JPMorgan Chase cleans up checking account fee list

JPMorgan Chase & Co (JPM.N), the biggest U.S. bank, and two large credit unions have taken the lead in cleaning up the banking industry's fee-laden fine print for checking accounts, an advocacy group said on Thursday.

JPMorgan Chase, the Pentagon Federal Credit Union and the North Carolina State Employees' Credit Union have started presenting account fee schedules in simple, boxed tables of three pages or less, according to the Pew Health Group, the health and consumer-product safety arm of the Pew Charitable Trusts.

Fee disclosure documents for large banks typically run 111 pages and hide important fees from customers in technical fine print, according to an April report by Pew's Safe Checking in the Electronic Age Project. Bank fees became a focus of federal lawmakers in the aftermath of the credit crisis.

Many people have been surprised by fees they were charged, Pew researchers found in interviews with consumers. Fee disclosures are too dense for consumers to know better, said Susan Weinstock, director of the Pew project.

"It is basically impossible to comparison shop for a checking account," Weinstock said in an interview. She hopes the new tables will change that.

JPMorgan Chase is posting its first table online on Thursday for its most-used "Total Checking" account. The bank plans to roll out similar presentations for other types of accounts in the new year, Ryan McInerney, CEO of the company's consumer bank, told Reuters.

Another large bank and some regional banks and other credit unions are working to bring out simplified tables of their own soon, Weinstock said . She is calling on the government's new Consumer Financial Protection Bureau to require all banks to do the same.

Banks' fee revenue could come under pressure if it is easier for consumers to compare charges.

As JPMorgan Chase began to boil down the fees into a table, executives decided some were bad for business and had to go. For example, the bank dropped charges of $25 for closing an account within 90 days of opening it and $15 to receive a rush copy of an item.

"We think this will create more loyal customers and grow our business," McInerney said.

McInerney said the moves will pay off with higher revenues over time by winning over more customers.

JPMorgan Chase began work on the new disclosure shortly after Pew released its critical report in April. The bank tested the table with customers in focus groups and interviews, and then refined it , McInerney said.

Long legal disclosures of terms and conditions will continue to exist. For those who want to check the details, McInerney said the bank intends to embed Internet links to the fine print in online copies of its tables.

Read more »

Daewoo signs deal to develop Israel's Tamar gas field

Daewoo International

 South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd said on Tuesday that it has agreed to develop Israel's Tamar natural gas field with Noble Energy Inc, Delek Group Ltd and Isramco Inc, and was eyeing vessel orders for the project.

Under the deal, Daewoo will soon conduct an LNG-FPSO feasibility study, aiming to sign a final agreement by the end of next year, a statement from the shipbuilder said, without specifying the size of its stake in the development deal or the value.

The statement said it aimed to produce liquefied natural gas (LNG) from the field, which has estimated reserves of 240 billion cubic meters of natural gas, from the end of 2016 if all the processes for the final deal remained on track.

The volume was equivalent to five times South Korea's annual consumption, Daewoo added.

"(Daewoo) hopes to win multiple orders for LNG floating production and storage and offloading (FPSO) vessels," the Daewoo statement said, adding that the field's owners were considering gas production in the largest offshore find of 2009 through FPSO vessels, not onshore plants, for geopolitical reasons.

The Tamar field is located in a sea area about 80 kilometres west of the port of Haifa, according to the Daewoo statement.

Isramco said last week that it had made a preliminary deal with Daewoo to build and operate a floating LNG facility for exports to South Korea and elsewhere, adding that the companies would hold talks to secure a contract for 15-20 years at a price likely to be between $7 and $9 per MMBTU.

South Korea, the world's second-largest LNG importer after Japan, imported nearly 30 million tonnes of LNG in the first ten months of this year.

Read more »

European shares gain strenght

European shares rose on Tuesday, bouncing from a steep sell-off in the previous session and after Wall Street finished off its lows, though gains were set to be capped by worries over high euro zone and U.S. debt levels.

At 0936 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 923.33 points, after falling 3.3 percent in the previous session to its lowest close in nearly seven weeks, on worries about high debt levels on both sides of the Atlantic and with Moody's warning on France.

Stocks rose almost across the board, with those that suffered most in the previous session bouncing more. The STOXX Europe 600 Banking Index rose 0.6 percent. France's BNP Paribas rose 1.2 percent.

But the banking sector has lost more than 38 percent in 2011, with many banks having to take severe writedowns on exposure to euro zone sovereign debt.

"This (the overall market) does not look like any weakness that one could buy into with a high degree of confidence," Jeremy Batstone-Carr, strategist at Charles Stanley, said.

"Uncertainty over the positioning of the rating agencies is almost certainly going to mean that any bounce in the market is likely to be limited."

Borrowing costs in the euro zone periphery remained major focus in the market. Spanish six-month bill average yields rose to 5.227 percent in an auction, compared with 3.302 percent at the previous sale.

HIGH PROFILE

U.S. lawmakers abandoned their high-profile effort to rein in the country's ballooning debt on Monday in a sign that Washington likely will not be able to resolve a dispute over taxes and spending until 2013.

The debt issues will continue to drive market sentiment, said strategists, and equities were unlikely to see much of a rally in the short term.

"You always get some kind of bounce after a fall-off, but the debt, the uncertainty hasn't really changed," said Andy Lynch, fund manager at Schroders, which manages 197 billion pounds ($311 billion).

"Absent some deus ex machina, time is the biggest healer. We need to see debt being paid down, so banks have capacity to fund economic growth. But that's a six-month story, rather than a six-day story.

"We favour companies with decent balance sheets and good cash flow."

Goldman Sachs cut its three-month target for the STOXX Europe 600 to 195 points, 13 percent below Monday's close of 224.76, citing worries about the failure of euro zone policymakers to come up with comprehensive measures to avoid contagion in the sovereign debt crisis.

