National Underwriter - April 16, 2012

1ACE’s Greenberg: Risk-Taking Thwarted by Government
BY CHAD HEMENWAY
EVAN G. GREENBERG, chairman, presi- dent and CEO of ACE Limited, says governments in the United States and
Europe erroneously believe they can create
prosperity in the private sector.

“In the U.S. and much of Europe, we face an unrelenting assault on business by government,” says Greenberg in his annual letter to shareholders. As a result, he says, these governments are discouraging risk-taking and investment.

The effort, especially in Europe, toward universal-
insurance regulations for risk management, capital
and governance is “simply wrong-headed and
ignores cultural, social and economic realities of
different countries.”
He adds, “One size does not fit all.”

2AIG Among 3 TARP Companies to See Top Exec-Compensation Freeze THE U.S. TREASURY announced that the chief executives of AIG, Ally Financial and General Motors would have their compensation packages frozen for a second year in a row. AIG’s highest-paid executive will receive total direct compensation of $10.5 million.

4Progressive’s March Income Down on Prior-Year, Catastrophe Losses
UNFAVORABLE PRIOR accident-year reserve development and $10
million in catastrophe losses forced Progressive Corp.’s income down 44
percent for the month of March. Net income was $76.3 million.

3House Panel Could Move Soon on MLR Issue A HOUSE PANEL plans to act on legislation exempting agent commissions from the Medical Loss Ratio provision of the health care reform law. Sources say the House Energy and Commerce Committee will take up the bill, H.R. 1206, shortly after legislators return from recess on April 16.

5Colorado Forecasters Call for 10 Named Storms for 2012
THE COLORADO STATE University hurricane-forecast team says cooling of
the tropical Atlantic and the potential for El Niño conditions will mean a
below-average hurricane season, with 10 named storms to come.

6Louisiana High Court Won’t Stop Multi- Million-Dollar Award Against Citizens
THE LOUISIANA SUPREME Court again ruled against Louisiana Citizens
Property Insurance Corp., the state’s last-resort insurer, lifting a stay on
a $100 million judgment in favor of more than 18,500 policyholders.
8What Are Insurers’ Exposure to Guns and Homeowners’
Associations?
9Dallas Tornadoes Cause up to $500M
Insured Loss

7With May Deadline in Sight, Still No Action on Flood
INSURANCE-INDUSTRY officials are bemoaning the lack of action on an
NFIP extension, saying the primary problem remains with the Senate,
which has not acted on a bill sent to the floor last September.

U.S. East
Coast Wildfires
Whipped Up
by Winds
U.S. Insurers Re-
Think Coverage
After Weather
Disaster Payouts

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