Property and casualty insurance provider�The Hartford (NYSE: HIG ) announced today its third-quarter dividend of $0.15 per share, 50% higher than the payout it made to investors last quarter of $0.10 per share.
The board of directors said the quarterly dividend will be paid on Oct. 1 when it declares the next payout. The insurance provider has made quarterly payouts to investors since 1996.�
The board also announced it is increasing the company's share repurchase plan by $750 million, bringing the total authorization, which expires Dec. 31, 2014, to $1.25 billion. Noting that to date the insurer has bought back only $166 million on the current program, it suggests Hartford may be preparing to repurchase a large slug of stock.
The Hartford Chairman, President, and CEO Liam E. McGee said: "... the next phase of The Hartford's capital management plan ... reflects our commitment to use excess capital for capital management actions and reinvestment in the businesses."
The Allstate Corporation (Allstate), November 5, 1992, is a holding company for Allstate Insurance Company. The Company�� business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. It is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, select commercial property and casualty coverages, life insurance, annuities, voluntary accident and health insurance and funding agreements. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, call centers and the Internet. It conducts its business primarily in the United States. Allstate has four business segments: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other. The Company is a personal lines insurer in the United States. Customers can access Allstate products and services, such as auto insurance and homeowners insurance through nearly 12,000 exclusive Allstate agencies and financial representatives in the United States and Canada. In October 2011, the Company acquired Esurance and Answer Financial from White Mountains Insurance Group.
ALLSTATE PROTECTION SEGMENT
In this segment, the Company principally sells private passenger auto and homeowners insurance through agencies and directly through call centers and the Internet. These products are marketed under the Allstate, Encompass and Esurance brand names. The Allstate Protection segment also includes a separate organization called Emerging Businesses, which comprises Business Insurance (commercial products for small business owners), Consumer Household (specialty products including motorcycle, boat, renters and condominium insurance policies), A! llstate Dealer Services (insurance and non-insurance products sold primarily to auto dealers), Allstate Roadside Services (retail and wholesale roadside assistance products) and Ivantage (insurance agency). The Company also participates in the involuntary or shared private passenger auto insurance business in order to maintain its licenses to do business in many states. In some states, Allstate exclusive agencies offer non-proprietary property insurance products. Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service and are brand-sensitive. In most states, customers can also purchase certain Allstate brand personal insurance products, and obtain service, directly through call centers and the Internet.
During the year ended December 31, 2011, total Allstate Protection premiums written were $25.98 billion. Its broad-based network of approximately 10,000 Allstate exclusive agencies in approximately 9,700 locations in the United States produced approximately 86% of the Allstate Protection segment's written premiums in 2011. It provides personal property and casualty insurance products through independent agencies in the United States. Additionally, Allstate distribution, through brokering arrangements, offers non-proprietary products to consumers when an Allstate product is not available.
ALLSTATE FINANCIAL SEGMENT
Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products. Its principal products are interest-sensitive, traditional and variable life insurance; fixed annuities, including deferred and immediate; and voluntary accident and health insurance. Its institutional products consist of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services were offered to! customer! s through the Allstate Bank through September 2011. In 2011, after receiving regulatory approval to voluntarily dissolve, Allstate Bank ceased operations.
The Company sells Allstate Financial products to individuals through multiple intermediary distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents, specialized structured settlement brokers and directly through call centers and the Internet. The Company sells products through independent agents affiliated with approximately 125 master brokerage agencies. Independent workplace enrolling agents and Allstate exclusive agencies also sell its voluntary accident and health insurance products primarily to employees of unaffiliated businesses. Its mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, totaled $7.14 billion as of December 31, 2011
Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the United States, Virgin Islands and Guam. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), specialized structured settlement brokers and directly through call centers and the Internet.
OTHER BUSINESS SEGMENTS
The Company�� Corporate and Other segment consistsof holding company activities and certain non-insurance operations. It�� Discontinued Lines and Coverages segment includes results from insurance coverage that it no longer writes and results for certain commercial and other businesses in run-off. Its exposure to asbestos, environmental and other discontinued lines claims is presented in the segment. The segment also includes the historical results of the commercial and reinsurance businesses ! sold in 1! 996.
Advisors' Opinion: - [By Adrian Day]
Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.
