Aetna Cutting About 625 Jobs; More Cuts to Come Next Year

Aetna Inc. is cutting about 625 jobs companywide and plans a similar amount of work force reductions next year as it continues to shed health plan enrollment and prepares for a possible negative impact of health care reform.

NAIC Hires Pimco to Model Residential Mortgage-Backed Securities

The National Association of Insurance Commissioners has hired Pimco, a unit of Allianz SE, as a third-party financial modeler to help state regulators determine the risk-based capital requirements that insurers face when they invest in residential mortgage-backed securities.

AIG's Nan Shan Sale Held Up as Regulators Seek More Documentation

The sale of American International Group Inc.'s [18540] Taiwanese life insurance unit, Nan Shan Life Insurance Co. Ltd. [86003], has been held up for further review by regulators.

Agent/Broker
Willis Works Out Ownership Deal with France's Gras Savoye: Willis Group Holdings Ltd. said it and the original family shareholders of French insurance broker Gras Savoye & Cie. have signed an agreement with Astorg Partners, a private equity fund, to reorganize the capital of Gras Savoye in a leveraged transaction.

Asia/Pacific
Former Life Insurance Executive Named President of Japan Post Network: Japan Post Network Co., a subsidiary of Japan Post Holdings Co., has appointed Akira Nagatomi, a former senior management director of Sumitomo Life Insurance Co. [85054], as president of the postal unit that handles over-the-counter services including insurance and other financial products.

Insurers Pay Claims for Snowstorms in North China's Shanxi Province: The Shanxi bureau of the China Insurance Regulatory Commission said that as of Nov. 16, domestic insurers have filed 14,683 claims related to snowstorms that blanketed northern China, with estimated losses of 142 million yuan (US$20.8 million).

Japan's Toa Re Enters Cooperation Pact With China Re: Japan's Toa Reinsurance Co. Ltd. [85179] has teamed up with China Reinsurance Corp., China's state-owned reinsurer, for business cooperation in a bid to enhance the two reinsurers' market development.

XL Capital Cleared to Set Up Nonlife Insurer in China: The China Insurance Regulatory Commission said it has cleared Bermuda-based global insurance and reinsurance service provider XL Capital Ltd. [58361] to establish a property/casualty insurance company in China.

Commercial Coverage
Ironshore Continues Expansion, Enters Canada, Aviation Markets: Specialty insurer Ironshore Inc. has announced two more expansion efforts as it continues to diversify its global business profile and product lines.

Marine Insurers to Face Rising Tide of Pirates, Theft and Trade Restraint: Piracy, cargo theft and protectionist trade practices are on the short list of the most significant issues, other than the global economy, set to affect the marine insurance industry.

Health
CBO: Senate Health Plan to Cost $848 Billion, Shave Deficit by $130 Billion: U.S. Senate Democrats announced health care legislation that would cost $848 billion over 10 years and reduce the federal budget deficit by $130 billion over that period.

Ratings
A.M. Best Affirms Ratings of Flagstone Reinsurance Africa Limited: A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit rating (ICR) of “a-” of Flagstone Reinsurance Africa Limited (Flagstone Re Africa) (South Africa). The outlook on both ratings is stable.

A.M. Best Assigns Rating to Transatlantic Holdings, Inc.’s Senior Notes: A.M. Best Co. has assigned a debt rating of “bbb” to the recently issued $350 million 8.00% senior unsecured notes due 2039 of Transatlantic Holdings, Inc. (Transatlantic) (New York, NY) [NYSE: TRH]. The assigned outlook is stable.

A.M. Best Downgrades Ratings of MVP Health Care, Inc.’s Insurance Subsidiaries: A.M. Best Co. has downgraded the financial strength ratings (FSR) to B (Fair) from B+ (Good) and issuer credit ratings (ICR) to “bb+” from “bbb-”of MVP Health Insurance Company (Schenectady, NY) and Preferred Assurance Company, Inc. (Rochester, NY). Additionally, A.M. Best has downgraded the FSRs to B- (Fair) from B (Fair) and ICRs to “bb-” from “bb+” of MVP Health Plan of New Hampshire, Inc. (Bedford, NH) and MVP Health Insurance Company of NH, Inc. (Manchester, NH). All of the above ratings have been placed under review with negative implications. Concurrently, A.M. Best has placed under review with negative implications and affirmed the FSRs of B+ (Good) and ICRs of “bbb-” of MVP Health Plan, Inc. and MVP Health Services Corp. (both of Schenectady, NY).

Washington
House Committee Votes to Shift Oversight of Insurer-Owned Thrifts: The U.S. House Financial Services Committee approved an amendment to transfer authority over insurance companies that own thrifts from the Office of Thrift Supervision to the Federal Reserve.