Obama Pushes Health Reform Toward Possible Vote
6 years ago
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10:47 AM
President Barack Obama is pushing Congress for a final vote on his health care reform proposal, using an approach in the U.S. Senate that had been used by the previous presidential administration on a number of major bills, allowing for a simple majority approval."It deserves the same kind of up-or-down vote that was cast on welfare reform, the Children's Health Insurance Program, COBRA health coverage for the unemployed, and both Bush tax cuts -- all of which had to pass Congress with nothing more than a simple majority," Obama said in a March 3 White House speech.Robert Zirkelbach, a spokesman for America's Health Insurance Plans, said in a statement after Obama's speech, "With each passing day, rising costs are putting coverage out of reach for working families and small businesses, and there is very little in the current legislation to solve this problem."Meanwhile, Kathleen Sebelius, secretary of the U.S. Department of Health and Human Services, is expected to meet March 4 with chief executive officers of several major health insurers to discuss premium rate increases.Obama noted the reform bills have already passed with a strong House majority and with a filibuster-proof 60-vote majority in the Senate, though those versions have significant differences. Obama's proposal leans heavily toward the more conservative Senate version, which would only require a House approval before it could be sent to the White House for a presidential signature and become law. But Democratic leaders in the House want to make several changes to the Senate's bill, and they would probably have to do that by arranging a subsequent amendment bill with Senate leaders to ensure they have sufficient votes in each chamber. Once that amendment bill were to pass the House, Democrats would have to use the parliamentary "budget reconciliation" procedure to get beyond a potential filibuster in the Senate so the changes could be considered with a simple majority vote.The amendments, according to reconciliation rules, would have to be budget-related.Sen. Mitch McConnell, the Republican minority leader in the Senate, responded to the latest presidential speech, saying Democrats will face a difficult election season if they keep pressing for this health care bill. "Every election in America this fall will be a referendum on this issue," he said. "What we know about the health care bill is people don't want it to pass. It's overwhelmingly unpopular."McConnell, R-Ky., suggested the members of his party will push back against an attempted use of the reconciliation process. "This is an extraordinary use of this device," he said. GOP lawmakers will examine all the barriers they can take advantage of, though he wouldn't show his party's hand when asked for details. "We're going to scrub the bill thoroughly, but I'm not going to announce in advance what efforts would be made," he said.Republicans have repeatedly asked that the health care reform process be started over from scratch. Obama answered that request -- which emerged from the GOP again in anticipation of his speech -- by saying, "I do not see how another year of negotiations would help.""Everything there is to say about health care has been said, and just about everyone has said it," the president said.Obama said his proposal has been modified after a recent White House health care meeting between Republican and Democratic lawmakers (BestWire, Feb. 25, 2010). "It incorporates the best ideas from Democrats and Republicans -- including some of the ideas that Republicans offered during the health care summit, like funding state grants on medical malpractice reform and curbing waste, fraud, and abuse in the health care system," Obama said. "No matter which approach you favor, I believe the United States Congress owes the American people a final vote on health care reform." And he'd like to see it "in the next few weeks," he said.
on
10:46 AM
WASHINGTON, D.C. (March 3, 2010) — The National Association of Insurance Commissioners (NAIC) today announced plans to hold a public hearing on the emergence of Stranger Originated/Owned Annuities. The hearing will focus on the suspect practice of targeting seniors and terminally ill patients by inducing them to purchase an annuity largely for the benefit of investors or intermediaries. The hearing will include industry representatives, state regulators and consumers. The date and location of the hearing will be announced as soon as details are confirmed. About the NAIC Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.NAIC Looks into Stranger Owned Annuities
“State regulators need to closely examine the conditions of this evolving marketplace,” said Thomas R. Sullivan, Chair of the NAIC Life Insurance and Annuities Committee and Connecticut Insurance Commissioner. “We are determined to address how individuals are being affected by these new transactions and whether new or modified current laws or regulations are necessary to protect consumers. We have an intense curiosity for which we intend to examine the existence and extent of these practices.”
