American International Group Inc., New York, N.Y. (NYSE: AIG), announced that, due to his appointment as chief executive officer of Freddie Mac, Donald Layton had submitted his resignation from the board of directors of AIG to be effective as of the commencement of AIG’s 2012 Annual Meeting of Shareholders on May 16, 2012.
“We are thankful for Don’s service to the AIG Board of Directors,” said Robert S. Miller, AIG chairman of the board. “Don's appointment to lead the management team at Freddie Mac signifies an important public service to the country, and we wish him great success in his new role.”
In light of Layton’s unexpected resignation, the AIG board of directors currently expects to add a director. The board is considering Morris W. Offit who is retiring as a director of AIG at this year’s annual meeting in accordance with the retirement guideline for AIG directors. However, Offit can serve an additional year as permitted by the retirement guideline.
In other industry news:
CBIZ Inc., Cleveland, Ohio (NYSE: CBZ), has acquired the assets of Primarily Care Inc., Cranston, R.I., effective May 1, 2012.
Founded in 1999 by Ed Belt, PrimarilyCare is an employee benefits brokerage firm that offers long-term health care cost reduction strategies that preserve employee benefits by providing a unique system comprised of technology, innovative plan design, educational tools and tangible financial health incentives. PrimarilyCare has 11 employees and is expected to add $1.8 million to CBIZ annualized revenue.
CBIZ Inc. provides professional business services that help clients better manage their finances and employees. CBIZ provides its clients with financial services including accounting, tax and consulting, internal audit, merger and acquisition advisory, and valuation services. Employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, HR consulting, and executive recruitment. CBIZ also provides outsourced technology staffing and support services, real estate consulting services, healthcare consulting, and medical practice management.
Allianz Life Insurance Co. of North America, Minneapolis, Minn., named Mike Fischer as a new vice president within the legal department.
Fischer will be responsible for leading the legal department’s oversight of business operations, product development, distribution and tax. With more than 30 years’ experience in the insurance industry, Fischer replaces Gretchen Cepek, who was recently promoted to senior vice president and general counsel for Allianz Life.
Before joining Allianz Life, Fischer was an attorney in private practice with the Minneapolis-based law firm Halleland Habicht PA. Prior to that, he was chief counsel at ING Americas U.S. Legal Services with responsibility for legal staff located in Minneapolis, Denver, Atlanta, and Avon, CT. Fischer also was general counsel for various divisions at ReliaStar Life Insurance Company, and was associate counsel with Prudential Insurance Company of America.
Humana Inc., Louisville, Ky. (NYSE: HUM), announced Bruce D. Perkins, the company’s senior vice president of Health Care Delivery Systems and Clinical Processes, has been promoted to the new role of president, Health and Well-being Services segment for Humana.
Under Perkins’ leadership, the segment will have a dual focus: to provide leverage for Humana’s Employer Group and Retail core businesses, and to offer products and services to individuals and groups outside Humana’s core businesses, maximizing new growth opportunities. Perkins will continue reporting to executive vice president and chief operating officer James E. Murray. Recently, Humana appointed Thomas J. Liston president of the company’s retail segment, Elizabeth D. Bierbower as president of the employer group segment and Tim S. McClain as president of Humana’s government and other businesses group. Perkins’ appointment completes the process of leadership appointments for each of the company’s four groups.
Aetna, Hartford, Conn. (NYSE: AET), is offering group term life insurance to students at participating schools through its Student Health group.
Aetna Student Health Group Term Life Insurance coverage runs through the whole year, including the summer. If a student leaves school or loses eligibility, he or she can continue or convert the coverage by paying Aetna directly.
For schools that offer the Group Term Life Insurance benefit, the plan is available to any student who is eligible for Aetna Student Health medical coverage, regardless of whether they enroll in a medical plan. Enrollment dates will coincide with the school’s medical open enrollment period. The plan may offer coverage to part-time students, if the school has elected to offer part-time students at that school Aetna Student Health medical coverage.
“Although students may not be thinking about life insurance, it’s important for them to understand the coverage it can provide their family in the event of the unexpected,” says Chekesha Kidd, head of Aetna Student Health. “We have a significant number of members who are graduate students with their own families, and Aetna Student Health Group Term Life Insurance coverage can help protect the long-term financial security of the people who matter most to our members.”
United Insurance Holdings Corp., St. Petersburg, Fla. (OTCBB: UIHC), reported net income for the first quarter of $4.7 million, or $0.46 per share, compared to net income of $1.1 million, or $0.11 per share, during the same period of last year. Net premiums earned increased to $27.8 million from $19.1 million for the first quarter of 2011. Net investment income, realized gains and other revenues increased to $1.7 million for the quarter compared to $1.4 million in the prior year quarter. Losses and loss adjustment expenses increased to $9.5 million for the quarter from $8.4 million during the same period of last year. Policy acquisition costs increased to $8.3 million from $6.5 million for the first quarter of 2011.
Operating expenses increased to $1.4 million from $1.3 million during the same period of last year. General and administrative expenses increased to $2.8 million from $2.4 million for the first quarter of last year. United's cash and investment holdings totaled $184.8 million at March 31, 2012, compared to $165.9 million at Dec. 31, 2011.
United's cash and investment holdings consist primarily of investments in high-quality money market instruments, U.S. government and agency securities and high-quality corporate debt. Fixed maturities represented approximately 97% of United's total investments at March 31, 2012, and Dec. 31, 2011. At March 31, 2012, approximately 83% of United’s fixed maturities are U.S. Treasuries or corporate bonds rated “A” or better, and 17% are corporate bonds rated “BBB”.