5 Best Insurance Stocks To Invest In 2014: Anthem Inc (ANTM)
Anthem, Inc., formerly WellPoint, Inc. (WellPoint), incorporated on July 17, 2001, is a health benefit company. The Company manages its operations through three segments: Commercial, Consumer, and Other. The Company is an independent licensee of the Blue Cross and Blue Shield Association (BCBSA), an association of independent health benefit plans. The Company offers a spectrum of network-based managed care plans to the large and small employer, individual, Medicaid and senior markets. Its managed care plans include preferred provider organizations (PPOs); health maintenance organizations (HMOs); point-of-service plans (POS) plans; traditional indemnity plans and other hybrid plans, including consumer-driven health plans (CDHPs); and hospital only and limited benefit products.
The Company serves its members as the Blue Cross licensee for California and as the Blue Cross and Blue Shield (BCBS), licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, New York (as BCBS in 10 New York city metropolitan and surrounding counties, and as Blue Cross or BCBS in selected upstate counties only), Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, District of Columbia), and Wisconsin. The Company does business as Anthem Blue Cross, Anthem Blue Cross and Blue Shield, Blue Cross and Blue Shield of Georgia, Empire Blue Cross Blue Shield, or Empire Blue Cross (in its New York service areas). The Company also serves customers throughout the country as UniCare and in certain California, Arizona and Nevada markets.
The Company provides an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. The Company also provides an array of specialty products and services including life a! nd disability insurance benefits, dental, vision, behavioral health benefit services, radiology benefit management, analytics-driven personal health care guidance and long-term care insurance. The Company provides services to the Federal Government in connection with the Federal Employee Program (FEP), and various Medicare programs.
The Company�� Commercial and Consumer segments both offers a diversified mix of managed care products, including PPOs, HMOs, traditional indemnity benefits and POS plans, as well as a variety of hybrid benefit plans including CDHPs, hospital only and limited benefit products. Its Commercial segment includes Local Group (including UniCare), National Accounts and certain other ancillary business operations (dental, vision, life and disability and workers��compensation). Business units in the Commercial segment offer fully-insured products and provide an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services.
The Company�� Consumer segment includes senior, state-sponsored and individual businesses. Its senior business includes services, such as Medicare Advantage (including private fee-for-service plans and special needs plans), Medicare Part D, and Medicare Supplement, while its State-Sponsored business includes its managed care alternatives for Medicaid and State Children�� Health Insurance Plan programs. Individual business includes individual customers under age 65 and their covered dependents. Its Other segment includes the Comprehensive Health Solutions business unit (CHS). Its Other segment also includes results from its Federal Government Solutions (FGS), business. FGS business includes FEP and National Government Services, Inc. (NGS), which acts as a Medicare contractor in several regions across the nation.
Preferred P! rovider O! rganization products offer the member an option to select any health care provider, with benefits reimbursed by the Company at a higher level when care is received from a participating network provider. Consumer-Driven Health Plans (CDHPs) provide consumers with increased financial responsibility, choice and control regarding how their health care dollars are spent. Indemnity products offer the member an option to select any health care provider for covered services. Health Maintenance Organization (HMO) products include managed care benefits, generally through a participating network of physicians, hospitals and other providers. Point-of-Service (POS) products blend the characteristics of HMO, PPO and indemnity plans.
The Company provides administrative services to large group employers that maintain self-funded health plans. These administrative services include underwriting, actuarial services, medical management, claims processing and other administrative services for self-funded employers. Self-funded health plans are also able to use its provider networks and to realize savings through its negotiated provider arrangements, while allowing employers the ability to design certain health benefit plans in accordance with their own requirements and objectives. The Company also underwrites stop loss insurance for self-funded plans.
BlueCard host members are generally members who reside in or travel to a state in which a WellPoint subsidiary is the Blue Cross and/or Blue Shield licensee and who are covered under an employer sponsored health plan serviced by a non-WellPoint controlled BCBS licensee, who is the home plan. The Company performs certain administrative functions for BlueCard host members, for which it receives administrative fees from the BlueCard members��home plans. Other administrative functions, including maintenance of enrollment information and customer service, are performed by the home plan. The Company offers a variety of senior plans, products and options, ! such as M! edicare supplement plans, Medicare Advantage (including private fee-for-service plans and special needs plans) and Medicare Part D Prescription Drug Plans (Medicare Part D). Medicare Advantage plans provide Medicare beneficiaries with a managed care alternative to traditional Medicare and often include a Medicare Part D benefit. In addition, its Medicare Advantage special needs plans provide Medicare beneficiaries who have chronic diseases and conditions with tailored benefits designed to meet their needs. Medicare Part D offers a prescription drug plan to Medicare and dual eligible (Medicare and Medicaid) beneficiaries. The Company offers these plans to customers through its health benefit subsidiaries throughout the country, including CareMore.
