- Travelers has set up a new catastrophe bond, named Longpoint Re II. The new “Cayman Islands special purpose vehicle” will provide $250 million of reinsurance from losses resulting from certain hurricane events in the northeastern United States. “The reinsurance purchased from Longpoint Re II is intended to work in conjunction with Travelers’ traditional reinsurance to provide $1bn of protection for Northeast hurricane events in excess of $2.25bn of losses.”
- AIG halts plans for an initial public offering of its Chartis property casualty unit. The company’s relatively new CEO, Robert Benmosche, allegedly told employees he is leaning towards more of a “hold and grow” plan than a racing towards a chunk of capital infusion (which the company would receive from such an IPO). Such a move could be seen as smart, and even admirable as “Benmosche, 65, is slowing the pace of divestitures to boost the value of assets needed to repay loans in the $182.3 billion bailout.”
- Coca-Cola moves ahead with innovative benefits funding plan. The Labor Department has given the go-ahead to the beverage giant’s plan to fund retiree health care benefits “through a special trust and its captive insurance company.” Towers Perrin consulted on the project, which took 12 months to complete, and Prudential Insurance provided the medical stop-loss policies.
- RIMS names new president. The Risk and Insurance Management Society announced Terry Fleming as president, effective January 1, 2010. Fleming has served on the Society’s board since 2004 and is currently vice president.
- Congress has extended the National Flood Insurance Program until February 28. “But officials of the Property Casualty Insurers Association of America made clear they believe the respite, unlike others that have extended the program for short periods since last Sept. 30, should be the last.”
- Obama has finally chosen his cybersecurity czar. And the winner is . . . Howard Schmidt, head of the Information Security Forum, a non-profit cybersecurity organization. But Schmidt, even with his impressive resume, wasn’t Obama’s first choice, or second or third. In July, Forbes reported that at least three other candidates had been offered the position but turned it down.
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