U.S. insurance industry scandals exposed false: five former executives facing heavy sentence

Hartford, Connecticut, the United States federal court ruled on the 25th, the world's largest insurance company American International Group and the general public reinsurers five former executives of financial fraud, commercial fraud and other charges. Five could face life imprisonment and heavy fines, and other judgments.

Forgery scandal

According to the Associated Press reported that five defendants are former American International Group, the reinsurance industry

Treasury Deputy Head of the Christian Anmierdun, the former chief executive officer of the public reinsurance companies Ronald Ferguson, former Chief Financial Officer Elizabeth Meng Lade, the former senior vice president Christopher Galland and the former Assistant consultant Robert Grey Emu.

Prosecutors said that the five former executives charged in the 2000-2001 inter-through a false reinsurance transactions, for the American International Group, inflated about 500 million U.S. dollars huge compensation reserve, and economic analysts misled investors in the American International Group The estimated operating conditions, to raise the stock.

As involved in the transaction of return, American International Group, the insurance company to the public to pay 5 million U.S. dollars payment.

Reinsurance also known as reinsurance, means the insurer will assume its part of the business transferred to other insurers, the insurers to spread risk, favourable to their loss of control, and stability operations.

Facing heavy sentence

Prosecutors in the trial of said that the two insurance companies can be compared to transactions between an insurer for their own financial resources to insure a driver for the car, its purpose is to seek commission and return.

According to court documents, the five defendants face charges including financial fraud, mail fraud, stock fraud, the U.S. Securities and Exchange Commission, such as lying.

Prosecutors said the five defendants for the investigation will continue, the court will be May 15 to make judgement. Milton, Sir Alex Ferguson, Graham Meng Lade and four people were likely to face 230 years in prison and a fine of 46 million U.S. dollars, Galland may be sentenced to 160 years in prison and a fine of 29.5 million U.S. dollars.

The Associated Press reported that five defendants in court the day above expressionless, leaving at all silent. Their defence lawyer said an appeal would be filed to seek re-award.

Judge Paul Peierdiai in the book after reading out the trial on the scene said: "This case management for those companies sent a message that they will accept the decision made strictly inspect."

Assistant Chief Prosecutor Ellis Fisher said: "I believe investors often rely on the company's management and to provide them with accurate information. This ruling shows that those who violate the law and deceive investors of the company managers and their accomplices Will certainly responsible for their wrongful acts. "

Buffett affected »

Prosecutors said the former CEO of American International Group, Maurice Greenberg may be false this scandal one of the main plotters, but not charged. Greenberg has denied any wrongdoing. He was in 2005 on suspicion of company earnings reports led to the resignation of loopholes

In addition, according to U.S. media reports, the case may also involve "stock god" Warren Buffett.

The Associated Press that the public re-insurance companies are owned Buffett's Berkshire Hathaway companies in the reinsurance business of the company. The defendant in closing arguments of defence counsel also repeatedly mentioned the name of Buffett.

But Buffett did not because of any wrongful act be prosecuted, nor testify in court.

Bond insurer "relegation" successful Dow soared 190 points

By the United States two major bond insurers, "relegation" encouraged by the success of the news, the U.S. stock market closed on the 25th all rose, the Dow rose nearly 190 points a month since the biggest one-day gain. Most of the stock market yesterday, the Asia-Pacific higher, while the European stock market was generally rising more than 1%.

The Standard & Poor's announced that ratings remain unchanged

With the three major U.S. rating agencies of the country's two largest bond insurer MBIA and Ambac's credit rating assessment deadline approaching, investors on the underwriting of the more than 2 trillion U.S. dollars U.S. dollar assets of the industry is also growing concern. It is estimated that once the two companies the highest AAA rating does not guarantee, the banks are likely to lead to further Provision 70 billion U.S. dollars loss of assets, while trillions of dollars of municipal bonds will also be seriously diminished.

However, Standard & Poor's statement on the 25th of many market participants to set the heart. The Standard & Poor's announced that the temporary maintenance of MBIA and Ambac, the highest rating. According to the statement, the nation's largest bond insurer MBIA from the Standard & Poor's downgraded deleted from the list of observation, on behalf of the company's AAA rating lose the possibility of very small. However, the second-ranked Ambac remain on the watch list.

In order to force-not to be downgraded, the two companies have in the recent positive efforts. MBIA in on the 25th that will be suspended underwriting asset-backed securities for six months, while intended to municipal bonds and asset-backed securities from the insurance business, and not with the quarterly dividend. In order to prove to the Moody's and Standard & Poor's strength may retain a AAA rating, Ambac, is seeking to obtain bank consortium 3 billion U.S. dollars capital injection.

It should be noted that, Standard & Poor's on the 25th of the statement also pointed out that, MBIA look at the prospect of still worse, means that the future may cut its rating. In addition to the S & P, Moody's rating of MBIA and Ambac of the review is still going on. Another giant Fitch ratings last month, has cut its insurance subsidiary of Ambac's rating to AA, and consider that the rating downgrade MBIA.

U.S. stocks rose celebrate the "relegation"

To stimulate the relegation news, MBIA and Ambac's shares the same day in the S & P 500 Index constituent stocks in the lead, and lead the banking and insurance stocks fell by up to promote the Dow closed up 190 points, creating the largest increases this month.

Analysts pointed out that as long as the highest AAA credit rating from being downgraded, the banks do not have accounts on the Provision of these debt-to detract from underwriting securities. The good news greatly eased investors in the bond insurance industry and banking concerns.

On the 25th New York stock market closed, the Dow than the previous trading day up 189.20 points at 12570.22 points, or 1.53 percent, the largest gain since for this month. The Standard & Poor's 500 index rose 18.69 points to close at 1371.80 points, or 1.38 percent. The Nasdaq composite index also rose 24.13 points to close at 2327.48 points, or 1.05 percent.

Lehman Brothers analyst report issued on the 25th: the bond insurer to avoid demotion, the short term to revive the capital market confidence great help. In a statement after the release of the Standard & Poor's, MBIA 25 on the New York market soared 20 percent, to close at 14.58 U.S. dollars. Ambac rose 16 percent, to close at 12.41 U.S. dollars. Driven by this, the S & P 500 financial stocks index closed up 1.2 percent, reversing early trading after falling 1.8 percent up to the situation.

Yesterday, the Asia-Pacific market, major stock markets have also opened higher, most have eventually gained a barrel. One of China, Hong Kong Hang Seng stock index rose 445.61 points to close at 23714.75 points, or 1.92 percent. SYDNEY: Australian shares rose 0.8 percent, Singapore stock market rose 0.42 percent, Indian stocks rose 0.88 percent. However, the day before rose more than 3 percent of Japan's stock market to a technical adjustment, closed fell 0.65 percent.

European stock markets opened higher yesterday also take high. -- As of 21:05 yesterday, the Paris stock market rose 0.66 percent, the London Stock Exchange rose 0.86 percent, the Frankfurt stock market rose 1.04 percent. Prior to the three major stock market gains are more than 1%.

Stocks, financial stocks eye-catching. Europe's second-largest insurer AXA insurance rose 3.3 percent, while the Netherlands International Group rose 2.7 percent.

Allianz Group Touxingyewu poor performance

February 25, Europe's largest insurance groups - the Allianz Group of Germany announced the latest financial report said that the Group 2007 total revenue, operating profit and net income have increased over last year. Among them, life insurance and health insurance and asset management business achieved profit growth, property insurance and accident insurance operating profits continue to maintain strong growth momentum.

Data show that in 2007, the Allianz Group's total revenue from last year's 101.1 billion euros rose to 102.6 billion euros, by 2006 natural disasters grade lower than perennial factors, operating profit increased to 10 billion euros from 10.9 billion euros, an increase of 9 Percent, from 7 billion euros net income soared by 13.5 percent to 8 billion euros.

The Allianz Group CEO Michael Diekmann told reporters: "Despite the financial market environment last year, very challenging, but the Allianz Group through the diversification of individual markets and fluctuations in the field of accidents and the ability to resist Has become increasingly strong. "

It is worth noting that the credit asset-backed securities products (ABS) the impact of trading losses, the Allianz Group's investment banking part of the business performance. Data show that the Allianz Group in the ABS transactions on the loss of at least 1.3 billion euros, resulting in the cost of investment banking business from the 2006 yield of 79.7 percent rose to 89 percent.

Allianz Insurance Group Chief Financial Officer Helmut Perlet said in addition to investment banking part of the business of credit by the impact of the crisis, other banking business is operating well. He stressed: "We are concerned about the long-term investment in capacity and value of creativity, and believe that our banking business will be to achieve this requirement."

As the Allianz Group and the CITIC Trust limited liability company in China joint-venture subsidiary, in the Dean of the Life Insurance Company Limited last year, business has maintained a rapid growth in a stable. The latest data show that in 2007, the company completed the total premium income of 3 billion yuan more than last year growth of more than 150 percent. Their bank insurance channel in the country all foreign life insurance companies ranked second, the annual growth rate reached 200 percent.

AIG scandal curtain call

American International Group (AIG) is expected to loss of 5 billion U.S. dollars
AIG into the vortex of Ciji Zhai

Four years ago involving the insurance giant American International Group (AIG) of the proceedings temporarily came to an end.

U.S. Eastern Time on February 25, the U.S. Department of Justice, General Re (General Re Corporation) four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and to the United States Securities and Futures Commission Will be forged document.

U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors to overestimate the carrier AIG Situation and raise the company stock price. Notice that this acts as a partner of fraud.

Notice also that, AIG former CEO Maurice Greenberg (Maurice R. Greenberg) is not implicated by this case.

Buffett is the public re-insurance and those of their respective Bokexiaha Group (Berkshire Hathaway Inc.)'s In the reinsurance business of the company. At present the evidence to show that the announcement, Hathaway Group Chairman and CEO Buffett may be involved in the trading scandal. But he has not been indicted, nor testify in court.

Against five defendants will continue to conduct the investigation, the court will be May 15 to make judgement.

Origin of reinsurance contracts

Time to return to the October 26, 2000.

On this day AIG Group announced third-quarter results, quarter net income increased nine percent, but insurance reserves fell 59 million U.S. dollars. Therefore, the shareholders have questioned whether there is sufficient reserve Affected by this AIG stock fell 6 percent on that day.