"The lack of initiative means weak fundamentals are likely to be a key driver," Goldman strategists said in a note.

Batstone-Carr said there was support for equities from valuation measures such dividend yield.

Equity valuations on Thomson Reuters Datastream showed the STOXX Europe 600 carrying a one-year forward price-to-earnings of 9.4 against a 10-year average of more than 13.

Read more »

Obama college loan plan aims at an old voting bloc

Seeking to shore up support among cash-strapped college graduates and students struggling with rising tuition costs, President Barack Obama is outlining a plan to allow millions of student loan recipients to lower their payments and consolidate their loans.

Outside of mortgages, student loans are the No. 1 source of household debt. Young voters were an important bloc in Obama's 2008 campaign, and student loan debt is a common concern among Occupy Wall Street protesters.

Obama's announcement, to take place Wednesday in Denver, comes the same day a new report is being released by the College Board. It shows average in-state tuition and fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Nationally, the cost of a full credit load has passed $8,000, an all-time high.

The White House said Obama will use his executive authority to provide student loan relief in two ways.

First, he will accelerate a measure passed by Congress that reduces the maximum repayment on student loans from 15 percent of discretionary income annually to 10 percent. The White House wants it to go into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.

Second, he will allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one loan. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million more borrowers.

Education Secretary Arne Duncan told reporters on a conference call that the changes could save some borrowers hundreds of dollars a month.

"These are real savings that will help these graduates get started in their careers and help them make ends meet," Duncan said.

The White House said the changes will carry no additional costs to taxpayers.

Last year, Congress passed a law that lowered the repayment cap and moved all student loans to direct lending by eliminating banks as the middlemen. Before that, borrowers could get loans directly from the government or from the Federal Family Education Loan Program; the latter were issued by private lenders but basically insured by the government. The law was passed along with the health care overhaul with the anticipation that it could save about $60 billion over a decade.

Today, there are 23 million borrowers with $490 billion in loans under the Federal Family Education Loan Program. Last year, the Education Department made $102.2 billion in direct loans to 11.5 million recipients.

Meanwhile, the Education Department and the Consumer Financial Protection Bureau announced a project Tuesday to simplify the financial aid award letters that colleges mail to students each spring. A common complaint is that colleges obscure the inclusion of student loans in financial aid packages to make their school appear more affordable, and the agencies hope families will more easily be able to compare the costs of colleges.

Separately, James Runcie, the Education Department's federal student aid chief operating officer, told a congressional panel Tuesday that the personal financial details of as many 5,000 college students were temporarily viewable on the department's direct loan website earlier this month.

Runcie said site was shut down while the matter was resolved, and the affected students have been notified and offered credit monitoring.

Read more »

Attain Quick Finance by Using Debit Card

Do you have debit card in your name? If yes then you can use it under emergency circumstances which usually comes in the mid or near end of the month in your life without giving any prior notification. These loans allow you to obtain quick financial relief at urgent times against your debit card. This may help you to look after many unwanted cash commitments within due time.

A debit card showcases that you regularly do financial transactions. In this way you can conveniently get out of unexpected monetary tantrums in an efficient manner. For availing debit card cash loans you need to be at least 18 years of age or above and you need to hold an active valid bank account along with a debit card in your name. Moreover, you also need to have stable job with good income flow.

The assistance of debit card cash loans helps you to raise sufficient funds that may come in between 100 to 1500. For the repayment of loan you will be offered a short period of 2 to 4 weeks. The loan amount charges will be relatively high, as these are offered for a short time only without any security deposit. But if you smartly research the comprehensive online financial market, then you will be able to derive the effective loan deal at feasible rates.

The amount received with these loans is enough to tackle your many unexpected financial dues such as pay for unpaid grocery bill, credit card debts, unpredicted medical bill, car repairing, small travel expense, organizing small birthday party, buying a mobile phone and more.

Read more »

Uk Loans - Ensure Instant Money For a Stress Less Life

Tenants or non home owners often find it difficult to obtain a loan. A valuable property to secure as collateral is demanded by every lender to offer hassle free financial deal. If you are having financial problems and looking for the finest loan approach that suit your terms, here are loans UK for you. These loans are unsecured form of loan that is pertinent and appropriate financial option for tenants. The assistance of these loans let you grab instant money with no collateral assessment procedure.

For the better and affordable financial aid, check out loans UK right away. These loans can be availed with the ease of online application method. You do not have to leave the comfort of your home or office. Make a careful online research and search the most affordable lender of all. To get applied, fill the application form with few required details and the money can be accessed directly from your checking account in quick span of time. There will be no fuss and delay in the application or approval.

To get approved with UK tenant loans, one needs to meet some of the simple eligibility criteria. To get this loan aid, the applicant should be a permanent citizen of UK and complete the age of eighteen years or more. Also, he should be in capable enough to repay back the loan money on time. Plus, he should hold a valid and active bank account that should not be more than three months old.

The situation may come when you cannot able to fulfill your financial expenses within your monthly income. Loans UK are one of the ideal sources of financial deal for people to overcome their financial troubles with ease. You need not have to arrange any valuable asset to pledge as a security against the loan amount. You are allowed to borrow the loan money that can be ranges from 1000 to 25000 with swift repayment tenure of 1 to 10 years. Spend the funds for meeting any of the desired or pending financial expenses such as renovating your home, paying off previous debts, pay off huge monthly rent, go for small vacations and so on.

No worries if your credit scores are bad or imperfect, you can still get the approval of loans UK. These loans are powerful financial tool for tenants that can be availed without undergoing any credit checks and collateral demand.
Mathew Kenny is offering loan and financial advice for quite a long time. He is working as the senior financial consultant with Loans. To find loans UK, personal loans for tenants, UK tenant loans, unsecured tenant loans, bad credit tenant loans, tenant loans visit http://www.uktenantloans.co.uk

Read more »

Are Settlement Loans And Lawsuit Loans Legal?

