1: CAST SERVICE HIGHLIGHT

Fee Revenue Optimization
Results-driven revenue optimization analysis and execution 

A persistent challenge within the financial service industry is the continued need to create top line revenue growth. The need for revenue generation becomes more acute as industry leaders become aware, once again, of the overall strategic limitations of cost cutting and expense control. Lack of organic growth has contributed to pressures to grow both through acquisition and by broadening into new service offerings. These sometimes disruptive growth tactics can obscure opportunities to improve revenue growth.

Revenue Inhibitors

• Lack of cultural emphasis on revenue generation
• Primary focus on cost cutting
• Conflicting and inconsistent alignment of existing products
• Misunderstood customer behavior and preferences
• Inadequate process and controls for collecting fees
• Limited understanding of competitor revenue-related 'learnings' and trends

Why CAST for Fee Revenue Enhancement

• Database of proven revenue enhancement practices
• Fact-based, rigorous analysis  
• Extensive cross industry experience
• In-depth revenue knowledge:
  • Retail banking
  • Commercial banking
  • Mortgage banking
  • Trust
  • Brokerage securities
  • Insurance
• Results oriented culture
• Collaborative/team approach

If you would like additional information, please contact Tom Vleisides at (213) 614-8066 ext. 244 or email tvleisides@castconsultants.com.

2: AMERICAN BANKER - Bank Channel Growing in Life Insurance Sales

Like manufacturers seeking multiple distribution avenues, many life insurance companies have been looking for further sales channels. The bank channel, for one, has been gaining traction.

Joan Cleveland, a senior vice president of business development at Prudential Financial's individual life insurance division, said that, since the Newark, N.J., company started selling life insurance through banks a little more than a year ago, it has focused on middle-market consumers who have "really been underserved by the life insurance industry."

To make its life insurance products consumer-friendly and bank channel-friendly, Prudential created a simple product designed to be easy to sell. This term insurance product is less expensive and provides a death benefit for a specific period: 10, 20 or 30 years. Prudential, like other life insurance companies that sell through banks, also streamlined the process, making application forms shorter, bringing the application process online and offering real-time underwriting.

Prudential has kept the bank channel from competing with its sales agents by differentiating the products the two sell. The life insurance sold through banks is only available up to $250,000 and is "priced for convenience," Cleveland said. At that price no in-depth needs analysis, such as customers would get if they met with a Prudential sales agent, is conducted.

"It's a different product and a different customer base," she said. "The customer is a little bit younger than general Prudential life insurance policyholders, and they are on a budget, so they are buying a slightly smaller amount of coverage."

New York Life Insurance Co., on the other hand, has eschewed the "more-is-better" sales strategy, avoiding the bank channel altogether, though it means giving up potential revenue. The company has made a strategic decision that its career agents are its strength, and how it provides value.

Mark Pfaff, the executive vice president in charge of U.S. life insurance and agency sales at New York Life, would not concede that the company's avoidance of the bank channel is a "missed opportunity." But Ken Kehrer, the founder of financial services and research company Kehrer-Limra, is not so sure.

"Presumably, they are forgoing sales," Kehrer said. "And banks are better positioned than agents these days to capture middle-market-customer life insurance sales. Life insurance agents are focusing more and more, at the larger insurance companies, on selling life insurance to wealthier people and business owners, leaving people like you and me out of the picture."

Last week, Kehrer-Limra released its Bank Life Sales Report for the third quarter, which showed flat total individual life sales nationally in the quarter and sales down 11% in the year's first nine months, compared to the year-earlier periods. Yet banks raked in 59% more in new life insurance premiums in the quarter, bringing their life sales growth to 32% for the first nine months.

Bank-sales gains in percentage terms can appear outsized because they start from a smaller base; bank sales make up only 2% of overall life insurance sales.

Pfaff noted that New York Life's career agents had a strong year too, with new sales up 23% compared to a year earlier.

He also said that the type of life insurance sales made through banks is different. The more profitable sale is the recurring premium, in which the customer buys a policy and pays the same premium year after year. The other type is the single-premium product, which calls for payment of a lump sum.

About 90% of sales through the bank channel are of single-premium products, Kehrer said.

Nonetheless, Kehrer said he believes dependence on sales agents poses challenges: The number of life insurance agents is shrinking, and the ones who remain are getting older. The solution, he said, is to find alternative distribution channels as companies have done by selling through banks, stock brokerages, on the Internet and through workplace marketing.

"New York Life is paying much less attention than other companies," Kehrer said. "They are a very successful company, but could they also do more by having more middle-market sales? Probably."

"In the long run, if the agent sales force is shrinking, the population is growing and we tend to get wealthier every year, it seems like you are missing opportunities if you stick with a shrinking distribution force," he said. "It doesn't mean you can't be successful at it, but the question is: Would you be more successful if you did both?"

3: AMERICAN BANKER - MassMutual's New CEO Says It Will Stick With What's Working

Massachusetts Mutual Life Insurance Co.'s new chief executive plans no major changes to its growth strategy, except for the modifications that real life thrusts upon it.

"We are in a fortunate position, because our strategy for 2010 is the same as it was in 2009 and the same as it was in 2008," said Roger W. Crandall, who took the helm at the Springfield company at the beginning of this month.

"We have had the same strategy dating back to 2005, when I became [chief investment officer]," Crandall said in an interview last week. "As a mutual life insurance company, we are in a position where we don't have to change our strategy and react to what happened in the previous quarter. We can look for the simpler things … because we work for our policyholders not for stockholders."

MassMutual reported record sales of its life insurance products last year. According to data from Princeton, N.J., research firm Kehrer-Limra, MassMutual's revenue from life insurance sales rose 8%, to $200 million, making it the third-largest underwriter of whole-life policies, behind Northwestern Mutual and New York Life Insurance Co.

MassMutual has increased its life insurance sales 14% annually over the past five years, according to Kehrer-Limra, while sales for the industry overall rose just 1% a year.

"We have always taken pride in focusing on the basics," Crandall said. "We believe that good underwriting and good investment results will allow us to pay the best dividends [to the company's policyholders] over time."

But MassMutual is a company that relies on its roster of insurance agents to sell its product at a time when competing businesses are exploring other distribution channels to boost sales.

Analysts go so far as to say that companies like MassMutual and New York Life, which both generate the majority of their sales through agents, will be forced to change.

Kenneth Kehrer, Kehrer-Limra's founder, said life insurance agents are shrinking in number and many are approaching retirement age. For many companies, the solution is to find alternative distribution channels — sell through banks, stock brokerage firms, on the Internet and through worksite marketing.

MassMutual does acknowledge and is planning to some degree for the shifting demographics of its work force. Crandall, who remained chief operating officer after succeeding Stuart H. Reese as CEO (Reese is now nonexecutive chairman), said MassMutual is examining other channels and considering introducing new products.

It plans to keep expanding its roster of insurance agents, which has increased 35.1%, to 5,000, over the past five years. As Crandall, who has worked at the company since 1988, puts it, life insurance remains a product "that needs to be explained and sold."

"Our investment in our agent force is paying off," he said. "We are going to continue to add agents. This is an excellent environment. Recruiting has increased and we are focused on adding more multicultural and female agents."

A quarter of MassMutual's agents are women, Crandall said.

"We are big fans of demographics," he said. "We look at where and how wealth is being created, and by 2040 or 2050 we are going to be a majority minority country. The business leaders of the future are people of color and women, and we want to be in a position to manage their wealth."

Crandall said his company's line of retirement products may change, even though the retirement services business generated "record" sales last year, rising 25%, to $4.8 billion.

After stopping the sale of several variable annuities last year, MassMutual "will take a look at how we can offer new riders" this year "that can be offered to consumers at a reasonable price," the CEO said.

MassMutual had $415 billion of assets under management on Dec. 31. Crandall said he expects "growth overall" in revenue and earnings this year.