The Company offers a range of health insurance plans with a variety of options and deductibles for individuals under age 65 who are not covered by employer-sponsored coverage. Some of its products target certain demographic populations, such as uninsured younger individuals between the ages of 19 and 29, families and those transitioning between jobs or early retirees. The Company has contracts to serve members enrolled in Medicaid, State Children�� Health Insurance programs and other publicly funded health care programs for low income and/or high medical risk individuals. The Company provides services in California, Indiana, Kansas, Massachusetts, New York, South Carolina, Texas, Virginia, West Virginia and Wisconsin. It markets and sells an integrated prescription drug product to both fully-insured and self-funded customers through its health benefit subsidiaries throughout the country. The product includes features, such as drug formularies, a pharmacy network and maintenance of a prescription drug database and mail order capabilities. The Company has delegated certain functions and administrative services related to its integrated prescription drug products to Express Scripts, under a 10 year contract. Express Scripts manages the network of ph! armacy pr! oviders, operates mail order pharmacies and processes prescription drug claims on its behalf, while it sells and support the product for clients, make formulary decisions and set drug benefit design strategy and provide front line member support.
The life products include term life and accidental death and dismemberment. The Company offers short-term and long-term disability programs, usually in conjunction with its health plans. The Company offers specialized behavioral health plans and benefits management. These plans cover mental health and substance abuse treatment services on both an inpatient and an outpatient basis. The Company offers outpatient diagnostic imaging management services to health plans. These services include utilization management for advanced diagnostic imaging procedures, network development and optimization, patient safety, claims adjudication and provider payment. The Company offers evidence based and analytics-driven personal health care guidance.
The Company�� dental plans include networks in certain states in which it operates. Many of the dental benefits are provided to customers enrolled in its health plans and are offered on both a fully-insured and self-funded basis. Its members also have access to additional dental providers through its participation in the National Dental GRID, a national dental network developed by and for BCBS plans. Additionally, the Company offers managed dental services to other health care plans to assist those other health care plans in providing dental benefits to their customers. Its vision plans include networks within the states where the Company operates. Many of the vision benefits are provided to customers enrolled in its health plans and are offered on both a fully-insured and self-funded basis.
The Company offers long-term care insurance products to its California members through a subsidiary. The long-term care products include tax-qualified and non-tax qualified versions of a skilled nursing home care! plan and! comprehensive policies covering skilled, intermediate and custodial long-term care and home health services. Through its subsidiary, NGS, the Company serves as a fiscal intermediary, carrier and Medicare administrative contractor providing administrative services for the Medicare program, which generally provides coverage for persons who are 65 or older and for persons who are disabled or with end-stage renal disease. Part A of the Medicare program provides coverage for services provided by hospitals, skilled nursing facilities and other health care facilities. Part B of the Medicare program provides coverage for services provided by physicians, physical and occupational therapists and other professional providers, as well as certain durable medical equipment and medical supplies.
Advisors' Opinion: - [By Sean Williams]
This is extremely important for Anthem (NYSE: ANTM ) (formerly WellPoint) which was the big Obamacare enrollment winner last year and has banked its success on courting Medicaid expansion enrollees as well. California's strong Medi-Cal enrollment so far is encouraging, but I'd reserve judgment until Anthem's fourth-quarter earnings report.
5 Best Insurance Stocks To Invest In 2014: American Financial Group Inc (AFG)
American Financial Group, Inc. (AFG), incorporated on July 1, 1997, is a holding company, which through subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses and in the sale of traditional fixed and fixed-indexed annuities in the individual, bank and education markets. The Company�� segment includes: property and casualty insurance, annuity, run-off long-term care and life and other. In August 2012, the Company sold its Medicare supplement and critical illness businesses.