Since I’m in the industry, obviously I have a lot of interest in articles being published about theis particular facet of litigation funding. I find it particularly interesting to read the numerous articles that are misleading. One can only surmise that many of these articles are published by those who would want to preclude having individuals obtain adequate lawsuit loans and settlement loans to assist them with the litigation process. A common reason that this would occur would be because the individuals do want do not want the injured plaintiff to have his/her “day-in-court.”

As we begin this article, let me say that some jurisdictions make it extremely difficult, if not impossible, to obtain lawsuit funding (e.g., North Carolina). However, most states do permit such transactions to occur. It is understood that, as a public-policy, this form of funding can be very helpful to those who do not have the financial resources to fend for themselves if tthey sustain injuries as a result of another’s negligence.

Please take note of the fact that attorneys are barred, at least in most jurisdictions, from assisting their clients financially, irrespective of the financial hardship the client may face. Additionally, most jurisdictions make it illegal for anyone other than a disinterested third party to provide either lawsuit loans were settlement loans to plaintiffs. Attorneys who violate this stricture often place their professional lives in jeopardy.

The American Bar Association has made it very clear that its position is that attorneys are not to advance financing to their clients to enable them to proceed with litigation. Furthermore, virtually all jurisdictions bar attorneys from engaging in this activity. Many attorneys general offices have actually issued legal opinions with respect to this issue.

An individual may certainly incredibly asked why he such funding would be necessary to pursue litigation if one is injured as a result of another’s negligence. Unfortunately, many people find themselves confronting substantial delays in settlements. These delays can create crashing hardships on those individuals who have sustained the injuries. In fact, insurance carriers often focus on the strategy of “delay, delay, delay.” These delays often result in coercing the plaintiffs to settle their claims at a substantially-reduced amount.

There are some instances in which attorneys object to their clients obtaining either lawsuit loans are settlement loans. Although this is relatively rare, this is seen most commonly in attorneys who work with so-called Personally Injury Mills. The attorneys do not wish to have the client possess the means by which he/she is able to continue the litigation because the attorney wants to quickly churn-out a particular number of cases each month to meet the firm’s quota. Individuals would be wise to avoid utilizing such attorneys’ services.

It is the non-recourse nature of litigation funding that often confuses individuals. However, this simply means that if the individual does not win the underlying lawsuit, they do not have to repay the money advanced. Actually, it’s inappropriate to refer to these arrangements as “loans.” If they were loans, it would be necessary for them to be repaid, irrespective of the outcome of the case. Therefore, it is more appropriate to refer to this form of funding as, just that, funding.

In spite of all of the fear-mongering, lawsuit loans and settlement loans are perfectly legal, if not performed in a usurious manner. If a funding entity were to engage in such activities, the transaction could be barred as a matter of law. Therefore, individuals would be wise to work closely with lawsuit funding brokers to assist them in finding the most ethical and economical avenues to obtain the funding they seek.

Do you think a lawsuit settlement loan is right for you? Would you like to learn more about lawsuit funding? Please visit us today and you may apply online for lawsuit funding and learn more about the benefits of lawsuit funding.

Read more »

Many Britons Find Driving Abroad Trying

Many Britons find driving abroad difficult to master and find themselves travelling on the wrong side of the road or going the wrong way up a one-way street and through no fault of their own find they are victims of car theft and vandalism.

Driving AbroadSainsbury’s car insurance has found that over 2 million Britons abroad admit to driving on the wrong side of the road, causing havoc for themselves and other drivers.

Over 500,000 claim to have been stopped for speeding whilst driving abroad and over 400,000have been involved in a motoring accident while overseas.

Ben Tyte, Head of Car Insurance at Sainsbury’s Finance said: “Drivers taking their cars abroad need to prepare, not just because they’ll be driving on the other side of the road, but because laws differ from country to country.

It is perhaps easy to get your car abroad but as Ben adds: “Motorists need to ensure they have a suitable insurance policy to cover them while overseas and that they understand the legal requirements for driving in the country they are going to.

“Failing to do so could ruin your holiday and leave your severely out of pocket.”

Many of those taking cars overseas unfortunately also find themselves victims of vehicle crime. Over 500,000 Britons have had their car vandalised while abroad and 310,000 their vehicle broken into in the last 5 years.

And there’s another 400,000 drivers who have lost their car keys.

If you’re taking your car abroad, with help from Sainsbury’s car insurance, here’s a checklist of things to do to help ensure it goes smoothly:

   1. Check your car insurance before travelling – policies will include different levels of cover whilst abroad and will stipulate how long you are covered for. Call your car insurance provider and advise them you are planning to drive abroad; doing this could mean a much smoother process should you need to make a claim.
   2. Check your car insurance policy for European breakdown assistance, some policies offer this as standard, others do not. For example Sainsbury’s Premier Cover offers up to 90 days.
   3. Have a clear plan for your route. Invest in a map or use a European route planner on the internet, to ensure you know where you are going and anticipate any risks in advance. If you don’t like the stress of driving in a city for example try and plan a route that keeps you away from them.
   4. Set a realistic timescale for your journey to avoid feeling pressured to drive fast or not take enough breaks.
   5. Motoring laws differ across countries so make sure you know what they are for the countries you are visiting. The government website www.fco.gov.uk/knowbeforeyougo can help with this.
   6. Make sure your car is fit to do the miles – check tyre pressures, oil, brake fluid and water levels to help avoid breakdowns.

Read more »

Significant scale change pleases Ageas chief

Barry Smith, chief executive of Ageas UK, has claimed the insurer is on track to break the 100% combined operating ratio (COR) barrier but warned again that he saw no real signs of commercial market hardening.