Five days later, Greenberg to the then General Re former president Ronald Ferguson (Ronald E. Ferguson) for assistance that can help each other out of the plight of inadequate preparation. General Re insurance subsequently agreed to AIG to help.

Under such circumstances, both sides used to purchase reinsurance contracts: General Re insurance will be 500 million U.S. dollars is expected to claim the transfer of AIG; AIG subsequent increase in the reserve to 500 million U.S. dollars. In return, AIG paid General Re to 5 million U.S. dollars payment.

Wrote in a October 31, 2000 paper, one of the transactions for Joseph Bryden (Joseph P Brandon, in 2001 successor General Re CEO) on how to deal with the AIG transaction to the instructions: "It is best not to use the identity of U.S. companies trading in order to avoid the accounts of large companies reporting fluctuations."

According to the relevant U.S. law to allow insurance companies to spread business risks, through premiums paid to insurance companies, their business policy, "reinsurance" to pass on possible losses. However, if this business does not exist any risk, then this will be no premium for any insurance, AIG would not be included 500 million U.S. dollars loss reserve funds, the whole transaction would become a false income instruments, whitewash AIG's financial situation.

March 2005, AIG at the time by the New York State Attorney General Eliot Spitzer (Eliot Spitzer), federal prosecutors and the Securities and Exchange Commission (SEC) investigation of three counts of illegal use is suspected of financial reinsurance means of false Income.

The initial survey listed a total of eight improper accounting records, AIG net assets may shrink about 1.7 billion U.S. dollars. May 2005, AIG republish more than four years of financial statements, the amended document, the company reduced the net value of 2.7 billion U.S. dollars.

The initial investigation, Spitzer announced that the investigation of AIG is expected to resolve through civil proceedings. February 9, 2006, AIG admitted that its wrongdoing, agreed to pay 1.64 billion U.S. dollars in compensation and fines and a public apology. December 3, 2007, the U.S. federal court documents released, the case eventually to pass criminal trials held accountable.

Buffett behind the scenes

March 29, 2005, Greenberg announced his resignation, which he AIG in the first 38 years.

But he can not Quanshenertui. U.S. Department of Justice to the grounds of financial fraud to him by a civil suit alleging use of improper accounting methods to deceive regulators and investors, but lawyers in the mediation of the Ministry of Justice eventually remove all of his actions.

The 83-year-old Greenberg is now in his second start-up phase, he is still holding 12 percent of AIG stock company, AIG's largest shareholder, has also recently revealed to China's insurance intermediary industry's strong interest in, and then The crackdown hero Eliot Spitzer (Eliot Spitzer), in 2006 was elected governor of New York State.

March 29, 2005, Greenberg resigned the same day, Bokexiaha and those groups that issued a statement, saying "Mr. Buffett on how to conduct the entire transaction ignorant. He do not know, the whole transaction The purpose of insurance is to exaggerate the growth and reserves. "

Even so, Buffett or by the supervisory departments of the Inquirer. April 11, Buffett at the Manhattan office of the U.S. Securities and Exchange Commission, the SFC received from the United States, the United States Department of Justice, the New York State Attorney General Eliot Spitzer (Eliot Spitzer) of the Office of the 13 The questioning.

The questioning, Buffett admitted that he had in the autumn of 2000 with Ronald Ferguson had a telephone conversation, and was informed that due to insufficient reserves AIG, Greenberg is now facing investors and analysts of the accused Therefore, General Re Greenberg ready to help get out of this predicament.

Buffett said that after the completion of the transaction, he was responsible for the matter have asked Ronald Ferguson and Joseph Bryden, the deal is being used for legitimate purposes.

American International Group, fourth quarter net loss of 5.29 billion U.S. dollars

American International Group, announced fourth quarter net loss of 5.29 billion U.S. dollars, or 2.08 U.S. dollars per share, the company has about 11.12 billion U.S. dollars a sum of the market value of net unrealized losses before tax expenses.

Comprehensive foreign February 29, American International Group (American International Group) 28 announced fourth quarter net loss of 5.29 billion U.S. dollars, the insurance giant in the credit derivatives market is expected to shrink on a large expenditure.

The company said net loss of 5.29 billion U.S. dollars, or 2.08 U.S. dollars per share, a year ago to 3.44 billion U.S. dollars net income, or 1.31 U.S. dollars per share.

After adjusting the 2007 fourth quarter net loss of 3.2 billion U.S. dollars, or 1.25 U.S. dollars per share. Analysts forecast profit of 60 cents a share.

Fourth-quarter results included a pretax charge of about 11.12 billion U.S. dollars worth of net unrealized losses, the loss of the company's AIG Financial Products Corp. Super-senior credit default swaps related to the investment portfolio. American International Group, said that these did not achieve the reduction does not mean that the market may be beyond the actual loss.

American International Group's shares after the publication of news in after-hours trading fell 3.5 percent.

Lloyd won the Super Brand Award business

Lloyd's February 27 claimed that the consortium has selected British "2008 Business Super Brand", a British brand one of the strongest commercial, but also received the highest rating of the insurance organizations.

Lloyd's said that in this year's business in the top 500 super brand, the consortium from the first 73 rose to 44, this is Lloyd's continuing efforts to build brand results. Because selection is based on the results of an independent group of experts and more than 1,500 business professionals in the assessment generated, the high honor of their gold content.

Commercial super brand is selected by an international brand institution - the British super-brand selection of the Vetting Committee launched this year, the selection is the eighth year, the selection results of all walks of life have become institutions brand an important influence on the evaluation criteria.

Best: the global reinsurance industry outlook stable

February 26, the world's leading credit rating agencies Best said the company on the global reinsurance industry outlook remains stable, which is the company on the global reinsurance industry the second consecutive year that a stable outlook.

Best said the outlook reflects, in 2007 the trade balance on the overall outstanding performance, enterprise risk management continued to increase capacity, good earnings momentum. Of 2008, if the major pillars of the insurance industry products at the technical level of assessment is still profitable, as long as there is no catastrophe, 2008 will be the industry profitable year.

Even so, George said, lower prices, increased competition, the reinsurance company is the increase in the number of long-term impact on the insurance industry to good performance of the main factors remain stable.

The annual performance of a new record high

Allianz Insurance Group recently announced the "annual financial report" shows that in 2007 by the Group's total revenue in 2006 of 101.1 billion euros rose to 102.6 billion euros, by 2006 natural disasters grade lower than perennial factors, operating profit from 10 billion euros Increased to 10.9 billion euros, an increase of 9 percent, from 7 billion euros net income soared by 13.5 percent to 8 billion euros. Shareholder rights and interests of 48 billion euros, compared with last year's 50 billion euros still maintain a high standard. Customers worldwide growth in the number as high as 7 percent, from 75 million to 80 million.

Allianz Group chief executive Michael Diekmann said that the second half of 2007 despite the financial market environment extremely challenging, the Group's total revenue, operating profit and net income have increased over last year. Various business fields in the overall success of the performance of both . However, the investment banking part of the business of credit by the impact of the crisis is more serious. Life insurance and health insurance and asset management business achieved profit growth, property insurance and accident insurance operating profits continue to maintain strong growth momentum. As the diversification of the group's business, the Group of individual markets and fluctuations in the field of accidents and the ability to resist growing.

"Financial reports" showed that in 2007 the Allianz Group in the property insurance and liability insurance premium income from 2006's 43.7 billion euros to 44.3 billion euros, operating profit was 6.3 billion euros, with 2006 unchanged. Comprehensive cost rate of 92.9 percent compared to last year, slightly rose to 93.6 percent. Despite natural disasters payment of up to 774 million euros, but remained at 94 percent below the target range.

2007 Group life insurance and health insurance business operating profit in the creation by 2006 of 2.6 billion euros to nearly 3 billion euros of new record, after adjusting the exchange rate of total factor income rose 6.3 percent. Premium income in Germany, France, Italy's growth is particularly significant. Asia-Pacific region and Central and Eastern Europe over a year the total income increased by nearly 27 percent.

Group's Dresdner Bank continued to maintain profit, operating profit 73 million euros, and in 2006 for 1.4 billion euros. In addition to investment banking part of the business of credit by the impact of the crisis, all other banking operations good. In the area of asset management, innovative products and the long-term trend of demand growth, achievement of the 2007 continuation of positive growth trend. Operating profit increased to 1.29 billion euros from 1.36 billion euros, an increase of 12.8 percent.

Vision 2008 years of development, said Michael Diekmann, 2007 although the financial market is very volatile, but Allianz still achieved a high growth rate. This once again proved that the stability of the potential profitability. Allianz is ready to meet the challenges of 2008. However, the changes in the financial markets may give the Group's business brought about the unusual.

HSBC insurance subsidiary in Brazil last year net profit rise

HSBC Holdings (0005) holds 97.9 percent of the insurance industry in Brazil subsidiary HSBC Seguros (Brasil) S. A. As at the end of last year announced annual results, net profit rose 14.9 percent to 206 million yuan (Brazilian Real. The same below) (about 106 million U.S. dollars), earned premiums rose 14.3 percent to 5. 7.8 billion yuan (about 297 million U.S. dollars).

Period, total assets increased by 38.3 percent to 6.056 billion yuan (about 3.398 billion U.S. dollars). The average rate of return on shareholders funds by 06 dropped to 34.1 percent of 25.7 percent.

Swiss Re insurance involvement by Ciji Zhai profit of 07 shrink 9%

February 29, the world's largest reinsurer Swiss Re (Swiss Re, the "Swiss again") released the 2007 annual report, said full-year earnings shrink 9 percent, mainly by the derivatives business losses, and in the credit default swaps (Credit default swaps) in the projected 240 million Swiss francs (228.4 million U.S. dollars) of assets by impact.

The report shows that, Switzerland 2007 full-year earnings to 4.2 billion Swiss francs, down from 2006's 4.56 billion francs, 13.5 percent annual return on assets for the fourth quarter net income of 170 million Swiss francs.

