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General insurance industry poised for a shake-up
The freeing of tariff controls on fire and engineering insurance, which are among the most profitable areas in the general insurance business, from September is set to have a far-reaching effect on the entire general insurance sector, particularly health insurance, industry officials say. In effect, profitable sectors that used to cushion bleeding sectors may get hit by competition, reducing the elbow room for insurance players to keep premiums low in risky areas such as health and car insurance. Since the Insurance Regulatory and Development Authority (IRDA) regulates tariffs for motor insurance including the third party and owned damages, the insurance companies will not be able to increase the rates in this area. Chief executives of general insurance companies feel that competition will drive down the premiums in sectors such as marine, fire and engineering, which were hugely profitable and used to cross-subsidise loss-making verticals like health and motor insurance.
Hudson Highland Group Pre-announces Second Quarter Results and ...
NEW YORK, July 16 /PRNewswire-FirstCall/ -- Hudson Highland Group, Inc. (NASDAQ: HHGP) expects to report EBITDA in the middle of its guidance range of $12.5-13.5 million, excluding an additional $1.5 million charge for its 2006 restructuring program, for the second quarter of 2007. The company also expects to report second quarter revenue between $348-$350 million, below its prior guidance of $355-$370 million. In addition, the company expects to report a gross margin dollar increase of approximately 7 percent over the prior year period. "The second quarter was highlighted by consistent performance improvement in Europe and the core of our Asia-Pac region," said Jon Chait, Hudson Highland Group chairman and chief executive officer. "Our North American operation reduced its loss in the second quarter compared with a year ago, but the trajectory of improvement was slower than expected." The company's expected second quarter restructuring charge is due to a recapture by the landlord at its former New York City office location.
Kaiser Aluminum Added to Russell 2000 Index
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--Kaiser Aluminum (NASDAQ: KALU), a leading producer of fabricated aluminum products, today announced that the company has been added to the Russell 2000® index. "Inclusion in the Russell 2000 index will further enhance the company's visibility with investors and institutions, and therefore add value to the company and our shareholders," said Jack A. Hockema, chairman, president and CEO of Kaiser Aluminum. Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading $4 trillion in assets currently are benchmarked to them. Annual reconstitution of Russell's U.S. indexes captures the largest U.S.
MARK LANGE: A landmark in corporate welfare
Medicare Part D makes it easier for America's elderly to buy prescription drugs. It also gives drug companies a free ride on the backs of the next generation. Social Security and other entitlements already threaten the nation's fiscal health. So why would Congress make Medicare Part D a landmark in corporate welfare? It may be a financial debacle, but it's a lobbyist's dream. Part D is a multibillion-dollar entitlement for the pharmaceutical industry that taxpayers will be underwriting for the rest of their lives, or until Congress fixes it, whichever comes first. The White House and Congress claimed the private structure of the program would lead to lower drug prices. In fact, since the program began last year, the opposite has happened, thanks to the lobbying wizards of K Street.
Conseco Announces Additional Steps to Reduce Operating Expenses
CARMEL, Ind., July 9 /PRNewswire-FirstCall/ -- Conseco, Inc. today reported additional steps in its previously announced program to consolidate operations and reduce operating expenses: Conseco CEO C. James Prieur said, "These steps will improve our operating efficiency, free up capital, and reduce our annual real estate and other expenses by about $6 million. We expect to record pre-tax losses of approximately $20 million, representing estimated lease termination costs, one-time relocation costs and other expenses related to the consolidation. We expect to record most of these costs in the remainder of 2007 and first quarter of 2008." Conseco, Inc.'s insurance companies help protect working American families and seniors from financial adversity: Medicare supplement, long-term care, cancer, heart/stroke and accident policies protect people against major unplanned expenses; annuities and life insurance products help people plan for their financial futures.
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