Speaking after the company delivered £882m in income for the first half of 2011 and profit before tax of £35.4m, he told Insurance Age: "I'm really pleased. What is encouraging is we see a significant change both in terms of the scale of the business and the profitability. That is probably a comment on all aspects of what we do."

Ageas Insurance reported a COR of 100.5% (H1 2010: 106.5%) but Mr Smith indicated he was confident of achieving a double digit figure soon.

"If you take the quarter two combined ratio it was 97.2%," he said. "The first half was influenced in part by the escape of water deterioration from 2010. Quarter two is very encouraging."

The private car ratio left him similarly upbeat. "Private car is important to us, the motor combined ratio was 96.9% to the half year. Those combined ratios say to us that significant progress has been made."

Bodily injury
He assigned the improvement to knowledge of the change in the profile of claims going back to bodily injury in 2009, remedial action with more sophisticated risk rating and the increase in market rates.

With motor now showing a relatively healthy COR he accepted that the first quarter had seen more rate increase than the second and anticipated the levelling out of rate increase would continue.

"Logically the evidence is there that shows that more rate across the market is needed ... there is probably still a need for rate increases but more akin to claims inflation," he said.

Mr Smith said that the 32.5% growth in commercial lines to £106.3m (H1 2010: £80.2m) was good but the insurer had a significant appetite to do more.

"Part of that is linked to increasing the brokers' awareness of what we already do and part is helping them see that we can help support their businesses and deliver to their customers," he argued.

More staff
He claimed the insurer had more broker facing staff than a year ago and that it looked to mix expertise with technological solutions for brokers.

He said: "At Ageas we should continue to invest to give the option to the broker whether that is a single solution where they are able to access a variety of markets and insurers or whether it is a bespoke electronic solution for them.

"It is not just electronic trading. It is how we stay in touch with the brokers and make decisions to help them and give them access to decision makers so they have confidence to place the risk that has been presented to ourselves."

However he added that it was very difficult to see any signs that brokers would be witnessing a hardening market in the near term.

"I think there may be some pockets in aspects like commercial vehicle, maybe in fleet but, from where we sit, it is difficult to see any real rate strengthening."

Tesco Bank
On the issue of the Tesco Bank Partnership he also stated an appetite to do more and add to the £311.2m of GWP achieved in the first six months

"We think we have the capability, capacity and skills to do a lot more," he said. "It is a lot more across the piece, whether it is linked to Tesco or the broker market it is important that we deliver on what we say we will do."

Read more »

Willis Europe Acquires Polish Insurance Broker BCU AMA

Willis Sets Sights on Growing Polish Employee Benefits and Construction Sectors with Acquisition of BCU AMA

London, UK August 25, 2011 - Willis Europe B.V., a division of Willis Group Holdings plc (NYSE: WSH), the global insurance broker, has acquired 100 percent of the shares of Polish insurance broker, Brokerskie Centrum Ubezpieczeniowe (AMA) Sp. Zoo. The deal, effective immediately, will further strengthen Willis' presence in the country, in particular in the burgeoning Employee Benefits and Construction sectors. Terms of the transaction are not disclosed.

Major civil engineering projects are set to increase the growth of the Polish construction market by around 11 percent this year, while the IMF says that a rebound in employment growth is being driven by increased activity in the services sector.

Established in Warsaw in 1998, BCU AMA focused on specialty insurance lines, developing a significant book of business providing insurance brokerage services to the rapidly expanding Employee Benefits and Construction industries.

Willis Polska, a wholly-owned subsidiary of Willis Europe, has been trading in Poland since 1991, and has 47 employees and three offices in Warsaw, Katowice and Gda??sk. Its latest acquisition will see 12 BCU AMA staff transfer to the Willis' office in Warsaw.

Commenting on the rationale behind the deal, Jacek Cichy, CEO of Willis Polska, said, "As the Polish economy continues to grow at a rate of around 3.8 percent, the expansion of the Employee Benefits and Construction markets, along with other industries, will need to be accompanied by robust risk management. By joining with BCU AMA, we now have leading expertise in these lines of business and can help our clients put in place holistic insurance programmes to mitigate their increased exposure to risk.

"In addition, BCU AMA's clients will also benefit from access to a much broader range of services, backed by the vast global resources of Willis Group, in areas like Energy, Marine, Aviation and Financial and Executive risks."

Willis Group Holdings plc is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 Associates.

Read more »

Phoenix Says First-Half Cashflow Climbed After Fund Mergers

Phoenix Group Holdings (PGH), the U.K.’s biggest manager of closed life insurance funds, said first-half cashflow climbed after it merged groups of policies and reduced costs to squeeze more money from its funds.

Phoenix generated 496 million pounds ($813 million) of cash from its funds in the six months to June 30, up from 335 million pounds a year earlier, the London-based firm said in a statement today. That beat the 487 million-pound average estimate of four analysts surveyed by the company.

The increased cashflow was due to a “series of management actions such as fund mergers, tax hedging and tax shelters,” Chief Executive Officer Clive Bannister said in a telephone interview. “There are clearly relatively arcane and technical processes behind what we do, but it is our job to simplify and explain in words of one syllable such as cash.”

Phoenix, which buys life insurance policies and profits by releasing capital from them as they mature, is aiming to pay down its 2.7 billion-pound debt pile, almost half of which is due in 2014. The stock is the second-worst performer in the FTSE 350 Insurance Index over the last three months as investors speculated the European debt crisis may make rolling over the debt more difficult.

“We don’t think there’s going to be an issue about what will be a re-terming rather than a refinancing of our financial debt package,” Bannister said, referring to the market volatility of the past month.
Stock Climbs

The stock climbed 13.5 pence, or 2.6 percent, to 535 pence as of 8:45 a.m. in London trading, for a market value of about 923 million pounds.