"We have good momentum in all of our businesses," he said. "We have record pipelines and excellent visibility in the RFP market, and assets under management jumped in January as insurance sales continued its strong pace from December. We had a great end of 2008 and improved on that 2009. We have the momentum to continuing to grow this year."

4: AMERICAN BANKER - White House Policy May Life Banks' Annuity Sales

In trying to help the middle class save for retirement, President Obama may also have given a boost to the annuities business.

On Monday, the White House said it plans to promote "the availability of annuities and other forms of guaranteed lifetime income, which transform savings into guaranteed future income, reducing the risks that retirees will outlive their savings or that their living standards will be eroded by investment losses or inflation."

Analysts applauded the initiative and said it could significantly increase annuity assets this year and beyond. Carmen Effron of C F Effron Co. LLC in Weston, Conn., called it a "stamp of approval" for the annuity industry.

"Any time you get the government behind a program, it is an enormous boost for business," she said. "Think about what happened with IRAs and HSAs when the government supported them. Any time the government takes an interest in a financial product, there is an influx of information and publicity. People are going to be talking annuities, and this creates a tremendous opportunities for individual annuity carriers."

Cathy Weatherford, the president and chief executive officer of the Insured Retirement Institute, said that in the past two years she has been advocating this type of measure because the "value of a guarantee has never been greater."

"The dependable, guaranteed stream of retirement income that annuities provide to people later in life is being noticed at the highest levels," she said. "We are pleased that President Obama and Vice President Biden today called for increasing the awareness of guaranteed lifetime income, by 'promoting the availability of annuities.' "

Effron said the details of the government's plan to promote annuities would be crucial. At the very least, she said, she expects the government to draft educational material to inform people about the differences between fixed and variable annuities.

"The reality is, it would really surprise me if the government pinpointed particular companies to buy from," Effron said. "But they might — [as] they did with HSAs — put together a 'preferred' group of insurance companies that meet their standards."

The new support for annuities could boost sales through banks and other channels.

Income earned from the sale of annuities at bank holding companies rose 2.5%, to $2 billion, in the first three quarters of last year compared to a year earlier.

The Michael White-ABIA Bank Annuity Fee Income Report that was released last week said third-quarter annuity commissions rose 12.9%, to $669.8 million, from the previous quarter.

The report, compiled by the Michael White Associates consulting firm and sponsored by the American Bankers Insurance Association, measures and benchmarks the banking industry's performance in generating annuity fee income.

It is based on data from all 7,319 commercial and Federal Deposit Insurance Corp.-supervised banks and 922 top-tier bank holding companies operating on Sept. 30.

Another proposal announced by the Obama administration Monday would encourage middle-class retirement savings by expanding the "Saver's Credit" to families earning up to $85,000.

The income limit has been $53,000 for married couples filing jointly.

Eligible taxpayers would be enabled to take a credit of up to $1,000, or $2,000 for joint filers, for contributions to a qualified IRA, 401(k) or certain other retirement plans.

The administration said that it also plans to match 50% of the first $1,000 contribution by families with less than $65,000 in annual income.

The White House also wants to enhance transparency in 401(k) plans in an effort to make individual investors more aware of program fees and investment performance.

It would do so by requiring that plan documents be made clearer and easier to understand.

Another proposal would require that plan documents report, prominently on quarterly statements, all fees charged against a worker's 401(k) account.

The proposal would also require that plan participants be given information on risk, return and investment objectives before contributing to the plan.

5: ANNOUNCEMENTS - AXA to Voluntarily Delist from NYSE

AXA today announced its intention to voluntarily delist its American Depositary Shares (“ADS”) from the New York Stock Exchange (“NYSE”) and to voluntarily deregister with the U.S. Securities and Exchange Commission (“SEC”).

LINK TO FULL ARTICLE: http://www.prnewswire.com/news-releases/axa-intends-to-voluntarily-delist-from-the-nyse-and-deregister-with-the-sec-to-focus-trading-on-euronext-paris-82598402.html  

6: ANNOUNCEMENTS - ING to Appeal Against Specific Elements of EC Decision

         Appeal against calculation of amount of State aid and price leadership restrictions

         Process to separate banking and insurance operations continues as planned

ING announced today that it will file an appeal with the General Court of the European Union against specific elements of the European Commission’s decision regarding ING’s restructuring plan. ING stands firmly behind its strategic decision to separate Banking and Insurance operations and divest the latter. These processes are on track and will continue as planned.

LINK TO FULL ARTICLE: http://www.ing.com/group/showdoc.jsp?docid=432710_EN&menopt=prm%7Cpre%7Capr%7C010&lang=en

7: ANNOUNCEMENTS - New York Life Launches Interactive Microsite That Offers ...

...Consumers Custom-Made Solutions

Guarantees Matter Seeks to Bridge Consumer’s Individual Financial Need with Appropriate Solution

NEW YORK, N.Y., January 22, 2010 – New York Life Insurance Company today announced the launch of GuaranteesMatter.com, a rich media experience that offers consumers educational and planning materials to help them navigate the changing financial landscape.  The site offers insights and solutions to help consumers understand how their financial needs may have changed by the ‘Great Recession’ and how they can be better prepared for their financial needs in the future.

LINK TO FULL ARTICLE: http://www.newyorklife.com/nyl/v/index.jsp?contentId=122207&vgnextoid=8228bb318a756210VgnVCM100000ac841cacRCRD&cmp=OTC-HPArticlesJan2210&att=featuredarticleguaranteesmatter

8: BANKINSURANCE.COM - 2009 Sees 13% Hike in Applications For Individually

...Underwritten Life Insurance

NEWS IN BRIEF - JANUARY 25 - 31, 2010

U.S. applications for individually underwritten life insurance rose 2.6% in December 2009 over December 2008 and increased 2.9% in the fourth quarter compared to fourth quarter 2008, according to the MIB Life Index.  For the year, applications among individuals aged 60 and over jumped 13% over 2008 and rose 1.8% among individuals aged 45 to 59.  A 3.8% decline in applications among individuals aged 0-44, however, kept overall application activity flat at -0.2% compared to 2008, Braintree, MA-based MIB Group said.


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

9: BANKINSURANCE.COM - 3Q BHC Annuity Fee Income Rises 12.9% Over 2Q

NEWS IN BRIEF - JANUARY 25 - 31, 2010 

Annuity fee income generated by U.S. BHCs rose 4% in the third quarter to $669.8 million, up from $644.2 million in third quarter 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report.  The 12.9% jump in third quarter earnings over second quarter earnings of $593.1 million helped drive annuity earnings up 2.5% in the first three quarters to $2 billion compared to $1.95 billion in the first three quarters of 2008.

Just over 42% of BHCs sold annuities in the first three quarters, led by BHCs with over $10 billion in assets (71.4%), while short of 35% of BHCs with $500 million to $1 billion in assets sold annuities.  BHCs with over $10 billion in assets saw their annuity earnings rise 3.5% to $1.89 billion to comprise 94.6% of total BHC annuity earnings.  In contrast, annuity fee income fell 12.2% among BHCs with $1 billion to $10 billion in assets to $91.4 million, down from $104.2 million, and annuity earnings among BHCs with $500 million to $1 billion dropped 18% to $16.7 million, down from $20.4 million.

San Francisco-based, $1.23 trillion-asset Wells Fargo & Co. ranked first in annuity fee income among all U.S. BHCs, despite reporting a 17.6% drop in these earnings to $504 million compared to $612 million during the same three-quarter period in 2008.  New York City-based, $2.04 trillion-asset JPMorgan Chase ranked second, showing a 3.73% slide in annuity fee income to $258 million.  Charlotte, NC-based $2.25 trillion-asset Bank of American Corp. ranked third, as annuity fee income, reflecting the Merrill Lynch acquisition, jumped 84.2% to $203.2 million.  New York City-based, $767.3 billion-asset Morgan Stanley ($168 million) and Pittsburgh, PA-based, $271 billion-asset PNC Financial Services Group ($98.9 million) ranked fourth and fifth, respectively, with PNC reporting a 99% jump in annuity earnings, helped by its acquisition of National City Corp., the Michael White-ABIA Bank Annuity Fee Income Report shows.