Swiss CEO again (Jacques Aigrain) in a state official said: "As our main business of outstanding performance, 2007 to become the Switzerland of 144-year history of good performance of the year. Property and Accident insurance have outstanding performance, life insurance and health insurance has increased over the previous year. Despite the difficult market environment for investment, our investment behavior or to a positive direction. "

2007, Switzerland's shares to a total decline of 22 per cent this year is basically the same. January this year, Warren - Warren Buffett (Warren Buffett) control of Berkshire - Hathaway (Berkshire Hathaway) announced the acquisition of its 3 percent stake and agreed to manage its property and casualty insurance sector in part Business. By the impact of this news, the company's stock price has been soaring.

According to foreign reports, due for the company's financial situation to create "false and misleading" statements on the Swiss again in the United States is facing class-action suit.

This from the one in New York law firm Coughlin Stoia Geller & Robbins LLP, on behalf of unnamed institutional investors initiate proceedings. Lawsuit accused the Swiss again and its internal staff and some executives violated U.S. securities law, in particular its included in the two companies could bring huge risks to the credit default swaps transactions, were not disclosed. The law firm said that in the May 8, 2007 and 2007 on November 19 during the day to buy Swiss shares of any U.S. residents to participate in the proceedings to claim compensation to the company.

Swiss again in the November 19, 2007 announced by the United States, loan-to-crisis, its derivatives business loss of 1.2 billion Swiss francs. Affected by this, Swiss Re shares fell 10.25 percent, to close at 87.55 Swiss francs, a record four years, the largest single-day decline.

U.S. Federal Deposit Insurance Corporation Chairman Bell: unnecessary investors worried about the banking system

U.S. Federal Deposit Insurance Corporation (Federal Deposit Insurance Corp., FDI) Chairman Bell (Sheila Bair) 29, said investors should not worry that the U.S. banking system of health problems, because only a relatively small number of banks in trouble, and that the more Most of the banks for small banks.



Bell in his speech on the Fox Business Network, said, FDIC hands of "the troubled bank list" includes 76 banks, but some of the bank's total assets was only 22 billion U.S. dollars, accounting for the overall decline in the proportion of the banking industry. Bell said that 99 percent of banking assets good, the banking industry "very safe."

Bell said, "People do not need to worry about the banking system."

Bell made comments before this time, Fed Chairman Ben Bernanke (Ben Bernanke) in the speech on the 28th investors panic. In his speech, Bernanke said in testimony to Congress in the 2001 Fed will be more of the economic recession facing more problems, and warned that small banks may collapse.

The world's largest insurers: AIG07 in the fourth quarter Jingkui 5.29 billion U.S. dollars

The world's largest insurers - American International Group (AIG) 2 29.6.01 (U.S. local time on February 28) announced that its 07 in the fourth quarter loss of 5.29 billion U.S. dollars, the Group of 89 set in the history of the largest single-quarter loss record.

AIG announced in the notice of the Group of 07 in the fourth quarter of Jingkui 5.29 billion U.S. dollars, an average of 2.08 U.S. dollars per share loss, and the previous year, AIG in the fourth quarter profit 3.44 billion U.S. dollars, the average earnings per share 1.31 U.S. dollars.

Some analysts believe that, AIG losses for the fourth quarter of the financial industry is one of many issues, the analysis is expected at the same time, the future may be exposed to more problems and more bad news.

Buffett: good day, not a loan-to-drag the insurance industry crisis

He's flagship investment company released the latest , insurance underwriting profit in the fourth quarter dropped by 46%

Buffett investment also failed to master the United States to avoid the loan-to-crisis. He's flagship investment company Berkshire Hathaway's latest release of , the company's fourth quarter of last year a profit of 2.95 billion U.S. dollars, up 18 percent year-on-year decline.

Despite the company's profits last year or an increase of 20 percent, reaching 13.21 billion U.S. dollars, but the public that "stocks of God," the master or the investment company expressed concern about the prospects.

"Not a good day. The insurance industry's profit margins in 2008, certainly there will be a significant drop." Buffett wrote in the letter, investors said, "Please for the next few years the insurance industry to prepare low-income."

Insurance profit fell 46 percent

All along, Hathaway half of the proceeds from the insurance industry. Hathaway February 29 statement, said the company's net income from a year ago to 3.58 billion U.S. dollars decreased 2.95 billion U.S. dollars, from the original 2,323 U.S. dollars per share fell to 1,904 U.S. dollars.

Excluded from the sale of shares in China Petroleum and the benefits and other one-time items earnings per share fell to 1,518 U.S. dollars, below the forecast of the outside world 1,613 U.S. dollars per share, the average forecast.

Since the sale of its auto insurance company GEICO profit fell 49 percent, and the reinsurance business declined, Hathaway insurance business in the fourth quarter underwriting profit fell 46 percent to 465 million U.S. dollars.

Based on this, Buffett is expected, the insurance industry profit margins may be reduced four percentage points. If have a hurricane or earthquake and other natural disasters, the results could be even worse.

The loan-to-crisis by the United States and California fires caused property damage and human casualties affected, KBW Insurance Index of 24 companies, 21 companies in the fourth quarter profits decline or incidental loss. Washington, the U.S. insurance agents and brokers to data released by the Association show that last year the fourth quarter of commercial insurance costs fell 12 percent. The world's fourth largest reinsurance broker Willis Group Holdings Limited (Willis Group Holdings Ltd) said that reinsurance prices in January fell by 15 percent.

Buffett's has 76 enterprises, although most can avoid fluctuations in financial markets last year, but some small part of poor performance, both basic and real estate-related. For example, bricks, carpets and real estate business are facing challenges.

The world's largest carpet manufacturer Shaw Industries profit fell 17 percent to 109 million U.S. dollars. Acme Brick and the Johns Manville company's revenues have been declining. The industry believe that the situation in the past, Buffett's company is rare.

The 77-year-old Buffett's annual letter to shareholders in talking about, some large financial institutions have experienced a serious problem. All Americans believe that house prices will always rise, this conviction makes the borrower's income and cash capital of the number of lending people seem not important, they believe that rising housing prices will cure all the problems. Because of this erroneous belief, the United States is experiencing a wide range of economic pains. When prices decline, the huge financial problems exposed.

"When the tide receded, you know who in the nude beach, we therefore see that in the past the big financial institutions in the ugly side." Buffett said.

Search for a new growth point

However, the current business situation, Buffett believes that the current economic environment for his company's impact is minor and temporary, his company in the industry's competitiveness remained strong.

"It is interesting that when the original Lu Shu is continuing to lose money in the time after, people have found a new way to lose money." Buffett cited Wells Fargo's CEO John Stumpf said.

Therefore, the general said, the Hathaway in 2007 is still good harvest year, the performance report shows the net assets of enterprises increased by 11 percent to 12.3 billion U.S. dollars; annual profits rose by 20 percent to 13.21 billion U.S. dollars .

At present, Buffett to actively seek foreign partners, because non-US business can help Berkshire dollar fell against the risk.

Federal Reserve Chairman Ben Bernanke hinted at further interest rate cuts may be in support of the U.S. economy after last week, the U.S. dollar against the euro fell to a record low.

Buffett to promote profit growth and foreign investment started countries, including China, Britain and Israel. Today, Buffett also is expanding the bond insurance business

Performance of the global early warning lawsuit entangled itself there is no guarantee that the insurance giant

Performance of early warning, the global insurance giant entangled with the case itself there is no guarantee

By the United States, loan-to-crisis, the global insurance giant who has been Jiang Li's annual "report card" this year looks a bit bleak. The published annual report of the major risk appears to Europe and the United States over the profitability of the insurance giants have been varying degrees of weakening.

Risk to earnings deficit soared

From the loss of credit underwriting activities, is the global insurance giant's ability to have an impact on earnings. Swiss Re insurance report shows that, in 2007 than 2006 net income fell 9 percent to 42 billion Swiss francs addition, due to take 1.2 billion U.S. dollars of credit losses, Swiss Re insurance in 2007 fourth-quarter profit fell as much as 87 percent.

Swiss Re is not only on the last weekend, the world's largest insurer American International Group (AIG) of the annual report revealed that the syndicate 2007 fourth-quarter loss of 5.29 billion U.S. dollars, for 89 to set up the largest single quarter of "deficit" Record. The 2006 fourth-quarter earnings of AIG's 3.44 billion U.S. dollars.

Credit asset-backed securities (ABS) of trading losses also affected Germany's largest insurer Allianz Group's investment banking business. Allianz Group's report, the Group last year, at least in the ABS transaction losses 1.3 billion euros, making the cost of investment banking business from the 2006 yield of 79.7 percent rose to 89 percent. In addition, the UK's largest insurer Aviva has announced that the company's 2007 profit fell about 37 percent.

The market for the crisis more pessimistic. Some analysts think that, including AIG, the insurer's loss is only a microcosm of the future may see more problems. Swiss Re insurance in the February report pointed out that the structural credit default swaps market price adjustment with the loss of value has reached 240 million Swiss francs. In addition, the report also predicted that the next group in the securities market will experience further losses.

The insurance giant lawsuit

Credit crisis of the financial deficit at the same time, even the hidden crisis exposed, makes the case entangled with the insurance giant. Swiss Re insurance issued earlier in the financial report also confirmed that a Swiss Re allegations of securities class action-has been the southern part of the New York federal court admissibility. The defendants in the pleadings, the company's executives was accused in some structural and credit default swaps with the loss of market value adjustments, issued false and misleading statements. Swiss Re insurance lawsuit accusing some of its internal staff and executives violated U.S. securities law, in particular its included in the two companies could bring huge risks to the credit default swaps transactions, were not disclosed.

Previously, the U.S. Justice Department announcement said that General Re four former AIG executives and a former head convicted on charges of improper conspiracy, securities fraud, mail fraud and forged documents to the U.S. Securities and Exchange Commission. U.S. Justice Department's announcement shows that from 2000 to 2001, General Re and AIG have reached a fraudulent insurance transactions, so that the latter inflated loss reserve 500 million U.S. dollars to mislead analysts and investors overestimate the AIG operating conditions And raise the company stock. Notice that this partnership is an act of fraud.

Jingkui 5.29 billion U.S. dollars AIG exposed the largest single market-quarter loss

-- At 5:30 on February 29, 2008, the New York Stock Exchange after the close of one and a half hours, American International Group, Inc. (AIG) has announced its 2007 fourth quarter and full year performance.