Phoenix accrued the debt when it purchased Resolution Plc for 5 billion pounds in 2007, when the firm was run by Hugh Osmond, founder of U.K. restaurant chain Pizza Express. Osmond is now the firm’s third-biggest shareholder with a 5.6 percent stake, according to data compiled by Bloomberg.

The firm said it expects to meet its target of producing between 750 million pounds and 850 million pounds of cash this year. Net income fell to 90 million pounds from 179 million pounds in the same period a year earlier, Phoenix said.

The lower profit “reflects the impact of one-off positive experience variances that were recognized in the Phoenix Life operating profit in the first half of 2010 and further investment” in its asset management arm, Phoenix said in the statement.

Read more »

Aviva has launched its new online car insurance brand

Announced as part of its H1 2011 results, the new distribution channel forms part of Aviva's strategy to continue to grow its UK general insurance business.

The new service will be available shortly on Gocompare.com and is already online at www.quotemehappy.com - with further price comparison sites planned for later this year.

The new service offers fully comprehensive insurance only and is aimed at lower risk motorists who are aged between 21 and 75; have had no more than one at-fault claim in the past four years and own a car that is no more than 13 years old and is worth less than £40,000.

Happy to serve themselves
Steve Treloar, Aviva's retail director, said: "Quote me happy is an online-only insurance brand, specifically designed for internet shoppers - offering fully-comprehensive insurance for lower risk drivers.

"Customers will be able to get quotes, buy insurance, print documents and manage their policies online.

"This new service builds on the success of our existing motor insurance business. It is deliberately distinct from the Aviva brand - which already gives customers the choice of dealing with us directly online, by phone or through an intermediary or other corporate partner. Quote me happy is designed for people who want a good quality product, but are happy to serve themselves."

Read more »

Admiral's share price falls despite posting record profits

MOTOR insurance group Admiral has seen its share price tumble, despite posting record half year results which saw revenues coming in at more than £1bn.

The Cardiff-headquartered FTSE 100 business, which employs 4,330 across South Wales and is actively recruiting, saw turnover rise 53% to £1.1bn on the first half of 2010.

Its board also announced a record interim dividend payment of 39.1p per share.

Boosted by a rise in premiums across the sector – although they are now flattening – it also posted record half year pre-tax profits of £160.6m, up 27% on the first six months of 2010

However, a worsening in its combined ratio – a key indicator in the car insurance sector of profitability – impacted on its share price, which closed down on the day 11.83% at 1353p, marking the worst performance on the FTSE 100

On the half year performance, chief executive Henry Engelhardt said: “Over £1bn turnover in six months! It wasn’t so long ago that we were pleased to report over £1bn turnover for a full year. This is an incredible achievement and is credit to the hard work of everyone at Admiral.

“In the UK the momentum of vehicle growth and price rises from 2010 and Q1 2011 carried us through the first half of 2011, although injury claims and their related costs continue to rise in the UK market, something to which we are not immune. As one of the lowest cost providers we are well placed for a future which is shaping up to be the survival of the fittest.”

Outside of the UK, where it has operations in the US, France, Italy and Spain, he said Admiral was continuing the tough job of building sustainable, profitable and growing businesses from scratch, including in France, where it only launched last year.

Having recently added Illinois to Maryland and Virginia, Admiral is currently looking to add another state in US in which to sell car insurance.

Mr Engelhardt said: “On a daily basis the new customers we get from outside the UK are now over 15% of the UK’s new business. Meanwhile consumer preference for price comparison shopping in our European markets is growing”.

Its overseas operations reported losses of £3.1m, which was down on the first half of 2010 when they came in at £4.1m. The combined ratio of its overseas operations was 157%, compared to 183% a year earlier. Anything below 100 denotes profitability – and above, losses.

For the UK, Admiral’s combined ratio was higher than in 2010 (82.99%) at 90.4%.

As a proportion of premiums, claims jumped from 67.8% to 77.5%.

Its diminished combined ratio position was impacted by an increase in insurance claims from previous years, which reduced its ability to release reserves – which only totalled £4m, compared to £17.5m a year earlier.

Despite the less favourable ratio level its UK car insurance, profits rose 28% from £135.5m to £168.2m.

Mr Engeldhart said: “All in all we’re pleased with the numbers for the first half of 2011. As a result, every member of staff will receive £1,500 of free shares in the group, worth over £8m in total.”

He said that the company’s philosophy was not to sit on cash and to return profits to shareholders.

He added: “We feel that if you keep money in a company then management teams tend to waste it. We would rather our shareholders ‘wasted it’ than us.”

Mr Engelhardt said that staff had “done a great job “in sustaining strong growth. He added: “They have again stepped up. It sounds easy, but it is a challenge all the time.”

He said that premium increases were felt in the first quarter but the market was now flattening out.”

Admiral’s price comparison subsidiary, Confused.com, saw profits down marginally on 2010 from £8.8m to £8.2m. However, its revenue of £40m was the highest in any half-year period.

On the impact of its new advertising campaign he said: “It is good but not great. It has steadied the ship and has gained some share back over the last six months. However, it is a rough industry. All the big four, Moneysupermarket, Confused, Compare the Market and Go Compare, make pretty good money, but less than a year ago.”

The big four will face competition from a new entrant into the market next year.

French financial giant Covéa’s, whose UK group of companies includes Swinton, MMA Insurance and recently acquired Provident, is assigning a £30m marketing budget for its new price comparison business – which has yet to be given a name. Based in Llantrisant, it is being headed by the former head of Confused, Debra Williams.

Mr Engelhardt said: “It is an interesting new dynamic in the market. It will be very interesting to see if they make a go of it, waste £30m, or change the economics of one company rival.”