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10:45 AM
Evanston, IL, March 2, 2010—U.S. sales of fixed annuities were an estimated $19.6 billion in fourth quarter 2009, according to data from the Beacon Research Fixed Annuity Premium Study. Quarterly sales were down 43% and 11% compared to fourth quarter 2008 and third quarter 2009, respectively. In calendar year 2009, total market sales were an estimated $104.3 billion, 2% below 2008. By product type, estimated sales in fourth quarter 2009 were: book value - $9.0 billion; indexed - $6.9 billion; market value-adjusted (MVA) - $1.8 billion, and; fixed income - $2.0 billion. Results were behind the near-record levels of fourth quarter 2008. MVAs dropped 76%, book value annuities fell 47%, income annuities fell 17%, and indexed annuities declined 4%. Sequentially, income annuities posted a small 1% increase. Estimated sales shrank for the other product types: MVA, -39%; book value, -9%, and; indexed -6%. The indexed share of sales rose to an eight-quarter high of 35%, but book value annuities remained the dominant product type with a 46% share. Estimated product type sales in 2009 were: book value - $52.0 billion; indexed - $29.5 billion; MVA - $14.8 billion, and fixed income - $8.0 billion. Compared to 2008, indexed annuity results advanced 11%. MVAs were 16% behind. Income annuities fell 7%, and book value products dropped 3%. Western National vaulted from sixth place to become fourth quarter’s sales leader, bumping New York Life to second place. Allianz dropped down a notch to come in third. Fourth quarter results for nine of the top 10 Study participants were as follows: The Allianz MasterDex X moved from second place to become fourth quarter’s best-selling product. Surprisingly, it was the only indexed annuity in the top five. All the others were book value products. Pacific Life’s Pacific Explorer, last quarter’s leader, came in second. New York Life rejoined the top five with its NYL Select 5 Fixed Annuity in third place. Two Western National annuities – Flex 5 and a proprietary bank product – came in fourth and fifth, respectively. Fourth quarter results include sales of more than 400 products. Three of the top five annuities were also distribution channel leaders. Pacific Explorer became the new independent broker-dealer sales leader and continued as the top bank and wirehouse product. MasterDex X remained number one among independent producers. The New York Life Optimal Fixed Annuity (a book value product) was the new captive agent bestseller. Fourth quarter’s fixed annuity rate trends resembled those of the prior quarter. These rates continued to decline. Only a few one-year renewal rates were crediting at the threshold 5% level. “We expect first quarter sales to post a sequential increase,“ said Jeremy Alexander, CEO of Beacon Research. “Fixed annuity rates are somewhat higher and there’s been stepped up promotional activity of all four fixed annuity product types. Though consumer demand should remain strong, further growth will depend on the interest rate environment and the availability of investment grade bonds to back new business.” About the Beacon Research Fixed Annuity Premium Study The quarterly Study is the first and only source to track and analyze product-level fixed annuity sales on an ongoing basis. Providing timely market intelligence of the highest quality, it’s designed to report what’s moving in each channel and why. About Beacon Research Beacon Research tracks fixed, indexed and variable annuity sales, rates and features, and provides web-based systems at www.annuitynexus.com for distributors and insurance companies. Beacon also licenses information and software tools to other platforms, including EbixExchange’s AnnuityNet annuity automation platform. Beacon's fixed annuity benchmark series -- the industry's first - is available through Ibbotson Associates. Directly and through strategic alliances, Beacon information can be accessed by hundreds of financial institutions and distributors. Contact: 1.Sales figures do not include structured settlements.Beacon: Q4 Fixed Annuity Premium Down 11%
By product type, Western National also led in book value sales, replacing Pacific Life. American National took top MVA sales honors from ING USA. Allianz remained number one in indexed annuities, and New York Life continued as the dominant issuer of fixed income products.