Among the top 10 BHC fee income earners, annuity revenue fell among five and achieved the highest growth (235.7%) at Birmingham, AL-based, $140 billion-asset Regions Financial, where $71.2 million in annuity earnings comprised 2.57% of the company’s noninterest income, the largest percentage among the top 10 earners, the White-ABIA Report reveals.


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

10: BANKINSURANCE.COM - Affluent Americans Awakened by Financial Crisis

NEWS IN BRIEF - JANUARY 18 - 24, 2010

About 9 in 10 Americans (88%) with at least $500,000 in investable assets believe it is more important than ever to live within their means, according to a PNC Wealth Management survey.  Half of this group is re-evaluating its priorities; 47% are discussing money management with their children; 42% say the recession has had a negative impact on their family budget, and they have cut their spending on non-essential goods, PNC Wealth Management found.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

11: BANKINSURANCE.COM - AXA Retirement Planning Curriculum Approved...

...for Credit in 49 States

NEWS IN BRIEF - JANUARY 18 - 24, 2010

New York City-based AXA Distributors, the wholesale annuity distribution unit of AXA Equitable Life Insurance Company, has created a retirement income planning curriculum for financial professionals.  The curriculum has been approved in 49 states for continuing professional education credit and includes a step-by-step guidebook that describes the mechanics of Social Security and Medicare, IRA planning strategies, available technology platforms, practice management and marketing techniques.  AXA Distributors Vice President Kelly Lavigne said, “After the challenging markets of the last two years, many clients and prospects are seeking retirement income planning expertise to help them rebuild assets and sustain their retirement dreams.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

12: BANKINSURANCE.COM - Banks' Fixed Annuity Sales Fall

NEWS IN BRIEF - JANUARY 25 - 31, 2010 

Fixed annuity sales at U.S. banks dropped 24% in the third quarter to an estimated $7.25 billion down from $9.54 billion in third quarter 2008, impacted by their narrowing interest rate advantage over bank certificates of deposit (CDs).  Sales in the first three quarters rose 7% to an estimated $26.9 billion, up from $25.1 billion in the same period a year ago, according to the Beacon Research Fixed Annuity Premium Study.

Western National Life ($1.13 billion), Pacific Life ($1.12 billion), New York Life ($673 million), AEGON/Transamerica Companies ($608 million) and Lincoln Financial ($423 million) were the top five bank channel annuity providers, where the top two book value products dominated.  Among the top ten fixed annuity providers, book value products were preferred (70%) followed by indexed annuities (20%) and MVAs (10%).  Pacific Life Marketing Vice President Christine Tucker said her company’s popular Pacific Explorer fixed annuity product “aligns nicely with the bank-based advisor interest in products that are simple and promote preservation of customer assets.”

Evanston, IL-based Beacon Research President and CEO Jeremy Alexander said he expected to find a continued downturn in bank fixed annuity sales in the fourth quarter “due to the continued drop in credited rates and their spread over CDs.”  He added, “There is still strong demand by bank customers for conservative investments like fixed annuities, so results should improve when the interest rate environment normalizes.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

13: BANKINSURANCE.COM - Consumer Demand Sparks Agent Recruitment...

...at Northwestern Mutual 

NEWS IN BRIEF - JANUARY 18 - 24, 2010

Milwaukee, WI-based Northwestern Mutual Life Insurance Co. announced it plans to recruit more than 2,300 financial representatives and more than 2,500 interns in 2010.  The effort, it said, is in line with its increased hiring trend, which was up 10% in 2009 over 2008.  Northwestern Mutual Field Recruitment Director Michael Van Grinsven said, “People are seeking guidance and clarity in their long-term planning, so there’s a high demand for trained financial professionals.  Our forecasts show that this demand will continue to grow in the foreseeable future.”  Northwestern Mutual offers life insurance, long-term care insurance, disability insurance, annuities, investment products and advisory products and services and has over $1 trillion in life insurance protection in force. 

14: BANKINSURANCE.COM - CRC Asks Bank CEOs to Donate...

..."Bloated Bonuses" to "Job Creation"

NEWS IN BRIEF - JANUARY 18 - 24, 2010

The California Reinvestment Coalition (CRC) has delivered letters to the CEOs of those banks which it said together hold 60% of deposits in California: San Francisco-based, $1.23 trillion-asset Wells Fargo & Co., Charlotte, NC-based, $2.25 trillion-asset Bank of America Corp., New York City-based, $1.89 trillion-asset Citigroup Inc., and New York City-based, $2.04 trillion-asset JPMorgan Chase & Co..  In the letters the coalition asked each CEO to tithe 10% of his executive compensation to “a ‘Main Street Stimulus’ for job recovery.”  CRC Executive Director Alan Fisher said, “Since the public had to give banks such a generous gift, we propose that top bank executives give back from their bloated bonuses to help create the jobs our economy desperately needs.”  San Francisco-based CRC is comprised of more than 275 of California’s nonprofit organizations and public agencies and says it “advocates for the right of low-income communities and communities of color to have fair and equal access to banking and other financial services.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

15: BANKINSURANCE.COM - FDIC Proposes Rule...

...Tying Employee Compensation to Insurance Assessments

NEWS IN BRIEF - JANUARY 18 - 24, 2010

The Federal Deposit Insurance Corporation (FDIC) has issued an Advance Notice of Proposed Rulemaking (ANPR) on Employee Compensation and is seeking comments on the ways the risk-based deposit insurance assessment system can be changed to account for employer compensation.  The FDIC has determined that assessments need to be in line with “risks inherent in the design of certain compensation programs.”  In this way, companies that incentivize risk will pay for the cost of insuring that risk by paying higher assessment fees into the Deposit Insurance Fund (DIF).  The FDIC said it “seeks to provide incentives for institutions to adopt compensation programs that better align employees’ interests with the long-term interests of the firm and its stakeholders, including the FDIC.”  To read the ANPR, click here.  Comments on the ANPR are due 30 days after its publication in the Federal Register.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

16: BANKINSURANCE.COM - Insurance Agents Protest

...New York's Proposed Compensation Disclosure Regs

NEWS IN BRIEF - JANUARY 25 - 31, 2010

Glenmont, NY-based Professional Insurance Agents of New York State (PIANY) has submitted its written comments to the New York State Insurance Department (NYSID) in response to the latter’s published draft producer compensation disclosure regulation: Conduct, Trustworthiness and Competence of Insurance Producers, Especially Relating to Compensation Arrangements with Insurers.  In its response, PIANY argued the NYSID’s plan to mandate disclosure “is neither supported by real and actual experiences of consumers nor is it required by law, since commissions are being paid from the companies to the producers and not to the policyholders.”   In addition, PIANY said, “since the Legislature has not chosen to mandate disclosure of consumer compensation, the department has no authority to impose one by regulatory fiat.”  As a bottom line item, PIANY noted, “the cost of compliance is disproportionate to any purported benefit provided the purchaser.”  PIANY went on to point out vagaries in the draft regulation and the need to clarify terms, intent and application.  Overall, PIANY opposes the draft regulation.  To read PIANY’s comments on NYSID’s draft producer compensation disclosure regulation, click here.


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

17: BANKINSURANCE.COM - Life Insurers See Modest to Flat Year Ahead

NEWS IN BRIEF - JANUARY 18 - 24, 2010

Most life insurers are predicting that growth in sales, premium and profitability in 2010 will be modest to flat compared to 2009, according to a recent LOMA Resource magazine survey.  Variable product guarantees, battered investment portfolios and exceptionally low interest rates are expected to be drags on profits.  In addition, consumers are expected to seek low-cost coverage and be more cautious about purchasing variable products.  In order to drive profits, insurers are looking at faster processing technologies, automated underwriting, smart phones, wireless tools, workforce virtualization and voice-over-Internet communications.  LIMRA, LOMA and LL Global President and CEO Robert Kerzner said, “The environment will remain difficult – some companies will thrive while others will struggle.”  He predicts that highly capitalized companies will seek to increase their market through mergers and acquisitions in 2010.