Brokers Numis Securities upgraded Admiral’s shares to buy, while Nomura reiterated its buy recommendation.

Kevin Ryan, an analyst in Investec, said the UK insurance underwriting result was worse than forecast and the rising claims were evidence that Admiral’s ability to significantly outperform the market was diminishing.

Nick Johnson at Numis added it was the first time Admiral had highlighted claims-cost inflation as an issue.

He added: “Given that future profit commission earnings are linked to recent underwriting margins, the comments are bound to reduce earnings’ confidence.”

Admiral’s chairman Alastair Lyons said: “This August marks the 20 year anniversary of our chief executive and chief operating officer (David Stevens) working together.

Read more »

UK bank insurance mis-selling complaints jump in H1

LONDON, Aug 24 (Reuters) - Complaints against controversial loan insurance by customers at two
of Britain's top banks rose by 25-30 percent in the first half of this year from the previous six months and may rise further in the current period.

Barclays on Wednesday said there had been a 25 percent rise in complaints about payment protection insurance (PPI) policies. Lloyds Banking Group, the biggest PPI provider, has said complaints rose 30 percent.

Banks face a bill of over 6 billion pounds ($9.8 billion) to compensate customers who were wrongly sold the controversial loan insurance, after the industry lost a legal fight in April.

Analysts are now watching the pace of complaints to assess the final scale of compensation. There are about 12 million outstanding PPI policies. Often the policies were sold to people who would never be able to claim on them.

Lloyds has made a shock 3.2 billion pound provision for compensation, Barclays and Royal Bank of Scotland each took near 1 billion pound provisions and HSBC set aside $509 million.

Overseas banks Santander took a 538 million pound ($887 million) hit and Bank of America has taken a $592 million reserve.

Barclays said it received 73,692 complaints in the first six months of this year about insurance and protection -- mostly about PPI -- up from 59,003 in the previous six months and up 93 percent from the first half of 2010.

It said it expected PPI complaints to rise in the second half of this year.

Lloyds said earlier this month it received 202,384 complaints about general insurance and protection in the first half, up from 156,014 in the previous half-year and more than double the year earlier level.

Banks have to issue complaints data by the end of August.

Barclays said its overall complaints fell by 9 percent in the first half from the previous six months to 251,563. Lloyds said its complaints were down 6 percent to 349,984.

($1 = 0.610 British Pounds)

($1 = 0.695 Euros)

Read more »

Prudential Financial approved for China Life Insurance

(Reuters) - U.S. financial group Prudential Financial (PRU.N) has received regulatory approval to set up a life insurance venture in China with a unit of Chinese conglomerate Fosun Group, accessing the country's 1 trillion yuan ($156 billion) life insurance market.

Prudential Financial and Shanghai Fosun Industrial Technology Development Co would set up the venture within the next 12 months, with Prudential's stake capped at 50 percent, in line with regulations, the China Insurance Regulatory Commission (CSRC) said in a statement on its website.

So far, 28 foreign companies, including HSBC Holdings Plc (HSBA.L)(0005.HK), Axa SA (AXAF.PA) and Allianz (ALVG.DE) have entered China's fast-growing, but competitive life insurance market, which is currently dominated by domestic giants China Life (2628.HK)(601628.SS) and Ping An (2318.HK)(601318.SS).

The venture marks the second cooperation between Prudential Financial and Fosun within less than a year, and is the latest move by Fosun to expand into the financial industry.

Prudential Financial announced in January that it would invest $500 million in a private equity fund to be managed by Fosun, representing the biggest third-party investment by the U.S. insurer in its 135-year history.

Fosun, whose businesses range from pharmaceutical to retail and media, has also formed a private equity venture with U.S. buyout firm the Carlyle Group, as it steps up expansion into the financial industry.

($1 = 6.397 Chinese Yuan)

(Reporting by Samuel Shen and Jacqueline Wong)

Read more »

HACKERS BREAK IN CITIGROUP INC.

HONG KONG (AP) — Hackers stole account  details of much more than 360,000 of Citigroup Inc.’s U.S. credit card customers in a current data breach, the bank mentioned Wednesday, virtually double the number at first believed.

…..item 1)…..Yahoo! News beta….Citigroup says 360,000 affected by hackers

By KELVIN CHAN – AP Organization Writer | AP – 1 hr 45 mins ago……Thursday June 16, 2011

beta.news.yahoo.com/citigroup-says-360-000-impacted-hacke…

HONG KONG (AP) — Hackers stole account info of more than 360,000 of Citigroup Inc.’s U.S. credit card buyers in a current data breach, the bank mentioned Wednesday, virtually double the range at first believed.

Citi stated final week that about 1 % of its credit card buyers had account data hacked online but did not say exactly how many. The actual quantity of customers impacted was believed to be about 200,000, based on Citi’s 2010 annual report, which mentioned the company had roughly 21 million North American credit card consumers.

But the true quantity was in fact 360,083, the bank said in a statement posted on its web site late Wednesday.

The bank stated it found on Might ten that hackers utilised its Account Online method to access the information for North America Citi-branded credit cards issued in the U.S.

The bank said final week that hackers accessed client names, account numbers and speak to information, such as e-mail addresses.

But they weren’t capable to get their hands on social security numbers, dates of birth, card expiration dates or card security codes, details that can be useful in identity theft.

Internal fraud alerts and enhanced monitoring were positioned on all accounts deemed at threat as soon as the breach was found, Citi mentioned.

Letters have been sent commencing June three to men and women impacted, and 217,657 customers have also been sent new cards, Citi stated. Replacement cards had been not sent to the other individuals because the accounts were closed or they had currently been sent new cards for other good reasons.

Citi mentioned it has notified police and government officials.