Both book and MVA annuities again moved to shorter initial interest guarantee periods. As was the case in third quarter, most annuity buyers probably didn’t want to lock in low rates for more than a few years.Judith Alexander, 847.864.5447, judith@beaconresearch.net
2.Book value fixed annuities pay a declared rate of interest for a specified period. A market value adjustment (MVA) is not imposed if the holder withdraws assets before the end of the contract term. MVA products also pay a declared rate of interest for a specified period, and do impose such an adjustment.
3.Includes both immediate and deferred income annuities.
4.Allianz Life Insurance Company of North America is a subsidiary of Allianz AG (NYSE: AZ).
5.Aviva USA is a subsidiary of Aviva plc (LSE: AV).
6.This total excludes immediate annuities.
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10:42 AM
Transaction to Yield Approximately $25 Billion in Cash upon Closing to Repay Federal Reserve Bank of New York Transaction Underscores AIG’s High Priority to Repay Taxpayers as Quickly as Possible NEW YORK--(BUSINESS WIRE)-- American International Group, Inc. (AIG) (NYSE: AIG) announced today a definitive agreement for the sale of the AIA Group, Limited (AIA), one of the world’s largest pan-Asian life insurance companies, to Prudential plc for approximately $35.5 billion, including approximately $25 billion in cash, $8.5 billion in face value of equity and equity-linked securities, and $2.0 billion in face value of preferred stock of Prudential, subject to closing adjustments. The cash portion of the proceeds from the sale, the largest to date in AIG’s ongoing restructuring efforts, will be used to redeem preferred interests with a liquidation preference of approximately $16 billion held by the Federal Reserve Bank of New York (FRBNY) in the special purpose vehicle formed to hold the interests in AIA, and to repay approximately $9 billion under the FRBNY Credit Facility. AIG intends to monetize the $10.5 billion in face value of Prudential securities over time, subject to market conditions, following the lapse of agreed-upon minimum holding periods. All net cash proceeds from the monetization of these securities will be used to repay any outstanding debt under the FRBNY Credit Facility. “In considering two viable, very attractive alternatives to successfully monetize AIA, including an initial public offering, we decided that a sale to Prudential enables AIG to realize value on a faster track to repay U.S. taxpayers,” said Bob Benmosche, AIG President and Chief Executive Officer. “This transaction, the most significant milestone to date in our ongoing effort to repay taxpayers, also gives us greater flexibility to move forward with AIG’s restructuring and focus on enhancing the value of our key insurance businesses, which will benefit all stakeholders. “Combining Prudential, which has long been committed to enhancing its profile in Asia, and AIA, a remarkable Asian franchise, will create an unrivalled life insurance powerhouse in Asia, one of the world’s fastest growing markets. This transaction assures AIA of a well-respected, highly-rated, financially strong partner in which its management, customers, employees, agent sales force, and distribution partners can have confidence. Indeed, in undertaking this transaction, both we and Prudential are committed to preserving the AIA brand and the unique strengths of each of our sales forces, which is key to capitalizing on AIA’s long term potential,” Mr. Benmosche concluded. Founded 160 years ago, Prudential is a leading international financial services provider. The transaction includes all of the companies of the AIA Group operating in 15 geographical markets across Asia Pacific, including the company’s international network of more than 320,000 agents and approximately 23,500 employees serving the holders of more than 23 million in-force policies and the more than 10 million participating members of its clients for group life, medical, credit life coverage, and pension products. The transaction has been approved by the boards of directors of both AIG and Prudential, and is expected to close by the end of 2010. The transaction is subject to approval by Prudential shareholders, regulatory approvals, and customary closing conditions. AIG is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. The AIA Group is a leading pan-Asian life insurance organization that traces its roots in the Asia Pacific region back more than 90 years. It provides consumers and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions. Through an extensive network of 320,000 agents and 23,500 employees across 15 geographical markets, AIA serves over 23 million customers in the region. American International Group, Inc. Source: American International Group, Inc.Prudential to Buy AIG's AIA for $35.5B
Christina Pretto, 212-770-7083 (News Media)
Teri Watson, 212-770-7074 (Investment Community)
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