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Insurance industry

Insurance Industry News Roundup: April 2004

Strategic Insights

— 2 min read

WellChoice Inc. has terminated discussions with Oxford Health Plans, fueling market speculation about other potential mergers. This development comes as the insurance industry continues to undergo significant changes, with companies like Assured Guaranty Ltd. launching public offerings and Aetna Inc. appointing new leadership. Meanwhile, A.M. Best has affirmed the financial strength ratings of several insurance companies, including PartnerRe SA and Sunderland Marine Mutual Insurance Company Ltd. The European Commission has also proposed a directive establishing a "single passport" system for reinsurance, while a federal jury is deliberating on the World Trade Center insurance case.

Key Takeaways:

  • All appeals challenging the agreement between Cigna HealthCare and 700,000 physicians have been dismissed, clearing the way for a $540 million settlement.
  • Assured Guaranty Ltd., the Bermuda-based credit insurer spun off by Ace Ltd., has launched an initial public offering expected to raise at least $840.1 million.
  • WellChoice Inc. has terminated discussions with Oxford Health Plans, leaving uncertainty about future mergers in the industry.
  • Aetna Inc. has named Louis J. Briskman as its new senior vice president and general counsel.
  • John P. Woods Co. Inc. has appointed Bruce N. Farmer as vice president of the Life, Accident, and Health Department.
  • Crawford & Co. has announced the resignation of Chairman and CEO Grover L. Davis.
  • Transatlantic Holdings Inc. has reported a 42.7% earnings jump in the first quarter, driven by continued pricing strength in its longer-tail casualty classes.
  • A.M. Best has affirmed the financial strength ratings of several insurance companies, including PartnerRe SA, Sunderland Marine Mutual Insurance Company Ltd., and the core insurance subsidiaries of Citigroup.
  • The European Commission has proposed a directive establishing a "single passport" system for reinsurance.
  • A federal jury is deliberating on the World Trade Center insurance case, with the insurers involved facing uncertainty about their commitments to property coverage.

Statistics:

  • $540 million: The amount of the settlement between Cigna HealthCare and 700,000 physicians.
  • $840.1 million: The minimum amount expected to be raised from the initial public offering of Assured Guaranty Ltd.
  • 42.7%: The earnings increase reported by Transatlantic Holdings Inc. in the first quarter.
  • $50 billion: The amount of coverage in force by the Knights of Columbus insurance program.
  • 700,000: The number of physicians involved in the agreement with Cigna HealthCare.
  • $540 million: The amount of the settlement between Cigna HealthCare and 700,000 physicians.
  • 42.7%: The earnings increase reported by Transatlantic Holdings Inc. in the first quarter.

Sources:

  • A.M. Best via COMTEX
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65135
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65110
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65137
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65141
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65142
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65140
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65117
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65129
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65115
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65124
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65122
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65121
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65113
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65107
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65126
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65119
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65133
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65138
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65109
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65128
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65127
  • http://www3.ambest.com/BestDayNews/LoadStory.asp?BSN=65111

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