&quotFor the security of our buyers, and due to the fact of the ongoing law enforcement investigation, we can not disclose further details relating to how the data breach occurred,&quot it said.

Citi reassured consumers that they weren’t liable for any unauthorized use of their cards and urged them to evaluation account statements to report any suspicious transactions.

It’s the most current in a series of substantial-profile data attacks against big organizations and institutions. The International Monetary Fund stated Sunday that it was investigating an attack on its laptop or computer technique.
Google Inc. said earlier this month that Gmail accounts of numerous hundred individuals had been breached. In April, Sony Corp.’s Playstation Network was the victim of a enormous safety breach that impacted more than 100 million on the web accounts.

Read more »

No guesswork, get the facts on retirement planning

IF YOU are over 30, you may recall a time when a regular loaf of bread cost less than $3; when thousands of dollars could buy property; and 'billion' was an abstract monetary concept for most people.

To say then that money in 2011 isn't what it used to be, is to state the obvious. The economists among us will quickly point to the factors at play, beginning with inflation and its degenerative effect on the cash you have in hand, or in the bank. Simply defined, inflation is a rise in the general level of prices of goods and services over a period of time. Housewives understand its power to increase the food bill and, by extension, shrink their purchasing power. Nowadays, financial planners develop formulae to estimate the impact inflation will have on your money in 15 or 30 years' time, a most useful tool for effective retirement planning.

The ability to calculate how much it will cost to maintain a certain lifestyle in the future, is also an essential part of planning for retirement, says Sydney McLennon, assistant vice-president for private clients and portfolio management at Capital & Credit Merchant Bank.

"Every effective retirement plan begins with an estimation of how much you will need to cover your expenses once you stop collecting that monthly pay cheque. From what you tell us, we can determine what you want your lifestyle to be and how much it will cost."

The banking executive said the process involves a formula that takes into account what your interests and needs are likely to be once you turn 65, making allocations for an increase in areas such as health care, where the need is often greater after retirement. "We factor in inflation, your change in needs and lifestyle and create a dollar figure, say $80,000 monthly. We now bring back that money to today's reality and work out what it will cost you on a monthly basis to attain that $80,000 per month in the future," McLennon explains.

The calculation may sound complicated, but the success of your retirement plan and the size of your nest egg depend on some basic things, not least of which are the tools you use to grow your retirement fund, and how well the money is managed.

For many employees, there are pension schemes to which they can contribute, often through salary deduction. But according to McLennon, that pension fund, by itself, is unlikely to provide enough once you leave the world of work.

"Although it's efficient and good, that's just one part of the puzzle. You need to be creating a portfolio where your pension fund is a part of that portfolio," asserts McLennon, pointing to the wisdom of having a diverse mix of products, including real estate, stocks, bonds and even commodities.

For those persons who are not already a part of a registered pension scheme, McLennon recommends an Individual Retirement Account (IRA), considered one of the best instruments to save for retirement.

"The Capital & Credit IRA is extremely flexible. You can start at $1,000 and decide when you want your pension contributions made, whether monthly, quarterly or annually, making it in line with your ability to earn so it won't be so burdensome."

IRA holders may set aside no more than 20 per cent of their taxable income, as stipulated by current pensions regulations. Funds kept in an IRA are tax free, which makes it especially attractive. McLennon explains, though, that only those persons who are not already part of a pension scheme can open an IRA.

"Regardless of whether you're already part of a superannuation fund or self employed, we are ready to start that conversation with you."

Don't wait another moment. Get the facts and the advice you need today and begin to plan carefully for your retirement.

Read more »

Spain Approves Pension Bill in Bid to Woo Investors

The Spanish government agreed to raise the retirement age in a renewed bid to restore investor confidence after a 20 billion-euro ($27 billion) plan to shore up savings banks failed to tame the nation’s borrowing costs.

Four months after Spanish workers disrupted transport and broadcasts in a general strike aimed partly at the pension plan, the Cabinet approved a bill to increase the retirement age to 67 from 65, Deputy Prime Minister Alfredo Perez Rubalcaba told reporters in Madrid today. The government, unions and employers reached an agreement earlier today after late-night talks on the bill and changes to wage-bargaining.

Spain’s worst economic crisis in six decades and a jobless rate of 20 percent have quickened the pace at which the social- security system is eating into its surplus. Europe’s debt crisis has also added urgency to the overhaul that comes as lenders including La Caixa, the nation’s second-biggest savings bank, reorganize in response to new capital requirements.

“It’s a pass,” Antonio Garcia Pascual, an economist at Barclays Capital in London, said of the pension bill. “It’s not outstanding but it has the three key ingredients.”

Spanish Labor Minister Valeriano Gomez told reporters today that the pension bill doesn’t aim to cut retirement benefits and its objective is to “stabilize” spending. The government will revise the parameters of the pension system every five years after 2027 to reflect changes in life expectancy, according to a statement from his ministry.
Bond Yields

Ten-year Spanish bonds yielded 230 basis points more than comparable German securities today, up from 229 yesterday and 209 on Jan. 24 when Finance Minister Elena Salgado unveiled the savings-bank plan. The plan features a minimum core-capital requirement of 8 percent that rises to as much as 10 percent for lenders without private investors.

Responding to the new rules, La Caixa said late yesterday it will hand its banking business over to its listed investment unit Criteria CaixaCorp SA, and turn that company into a commercial bank. The shares rose 21 percent at 1 p.m. in Madrid.

The government, fighting to slash the euro region’s third- largest budget deficit to 6 percent of gross domestic product this year from around 9 percent in 2010, had pledged to approve the pension bill today. Salgado said talks with unions can continue as the legislation goes through parliament, where the minority government needs support from smaller parties.
Lawmaker Approval

“It’s a law so it has to go through parliament and in that process it will be possible of course to make small changes,” Salgado said in an interview on TVE on Jan. 26.