18: BANKINSURANCE.COM - New Trend? Affluent Investors Favor IRAs

...Over Employer-Sponsored Retirement Plans

NEWS IN BRIEF - JANUARY 25 - 31, 2010

Affluent investors for the first time have allocated more dollars to individual retirement accounts (IRAs) than to employer-sponsored retirement plans [401(k) plans], according to Cambridge, MA-based Cogent Research.  This, among other factors, has contributed to the rise of Charles Schwab as the number one distributor of mutual funds, the rise of Vanguard as the number one mutual fund provider and the decline of Fidelity from first to second in both categories.  In addition, Cogent said, “Fidelity no longer ranks among the top five mutual funds on performance, a critical factor impacting loyalty.”

According to Cogent Research, the top five mutual fund distributors include Charles Schwab, Fidelity Investments, Morgan Stanley Smith Barney, Edward Jones and Merrill Lynch.  The top five mutual fund companies include Vanguard, Fidelity Investments, American Funds, T. Rowe Price and TIAA-CREF.  For more information about Cogent’s 2010 Investor Brandscape Report, click here.


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

19: BANKINSURANCE.COM - Obama Pushes Congress for Bank Reform

NEWS IN BRIEF - JANUARY 25 - 31, 2010

U.S. President Barak Obama announced on January 21 that he will ask Congress to enact legislation prohibiting banks from engaging in proprietary trading and owning, investing in or sponsoring hedge and private equity funds.  In addition, he said he would ask Congress to enact legislation that would cap each bank’s share of the total market of nondeposit liabilities.  Obama said, "My resolve to reform the system is only strengthened when I see a return to old practices at some of the very firms fighting reform, and when I see record profits at some of the very firms claiming they cannot lend more to small businesses, cannot keep credit card rates low and cannot refund taxpayers for the bailout."

Speaker of the House Nancy Pelosi called the President’s proposals "what taxpayers demand and deserve."  She said, "We look forward to working with the President and the Senate in enacting these common-sense reforms into law."


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

20: BANKINSURANCE.COM - Pacific Life IDs Women as...

..."The Most Underserved Life Insurance Market"

NEWS IN BRIEF - JANUARY 25 - 31, 2010

Women control about half the $14 trillion in U.S. private wealth, live nearly five years longer than men and need approximately $2 trillion in life insurance, according to Newport Beach-based Pacific Life.  Yet, Pacific Life Marketing Services Vice President Alyce Peterson said, “Whether they are business owners, corporate executives or simply affluent, women are the most underserved life insurance market.”  To access What Women Need to Know About Retirement, the independent study on which Pacific Life based its findings, click here.


BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

21: BANKINSURANCE.COM - Pelosi Slams Insurers

NEWS IN BRIEF - JANUARY 18 - 24, 2010

Speaker of the House of Representatives Nancy Pelosi accused U.S. insurance companies last week of funneling between $10 and $20 million through the U.S. Chamber of Commerce to fund deceptive ads opposing health insurance reform.  In a press release issued on January 12, Pelosi said, “This duplicity is not surprising coming from an industry that has used every method to try to kill health insurance reform that would save lives, save money, save jobs and save Medicare.”  Insurers, Pelosi said, want to “maintain a health insurance system of high costs, limited access and arbitrary cut-offs for American consumers.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

22: BANKINSURANCE.COM - SEC Chairman Schapiro Points Commission...

...to Lack of Regulatory Authority

NEWS IN BRIEF - JANUARY 18 - 24, 2010

Security and Exchange Commission (SEC) Chairman Mary Schapiro told the Financial Crisis Inquiry Commission last week that the financial crisis “resulted from many interconnected and mutually reinforcing causes.”  Mortgage securitization encouraged weaker underwriting standards and reliance on credit rating agencies.  Because markets were viewed as always self-correcting, weaker standards and regulatory gaps increased.   Complex, illiquid and not easily understood financial products like derivatives proliferated.  Compensation incentives encouraged significant risk taking.  Companies that marketed or purchased complex financial products failed to appropriately oversee and manage risks, and the regulators had no authority to monitor and reduce risks that flowed outside their regulatory domains. To read her entire testimony and recommendations, click here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

23: BANKINSURANCE.COM - State AGs Oppose Senate Health Care Bill as Unconstitutional

NEWS IN BRIEF - JANUARY 18 - 24, 2010

The Attorneys General (AGs) of Alabama, Colorado, Florida, Idaho, Michigan, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Virginia and American Samoa have stated their opposition to the Senate Health Care Bill H.R. on Constitutional grounds.  The attorneys general describe the bill’s special treatment of Nebraska as a state whose residents will share in the health insurance plan but never have to pay the cost of underwriting the medical mandates in the plan as “arbitrary and capricious,” not for the general welfare of all states and, therefore, unconstitutional.  In a letter to Speaker of the House Nancy Pelosi and Senate Majority Leader Henry Reid, the attorneys general said, “As legal officers of our states we are contemplating a legal challenge to this provision and we ask you to take action to render this challenge unnecessary by striking that provision.”  The AGs said the Nebraska exemption was the price supporters of the bill were willing to pay Nebraska Senator Ben Nelson for his crucial 60th vote in favor of the Senate bill.  To read the letter in its entirety, click here. 

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

24: BANKINSURANCE.COM - Study Says Insurers' Investments Improved 4.7%

...in the First Three Quarters of 2009

NEWS IN BRIEF - JANUARY 25 - 31, 2010

Invested assets held by insurance companies improved 4.7% in the first three quarters of 2009, according to Cincinnati-based Ward Group’s study of 43 U.S. insurers.  In its study, Portfolio Management and Insurance-Company Owned Life Insurance (ICOLI), Ward found that equities as a percent of invested assets has declined 23% among insurers since 2007; preservation of capital is a primary investment objective among 47% of companies, and 74% of companies are concerned about funding future benefits liabilities.  As an investment strategy, only 11% of companies use ICOLI to improve the efficiency of their investment portfolio.  Ward Group President Jeff Rieder said, “The majority of companies utilize ICOLI only for the life insurance benefits.”  The deBart Group CEO Richard deBart, who commented on the Ward Group study, said the disinclination of insurers to use ICOLI as an investment strategy is “potentially due to lack of familiarity with ICOLI products,” an interesting comment since life insurers are the source of the products.

25: BANKINSURANCE.COM - The Unregulated Shadow Banking System Fueled...

...Financial Crisis, Bair Tells Commission

NEWS IN BRIEF - JANUARY 18 - 24, 2010

Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair said in testimony before the Financial Crisis Inquiry Commission last week that products and practices that originated in the shadow banking system not regulated by the FDIC fueled the financial crisis.  Adding “more regulation upon insured banks,” she said, “will simply provide more incentives for financial activity to be conducted in less-regulated venues and exacerbate the regulatory arbitrage that fed the crisis.”  To read her entire testimony, which includes her proposed solutions, click here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

26: BANKINSURANCE.COM - Wells Fargo to Merge, Reorganize and Liquidate Funds

NEWS IN BRIEF - JANUARY 18 - 24, 2010

San Francisco-based, $1.23 trillion-asset Wells Fargo & Co. subsidiary Wells Fargo Funds Management plans to merge, reorganize and liquidate various funds currently held under Wells Fargo Advantage Funds and Evergreen Investment Management Company.  In the move designed to eliminate product overlap, 27 Evergreen Funds will be reorganized into new Wells Fargo Advantage Funds, 53 mutual funds from both fund families will merge and 4 Evergreen Funds and 1 Wells Fargo Advantage fund will be liquidated.  Evergreen portfolio managers will continue their roles as part of Wells Capital Management.  The reorganization requires shareholder approval.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

27: K@W - Global Real Estate: Ready for a Rebound?

