On Jul 27, 2009, Reinsurance Group of America (RGA) reported its second quarter 2009 results. Followed by a tough first quarter, reported earnings were $2.10 per share, compared with $1.73 last year. Excluding items, earnings came in at $1.79 per share, compared with $1.71 in the prior year period.   Results beat our expectations of $1.45 per share; consensus expected $1.39.   Net premiums increased modestly by 1.22% to $1.38 billion. Net investment income was $284.6 million, up from $254.8 million last year. Book value was $45.90 per share, compared with $45.04 last year.   Looking forward, we believe certain factors will affect RGA’s business in the medium term. Firstly, the aging population in North America is seeing increased demand for financial products among Baby Boomers. This trend is likely to result in continuing demand for annuity products and life insurance policies, larger face amount of life insurance policies ...

I found this by chance on CNN. It’s just plain scary to me. What do you think? Adam Troubled ASSET RELIEF PROGRAM Financial rescue plan aimed at restoring liquidity to the financial markets Program Committed Invested Description American International Group * See complete AIG bailout below $70 billion $69.8 billion $40 billion in preferred shares were converted to so-called non-cumulative shares that more closely resemble common stock. Treasury later offered another $30 billion in preferred shares for up to 5 years, in return for a 10% dividend. AIG: Where your money is going Asset Guarantee Program Citigroup Bank of America $12.5 billion $5 billion $7.5 billion $5 billion $5 billion $0 Funds set aside to backstop potential losses to government from Citigroup and Bank of America loans. Auto Supplier Support Program GM Supplier Receivables Chrysler Receivables $5 billion $3.5 billion $1.5 billion $5 billion $3.5 billion $1.5 billion Program to help stabilize ...

Monday March 2, 2009 Navivest

Struggling insurance giant AIG (AIG), today got a boost from the government, after the U.S. Treasury Department and the Federal Reserve Board today announced that the government will be restructuring its prior investments in the company, “in order to stabilize this systemically important company in a manner that best protects the US taxpayer.”

The restructuring plan is being done to enhance the company’s capital and liquidity position, so that AIG can continue with it’s global divestiture program.

Details of the restructing plan according to the Treasury include:

Preferred Equity The U.S. Treasury will exchange its existing $40 billion cumulative perpetual preferred shares for new preferred shares with revised terms that more closely resemble common equity and thus improve the quality of AIG’s equity and its financial leverage. The new terms will provide for non-cumulative dividends and limit AIG’s ability to redeem the preferred stock except

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It takes more than a globally competitive economy to have a sound banking system. For the third straight year, the United States finds itself at the top of the Global Competitiveness Index (GCI), published by the World Economic Forum (WEF) as part of its annual Global Competitiveness Report.

“Once the global economy emerges from the current financial crisis, which it will, the countries that do well on our index are those that are best prepared to bounce back and perform well in the longer term,” Jennifer Blanke, director of the WEF’s global competitiveness network told The Financial Times.

And the United States is at the top. That’s the good news.

The bad news is that the safety of U.S. banks dropped to 40th this year from 26th in the WEF’s 2007 – 2008 report.

“Despite rising concerns about the soundness of the banking sector and other macroeconomic

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Private Placement InsurancePrivate Placement Life InsuranceBelow is a short article on private placement life insurance. I do not personally recommend any tax or investment strategies or provide financial advice of any type but this topic is highly relevant to both hedge fund investors and professionals so I thought I would include it here:

A small but growing number of wealthy investors have discovered a legal way to invest in hedge funds without paying income taxes on the gains.

It's called "private placement" life insurance. These special insurance contracts allow policyholders to invest in a wide range of products, including hedge funds. The main attraction: Because the investments are held within an insurance wrapper, gains inside the policy are shielded from income taxes -- as is the payout upon death. What's more, policyholders may be able

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One-third of U.S. adults have no life insurance, according to recent research. That may not actually be such a big deal. Not everyone needs life insurance.

What’s truly alarming is a finding that most people who already have life insurance may not have enough coverage to help prevent the financial hardships that many families face when a major breadwinner dies unexpectedly.

The uninsured families are probably aware that they lack coverage. It’s the underinsured families who run the risk of finding out too late that they didn’t have enough insurance.

Most adults only have group coverage through an employer. Although life insurance is a valuable employee benefit, the risk here is that you could be lulled into believing that having some life insurance is the same as having the appropriate life insurance coverage for your situation.

This life insurance primer may help you understand why and how to obtain life insurance coverage that suits

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Common wisdom holds that term life insurance is generally less expensive than whole-life (permanent) insurance. For those who are relatively young and in good health, this is probably true. However, as people grow older, term policies can become exponentially more expensive.

If you think you will need life insurance protection for the rest of your life, and your group or term policy is about to expire – or you want to purchase more life insurance to cover current obligations, pay off debts, or provide a tax advantage for your heirs – now may be a good time to explore whole-life insurance. If so, you’ll be in good company. Whole-life insurance policies accounted for almost 60% of all individual life insurance policies purchased in 2006.

Whole-life insurance traditionally remains in force for the life of the insured, and the policy premiums usually remain constant. In the early years, the premiums are typically higher

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No surprise here - I mentioned in the fall the path for "no more house ATM for you" American consumers would be credit cards first, drain 401ks (whatever they actually invested, which is very little) second, beg borrow steal (pawn) next, and away we go to bankruptcy circa 2009 last. Real wages stagnant for a decade (using government inflation figures, far worse with 'real inflation') eventually will catch up to you. Keep in mind folks, we are not even "in a recession"; what happens if we "enter" one.Thankfully issues like this will be resolved in less than a month as the 2nd half recovery commences, and my scenario will not play out. Once July 1, 2008 arrives and the 2nd half recovery begins we won't have to deal with front page stories like this one in the Wall ...