The bill allows workers who have paid into the social- security system for 38 1/2 years to retire at 65 years with a full pension rather than the new limit of 67 years, Gomez said. Gomez said the government will also increase the number of working years used to calculate pension benefits to 25 years from 15 years, doing so gradually from 2013 to 2023.

“They didn’t change much to get the unions on board, but the starting point could have been more ambitious,” economist Garcia Pascual said. “The transition is a bit too generous, but pension costs will spike years from now” and for the moment they are “below those of Germany and France.”

Spain spent 95.7 billion euros on contributions-based pensions in 2010, almost 10 percent of GDP. Forty percent of this year’s spending will go to social security as the nation grapples with Europe’s highest jobless rate, according to the budget law. The unemployment rate rose to 20.3 percent in the fourth-quarter, the National Statistics Institute said today.
Pension Benefits

Last year, the difference between employed workers’ social- security contributions and contribution-based pension benefits turned negative, according to data from the Labor Ministry, even as the system posted a surplus of 0.2 percent of GDP, helped by interest earned on a 60 billion-euro reserve fund.

That shortfall emerged five years earlier than expected due to job losses and demographic factors, said Javier Diaz-Gimenez, a professor at IESE Business School who has written on pensions. Without changes, the debt needed to fund the pension deficit would amount to 190 percent of GDP by 2050, he estimates.

“Small, gradual changes in the Spanish system do not solve the problem,” he said by phone. “It’ll be disappointing because they won’t announce a fundamental reform.”

Prime Minister Jose Luis Rodriguez Zapatero, who once pledged to keep raising pensions, has made a policy U-turn since the Greek debt crisis prompted a surge in borrowing costs. Voters and traditional union allies have been alienated by cuts to public wages and social benefits, changes to labor rules and measures to support banks. The agreement reached with unions was the first since the Sept. 29 general strike.

The Socialists, facing regional and local elections in May, would win 18 percent of the vote if general elections were held now, with the opposition People’s Party on 49 percent, according to a poll in El Mundo on Jan. 2. Zapatero will announce this fall that he won’t seek re-election in March 2012, La Vanguardia newspaper reported yesterday.

Read more »

Casualty Insurance

Casualty insurance, often equated to liability insurance, is used to describe an area of insurance not directly concerned with life insurance, health insurance, or property insurance. Strictly defining casualty insurance has become problematic in recent years with the rising popularity of multi-line insurance policies. It is mainly used to describe the liability coverage of an individual or organization's for negligent acts or omissions. However, the "elastic" term has also been used to describe property insurance for aviation insurance, boiler and machinery insurance, and glass and crime insurance. It may include marine insurance for shipwrecks or losses at sea or fidelity and surety insurance. It may also include earthquake, political risk insurance, terrorism insurance, fidelity and surety bonds.

One of the most common kinds of casualty insurance today is automobile insurance. In its most basic form, automobile insurance provides liability coverage in the event that a driver is found "at fault" in an accident. This can cover medical expenses of individuals involved in the accident as well as restitution or repair of damaged property, all of which would fall into the realm of casualty insurance coverage.

If coverage were extended to cover damage to one's own vehicle, or against theft, the policy would no longer be exclusively a casualty insurance policy.

The state of Illinois includes vehicle, liability, worker's compensation, glass, livestock, legal expenses, and miscellaneous insurance under its class of casualty insurance.

In 1956, in the preface to the fourth edition of Casualty Insurance Clarence A. Kulp wrote:

It has never been possible really to define casualty insurance. Broadly speaking, it may be defined as a list of individual insurances, usually written in a separate policy, in three broad categories: third party or liability, disability or accident and health, material damage. One of the results of comprehensive policy-writing .... is to raise the question of the usefulness of the traditional concept of casualty insurance ... some insurance men predict that the casualty insurance of the future will include liability and disability lines only.

Later in Chapter 2 the book states that insurance was traditionally classified under life, fire-marine, and casualty. Since multiple-line policies began to be written (insurance contracts covering several types of risks), the last two began to merge. Fire-marine and casualty were "portmanteau" terms. When the NAIC approved multiple underwriting in 1946, casualty insurance was defined as a blanket term for legal liability except marine, disability and medical care, and some damage to physical property.

Read more »

Health insurance

Health insurance policies issued by publicly-funded health programs, such as the UK's National Health Service will cover the cost of medical treatments. Dental insurance, like medical insurance, protects policyholders for dental costs. In the U.S. and Canada, dental insurance is often part of an employer's benefits package, along with health insurance.

Funeral insurance
Funeral insurance is a very old type of health insurance which is payed out upon death to cover funeral expenses of the insuree. The Greeks and Romans introduced funeral insurance circa 600 AD when they organized guilds called "benevolent societies" which cared for the surviving families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose.

Accident, sickness and unemployment insurance
Workers' compensation, or employers' liability insurance, is compulsory in some countries

• Disability insurance policies provide financial support in the event of the policyholder becoming unable to work because of disabling illness or injury. It provides monthly support to help pay such obligations as mortgage loans and credit cards. Short-term and long-term disability policies are available to individuals, but considering the expense, long-term policies are generally obtained only by those with at least six-figure incomes, such as doctors, lawyers, etc. Short-term disability insurance covers a person for a period typically up to six months, paying a stipend each month to cover medical bills and other necessities.

•  Long-term disability insurance covers an individual's expenses for the long term, up until such time as they are considered permanently disabled and thereafter. Insurance companies will often try to encourage the person back into employment in preference to and before declaring them unable to work at all and therefore totally disabled.

• Disability overhead insurance allows business owners to cover the overhead expenses of their business while they are unable to work.

• Total permanent disability insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.

• Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expenses incurred because of a job-related injury.

Read more »