The global real estate community is breathing easier than it was a year ago, judging by the sentiments of participants at a recent Knowledge@Wharton global real estate forum titled, "The Road to Recovery: Investing in the Global Real Estate Rebound." Held at the New York Stock Exchange on December 11, in conjunction with Interconnect Events, the forum focused on the developed world's challenges in freeing up private capital and finding opportunities in distressed real estate assets, among other topics. According to some speakers and panelists, opportunities that receded in the West in the wake of the financial crisis can still be found in emerging markets, although the barriers to entry remain high.

LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article/2413.cfm 

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

28: K@W - Seeing Red: What Are the Costs of China's Currency Policy?

In the depths of the recession, many critics of China's currency policy -- which keeps the yuan artificially low in value -- held their tongues. After all, that policy allowed other countries, especially the United States, to borrow from China the vast sums they needed to stimulate their economies. But now that the world economy is improving, some are resuming the call for China to let the yuan gain strength, and eventually to float freely -- as the dollar, euro and yen do -- allowing other nations to better compete with China's exports. What is the best currency policy? Are China's interests really at odds with those of the rest of the world? Wharton faculty and other experts weigh in.

LINK TO FULL ARTICLE: http://knowledge.wharton.upenn.edu/article/2414.cfm 

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

29: M&A - MetLife Near Deal For AIG Life Unit

American International Group Inc. is in talks with MetLife Inc. to sell one of its largest insurance units for between $14 billion and $15 billion, according to news reports Tuesday citing people familiar with the matter.

The two companies have been in discussions for months about a potential deal for AIG's American Life Insurance Co., known as Alico, the Wall Street Journal reported. The New York Times' DealBook blog also had a similar report.

30: MISCELLANEOUS - Bank Economists Expect Sustained Economic Recovery in 2010

The economy is on a sustainable recovery path and job growth will return this year, according to the Economic Advisory Committee of the American Bankers Association.  High unemployment and restrained consumer spending, however, will be major impediments to more rapid economic growth. 

"We're on the cusp of private industry job creation, which will gain momentum throughout the year," said Stuart Hoffman, committee chairman and chief economist, PNC Financial Services, Inc., Pittsburgh.

31: MISCELLANEOUS - Bernanke Confirmation Advances in Crucial Vote

Ben Bernanke has cleared a crucial hurdle in the Senate that assures his confirmation to a second term as chairman of the Federal Reserve.

The Senate voted Thursday to overcome a filibuster that would have doomed his nomination. The Senate will now move to a final confirmation vote.

LINK TO FULL ARTICLE: http://www.weau.com/home/headlines/82972722.html

32: MISCELLANEOUS - Boston Mutual Completes National Ethics Qualification

“We Are Committed To Providing Excellent Service,” Says Boston Mutual CEO ~

Bethesda, MD – (January 15, 2010) – IMSA congratulates the following Boston Mutual companies for completing the rigorous review of their marketing, sales and compliance practices required every three years to qualify for renewed IMSA membership:

•           Boston Mutual Life Insurance Company

•           Life Insurance Company of Boston & New York


LINK TO FULL ARTICLE: http://www.marketwire.com/press-release/Boston-Mutual-Completes-National-Ethics-Qualification-1102466.htm

33: MISCELLANEOUS - Businesses Whose Employees Text or Place...

...Business-Related Calls While Driving Could Be Found Vicariously Liable

Enforcing a clear “electronics usage policy” could help avoid distracted driving accidents and liabilities

SCHAUMBURG, Ill.--(BUSINESS WIRE)--"Distracted driving" may have been Webster's Dictionary's "Word of the Year" for 2009, but in 2010, businesses that provide their employees with mobile devices should keep a related phrase in mind: "vicarious liability."

LINK TO FULL ARTICLE: http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100125006487&newsLang=en

34: MISCELLANEOUS - CSC Signs Application Support Contract with Conseco

Five-Year Agreement Covers Maintenance, Support for Two Insurance Administration Systems

FALLS CHURCH, Va.--(BUSINESS WIRE)--CSC (NYSE: CSC) today announced that Conseco Services, LLC of Carmel, Ind., has hired CSC to maintain and support two of its insurance administration systems. The five-year agreement enables Conseco to reduce expenses and achieve additional flexibility in the management of two large legacy applications.

LINK TO FULL ARTICLE: http://www.csc.com/newsroom/press_releases/40442-csc_signs_application_support_contract_with_conseco?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+csc_global_press_releases+(CSC's+Global+Press+Releases)&utm_content=Google+Reader

35: MISCELLANEOUS - Death From Space: What An Asteroid Could Do

A report released on Friday finds the United States is doing little to defend the planet against potentially devastating asteroids.

Up to 90 percent of the really big and obvious threats are being found, but smaller objects can also wreak vast destruction. Here are some facts about things that can hit the planet:

* Near-Earth Objects are asteroids, comets or really big pieces of them that may wander close to Earth.

* Like the moon and Mars, which are covered in craters, the Earth is also frequently bombarded. But erosion, the movement of continents, the oceans and even forests obscure them over time.

* The National Academies report says it is highly probable that the next destructive impact will be something less than 50 meters (164 feet) across. This happens about once every 1,000 years.

* The last one hit over Tunguska, in Siberia, in 1908, flattening forests. If one hit a populated area today, it would wreak destruction akin to a severe hurricane or tornado.

* Objects one kilometer (just over half a mile) across hit the Earth about once in a million years. Something this big could damage a large region or cause enormous tsunamis if it hit an ocean.

* Objects 3 miles or larger could kick up enough dust to cause global damage for years, perhaps decades of cold and dark conditions, and could cause mass extinctions. "Luckily such events are exceedingly rare, the last known being about 65 million years ago," the report reads.

* About 6,200 near-Earth asteroids are known, the largest being 1036 Ganymed, which is 20 miles across.

* About 500 to 1,000 asteroids are 1 km or wider.

* Smaller objects, five to 10 meters (16 to 32 feet) across hit the atmosphere about once a year, usually exploding with the force of a nuclear bomb in the upper atmosphere and causing no damage on Earth.

* Your own chance of dying in a large cosmic impact is 1 in 40,000, not because it is likely but because such an impact would kill so many people that it raises the odds. In comparison, your own risk of dying in a flood is 1 in 30,000, while the risk of death from a motor vehicle accident is 1 in 100.

36: MISCELLANEOUS - Five Little Known Facts of Life Insurance

That Can Have Big Implications for Older Americans

Senior Resource Golden Gateway Financial Uncovers Five Life Insurance Practices that Could Cost Seniors Big Bucks

Oakland, Calif. - January 27, 2010 - Many older Americans continue to struggle with finances in retirement as a result of the recession. Life insurance in particular can represent a tremendous burden on a retiree's finances, as premiums can rise swiftly and unexpectedly later in life. Senior citizens should educate themselves early about the potential cost of life insurance as they age in order to be properly prepared.

In particular, five specific characteristics of life insurance can significantly increase expenses for those on a fixed income. Senior financial resource Golden Gateway Financial explains these little known facts and possible solutions.

1. Avoid Fast Rising Premiums

Life insurance premiums can rise significantly and suddenly for older Americans, creating challenges for those on a fixed income. Premiums for universal life insurance (also known as flexible premium whole life) rise in cost as the consumer ages because the insurer factors in higher mortality risk. A sample premium table (fig 1.) shows that premium increases usually begin their steep rise around age 70 or 75.

For those on a fixed income this sudden increase can become unaffordable. If the policyholder needs to maintain coverage, one option is to reduce the face amount of the policy. Options for unneeded or unaffordable policies include selling or surrendering the policy.

2. Monitor Term Insurance Increases

Term life insurance has two points at which premiums can take a big jump.  The first is at renewal. At the end of most term policies, if the owner cannot or will not convert the policy, then they must either discontinue coverage or undergo a new medical underwriting in order to get a new policy. This will often lead to higher rates. 

