Story link: NU withdraws Paymentshield unemployment insurance

Norwich Union (NU) has withdrawn its unemployment-only cover, provided through its partnership with Paymentshield, which claims to be the UK’s largest independent supplier of mortgage related insurance products to the intermediary sector.
The withdrawal has been made with immediate effect and analysts expect other insurers to follow suit, given that both the Prime Minister and the […]



NU with-profits reattribution on shaky ground

by Gill Montia

Story link: NU with-profits reattribution on shaky ground

The recent turmoil in the financial markets has led to speculation that Norwich Union’s (NU) long-awaited reattribution of its with-profits surplus could be shelved.
In July, NU’s parent company, Aviva, announced that it would be prepared to pay a windfall that would average £1,000 per policyholder, to customers who had invested in GCNU Life or CULAC […]



October 17, 2008

Pru and Aviva shares slide on capitalisation fears

by Gill Montia

Story link: Pru and Aviva shares slide on capitalisation fears

Indications that the Financial Services Authority (FSA) will ease the capital requirement of UK insurers, to prevent some of the problems seen in the UK banking sector, have been followed by sharp falls in the share prices of Prudential and Aviva.
Both companies may have to take significant writedowns as a result of market turbulence.
In addition […]



October 10, 2008

Aviva reassures investors: capital is safe

by David Masters

Story link: Aviva reassures investors: capital is safe

Aviva has confirmed that its capital position remains strong despite tumultuous financial markets.
The company has increased its hedging against future falls in global stock markets.
In addition, it announced that in the third quarter its surplus regulatory capital increased despite falls in its share price.
Andrew Moss, Aviva CEO, said the company has taken action to ensure […]



September 18, 2008

Insurers calculate exposure to Lehman Brothers and AIG

by Gill Montia

Story link: Insurers calculate exposure to Lehman Brothers and AIG

As insurance companies take stock after the collapse of Lehman Brothers and the last minute rescue of AIG, estimates of exposures are emerging.
Friends Provident calculates that its exposure to Lehman Brothers is around £18 million but the life and pensions provider expects any loss to fall well short of this amount when taxes and recoveries […]



Pru and Avivia tipped to benefit from AIG sale

by Gill Montia

Story link: Pru and Avivia tipped to benefit from AIG sale

As American International Group (AIG) begins to sell its assets, Prudential and Aviva have both been mentioned as companies likely to be showing a strong interest in the auction.
The US Federal Reserve rescued AIG on Tuesday night, lending the group up to $85 billion to prevent a collapse that would have impacted on markets […]



September 15, 2008

NU withdraws from price comparison websites

by Gill Montia

Story link: NU withdraws from price comparison websites

Norwich Union (NU) has withdrawn its direct motor products from all insurance price comparison websites.
The company, which forms part of the Aviva group, has announced the launch of Price Check Norwich Union, an Internet and telephone service that promises to show customers the prices and details of competitors’ products, even when they outshine its own.
According […]



September 4, 2008

NU cuts final bonuses for with-profits policyholders

by Gill Montia

Story link: NU cuts final bonuses for with-profits policyholders

Norwich Union (NU) has announced that it is cutting final bonuses for with-profits policyholders whose policies are maturing this year.
The insurer, which is part of the Aviva group, says it is taking the action to protect the strength of its four with-profits funds amid falling equity markets, commercial property values and corporate bond yields.
The company’s […]



July 30, 2008

NU with-profits reattribution offers £1,000 per policyholder

by Gill Montia

Story link: NU with-profits reattribution offers £1,000 per policyholder

The lengthy matter of the reattribution of Norwich Union’s with-profits surplus looks close to a resolution, as the insurer’s parent company, Aviva, announces that it is prepared to pay a windfall that would average £1,000 per policyholder.
The customers eligible for the payout are those who invested in GCNU Life or CULAC with-profits funds before November […]