Data show that, AIG in the 2007 fourth quarter net loss of (Net Loss) amounted to 5.29 billion U.S. dollars, or loss per share of 2.08 U.S. dollars, compared with the same period in 2006 earnings for 3.44 billion U.S. dollars, or 1.31 U.S. dollars per share, after adjustment for 2007 In the fourth quarter net loss of 3.2 billion U.S. dollars, or loss per share of 1.25 U.S. dollars.

AIG, AIG subsidiaries and the loss of AIG Financial Products Corp. (AIGFP) the sale of the super-senior credit default swaps product (super senior credit default swap, CDS) related to the product used for mortgage bonds (CDOs) to provide credit The protection of the contract.

AIG for the fourth quarter of such products from the pre-tax write-down (Write-Down) up to 11.12 billion U.S. dollars (in 2007 the year of such write-down for 11.47 billion U.S. dollars). AIG but that does not mean that these floating loss is possible after the actual loss.

"This is the AIG from the 1969 initial public offering, the biggest quarterly loss." AIG spokesman Chris Wennan (Chris Winans) said.

Performance well below Wall Street expectations

Obviously, AIG announced the above Wall Street expectations even worse.

February 29, AIG does not report earnings before the market opened to the practice, but deliberately wait until the closing and investor conference call postponed to next morning.

"If AIG announced fourth-quarter loss of huge, and I would not be surprised." AIG announced before the performance, Morningstar (Morningstar), Lens analyst Matt (Matt Nellans) in a telephone interview with this reporter said.

The challenge in the market sentiment, local time on February 28 AIG shares fell 4.02 percent, to close at 50.15 U.S. dollars.

Earlier, market research company Thomson Financial institutions Most analysts had predicted AIG fourth-quarter profit of 60 cents a share. But AIG in the fourth quarter net loss per share amounted to 2.08 U.S. dollars.

AIG, in its 2007 annual report mentioned that it hoped the majority of write-down in the future be saved, but there is still a small part of the company had to be included in the loss. 2007 fourth quarter, AIG issued a total of 2.63 billion U.S. dollars in mind has achieved a pre-tax net loss of assets, including AIGFP and doubtful debts related to the debt amounted to 643 million U.S. dollars.

By the fourth-quarter loss drag, AIG2007 sharp drop in performance. The report shows that, AIG2007 in net income (Net Income) for 6.2 billion U.S. dollars, or 2.39 U.S. dollars per share, while AIG in 2006 net income of 14.05 billion U.S. dollars, or earnings per share 5.36 U.S. dollars.

Trouble from the CDS

Its 2007 fourth quarter Bulletin, Jukui root cause lies in AIG's sale of a subsidiary of AIGFP called super-senior credit default swaps (super senior credit default swap, CDS) product, the product of CDOs (mortgage Notes) to provide credit default swaps.

As at September 30, the product of the total 513 billion U.S. dollars CDOs provide security, according to the level of the CDOs reached 63 billion U.S. dollars.

Earlier, AIG in November 2007 announced third-quarter earnings in that quarter for the reduction of CDS's pre-tax for 352 million U.S. dollars. After the December, Sullivan personally come forward, saying in October, November 2 in the CDS in the market value of 1.1 billion U.S. dollars loss of only about loss "is still within the controllable range."

However, with the loan-to-crisis intensified, AIG since the fresh start to his words.

February 11, 2008, AIG to the U.S. Securities and Exchange Commission (SEC) in the documents submitted to Yukui that will guarantee the loss from the previously announced 1.1 billion U.S. dollars, revised to 4.88 billion U.S. dollars. This involves only loss in October 2007 and November. In that document, AIG external audit bodies of PricewaterhouseCoopers, said the company internal audit of "substantial weaknesses", the credit default swaps (Credit Default Swaps, CDS) product difficult to accurately valuation.

News on that day, AIG shares plummeted 11.7 percent, to 44.74 U.S. dollars, the record since October 19, 1987 Black Monday crash of Wall Street's biggest one-day decline.

Unpredictable future losses

AIG CEO Martin Sullivan (Martin Sullivan) do not hide the concern of 2008, "We expect the U.S. housing market remains in the doldrums, the uncertainty of the credit market is also likely to continue. Continued deterioration of market transactions, it is possible AIG announced that more did not realize the market valuation losses and impairment expenses (impairment charges) ".

Sullivan has aroused a reflection of some of the concerns. Research institutions Gradient Analytics, an analyst at the East Vickery (Donn Vickrey) in an interview with The Associated Press said, AIG management is facing pressure.

"Although AIG to reduce its CDS product amounted to 11.12 billion U.S. dollars, but this is only the market pricing method is not realized losses so far, nowhere near the actual loss of huge reduction. However, investors should not be overlooked this Unrealized losses, because it represents AIG may have a worse situation. CDOs as the insurers, if CDOs genuine buyers to bring the actual loss, then, AIG needs to spend money on compensation for their loss of some investors. "Morningstar Lens analyst Matt, told reporters.

AIG after the announcement of results, the international rating agency Fitch (Fitch Ratings) said that AIG and its subsidiaries will maintain the debt ratings outlook to negative. Since February 11, AIG disclosed loan losses, Moody's, Fitch universal standard three rating agencies will be AIG's rating to that level.

AIG reporters yesterday in connection with the Chinese people, he said that there is no further information on the annual report and comment.

Small debt to the United States-favored by the king of bankruptcy

The two largest debt-to Ambac and MBIA situation is still worrying

The two major U.S. bond insurer Ambac and MBIA has not yet faced from the AAA rating lowered the risk of going out, they are also facing new competitive pressures. Last Friday, small bond insurance companies have been declared bankrupt AGO Ross King injection of 1 billion U.S. dollars.

Official king of the Ross said last Friday agreed to buy the bond insurer AGO a total of 1 billion U.S. dollars in equity. Ross will buy the new AGO issued ordinary shares of 250 million U.S. dollars, the company after the acquisition shares will account for more than 10 percent.

Ross promised, as long as the AGO to maintain the current rating, will buy 750 million U.S. dollars worth of stock. Ross will enter AGO Board of Trustees. Of the current market price, Ross is expected to holders of the company 1 / 3 stake.

The deal is expected before the end of March approved. Ross was expected before the outside world will invest MBIA or Ambac, and so on a larger scale of the bond insurer, but AGO relative financial stability, for a relatively small amount of stop-loss, Ross chose the latter.

In addition, the bond insurer Ambac announced the same day, in the next six months, to stop underwriting the complex structure of financial services, and reduce the dividend, to restore the funding level. The company estimates this will raise about 600 million U.S. dollars of capital. MBIA has previously announced similar measures. In response, Moody's said, Ambac's capital than the average standard AAA low 2 billion U.S. dollars, but still meet the minimum requirements for AAA rating. But on the next run, Ambac level of funding may .

According to statistics, Ambac insured Citigroup has issued 7.5 billion U.S. dollars of unsecured debt securities (CDO), of which 6.9 billion U.S. dollars the value of CDO rapid landslide, has entered a state of default, Ambac may have to pay the aftermath. Am-bac, MBIA FGIC, such as bonds and the insurer in the loan-to-crisis as a result of underwriting CDO such as the structural financial products, suffered huge losses, totalling about 2.4 trillion U.S. dollars underwriting bonds default payments. Ambac has insured CDO for more than 50 billion dollars to pay the price.

Ross investment by the news, last Friday AGO shares rose 12.60 percent to 25.65 U.S. dollars, over the past year the stock has plummeted nearly 18%; Ambac fell 5.6 percent to 11.14 U.S. dollars, the Unit over the past year have dropped 85 percent; MBIA over the past year decreased by 80%.

Involvement of the loan by 2007, Swiss Re insurance profits shrink 9%

February 29, the world's largest reinsurer Swiss Re (Swiss Re, the "Swiss again") released the 2007 annual report, said full-year earnings shrink 9 percent, mainly by the derivatives business losses, and in the credit default swaps (credit default swaps) in the projected 240 million Swiss francs (228.4 million U.S. dollars) of assets by impact.

The report shows that, Switzerland 2007 full-year earnings to 4.2 billion Swiss francs, down from 2006's 4.56 billion francs, 13.5 percent annual return on assets for the fourth quarter net income of 170 million Swiss francs.

Swiss CEO again (Jacques Aigrain) in a state official said: "As our main business of outstanding performance, 2007 to become the Switzerland of 144-year history of good performance of the year. Property and Accident insurance have outstanding performance, life insurance and health insurance has increased over the previous year. Despite the difficult market environment for investment, our investment behavior or to a positive direction. "

2007, Switzerland's shares to a total decline of 22 per cent this year is basically the same. January this year, Warren - Warren Buffett (Warren Buffett) control of Berkshire - Hathaway (Berkshire Hathaway) announced the acquisition of its 3 percent stake and agreed to manage its property and casualty insurance sector in part Business. By the impact of this news, the company's stock price has been soaring.

According to foreign reports, due for the company's financial situation to create "false and misleading" statements on the Swiss again in the United States is facing class-action suit.

This from the one in New York law firm Coughlin Stoia Geller & Robbins LLP, on behalf of unnamed institutional investors initiate proceedings. Lawsuit accused the Swiss again and its internal staff and some executives violated U.S. securities law, in particular its included in the two companies could bring huge risks to the credit default swaps transactions, were not disclosed. The law firm said that in the May 8, 2007 and 2007 on November 19 during the day to buy Swiss shares of any U.S. residents to participate in the proceedings to claim compensation to the company.

Swiss again in the November 19, 2007 announced by the United States, loan-to-crisis, its derivatives business loss of 1.2 billion Swiss francs. Affected by this, Swiss Re shares fell 10.25 percent, to close at 87.55 Swiss francs, a record four years, the largest one-day drop

Swiss Re insurance profit 4.2 billion francs last year

The world's biggest reinsurers - Swiss Re (Swiss Re) announced today that its 2007 net income of strong, reaching 4.2 billion Swiss francs, equity yield of 13.5%.

Compared with 2006, Swiss Re 2007 net income fell 9 percent to 4.2 billion Swiss francs. Earnings per share fell 11 percent, to 11.95 Swiss francs. Premium income increased 7.3 percent to 31.7 billion Swiss francs. Equity yield of 13.5%, lower than 2006's 16.3 percent. Equity increased to 31.9 billion Swiss francs.