There are also term policies that begin with level premiums, but then increase dramatically as the insured ages. These sample rates (fig. 2) for a healthy, non-smoking male demonstrate this significant increase.

3. Pursue Payouts from Policies

Most life insurance never pays a death benefit, meaning most policies never realize their original intent. According to the Insurance Studies Institute, this number is as high as 85 percent of all policies. In those cases, policy owners often leave a significant amount of money on the table. For example, in 2005 policy owners stopped paying premiums on 19.8 million policies worth $1.1 trillion (Insurance Information Institute).

Policy owners should monitor their policies closely and be aware of all the life insurance options available to them so as not to leave their money on the table. These can include adjusting beneficiaries, choosing to receive cash value, or selling their policy in a settlement.

4. Avoid Cash Surrender Fees

Be wary of the cash surrender option with a life insurance policy. In many instances, if you choose to access the cash value in your policy, you'll have to pay a surrender fee. These fees vary by insurer, and can be substantial. Seek other options for generating cash from your policy such as life settlement or - if your policy allows - taking dividend payments.

5. Be Aware of Policy Maturity

The majority of life insurance policies are only valid through age 95 or 100.  If the insured is still alive at that point, then the policy matures and the carrier will pay out the cash value.  However, if the senior had previously relied on the cash value to pay for the policy's increasing premiums, then they could be left with little to no benefit at maturity. One way to address this is to inquire about a life extension rider that can extend the maturity date to 120 years of age. 

Another option available to those policy owners facing unexpectedly increasing premiums or those who are considering allowing their insurance to lapse is life settlement. Life insurance was classified as an asset by the Supreme Court in 1911, and as such, can be sold just like a house or car. This is useful for those older policy owners seeking to turn an unneeded or expensive policy into cash. 

A recent study found that more than 80 percent of older policy owners did not know they could sell their policy for cash. This means that many policy owners simply allowed their policy to lapse or accepted a cash surrender value instead of seeking a more lucrative life settlement.

37: MISCELLANEOUS - ING Top Executive Joins Operation HOPE

New Commitment Strengthens Nonprofit’s Silver Rights Movement for Empowerment

LOS ANGELES--(BUSINESS WIRE)--Financial literacy and empowerment nonprofit Operation HOPE (HOPE), is pleased to announce that Thomas J. McInerney, Member of the (Global) Management Board ING Insurance, has accepted a position on the HOPE National Board of Directors. In his new position, Mr. McInerney will help strengthen HOPE’s mission to eradicate poverty and bring opportunity to underserved communities.

“HOPE is also pleased to recognize Rhonda Mims for her ongoing dedication to the organization. As a result of ING’s contribution, Banking on Our Future has educated more than 17,000 students in the Atlanta area since 2004 and over 425,000 globally since the program began.”

.“I am honored to serve an organization that has already done so much for the community,” said Mr. McInerney. “It is my pleasure to help Operation HOPE continue its mission to eradicate poverty and empower the underserved.”

Tom McInerney is responsible for ING’s insurance board and investment business in the U.S., Latin America, Central Europe, Benelux and Asia. As one of the leading providers of retirement, investment, mutual funds, insurance, employee benefits, reinsurance and asset management products and services in the United States, ING has been setting the standard in helping customers manage their financial future since 1991.

“I am proud to welcome my friend Tom McInerney, to HOPE’s National Board of Directors. His business acumen, vision and commitment to the community will go a long way towards strengthening our efforts to empower the underserved,” said HOPE Founder, Chairman and best-selling author, John Hope Bryant. “HOPE is also pleased to recognize Rhonda Mims for her ongoing dedication to the organization. As a result of ING’s contribution, Banking on Our Future has educated more than 17,000 students in the Atlanta area since 2004 and over 425,000 globally since the program began.”

Rhonda Mims, ING Foundation President and Head of Community Relations, who served with distinction on HOPE boards, was instrumental in helping establish Banking on Our Future, HOPE's youth financial literacy program, in the Atlanta area.

McInerney’s solid background in the financial world as well as extensive experience working with organizations such as National Conference for Community and Justice (NCCJ) and as a board member at the Tuck School of Business at Dartmouth College, make him a welcome addition to an already strong national board.

Mr. McInerney began board service on HOPE’s Global Board in 2007. He is also featured as one of Bryant’s inspirations in his popular book LOVE LEADERSHIP: A NEW WAY TO LEAD IN A FEAR-BASED WORLD.

38: MISCELLANEOUS - Life Quotes, Inc. Works with LifeLock to Help ...

...Better Protect Users' Finances

TEMPE, Ariz.--(BUSINESS WIRE)--In an effort to bring consumers a more complete protection plan on their personal finances, LifeLock, Inc. (www.lifelock.com), the industry leader in proactive identity theft protection, and Life Quotes, Inc., an online service provider of comprehensive insurance options, have recently entered into a partnership that will provide Life Quotes users LifeLock® service at a discounted rate.

LINK TO FULL ARTICLE: http://www.earthtimes.org/articles/show/life-quotes-inc-works-with,1136193.shtml

39: MISCELLANEOUS - Mutual of Omaha Bank to Open Community Bank in Tampa

TAMPA, Fla.--(BUSINESS WIRE)--An office strategically located near the intersection of Dale Mabry and Kennedy Boulevard will soon become Mutual of Omaha Bank’s first full service community bank in the Tampa Bay market, Florida State President Kevin Hale announced.

“This flagship location will serve as a focal point for our expansion in the Tampa Bay market”

.Mutual of Omaha Bank has leased 5,000 square feet on the first floor of the building, located at 302 North Dale Mabry. Formerly occupied by Omni Bank, the location offers immediate access to Downtown Tampa, the Westshore Corridor, South Tampa and Tampa International Airport. Plans call for Mutual of Omaha Bank to occupy the space as a full-service community bank in March 2010.

LINK TO FULL ARTICLE: http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100118005838&newsLang=en

40: MISCELLANEOUS - The Top Five Economic Threats to America in 2010

The Free Enterprise Nation Introduces New Initiatives on Capitol Hill to Protect Small, Mid-sized Businesses and their Employees from Government Excess

TAMPA, Fla.--(BUSINESS WIRE)--The Free Enterprise Nation (FEN) released a list of the top five threats facing free enterprise in the New Year. FEN is a research, education and advocacy organization that champions the cause of businesses and employees in the private sector.

“Never before has free enterprise in America been more threatened,” said James MacDougald, president of The Free Enterprise Nation. “The combination of unbridled and unsustainable levels of government spending, increased taxation and regulation, and governmental interference into fundamental individual rights, has created a ‘perfect storm’ that threatens every worker and every business in the private sector.”

This month, FEN is launching a legislative tour to educate lawmakers about the threats to free enterprise and encourage the sponsorship of legislation to protect American businesses and their employees.

Top Five Threats:

1. Hidden Cost of Government

The massive cost of government entitlement programs and the cost of their own employee compensation and benefits are hidden from taxpayers. Currently, individual citizens must rely on investigative reporters and/or the Freedom of Information Act to discover the level of pay and benefits they provide to public sector employees, and what the true costs and liabilities of these entitlements, pay, and benefits are. FEN will lobby for, and encourage taxpayers to demand, that Congress and every other tax-supported entity enact a Taxpayer Disclosure Act that will require full disclosure of government expenditures including salary and benefits, and the unfunded liabilities associated with these benefits. These disclosures would be required to meet the same actuarial and accounting standards that apply to employers in the private sector.

2. Social Security Crisis

In the next 15 years, an estimated 77 million baby boomers will become eligible for Social Security. Unless immediate changes are made, Social Security will become essentially bankrupt, while most public sector workers retire with a government guaranteed pension plan. In 2010, FEN will seek congressional sponsorship for a bill to guarantee the solvency of Social Security so that free enterprise workers can depend on Social Security to be available when they retire.

