Daily Market Update

Fed promises not to over-regulate insurance industry
International capital standards will not be unilaterally imposed on domestic US insurers. That was the message from the Fed to the Senate Banking Committee at a meeting Tuesday. However many large insurers operate across international borders and may therefore face tougher regulations across jurisdictions. Michael McRaith, director of the Federal Insurance Office said that US insurers are expecting around 40 per cent of their revenue to be from international markets. Past president of the National Association of Insurance Commissioners Kevin McCarty highlighted that its duty is to the US insurance industry and said that the association would not implement international standards that are not congruent with putting policyholders first.
 
Commercial lines insurers increase profits
Figures show that commercial lines insurers in the US increased their underwriting profits in 2014. However a new report by Fitch reveals that sentiment is lower due to the challenges of creating future premium growth. Moderate premium increases and helped grow profits last year but the future is looking less rosy with investment yields falling and higher accident year loss ratios among the challenges. Property/casualty industry aggregate commercial lines results show net premiums increasing by 3.2 per cent with the reported accident year loss at 66.2 per cent. Fitch rate the outlook for the property/casualty sector as stable.
 
Anthem releases Q1 results today
Despite the high-profile hacking of its network this year insurance giant Anthem is expected to post positive results today (April 29). Since its fourth-quarter results posted in January the firm’s share price has increased 13 per cent and analysts are expecting a near-30 per cent rise in earnings from a year ago. The firm has almost 70 million customers with a total market value of $41 billion.
 
Missouri brokers awarded for being a patriotic employer
Missouri-based Insurance Brokers Group has been presented with a Patriotic Employer Award by the Office of the Secretary of Defense and Employer Support of the Guard and Reserve. The locally-owned insurance firm was awarded for contributing to national security by supporting employee participation in the National Guard and Reserve Force. The independent brokerage, owned and operated by John Espenschied  is licensed across eight states. Mr Espenschied told the St. Louis Post-Despatch: “This is a tremendous award! We are proud to support our troops and welcome the opportunity to hire more veterans and reservists for our agency.”