January this year, Swiss Re insurance and Buffett's Berkshire Hathaway agreed to the latter through the transfer of 20 percent of new and renewal property and casualty insurance business to improve the operating leverage of the company. The agreement provides the sub-commission, including the latter to the Swiss Re insurance to pay the long-term acquisition costs and 14 percent of the reinsurance commissions.

Swiss Re CEO Jacques Aigrain said: "As all key business areas are very good performance, we achieved a Swiss Reinsurance 144-year history of the second good performance. Property insurance and accident insurance a record performance, and life insurance and health insurance Business performance of the previous year is already well on the basis of further growth. Although the market environment of recession, investment activities, is still a positive development. Therefore, the company's board of directors proposed cash dividend will be raised to 4 Swiss francs per share, that our company's future Profitable confidence. "

Buffett: bad-mouthing the U.S. insurance industry

Declared that the three bonds to insurance companies no longer underwriting the value of 800 billion U.S. dollars of municipal bonds to provide reinsurance

"According to common sense, we are in recession."

"My children will live better than I, although they do not believe that this judgement."

-- "God Unit" Warren Buffett

Known as "God Unit" Warren Buffett on the 3rd in the United States told CNBC television that the U.S. economy has actually entered a "recession." He also announced that the three bonds to insurance companies no longer underwriting the value of 800 billion U.S. dollars of municipal bonds to provide reinsurance.

According to "common sense"

Buffett said that from his leadership of Berkshire Hathaway Inc. reports on retail companies, to significantly reduce Americans, and because real estate prices fell, to millions of Americans owned property Decline in value.

Buffett said, "According to common sense, we are in recession."

Buffett cited "common sense" because the economic indicators, the current problems facing the U.S. economy is still not enough recession levels. Most economists believe that two consecutive quarters of gross domestic product (GDP) growth means that the negative economic recession. The U.S. Department of Commerce announced on the 28th last month, the figures showed that U.S. gross domestic product growth in the last quarter of last year, 0.6 percentage points, while in the previous quarter, the figure is 4.9 percentage points.

Buffett's judgement and many economists similar. U.S. National Association of Industrial Economics published a survey, the economists surveyed, about 45 percent believe that the U.S. economy will enter a recession in 2008.

However, Buffett believes that the long term, the U.S. economy will not Yijuebuzhen. "My children will live better than I, although they do not believe that this judgement."

Bad-mouthing insurance

The insurance industry is the heavy investment in the first Buffett. Over the years, Berkshire Hathaway, about half the proceeds from the insurance industry. But on the 29th last month announced the company's financial report shows that, Berkshire Hathaway last year from the insurance industry earned a net profit of 2.2 billion U.S. dollars, while last year, this figure is 2.5 billion U.S. dollars.

At the same time with the financial report released an open letter to shareholders, Buffett bad-mouthing the insurance industry. He said: "We, including the insurance industry profits in 2008 will be a significant decline." He estimated that, even if the United States this year not to be subjected to major natural disasters, the insurance industry's profits will be down about 4 percentage points. He said that if a hurricane or earthquake and other natural disasters, the insurance industry will face a more difficult situation.

Last month, the largest U.S. insurer American International Group (AIG) released earnings reports that the fourth quarter of last year because of credit losses in the Group nearly 5.3 billion U.S. dollars Jukui. 2007 full year group profit 6.2 billion U.S. dollars, less than the total 2006 profits of 14.05 billion U.S. dollars half.

In addition, Buffett announced on the 3rd, not for the three insurance companies underwriting the bonds worth 800 billion U.S. dollars of municipal bonds to provide reinsurance. He proposed last month on the 12th, Berkshire Hathaway is willing to each of the three bond underwriting of municipal bond insurance companies to provide reinsurance, but does not include other complex high-risk financial instruments. These insurers to pay premiums collected by the return of 1.5 times. That proposal did not receive responses.

The United States "on loan" crisis in the insurance intermediary not affected by

The United States "on loan" crisis, have a large number of insurance companies Puchu experienced huge losses and declining ratings. However, the British Willis Group Chairman and Chief Executive Officer of Pan Muli (JosephPlumeri) yesterday, when interviewed by this paper, because the insurance intermediary of the assets and liabilities, not Ciji Zhai this investment, therefore, not subject to this wave of "loan-to-the" impact.

He regarded this "loan," described the crisis as a catastrophe, "Although there were no casualties, but the lethality of the great financial institutions, particularly the balance sheet of the insurance companies have great impact." In his view, "the Credits "to the global crisis affecting the insurance industry has yet to be felt.

Data show that the world's largest insurance company American International Group (AIG), a credit crisis suffered huge losses in the latest financial institutions. Because of their support for secondary mortgage bonds related derivatives on Chongjian 11.1 billion U.S. dollars, the fourth quarter of last year loss of 5.29 billion U.S. dollars, a 89 to set up the largest quarterly loss record.

Pan Muli said that this is a signal. Perhaps there will be more and more insurance companies will take Chongjian practice this way, the insurance company may purchase reinsurance to the rising demand, leading to the rise in insurance rates, such a cycle will affect the global insurance industry A trend. "This in my career, has never occurred, has never been seen."

When talking about China's recent heavy snow on the insurance industry weather the impact, said Pan Muli, insurance companies, the current assets and liabilities on a huge surplus, adequate capital reserve protection, similar to China, the snowstorm is not enough to reverse the premium rate Development trends, it is difficult to change the current insurance market environment, so it will not affect the international reinsurance market rates.

Agriculture has a mandatory insurance

Data show that foreign insurance of agricultural development has been the longest on 100 years of history, the academic community will be divided into government-led participatory, Union model, the mode of government subsidy to security, selective support mode four types, but in practice Operation of agricultural insurance policy has a strong color.

First, agricultural insurance has a mandatory. U.S. agricultural insurance in principle to implement voluntary insurance, but since 1994 the United States, "Agriculture Insurance amendment" clearly stipulates that the Government not to participate in crop insurance scheme farmers can not enjoy other government welfare schemes, such as agricultural loan scheme, the price of agricultural subsidies and protection plans, etc. ; Required to purchase catastrophic insurance, before the purchase of other additional insurance. This has to some extent, formed a de facto compulsory insurance.

At the same time, the Government has provided a certain proportion of premium subsidies. The U.S. ratio of subsidies for insurance premiums vary, the average subsidy in 2000 amounted to 53 per cent of net premiums (an average premium subsidy amount per acre to 6.6 U.S. dollars). The catastrophe insurance premiums of all subsidies, the risk of a variety of crop insurance, revenue insurance premiums subsidized rate of 40%. Japan's proportion of the premium subsidy rate according to different levels are different, the higher the rate, the higher subsidies, such as rice subsidies 70 percent (rate of over 4 per cent), rice subsidies the highest 80 percent (rate of more than 15 per cent), Maximum 80 percent of wheat subsidies.

In addition, the Government of the agricultural insurance business operating costs to provide subsidies. U.S. government commitment to the federal crop insurance companies and the cost of crop insurance promotion and education costs, the crop insurance to the contractor of the private insurance companies provide 20 percent to 25 percent of operating costs (including costs for losses) subsidies. Japanese Government's commitment to a Mutual Benefit Association Federation of the full cost of economic and agricultural portfolio part of the cost.

The strength of the economy of the country, the Government will provide agricultural insurance reinsurance support. The United States through the Federal crop insurance companies to participate in all kinds of agricultural insurance in the private insurance companies, reinsurance companies and joint venture insurance companies provide reinsurance support from the local government of Japan's total economic portfolio Federation and the Central Government for the agricultural portfolio to provide a total of Jeju two re-insurance .

British insurance company the introduction of "fat tax"

Britain is one of the fat, 1 / 4 adults and 16 percent of children overweight, and obesity can lead to numerous health problems, insurance companies will no doubt increase the risk of claims. So many British life insurance company on February 21 decided that the introduction of the policy holders "obesity tax", fat people will be an additional premium of about 50 percent. Because, if obesity, the risk of suffering from certain diseases will increase.

Britain's largest life insurance company Legal & General Group on the 22nd said, "Obesity
Tax "levied based on the" body mass index. "In a recent case, a 37-year-old man told insure insurance companies, he stands 1.8 meters and weighing 100 kg, only five months later, he died of thrombosis disease, However, failed to obtain the settlement. Because the insurance company found that he actually stands 1.73 meters and weighing 132 kilograms. Insurance company said that if had known the truth, he would raise the premium of 275 percent.

Russia's Tomb of grave robbers destroyed the cemetery serious birth insurance

-- Beijing on March 7, destroyed graves and grave robbers growing phenomenon in Russia, last year, has more than 15,000 such cases, this issue insurance to the cemetery came into being.

According to Russia's "New News" recently reported that in the Krasnodar Krai Niekelasuo , two minor criminals destroyed dozens of tombstones in Ufa City, two for theft more than 20 blocks Graves were arrested in Kaliningrad, about 20 tombstones were damaged.

The owner of the tombstone in order to make up losses, insurance companies frequently seek help, the "grave risk" business of insurance companies so more and more.

An insurance company manager Anas Taxiyafu Lassoshe said, "the cemetery and dangerous" not only targets of the insurance cost of the expensive cemetery, but also worth about 20,000 rubles (about 836 U.S. dollars) of the general cemetery. She said that although the insurance package of agreements covering earthquakes, floods and other possible damage to the cemetery, but mainly for the Tomb of acts or destroyed. The insurance premium cost of the burial ground of 1-5 percent.

Funeral organizations, vice president of the Federation Nikolai Artamonov said that due to shortage of funds, many of the cemetery is responsible for inspections of the cemetery not enough manpower, but also to security personnel at night can not afford to, or unable to install video cameras.

Some experts commented that the insured is a cemetery for the abnormal phenomenon of social, and ethical and economic factors, in many rich countries, no one could move the idea of destroying graves.

The world's largest bond insurer MBIA requirements Fitch ratings withdrawn six companies

And - According to foreign news media, the world's largest bond insurer MBIA Insurance Corp. Local time on Friday announced that it has asked one of the three major U.S. rating agency Fitch (Fitch Ratings) the revocation of the insurer financial strength ratings of six, Which includes bond insurer MBIA companies.