3. Government-Coerced Unionization

In 2009, President Barack Obama issued Executive Orders that can require unionization of service or construction contractors in order to receive government contracts. The federal government has also enabled the forced “unionization” of independent contractors under artificially contrived “employer/employee” arrangements. Congress is currently considering the “Employee Free Choice Act” which, if passed, would allow coercion and would eliminate the secret ballot from union elections. FEN opposes all of these measures as being detrimental to a free enterprise economy and will support legislation to oppose any and all of the above measures.

4. Pending Health Care “Reform” Legislation

The costs of the current health care reform would place an unprecedented financial burden on individual taxpayers, entrepreneurs and small businesses. If enacted, the current legislation would add another level of unsustainable debt while programs such as Medicare, Medicaid and Social Security are nearly bankrupt. FEN does not believe Congress has the constitutional authority to make any American buy insurance or abridge the rights of free choice and self-determination of businesses or for the individual private sector worker.

5. Unrestrained Spending, Debt and Taxes

Unrestrained and unsustainable levels of government spending have created historic levels of government debt. To cope with the new levels of debt, governments are raising existing taxes and seeking revenue from new taxes, including proposed “Cap and Trade” tax policies. FEN will promote tax decreases and significant reduction in government spending as the most vital economic “stimulus” needed by our free enterprise economy.

To coincide with the release of the top five threats, FEN has launched new capabilities on its Web site, TheFreeEnterpriseNation.org. The site includes what may be the largest database of government spending and waste ever made available to the public; explanatory position papers on each of the five major threats to our economy; as well as specific initiatives that FEN is taking to address them. “We the private sector, the backbone of our economy, have joined together to speak with one very loud voice… so loud that elected officials must listen,” said MacDougald. “Government must be restored to its proper constitutional role and allow free enterprise to flourish. We can’t let our own government destroy the American dream.”

41: MISCELLANEOUS - TIAA-CREF Lauds President Obama’s Call

for Helping Americans Save for a Secure Retirement

NEW YORK--(BUSINESS WIRE)--TIAA-CREF, America’s largest private retirement system, lauds President Obama’s call to make it easier for more Americans to save for a secure retirement.

“President Obama’s call for expanding long-term savings has the potential to help more Americans build financial security that lasts a lifetime”

LINK TO FULL ARTICLE: http://www.tiaa-cref.org/about/press/about_us/releases/pressrelease317.html

42: PERSONNEL CHANGES - Brad Hewitt Named President and CEO of Thrivent Financial

Organization also announces new corporate governance structure

MINNEAPOLIS--(BUSINESS WIRE)--Thrivent Financial for Lutherans announced today that its board of directors has named Brad Hewitt as the organization’s new president and CEO. Hewitt currently serves as Thrivent Financial’s chief operating officer and will succeed retiring chairman, president, and CEO, Bruce Nicholson, effective February 1, 2010. Hewitt will also join the Thrivent Financial Board of Directors.

“The merger of Aid Association for Lutherans and Lutheran Brotherhood was planned and successfully implemented under Bruce’s leadership, forming the largest fraternal benefit society in the world.”

LINK TO FULL ARTICLE: https://www.thrivent.com/newceo/

43: PERSONNEL CHANGES - MetLife Board Elects Cheryl W. Grisé as Lead Director

MetLife, Inc. announced today the election of Cheryl W. Grisé, 57, as lead director of the company’s board of directors, effective February 1, 2010. Grisé succeeds William C. Steere, Jr., 73, who will be retiring from the board effective as of the commencement of the company’s 2010 annual shareholders meeting.

44: PERSONNEL CHANGES - Retirement Income Industry Association Announces New Board

Boston, MA (January 25, 2010) The Retirement Income Industry Association (RIIA) recently elected two new board members to its leadership team, announced Francois Gadenne, Chairman and Executive Director of the non-profit think tank.

Ron Mastrogiovanni is President and Chief Executive Office of HealthView Services, a firm that provides innovative healthcare cost analysis tools that fill a key void in the financial planning process. Mastrogiovanni brings more than 25 years of experience in management consulting, financial services, and the computer industry to RIIA.

LINK TO FULL ARTICLE: http://www.producersweb.com/r/WIRE/d/contentFocus/?adcID=c0c356d9c30487223221a4c2ddb9073c

45: PERSONNEL CHANGES - Susam Grimes Joins NAILBA

(Fairfax, Va.)—Susan Grimes has joined the staff of the National Association of Independent Life Brokerage Agencies (NAILBA) as the Director of Marketing and Communications, effective January 18, 2010.

Grimes will be responsible for oversight of the Association’s publications, marketing and public relations efforts, including print and electronic outreach and the Association’s Web site.

LINK TO FULL ARTICLE: http://www.nailba.org/news/susan-grimes-joins-nailba-staff

46: PERSONNEL CHANGES - TIAA-CREF Names Stephanie Bell-Rose Managing Director...

...of the TIAA-CREF Institute

Ms. Bell-Rose will oversee the Institute's work to advance TIAA-CREF's growth strategy and encourage a sound, national retirement system. The TIAA-CREF Institute was established nearly 12 years ago under the leadership of Madeleine d'Ambrosio to promote TIAA-CREF's commitment to scholarship, thought leadership and its unique and longstanding partnership with the higher education community.  Building on the Institute's success under the leadership of her predecessor, Ms. Bell-Rose will focus on broadening and deepening the Institute's agenda, which includes advancing lifelong financial security and the business of higher education.

47: PRODUCT - Guardian Reaffirms Commitment of Small Business

...with Enhanced Disability Offerings

Consumer Feedback Shaped Features in Overhead Expense, Disability Buy-Out Products

NEW YORK, N.Y., January 25, 2010? An upgraded suite of business disability products unveiled today by The Guardian Life Insurance Company of America (Guardian) includes unique features not offered by any other carrier—features specifically identified by owners of closely held businesses and professional practices as vitally important to keeping their businesses strong in the event that an owner or partner becomes disabled.

LINK TO FULL ARTICLE: http://guardianlife.mediaroom.com/index.php?s=43&item=89

48: PRODUCT - iPipeline Announces First Interactive e-Policy Solution

e-Policy Summit Held with 10 of Nation’s Top Carriers Validates Feature-Rich Solution

EXTON, Pa.--(BUSINESS WIRE)--iPipeline™, a leader in on-demand software that supports marketing, selling, and processing solutions for the nation’s top insurance carriers, distributors and producers, today announced the launch of its e-Policy solution--the first digital, interactive experience for policy delivery. iPipeline received validation for its feature-rich e-Policy solution and secure, compliant e-Signature technology at an e-Policy Summit held on January 12th with 10 of the nation’s top carriers. All attending carriers indicated the primary benefits for adopting an interactive e-policy solution are reduced costs and increased placement ratios.

LINK TO FULL ARTICLE: http://www.tradingmarkets.com/news/press-release/ftii_ipipeline-announces-first-interactive-e-policy-solution-for-life-insurance-711248.html

49: PRODUCT - VERTEX, Incorporated & Blue Frog Solutions Automate ...

...the Life Insurance Product Distribution Process

NEW BRITAIN, Conn., and POMPANO BEACH, Fla., Jan. 25 /PRNewswire/ -- VERTEX, Incorporated, a premier provider of professional services and innovative software to the insurance and financial services industries, today announced their introduction of a Term and Permanent Life product platform and has partnered with Blue Frog Solutions, a leading provider of Life & Annuity Order Entry System, as the first consumer of their electronic transmissions.

As co-chair of the Association for Cooperative Operations, Research and Development (ACORD) Life Product Working Group, VERTEX was instrumental in defining ACORD's Product Profile for Life transmittal (1201 - PPfL) so that product rules can be distributed externally to insurance partners in support of electronic life product sales.

