June 7, 2010 5:07 a.m. EST

Topics: company information, annual and special corporate meeting, financial and business service, insurance, economy, business and finance, World

AHN News Staff

London, England, United Kingdom (AHN) - Insurance industry experts are forecasting a bloody yearly meeting on Monday for Prudential with stockholders likely calling for the head of key officials over the company’s failed $35.5 billion (24.5 billion pounds) AIA takeover bid.

Expected to be on the hot seat are Prudential Chairman Harvey McGrath and Chief Executive Tidjane Thiam. The two have maintained that despite the insurance firm’s collapsed talks with AIA owner AIG, Prudential’s strategy remains the same.

Among the shareholders that have aired their concern over Prudential’s conduct of the bid for AIA or the remuneration report are Schroders, Aviva Investors, Cooperative Investments and Neptune Investment Management.

McGrath and Thiam said Prudential will continue to focus on Asia as its main area for growth despite the failed AIA bid. The bid cost Prudential $675 million (450 million pounds) in advisers’ fees and break clause, plus another $225 million (150 million pounds) on hedging the cost of the $35.5 billion acquisition price.

McGrath and Thiam are not up for reelection in the Monday meeting, but Schroder Head of Equities Ricahrd Buxton said Prudential’s management has to be held accountable for the large fees spent for the botched deal.

Race bias claim over insurance for minority ethnic lawyers

The Law Society is looking at allegations that firms have suffered discrimination over professional indemnity insurance

Black and minority ethnic lawyers are being refused compulsory insurance in what they describe as blatant race discrimination in the legal profession.

Some minority ethnic lawyers have seen their professional indemnity insurance rise by as much as 800%, despite having not received any complaints or claims against them. The controversy has prompted new plans to protect them.

"This year my insurance jumped from £6,000 to £24,000," said Dele Ogun, a partner at Akin & Law LLP. "I have never seen anything like this before. I cannot begin to explain why a firm like ours, which has built up experience over 13 years, with not a single claim, has had its premiums hiked like this.

"Insurers say they are having to claw back the losses they have made on collapsing conveyancing practices, but that does not even begin to explain the disparity between ethnic minority firms and the rest of the profession."

Another firm said its insurer had refused to renew the firm's cover. "We established in 2007; we have had no complaints and no claims against us, yet all our insurers, including our previous one, would not give a quote," said Laitan Eyiowuawi, a partner at Crowther solicitors in the City of London.

A study by the Law Society published last month found that minority ethnic firms were being treated differently by insurance companies, with 16% not offered cover by their previous insurer, compared with 6% in the rest of the profession.

The study also found that the firms were notified of insurers' decisions later than the rest of the profession, making it harder for them to look elsewhere for insurance.

The increasing disquiet among minority ethnic practitioners comes amid changes affecting areas of law in which they are more likely to practise.

Figures show that minority ethnic firms are likely to practise in certain areas, including immigration and crime, and have an average annual gross income of £280,000 compared with the £400,000 average across law firms as a whole.

"The starting point for a lot of BME [black minority ethnic] firms is that we don't generate as much fees as white firms, so any major increase in overheads can bring us out of business," Eyiowuawi said.

"If we go out of business, then there is also an access to justice question – many of our clients want to instruct people who look like them but it is becoming harder and harder for minority firms to operate."

Ogun said: "Insurance is compulsory, and firms are literally feasting on minority practices that have no choice but to pay these premiums.

"As if that were not bad enough, those responsible for regulating the insurance arrangements that are exposing us to these kind of arbitrary and uncontrolled hikes have not protected us."

The Law Society said it was looking urgently at the problem, and last week joined with the Black and Minority Ethnic Forum of solicitors to create an action plan to protect minority lawyers.

"The Law Society is committed to working closely with the insurance markets, solicitors and the SRA [Solicitors' Regulation Authority] to try to address the root causes of the problem," Robert Heslett, the president of the Law Society, said.

"We are particularly concerned by indications of different treatment of BME-owned firms. This is an issue where we are taking urgent steps to clarify and resolve the matter."

Subsidy on COBRA Health Insurance Premium Gets No Extension from Democrats

If you have been handed that pink slip after June 1, you will see more than just your salary cheque disappear.

That is because, the House of Democrats in the previous week made a decision that no extension will be given to the subsidy on your COBRA health insurance plan, so as to bring the costs of jobs and tax bill down, by winding its way through Congress.

Continuing the terms through Dec. 31 would run on $7.8 billion. The loss of the 15-month financial support leaves hundreds of thousands of newly unemployed Americans to carry the load of health insurance coverage on their own.

On average, the monthly premium unaccompanied eats up almost 84% of a person's redundancy check, according to Families USA, a consumer advocacy group.

Dozens of people at present are getting a lot of benefits from the subsidy wrote, CNNMoney. com, in current days to say how vital it is. Without the additional assistance, they said that they may perhaps not be able to afford to pay for their coverage and their treatments for diabetes, cancer, high blood pressure and other diseases.

House Speaker, Nancy Pelosi, D-Calif., said on Tuesday that she intends to revisit the COBRA subsidy.

One in Five Households Do Not Have Home Contents Insurance Reveals Swinton Insurance

--  Too expensive (45%) --  Haven't got round to it (32%) --  It is not a legal requirement (16%) --  Too complicated (7%)  

--  Do not overlook anything, such as hoovers, mirrors, luggage, musical     instruments, expensive wine, flooring, camping equipment and exercise     equipment, which can be easily forgotten. --  Inform your insurer of any changes to the value of your contents     straight away i.e. if you buy a new TV or bike. --  Do not forget the contents in the garden such as sheds and tools, which     could be expensive to replace. --  Do not over-estimate your contents, as this could result in unnecessary     expensive premiums.  

--  With 580 branches nationwide Swinton is the UK's largest high street     insurance retailer --  Unlike many other companies in the financial services industry, Swinton     is committed to keeping its branches open for business, and part of the     community --  Swinton provides a one-stop-shop for the insurance and related needs of     its clients, offering home, car, caravan, business, holiday, motorbike     and even classic car insurance --  With a dedicated team of advisors on hand at every branch to search a     panel of insurers to offer quality cover at competitive rates.