It is learnt that the Fitch international rating that is still under review whether the lower MBIA bond insurance AAA rating. At the same time, Moody's Investors Service Company (Moody's Investors Service Inc.) And the Standard & Poor's (Standard and Poor's) will also be reduced in other mortgage-related investment rating.

MBIA spokesman Willard Hill, the Fitch ratings strength "is not" the avoidance of a factor. Before, MBIA Fitch had asked the company issued more than 1.1 billion U.S. dollars unsecured bond rating. MBIA in a statement that the ratings of Fitch procedures "in many important areas to be different from other rating agencies, which will affect investors assessed value, especially in periods of economic instability, brought about by such a different impact on Become very important, an increase of the risk of misjudgment. "This speech, Fitch international rating in response to Friday Road, on the request to revoke MBIA rating, and Fitch ratings and cost analysis of the criticism, we are very disappointed. Fitch Ratings, president and CEO of RU Waen (Stephen Joynt) issued a statement saying that "our ratings are high-quality analysis, we understand MBIA municipal bond insurance and structured finance business."

Fitch Ratings said that it can not determine the future continue to conduct insurer MBIA financial strength ratings, because without the right to use the insured on the details of rating will become very difficult, these documents is not external open to the public.

If they lose the AAA bond rating of insurance business, MBIA it will be difficult to win a good performance. To meet the Fitch ratings of AAA capital requirements, MBIA will be forced investors to sell municipal bonds, and therefore once again involved in the credit market crisis. MBIA in the secondary mortgage-backed securities products after a major loss, MBIA raised 2.6 billion U.S. dollars of capital to help ensure that its AAA bond rating of the insurance business. MBIA also made in these efforts to avoid the Moody's Investors Service and Standard & Poor's lowered its rating. However, Moody's Investors Service and Standard & Poor's future still on the ratings of MBIA said "negative."

Last month, MBIA the new chief executive Joseph "Jay" Brown said, he plans to split the next five years the municipal bond insurance and structured finance business. Hill also said, "We do not believe that the Fitch rating model and the allocation of capital in line with our objectives, our goal is to municipal bond insurance and structured finance business to split open." Hill said, since 2005, Fitch Rating on an increase of three times the cost of expenses, can provide insurance financial strength ratings.

Foreign insurance companies be allowed to open branches in Russia

The document provides for foreign insurance (reinsurance) companies set up branches in Russia in the conditions and procedures for legal status in insurance activities in Russia in the conditions and the companies and representative offices of foreign insurance broker activities.

The bill is "the cause of the Russian Federation insurance organizations," the amendments to the law, the State Duma Alexander member of the financial markets Kewa told the paper will be submitted to the Duma to consider. Protection of the Russian insurance documents, namely, citizens, entrepreneurs and corporate interests, but also protect the country and the interests of the domestic insurance market.

In the annex to document said: "The adoption of the Bill sets a legal basis, which provides that only reliable insurance (reinsurance) companies can set up branches in the territory of Russia, which first raised the Russian branches of foreign insurance in no capacity to pay protection."

According to Russia's accession to the WTO agreement, the Russian insurance market to allow foreign insurance and reinsurance companies branches there.

Buffett seven-year itch to go short of the insurance industry

"We have to diamond-point on the light, not a piece Wandan." Warren Buffett (Warren Buffett) in 2008 in a letter to shareholders said.

Obviously, Buffett does not think that Baishan Insurance Group (White Mountains Insurance Group, Ltd., NYSE: WTM, under Baishan insurance) is a diamond.

U.S. time on March 10, Buffett's Berkshire Hathaway (Berkshire Hathaway Inc., NYSE: BRKA) announced that it would sell the 16.3 percent holding in Baishan insurance stocks.

Baishan insurance registered in Bermuda as a financial services company, whose main business is property insurance, accident insurance and reinsurance.

7-year itch

March 10, according to the Baishan insurance public statement regarding this transaction, the agreement between the two parties, Hathaway will sell all of its 172.4 million shares held by the Baishan insurance ordinary shares, through this transaction, Hathaway will receive 751 million U.S. dollars in cash And the two companies.

Hathaway said, will be wholly-owned holding a Baishan's insurance subsidiaries, thus holding the other two U.S. companies - Business accident insurance company (Commercial Casualty Insurance Company, CCIC) and the International Group of the United States (International American Group, Inc. , IAG). As at the end of 2007, CCIC and IAG total assets of about 435 million U.S. dollars and 028 million U.S. dollars after the adjustment of rights and interests of shareholders.

The transaction is expected to be completed in the third quarter of this year. By then, Baishan insurance issued ordinary shares will be reduced to about 880 million shares, or about 485 U.S. dollars / share.

This means that Buffett will abandon a seven-year Baishan insurance.

"In 2001, Hathaway and Warren Buffett as the key to our investors, so that we get CGU / OneBeacon two companies and our shareholders have benefited from this relationship." Baishan insurance chief Executives Leibalete (Ray Barrette) said in a statement.

Seven years ago, Hathaway Baishan insurance companies to buy 300 million U.S. dollars of convertible shares, with 30 percent of the Baishan insurance shares. Baishan insurance at that time CEO of Jiekebeien (Jack Byrne) contributed to this transaction.

Jiekebeien a close friend Warren Buffett, Buffett describes Bain had the ability to work: "Bain like a chicken farm owner, he always Gundao ostrich egg laying hens of the Housing and Say, 'Hey, ladies, this is your real competitors'. "

Hathaway insurance companies to invest in Baishan, can be 9 percent return, you can also use the price of 175 U.S. dollars converted into ordinary shares. Under the contract, Hathaway's convertible preferred shares in four years may not repurchase. Buffett is a take seven years.

Honeymoon has ended.

February 29, Hathaway announced in 2007 earnings, while still open Buffett's 2008 letter to shareholders.

"2007, our insurance business - the cornerstone of Hathaway - and distinguished, in part because insurance is the best management talent, but 2007 is quite lucky, because it is encountered a series of insurance for the second disaster Years. "

"Carnival has ended." Buffett in the letter of pessimistic predictions.

In the letter released after the 10th day, Hathaway announced that the sale of all of its holdings of insurance stocks in Baishan.

From July 2007, Baishan insurance market continued to decline in New York, 52-week high price of July 1, 2007 of 611.02 U.S. dollars, as at March 10, the stock closed at 452.93 U.S. dollars, the day down 4.98 percent.

Pessimistic about 2008

By the loan-to-impact, Buffett was known as Hathaway "cornerstone" of the insurance industry's future was uncertain.

"I am convinced that the entire insurance industry, including our insurance company profit margins in 2008 will decline substantially." Buffett believes that as the exposed the growing problem, even if the United States the third consecutive year to avoid severe economic crisis, industry profits May be mercilessly squeezed out four percent. If encountered more stormy weather, the earthquake disaster, the situation may be worse.

"I have decided to give up 800 billion U.S. dollars of assets involved in the rescue plan." U.S. time on March 3, Buffett told CNBC television that said that the U.S. economy "by any standard" do have a recession.

Buffett said that despite the current economic situation in 1973,1974 and around the large-scale economic recession that is not exactly the same, but investors should not completely rule out the possibility this was a very serious economic recession.

February 12, Buffett told the three largest U.S. bond insurer proposed to be for a total 800 billion U.S. dollars of municipal bonds to provide reinsurance services after a month, Buffett attitude toward, is considered revaluation Market risk results.

Currently, Hathaway has the nation's largest auto insurance companies may cover insurance (GEICO), and the world's leading reinsurers General Re and Hathaway Reinsurance Group.

The report shows that, as of December 31, 2007, Buffett held by stock market value of about 74.999 billion U.S. dollars, while the market value of the insurance Baishan 886 million U.S. dollars, accounting for only 1.18

Former U.S. anti-insurance fraud scandal Zhaoji a standard-bearer

U.S. Democrats Eliot Spitzer in 2006 was elected governor of New York State. Yesterday afternoon, he Xie Qizai held in New York emergency press conference, together with his involvement in the scandal to account for the sex trade. According to Democratic sources, Spitzer will soon announce his resignation.

Tapping action to obtain reliable evidence

Speaking at a press conference, Spitzer said his presence at fault, to their families and the public a formal apology. He said: "I have violated the conduct of my family commitments, I can not stick to their own moral standards and deeply disappointed, I now must work to regain the trust of the family." Spitzer at a press conference, in addition to the family An apology, an apology did not elaborate on the reasons for not talking about his political future, but also did not answer reporters loudly on the 100 to any issues raised by the end of the expressionless face and his wife left the venue.

U.S. phone-tapping by the judiciary finds that Spitzer's involvement in a prostitution and the sex trade scandal. Spitzer is a high-end prostitution, "the emperor club", "on the 9th customers." There is evidence that on February 13, Valentine's Day is the day before Spitzer in Washington "Mayflower" hotel with a "weighing 105 pounds, stands 5 feet 5 inches," the beautiful Ming Jiaoke Christian Girls Rendezvous. They had a room in two and a half hours and have sexual relations. Since then, Christie had received 4,300 U.S. dollars, which includes fare, Bar fees and travel expenses.

U.S. law enforcement officials to the media, New York Gov. Spitzer Zhaoji involved in this scandal and was arrested, federal law enforcement agencies in recent months to investigate the case and part of the eavesdropping operation.

"Wall Street fighters" by their own Bandao

Spitzer, a former New York State Attorney General, because of drastic eradication of corruption and strive to rectify the financial order, crack down on business wrongdoing and the giant Wall Street afraid, once known as the "Wall Street governor," and known as the Democratic Party Weilaizhixing. During his anti-gang crime as a working group leadership, handled at least two cases of prostitution gangs. At that time, he had Kangkaichenci, Nuchi prostitution gangs of various misdeeds, the renowned U.S. political arena. U.S. "Time" magazine cited his year as "to safeguard the principles and ideals of the war fighter," CBS 60-minute programme called him "Sergeant Wall Street."

U.S. media said that Spitzer in the New York State Attorney General at the Shudi many, many people want to "engage in cross-him" because he advocated by the United States swept the reform of the financial services industry, changes in the Wall Street investment banks, mutual fund industry and The insurance industry regulatory structure. He against Wall Street and mutual fund industry and the serious violations of fame, but also to offend a large number of people.