LINK TO FULL ARTICLE: http://www.google.com/search?q=VERTEX%2C+Incorporated+%26+Blue+Frog+Solutions+Automate+the+Life+Insurance+Product+Distribution+Process&rls=com.microsoft:en-us:IE-SearchBox&ie=UTF-8&oe=UTF-8&sourceid=ie7&rlz=1I7RNWE_en

50: REGULATORY - Obama Divides Davos with Proposal to Curb Size of Banks

U.S. President Barack Obama's plan to impose new rules on bank size and risk dominated talk among bankers on the first day of the World Economic Forum in Davos, Switzerland, as executives said big banks are essential and rules should be coordinated globally.

LINK TO FULL ARTICLE: http://www.bloomberg.com/apps/news?pid=20601074&sid=aWECXpQWsQSI

51: REPORT - 3Q Bank Annuity Fee Income Up 12.9% Over Previous Quarter

FOR IMMEDIATE RELEASE – Radnor, PA, and Washington, DC, January 20, 2010 – Income earned from the sale of annuities at bank holding companies (BHCs) rose 2.5% to $2.00 billion in the first three quarters of 2009, up from $1.95 billion in the first three quarters of 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report™.  Third-quarter annuity commissions, however, rose to $669.8 million, up 12.9% from $593.1 million in second quarter 2009 and up 4.0% from $644.2 million earned in third quarter 2008.

Compiled by Michael White Associates (MWA) and sponsored by American Bankers Insurance Association (ABIA), the report measures and benchmarks the banking industry’s performance in generating annuity fee income. It is based on data from all 7,319 commercial and FDIC-supervised banks and 922 large top-tier bank holding companies operating on September 30, 2009.

LINK TO FULL REPORT: http://www.bankinsurance.com/about/press-releases/2010-01-20-PR-Bank-Annuity-FIR-3Q-09.pdf

52: REPORT - E&Y - US Life Insurance Industry Outlook 2010

Executive Summary

The year 2010 will be difficult for life insurers as the US economy slowly recovers from the aftermath of financial events. Lagging employment with falling aggregate wages, tight credit, weakened residential and commercial real estate and a behavioral shift on the part of consumers from consumption to savings are factors contributing to a delayed economic recovery. The US life-annuity insurance industry will likely face an extended period of weak earnings, slow growth and greater regulatory oversight.

Many insurers are reacting to these challenges by following a "back-to-basics" strategy. This approach may help life insurers weather the storm, but just hunkering down may not be enough to succeed. Regaining profitability and growing the business within the current economy will require creative, pro-active steps to improve strategy and execution. ...

LINK TO FULL REPORT: http://www.ey.com/Publication/vwLUAssets/US_life_outlook_v3/$FILE/US_life_outlook_v3.pdf

53: REPORT - Fidelity Displaced as the Top Distributor and Mutual Fund Provider

CAMBRIDGE, Mass.--(BUSINESS WIRE)--As the result of significant shifts in brand perceptions, household penetration, as well as changes in investor loyalty, Fidelity Investments has forfeited its position as both the number one distributor and mutual fund provider to key rivals Charles Schwab and Vanguard. These results are included in Cogent Research’s recently released 2010 Investor Brandscape™ report.

LINK TO FULL ARTICLE: http://www.marketwatch.com/story/fidelity-displaced-as-the-top-distributor-and-mutual-fund-provider-according-to-2010-investor-study-2010-01-21

54: REPORT - Insurers Face Critical Challenges, E&Y Predicts

The US life insurance industry will likely face an extended period of weak earnings, slow growth and greater regulatory oversight as the economy slowly recovers from the financial crisis, according to Ernst & Young’s Global Insurance Center 2010 U.S. Outlook for the life insurance industry.

Many insurers are confronting these issues with a “back-to-basics” strategy, but that may be shortsighted, according to Doug French, Principal, Financial Services and Insurance & Actuarial Advisory Services Leader at Ernst & Young LLP (US). “That thinking may be helping insurers survive,” French said, “but to become profitable again and achieve growth, insurance executives are going to have to become more innovative and proactive to change the way they conduct business.”

55: REPORT - Providing Employees Shelter from an Economic Storm

10 award-winning companies tell how they did it in new guide from The Principal

DES MOINES, Iowa--(BUSINESS WIRE)--As the nation continues rebuilding from the economic crisis, a new guide offers lessons from 10 award-winning companies that not only survived but thrived during the downturn.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100126006372/en/Providing-Employees-Shelter-Economic-Storm

56: REPORT - The Roth Conversion Gamble by Still River Retirement Planning Software

HARVARD, Mass.--(BUSINESS WIRE)--Still River Retirement Planning Software, Inc. today released a new paper on retirement income planning, “The Roth Conversion Gamble” (http://www.StillRiverRetire.com/SRRPS_FinancialTopics.asp), which offers a rational strategy for Roth conversions.

Chuck Yanikoski, President of Still River, explained, “There are four things that determine whether a Roth conversion is a good idea or not: 1) whether and how Congress will change the Internal Revenue code in the future, 2) whether state taxes will change, 3) taxable income at the time of conversion vs. the future; and 4) everything else (impact of required minimum distribution, etc.). These factors determine what your future marginal tax rate will be, and none of them can be predicted with any certainty. Roth conversions are essentially a bet on current vs. future marginal tax rates. We need a rational strategy to hedge the bet, otherwise the Roth conversion is a pure gamble.”

57: REPORT - Third Quarter Bank Annuity Fee Income Up 12.9% Over Second Quarter 2009

Income earned from the sale of annuities at bank holding companies (BHCs) rose 2.5% to $2.00 billion in the first three quarters of 2009, up from $1.95 billion in the first three quarters of 2008, according to the Michael White-ABIA Bank Annuity Fee Income Report™.  Third-quarter annuity commissions, however, rose to $669.8 million, up 12.9% from $593.1 million in second quarter 2009 and up 4.0% from $644.2 million earned in third quarter 2008.

58: STATS - MassMutual's Retirement Plan Participants Displaying

'Calm After the Storm'

SPRINGFIELD, Mass., Jan. 27 /PRNewswire/ -- MassMutual's Retirement Services Division has released new data indicating that participants in retirement plans administered by MassMutual are taking a calmer, longer-term approach to their retirement saving plans.

A number of key participant measures for the quarter and year ended December 31, 2009 support this finding. Participant deferrals in Q4 2009 were up an average of 0.54% across all age groups vs. Q3 2009. The percentage of participants who maintained or increased their savings rate reached its highest level for the year in Q4 2009 at 96%, with 2.7% of participants actually increasing their savings rate. In addition, the number of participants who decreased their deferral rate reached the lowest levels in Q3 (1.25%) and Q4 (1.28%) respectively, demonstrating comfort with continued savings through their 401(k) plan.

LINK TO FULL ARTICLE: http://www.prnewswire.com/news-releases/massmutuals-retirement-plan-participants-displaying-calm-after-the-storm-82791152.html

59: STATS - Retirees Polled on 2010 US Economic Outlook

BURLINGAME, Calif.--(BUSINESS WIRE)--A December 2009 survey of 1,030 Medicare-eligible retirees revealed that 32.3% believe the economy in 2010 will get better, 22.9% believe it will get worse, and 31.5% believe it will stay the same. At the same time, 48.2% rate their personal financial situation as “good” or “excellent,” while 46.5 % say it is “fair.” Just 5.3% say their personal financial situation is “fairly bad” or “terrible.”

“Especially for retirees on fixed incomes, rising health care costs can threaten their peace of mind”

60: STATS - Two in Five Americans Believe Current State of the Union is Poor

Half believe President Obama should focus on economy in State of the Union address

NEW YORK--(BUSINESS WIRE)--As President Obama puts the final touches on his first State of the Union address, he will be speaking to Americans who do not think the current state of the country is doing all that well. More than four in five U.S. adults (84%) give negative ratings to the current state of the union with 40% saying it is poor, the lowest on our scale. Just 16% give the state of the union positive ratings with only 3% saying it is excellent.

LINK TO FULL ARTICLE: http://www.businesswire.com/news/home/20100127005144/en/Americans-Current-State-Union-Poor

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