June 6, 2008

Norwich Union to cut up to 1,800 jobs

by Richard Kilner

Story link: Norwich Union to cut up to 1,800 jobs

Norwich Union, which is owned by Aviva, could shed as many as 1,800 jobs within the next two years.
By 2010 Aviva is expected to have reduced Norwich Union insurance operations across the UK to focus on seven main centres: Norwich, Perth, Bishop Briggs, Stretford, Manchester, Leicester and Southend.
The move comes as part of a restructuring […]



Aviva call centres closures cost 1,800 jobs

by Gill Montia

Story link: Aviva call centres closures cost 1,800 jobs

Aviva, the parent company of Norwich Union, has announced that it will close 15 of its 22 UK call centres by 2010.
The move forms part of a rationalisation of the group’s general insurance business and will result in around 1,800 job losses.
It is understood that Aviva will also be dramatically reducing the number of general […]



May 13, 2008

Aviva awards £300m contract to Cable&Wireless

by Gill Montia

Story link: Aviva awards £300m contract to Cable&Wireless

Aviva has awarded a £300 million six-year contract for a communications package to Cable&Wireless Europe, Asia & US.
Under the terms of the agreement, Cable&Wireless will provide the insurer with a full communications suite for its 35,000 staff based in the UK and India.
The suite comprises 72 separate services, including voice telephony, data, local and wide […]



April 29, 2008

Aviva drops Norwich Union brand

by Gill Montia

Story link: Aviva drops Norwich Union brand

Aviva has shocked the UK insurance world with the news that it will be dropping its Norwich Union brand.
Norwich Union was formed in 1797 and has been a household name in general insurance for decades.
However, Aviva’s chief executive, Andrew Moss, is keen to have all the group’s products under one brand that can be recognised […]



February 29, 2008

Aviva profits see heavy fall

by David Masters

Story link: Aviva profits see heavy fall

Aviva, the parent company of Norwich Union, has reported its results for 2007, with general insurance profits falling 39% to £1.033 billion. This was compounded by a 6% rise in its combined operating ratio (COR), which reached 100%.
The company’s net premiums also fell to £5.4 billion, a decrease of 3%.
Norwich Union’s contribution to the […]



February 28, 2008

Aviva posts 1% profit rise and rebrands invesmtent business

by Gill Montia

Story link: Aviva posts 1% profit rise and rebrands invesmtent business

Aviva, the UK’s largest insurer, posted a 1% increase in operating profits, to £3.29 billion, for 2007.
The group recorded strong growth in its life business, with operating profit rising 35%, to £2.75 billion. Sales in both long-term savings and life assurance products rose sharply.
However, operating profit from its general insurance and health division fell by […]



February 27, 2008

MPs investigate reattribution of “orphan” funds

by Gill Montia

Story link: MPs investigate reattribution of “orphan” funds

A committee of MPs has today begun a major inquiry into the way in which insurance companies are reattributing their surplus with-profits funds.
The money, which is sometimes referred to as an “orphan” fund, or inherited estate, is defined by the Financial Services Authority (FSA) “as the excess of assets maintained within the long-term fund over […]



February 11, 2008

Sales up 60% for Norwich Union International

by David Masters

Story link: Sales up 60% for Norwich Union International

Norwich Union International, which is Aviva’s Dublin-based offshore business, has reported sturdy growth figures for 2007.
The company’s offshore sales in 2007 totaled £521 million, a 60% increase on the £325 million sales for 2006. These figures were reported on a PVNBP basis, and include with-profits and unit-linked offshore bonds.
Unit-linked offshore bond sales for 2007 […]



February 5, 2008

Aviva returns £2.1bn to policyholders

by Gill Montia

Story link: Aviva returns £2.1bn to policyholders

After threatening to withdraw plans to reattribute Norwich Union “orphan” funds, Aviva is proposing to pay out half of the inherited estate (£2.1 billion) to 1.1 million with-profits policyholders.
Aviva’s CGNU Life (which includes General Accident) and CULAC (which includes Commercial Union) with-profits funds have exceed what is required to cover the payouts promised to policyholders […]