However, the Wall Street executives ZENG Ling afraid of "an iron fist fighters", was not his enemy or opponent, "Bandao", but this is a sufficient to destroy the political future of the sex trade.

The U.S. media pointed out that Spitzer had the absolute advantage of the historic New York governor won the election. However, in the first year as governor, Spitzer did not have much political achievements, now Spitzer own sex scandal even more doubt he can do the job for the second governor

07 global General Insurance Company for disaster "pay for" 28 billion U.S. dollars

Swiss Re was recently released report, in 2007 the world with natural and man-made disaster-related economic losses over 70 billion U.S. dollars and claimed more than 20,000 lives. Choi Chanxiangongsi therefore pay a total of 28 billion U.S. dollars settlement.

The agency said, despite the 2007 disaster caused by the number of deaths and amount of the loss is not particularly prominent, but statistics show that natural disasters and man-made disasters, whether in quantity or cost rise. The author of the study report said one of Rudolf Enz, property insurance loss last year, the European victims of the most serious, and has always been the highest loss of the top list of the United States, last year's losses compared with previous years to light.

2007 Europe suffered extremely serious natural disasters. January, the winter storm "Kyrill" swept through Germany, Britain, Belgium and the Netherlands, resulting in 6.1 billion U.S. dollars in insured losses. Summer, the United Kingdom and two attacks by the torrential rains and floods, insurance losses amounting to 4.8 billion U.S. dollars. April, the United States suffered the most devastating loss of natural disasters: storms accompanied by high winds, hail and flooding, resulting in 1.6 billion U.S. dollars in insured losses. October, the California forest fires, caused insured losses over 1 billion U.S. dollars.

Rudolf Enz also pointed out: "Statistics show that long-term disaster showed a sharp upward trend. Since 1970, the amount of the loss to an average annual growth rate of 12% (after deduction for inflation compared with 7 percent)."

In recent years, insurance companies have been under the new data and research results to correct its simulation model, especially in its flood losses after the model revealed deficiencies.

Another goal of the insurance companies will be catastrophic risk is transferred to the capital markets. Organization in Geneva, chief risk officer of the Forum, under the guidance of the European insurance industry launched the establishment of a European disaster risk of loss for the initiative.

Buffett from selling insurance stocks Speaking of Baishan

A strong Decheng

U.S. time on March 10, Buffett's Berkshire Hathaway holding company announced that it would sell 16.3 percent of Baishan insurance stocks. God Buffett bought shares in Baishan insurance shares, seven years after the sale of all of the shares.

Buffett said: "I am convinced that the entire insurance industry, including our insurance company profits in 2008 will decline substantially." Buffett to the United States in 2008 after a pessimistic attitude toward the economy that the economy has declined, if facing a serious Natural disasters, then the situation will be worse. At the same time Buffett in the March 3 told CNBC television that the decision to give up 800 billion U.S. dollars of assets involved in the rescue plan. Buffett to protect the interests of shareholders, after the market risk of re-evaluation of the stock market to give up the hero's role.

At the same time we saw in 2008 by all the shareholders Buffett's letter said, and then to the luminous phenomenon, like the diamond assets is not so easy for us. Buffett's pessimism we see with the 2008 and 2009 is to adjust the match, even more determined this section of the judgement.

Source of profit insurance companies, on the one hand from business expansion and operating efficiency, while investment income also came from. In the absence of major natural disasters the year, the insurance company's performance will be relatively optimistic, in disaster-intensive cases, many insurance companies will face the possibility of bankruptcy.

Buffett also see the global capital markets could face substantial adjustment of (investment income will drop significantly or even losses), is not optimistic about the economy will lead to reduced insurance premium income, but also to see the big ups and downs of the climate will inevitably have a major disaster. Based on the above three points to consider Buffett to invest pessimistic about the prospects.

Ping An of China (Ai shares, market, information) financing of the huge market was wrong to think it is safe shares fell reasons, I believe that if peace is not huge financing, then the price will fall even worse, the huge financing purpose is to The protection of the interests of existing shareholders to prevent the stock price fell 30 yuan nearby. Ping An Insurance has a huge amount of money, the market once survived the most difficult period, it can be invincible, so Green would like to thank the shareholders of safe management of the financing plan and launch through.

Some friends said he used the concept of value of investment in 130 yuan to buy Ping An Insurance, I said to him, the value of investment in Ping An Insurance in a few years ago when the issue H shares, the stock was safely in five yuan, from a few years Ping An Insurance ago to the present have gone through a rapid development of high-speed growing, the future pace of development will slow down, if have to wait for the value of the investment Maidian, estimated to wait for some time.

China's insurance industry's growth prospects will be much larger than Western developed countries, any industry have a certain degree of cyclical features. In China, the two organizations have many times raised by the representative of the increased agricultural insurance and forestry insurance, and construction of China's insurance system is still in its initial stage, confusion, but the Government will give full attention of the insurance system building, China's capital market And it is very policy-oriented, enabling some insurance companies will be listed on the financing.

Some insurance companies will be unique God's care, because in some years have not been major natural disasters, while operating properly and a unique marketing tool, will grow rapidly. When the insurance company shares in the net assets of the following, there is relatively good value investment Maidian there.

Buffett said Sheng Yan has ended, the United States on the future development of the market pessimism. For the Chinese market, Buffett did not mention the view. I think that if the United States to lead the global economic downturn, China's economy will also be affected, those relatively high degree of internationalization of the enterprises have been affected to some large. Buffett to find good companies, said the head-to the point of diamonds shine, not one piece Wandan. If we are to learn Buffett, the strict requirements of their trading behavior, it is not easy.

Buffett over the past two years at the same time feeling lucky to escape a natural disaster, can escape after the probability of natural disasters may have substantially decreased. Buffett sold in the same oil when judgement is the same, the uncertainty of the little things, Buffett has taken an evasive attitude.

If we are not bankers, before the Spring Festival in 2009, the reorganization should not blindly buy stocks, and constantly observing the game after night not to take action. Technical analysis would also like to combine with the basic analysis is possible to find some light on the diamond. Chen Hongjie "investment should not be It is worth drawing investors. We forecast to the forecast, and as your next single standard or with shares of listed companies to look at the fundamentals of the relationship between the stock price is low enough, the company's future is whether the higher growth.

Buffett again early in 2008 boarded the location of the world's richest man, we Buffett's investment over the past 40 career assessment is that with the stability can not be copied.

Therefore, a good investment to have many different people the knowledge, and to constantly aware of their shortcomings and learn the strengths of others, quit greed and fear, and maintain a normal heart.

This week the market has to drive at the end of the stage, others fear that when you bold, this year's rally in general little profit after fans should not be too greedy, glory and splendor will remain in 2009 after.

Swiss Re: re-insurance and financial services team of experts integration

In order to gain sustained profitable growth, Swiss Re's innovative business model is working. CEO Jacques Aigrain said that in the future of Switzerland then take a more integrated business processes, focusing on expanding customer base and efficient risk transfer solutions range. A new business model will enhance Swiss Re in insurable risk management, transfer and transactions in the leading position.

Aigrain said the global risk transfer market environment is rapidly evolving. Marking time, according to the old methods do not work have been business. Early 2007, Swiss Re began to adjust strategies and organizational structure. The purpose of this was the risk of increased competition and changes in circumstances under the conditions of maintaining sustained and profitable growth.

Swiss Re, the traditional market for financial reinsurance products and insurance-related capital market instruments, one of the solutions in the increasingly strong demand. Therefore, Swiss Re is adjusting the company's organizational structure, the traditional reinsurance products and financial services team expert group more closely together. Swiss Re hopes that the new business model will help customers to provide a tremendous risk underwriting capacity and more solutions at the same time, to make a greater return on shareholders.

Through adjustments in the hope that Swiss Re underwriting capacity, risk management, capital investment, corporate culture, and other four areas has improved: First of all, Swiss Re hopes to expand customer base, expanding the interaction with customers to enhance the company for all insurable risks support Capacity. Secondly, Switzerland has been further efforts to build a solid foundation for the capital market, hoping to become the risk pool, reform and market-driven forces of the transaction. With the insurance link securities, and insurance losses guarantee the development and marketing experience, the company will develop innovative solutions to play a major role. Companies will also be variable annuity and long life to continue to develop risk transfer solutions, will explore how the balance sheet has been included in the transfer of risk to the peer approach in order to create greater underwriting capacity to undertake new business. In addition, the Swiss then more actively fight for profit business and investment opportunities. Finally, the further strengthening of the Swiss company culture, so that companies can not only attract and train outstanding talents, but also consolidated their talents, skills and innovation, to provide integrated solutions

The world's largest bond insurer boycott of Fitch Ratings

"First Financial Daily" from Fitch Ratings yesterday received two e-mail, covering the beginning of this month the world's largest bond insurer MBIA global demand, one of the three major rating agency Fitch ratings, to stop the MBIA insurance financial strength ratings.

Ciji Zhai after the outbreak of the crisis, because a lot of underwriting Ciji Zhai, the U.S. bond insurer faced huge claims. Many bond insurer is facing a AAA rating was lowered the risk. Once they lose their AAA rating, will not be able to carry out a new business, and they have affected the level of the bond contract.

Bond insurers have already started "to defend the war", MBIA2 the end of that suspended coverage of all new structured finance business, the company also intends to five years in the public bond insurance and structured finance business, left to.

MBIA CEO Joseph Brown in the February 27, is expected to Moody's Investors Service and Standard & Poor's rating agencies such as the longest in 18 months time, its rating will not take any action.

Three international rating companies, only Fitch still consider lowering the rating of MBIA. March 7, MBIA accused of capital Fitch ratings model unreasonable demands lifting of Fitch's rating and March 8, no longer to provide a wide range of Fitch ratings for the company private information

2007 total premium of Georgia insurance companies over 100 million lari

2007 Georgia 16 insurance company premiums amounted to 119 million lari (about 1.5 lari one U.S. dollars), representing 41 percent growth in 2006, or 49 million lari; annual compensation in the total amount 71.72 million lari, the rate of compensation 60 per cent.

