Executives: Competition Driving Down Prices in the D&O Market:

The market for directors and officers liability remains soft as tough competition continues to put pressure on pricing. About 53 companies are currently underwriting D&O coverage. Except for financial institutions, which have been stung by the subprime mortgage crisis and the financial turmoil of 2008, the market for most buyers is soft, speakers said at the Professional Liability Underwriting Society's D&O Symposium.

Zurich Financial's 2009 Net up 6% on Growth, Investment Gains

Zurich Financial Services Group's 2009 net profit rose 6% on strong gains in its insurance operations and from its investment portfolio.

Bill Would Extend California Auto Insurance Program Through 2016

A candidate to be California's next insurance commissioner has introduced legislation to extend the state's Low Cost Automobile Insurance program through 2016.

Asia/Pacific
AIG Star Teams Up With Orix for Annuity Business in Japan: AIG Star Life Insurance Co. Ltd. [85459], a life insurance subsidiary of American International Group Inc., formed a business alliance with Orix Corp. to sell group annuity products in Japan.

Taiwanese Insurers Push for Investment Flexibility in China Market: Taiwan's insurance industry has told the Financial Supervisory Commission that greater investment flexibility may be needed regarding insurance companies in China.

Year After Loss, Axa Asia Pacific Expects 2009 Profit: Axa Asia Pacific Holdings Ltd. [86639] said it expects to post a net profit of A$675 million (US$592 million) for 2009, compared with the previous year's loss of A$278.7 million.

Auto
State Farm Looking to Raise Auto Raises in Florida: State Farm said it is looking to raise automobile insurance rates in Florida by an overall statewide average of 9.2% effective in June, if approved.

Commercial Coverage
AIG Names New CEO of Aircraft Leasing Unit: The chief executive officer of American International Group Inc.'s jet aircraft leasing division is retiring effective Feb. 5.

Financial
Jobs Report: US Insurance Numbers Down; Early Gains Revised Into Losses: The jobs outlook in the U.S. insurance industry took another downward swing, with an employment loss of 4,400 in January jobs numbers. In what may be even worse news, the latest report from the Bureau of Labor Statistics, which revises past months' data, shows that what had been considered a turnaround month of gains in December was in fact a loss of 3,200 jobs, according to seasonally adjusted data released Feb. 5.

Health
Aetna President: 'Great Opportunity' in International Health Benefits Market: Aetna Inc. has named Sandip Patel to head its international business. In the new position, Patel, who joined Aetna from IBM Global Business Services, will develop strategies to expand the company's global benefits business.

Life Insurance
Nationwide to Pay $2.1 Million to Settle Annuity Suitability Concerns: Two Nationwide insurance affiliates agreed to pay $2.1 million in penalties to five states and refund customers an undisclosed amount to settle allegations involving unsuitable annuity sales.

Pickens, OSU's Athletics Fund-Raising Arm, Sue Lincoln National Over Insurance Program: Cowboy Athletics, the fund-raising foundation of Oklahoma State University's athletics department, and billionaire financier T. Boone Pickens have sued Lincoln National Life Insurance Co. related to the foundation's "Gift of a Lifetime" insurance program targeted at generating millions of dollars.

Ratings
A.M. Best Revises Outlook to Positive and Affirms Ratings of SCOR Global Life Reinsurance Company of America: A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating of A- (Excellent) and issuer credit rating of “a-” of SCOR Global Life Reinsurance Company of America (SGLRe of America) (f/k/a XL Re Life America Inc. [XL Life Re] [Wilmington, DE]).

A.M. Best Upgrades Farmers Mutual Insurance Company: A.M. Best Co. has upgraded the financial strength rating to B++ (Good) from B+ (Good) and issuer credit rating to “bbb” from “bbb-”of Farmers Mutual Insurance Company (Farmers) (White Hall, WV). The outlook for both ratings is stable.

Risk Management
Eqecat: Minimal Insured Losses From Magnitude 5.9 California Quake: Catastrophic risk modeling firm Eqecat said it expects minimal losses from a magnitude 5.9 earthquake off the coast of northern California on Feb. 4.

Washington
Antitrust Bill Will Pass in US House Says Speaker; Another Bill Is Introduced: Speaker of the House Nancy Pelosi predicted passage next week of legislation that would remove the antitrust exemption enjoyed by health and medical liability insurers. In a routine legislative briefing, she said that while the larger health reform is stalled, the House will move forward on this piece.

A.M. Best Reports
BestWeek: Medical Professional Liability Pressure Builds as Market Awaits Shift: A widely held consensus that frequency within medical professional liability has stabilized after a five-year decline is giving way to a sense of anticipation about the cycle's next turn, according to this week's BestWeek U.S./Canada.