Georgia medical insurance is the most popular types of insurance. The types of grid 37.35 percent of the insurance market, the premiums amounted to 44.55 million lari; property insurance accounted for 17.06 percent, the premiums amounted to 20.35 million lari; motor insurance accounted for 14.36 percent; finance and insurance accounted for 8.81 percent; life insurance accounted for 3.88 %.

Georgia currently the biggest two insurance companies are Aldagi BCI and the GPI-Holding. 2007 Aldagi BCI insurance company premiums amounted to 41.8 million lari, the amount of compensation 11.6 million lari; GPI-Holding private pension funds insurance premiums amounted to 28.2 million lari, compensation 13.6 million lari.

German health insurance institutions to deploy Entrust strong authentication solutions

March 13, 2008 / PRNewswire-FirstCall / - Germany is a long history of private health insurance companies Universa, hopes to find a credible programme through a multi-factor authentication to protect the enterprise access and communication security solutions. After repeated investigations comparison, Universa final choice Entrust company (NASDAQ: ENTU), through the use of GM certified Entrust IdentityGuard platform to enhance their internal departments, the Working Group, applications and remote landing collaboration between the staff's efficiency.

"Universa need a strong, credible certification after testing platform, to ensure that resources to achieve security and the ability to visit," Universa IT manager Christian Knauer said. "Main purpose is without sacrificing safety on the premise of ensuring safety visit, and our sensitive information and intellectual property security. Entrust with the cooperation, we can use a simple, manageable solution that is determined to achieve Goal. "

Universa optional Entrust IdentityGuard multi-factor authentication platform, through one-time password (OTP) token dynamic and software to ensure remote access to corporate network resources and Microsoft Outlook landing (OWA) security. As part of the deployment, Universa use of the more than 900 dynamic tokens for Entrust IdentityGuard strong two-factor authentication.

"The implementation of strong authentication, not only can help Universa way for the mobile office staff to provide the appropriate tools and techniques to facilitate the effective work of the staff, but also from the cost of speaking is also very cost-effective," Entrust chairman, president And chief executive officer - Bill Conner, said. "As in Germany was the most public confidence in one of the private health insurance, Universa should improve with the implementation of its business efficiency and reduce security risks and help companies achieve industry safety standards in such forward-looking security programme was commendable."

So far, nine hundred 200,000 certified license was sold, Entrust IdenityGuard is a strong authentication platform, through to employees, business partners and customers to log in personal computers, or visit the Web site for online transactions, in accordance with the different nature of the transaction and security Risk the implementation of authentication to ensure that your resources and important information to be protected. It provides the most abundant on the market and a comprehensive certification tools, including: dynamic password tokens (Token), smart card, Matrix cards, Guagua Ka, by phone, text message or e-mail sent one-time password, and so on.

As a layered security protection system in a core component of, Entrust IdentityGuard common platform not only able to provide certification strong authentication, and can help greatly reduce the operating challenges such as: Desktop help and maintenance of infrastructure. For users and strategic management, it has a Web-based management capabilities, enterprises can facilitate the tasks allocated to the management on the role of each person.

Universa in Germany Nuremburg, Germany is the most respected and trusted by private health insurance institutions.

U.S. environmental insurance and legal background

China's environmental liability insurance for the healthy development depends on the improvement of environmental protection legislation and refining, environmental science and technology progress and the insurance market in the strengthening of underwriting capacity. The legislation is the key to improving and refining the key. Can be seen from the U.S. experience, if not the appropriate environmental legislation, environmental legislation or the provisions of the responsibility of the polluters too light, too loose, not the environmental liability insurance have effective demand.


In the United States, the first environmental insurance in 1977 is the environmental damage liability insurance (EIL), and the environmental insurance market in the subsequent 10 years to be fully developed. U.S. environmental legislation and the promotion of the improvement is the main driving force for development.

The term insurance environment, including both the first (property) and including third-party insurance (liability) insurance, are designed to manage the risks associated with pollution. Among them, third-party liability insurance products are: specific places responsibility for environmental damage (EIL) insurance, the general also said that pollution liability insurance. Underwriting the insured premises specific pollutants sudden spill accidents caused by third party legal liability, including bodily injury, property damage, clean up costs and defence costs; contractor environmental damage liability insurance coverage for contractors at the project site Specific works and activities, the result of accidents caused by the pollution incident in the completion of the contract responsibility and responsibility for environmental risk another professional errors and omissions insurance policy and removal of asbestos and lead contractors such as general liability insurance policy.

And a first-party property insurance environmental insurance products mainly include: environmental restoration policy, the main financial institutions in loans to meet borrowers can not repay the loan and the mortgage on the property also has environmental clean-up costs when the insurance needs of restoration costs of stop-loss policy This insurance will help the sewage property transactions, to prevent buyers and sellers in the transaction cost estimates for the clean up there too big error which led transaction failure. The comprehensive environmental policy to meet the insured damage compensation for pollution accidents in different requirements, coverage and costs have certain advantages, and the maximum to avoid the responsibility of underwriting the "grey areas" disputes.

U.S.-rich environment of insurance products and active environmental insurance market benefited from the United States a comprehensive environmental legislation. U.S. environmental legislation is a milestone in 1969 through the "National Environmental Policy Act" (NEPA). Since then, similar to an endless stream of environmental protection laws. With environmental protection activities intensified, the U.S. government introduced a more ambitious and complex environmental laws. And the environmental risk management and environmental development of great significance to the insurance law,1976 "Resource protection and compensation law" (RCRA) and 1980's "extensive Environmental Response, Compensation and Liability Act."

"Resource protection and compensation law" is harmful to the U.S. UNEP material "from cradle to grave" monitoring of the whole legal basis. The method of waste from production to be abandoned the whole process of implementation monitoring to ensure that the waste will not be improper disposal of general chaos eventually abandoned. RCRA is the first request of the Department of hazardous materials processing, storage and handling, and other business activities of the permit holder to provide financial compensation that the ability of environmental laws. Under these provisions, the operators of these enterprises, the owner must provide evidence to support the business process caused by environmental damage, enterprises have the means to clean up material and compensation for victims of physical injuries and property losses, enterprises need to maintain effective Proof 30. Harmful Substances in the license holder can have several ways to provide the necessary proof, including the special insurance endorsement, performance bonds, letters of credit, save the cash by a third party, self-identity or managers can accept the Any other evidence. And the general business environment will choose the insured liability insurance.

"Extensive Environmental Response, Compensation and Liability Act" (CERCLA, commonly known as Superfund, that the Super Fund) aimed at resolving the abandoned waste or neglect the problem of waste disposal sites, including some old garbage dump caused environmental damage. CERCLA legislation polluter who follow the basic principles of the burden. The scope of the Superfund clean up the garbage dump, to identify potential liabilities, such persons or organizations responsible for the clean up these garbage dump fees, determined in accordance with the law until the real person responsible. Potential liabilities may include garbage dump current and past owners, operators and lessees; garbage dump waste material producers, transport arrangements, as well as any waste discarded by the officers concerned. In addition, its parent company may not escape blame, the company's heir and manager of the company and controlling shareholder may have to bear the name of personal responsibility, even in bankruptcy under CERCLA may assume responsibility.

CERCLA implementation of "can be traced back, strict and multi-associated" responsibility. In determining statutory duty, super fund does not consider the pollution in the waste treatment process of the actual level of attention. In addition, if the damage is not at the (usually this is) that any potential liability side for the full amount of compensation may be fully accountable, regardless of their individual responsibility for the actual extent.

RCRA on economic compensation and the ability to prove that the requirements of CERCLA on the clean-up costs of compensation, covers a very wide, at all levels in the U.S. economy generated a lot of complex liability risks. Environmental insurance market demand increases, has stimulated more people to enter the insurance market. 1982, the United States set up the pollution liability insurance underwriting the Commonwealth - Pollution Liability Insurance Association. CERCLA lead to countless people with potential liabilities of several decades ago to buy the CGL in-office claims to insurance companies, plus the pollution liability insurance underwriting technology less mature and less than the number of policyholders, in the 1980s the United States Environmental insurance market Has almost collapsed. However, the U.S. edition of ISO1986 standard CGL policy of "absolute pollution exclusions" significantly reverse the development of the market conditions. The exclusions, regardless of pollution or loss is gradual accident occurred, the insurance for the emissions caused by any physical injuries and property damage liability is no compensation. This an absolute pollution exclusions led to the market for environmental damage liability insurance requirements. In addition, ISO has also developed a claims-made policies to overcome the occurrence of the policy of "long tail", and effectively protect the insurers.

Changes in the market situation, coupled with the 1990s, the United States environmental legislation in an orderly manner, the loss of data gradual improvement, environmental insurance coverage and technological progress and Loss Prevention Management and claimed advances in technology, environmental damage liability insurance market booming . In addition, in 2002 the United States, "Saar classes Slovakia - Oxley Act," introduced, emphasized the responsibility of the enterprise environment evaluation and disclosure of information. In order to meet the requirements in this area, only enterprises seek more insurance protection. In addition to the environmental insurance enterprises for the completion of regulatory obligations, but also with more added value. Society today stressed that corporate social responsibility and sustainable development, Dow Jones "sustainability index" of the introduction, that investors in the investment decision-making, will be considered "economic, environmental and social" three standards. No doubt the purchase of environmental insurance companies can show that the management of innovation and strong sustainability, greatly enhanced the confidence of investors. Currently, the United States on various types of environmental insurance market for insurance companies to provide the necessary financial compensation that capacity, and for most of the super fund to finance future security risks.

Not long ago, with funding of a domestic insurance company first launched places pollution liability insurance, the State Environmental Protection Administration and China Insurance Regulatory Commission jointly issued the "environmental pollution liability insurance on the guidance," signifies that China's environmental insurance system for the building has been activated . The author believes that China's environmental liability insurance for the healthy development depends on the improvement of environmental protection legislation and refining, environmental science and technology progress and the insurance market in the strengthening of underwriting capacity. The legislation is the key to improving and refining the key. Can be seen from the U.S. experience, if not the appropriate environmental legislation, environmental legislation or the provisions of the responsibility of the polluters too light, too loose, not the environmental liability insurance have effective demand. Last year, nearly 100 famous multinational companies operating in China there are serious pollution offences, compared with developed countries in the good environmental reputation, in condemning these enterprises should not bear the social responsibility at the same time, we should first review their own Too lax environmental legal environment.