Property and Casualty Insurance
AFG�� specialty property and casualty insurance operations consist of approximately 30 niche insurance businesses offering a range of commercial coverages. Under the property and transportation segment, inland and ocean marine provides coverage primarily for builders' risk, contractors' equipment, property, motor truck cargo, marine cargo, boat dealers, marina operators/dealers and excursion vessels. The agriculture-related business provides federally reinsured multi-peril crop (allied lines) insurance covering perils, as well as crop-hail, equine mortality and other coverages for operating farms/ranches and agribusiness operations on a nationwide basis. The commercial automobile business provides coverage for vehicles (such as buses and trucks) in a range of businesses, including the moving and storage and transportation industries, and a specialized physical damage product for the trucking industry.
Under the specialty casualty segment, executive and professional liability business markets coverage for directors and officers of businesses and non-profit organizations, errors and omissions, and provides non-United States medical malpractice insurance. The umbrella and excess liability business provides higher layer liability coverage in excess of primary layers. The excess and surplus business provides liability, umbrella and excess coverage for risks, using rates and forms that ge! nerally do not have to be approved by state insurance regulators. The general liability business provides coverage for contractor-related businesses, energy development and production risks, and environmental liability risks. The targeted programs includes coverage (primarily liability and property) for social service agencies, leisure, entertainment and non-profit organizations, customized solutions for other targeted markets and alternative risk programs using agency captives. The Workers��Compensation provides coverage for prescribed benefits payable to employees who are injured on the job.
Under the specialty financial segment, fidelity and surety provides fidelity and crime coverage for government, mercantile and financial institutions and surety coverage for various types of contractors and public and private corporations. Lease and loan services provides coverage for insurance risk management programs for lending and leasing institutions, including equipment leasing and collateral and mortgage protection.
Annuity Operations
AFG�� annuity operations is engaged primarily in the sale of fixed and fixed-indexed annuities in the individual, bank and education markets through independent producers and also sell annuities through direct relationships with banks. Annuities are long-term retirement saving instruments that benefit from income accruing on a tax-deferred basis. The issuer of the annuity collects premiums, credits interest or earnings on the policy and pays out a benefit upon death, surrender or annuitization. Single premium annuities are generally issued in exchange for a one-time lump-sum premium payment. Certain annuities, primarily in the education market, have premium payments that are flexible in both amount and timing as determined by the policyholder and are generally made through payroll deductions.
A fixed-indexed annuity provides policyholders with the opportunity to receive a crediting rate tied, in part, to the performanc! e of an e! xisting market index (generally the S&P 500) while protecting against the related downside risk through a guarantee of principal (excluding surrender charges, market value adjustments, and certain benefit charges). AFG purchases call options designed to substantially offset the effect of the index participation in the liabilities associated with fixed-indexed annuities.
Run-off long-term care and life
The majority of AFG�� investment in its run-off long-term care and life operations (including 100% of its long-term care business) is in the following subsidiaries: United Teacher Associates Insurance Company, Continental General Insurance Company and Manhattan National Life Insurance Company. United Teacher Associates Insurance Company�� products include Long-term care, life and annuities. Continental General Insurance Company�� products include Long-term care, life and annuities.
Other Operations
Through subsidiaries, AFG is engaged in a range of other operations, including commercial real estate operations in Cincinnati (office buildings and The Cincinnatian Hotel), New Orleans (Le Pavillon Hotel), Whitefield, New Hampshire (Mountain View Grand Resort), Chesapeake Bay (Skipjack Cove Yachting Resort and Bay Bridge Marina), Charleston (Charleston Harbor Resort and Marina), Palm Beach (Sailfish Marina and Resort), Florida City, Florida (retail commercial development) and apartments in Louisville and Pittsburgh.
Advisors' Opinion: - [By Ben Levisohn]
Shares of American International Group have dropped 1.7% to $49.67 at 1:19 p.m. today, while American Financial Group (AFG) has, dropped 0.2% to $57.23, HCC Insurance (HCC) is little changed at $45.12,�Travelers (TRV) has dipped 0.1% to $83.52 and Chubb (CB) is off 0.1% at $86.58.
- [By Ben Levisohn]
For the past several years, Berkshire has contrasted its own cost-free float provided by profitable underwriting against the industry�� (unimpressive) tendency to lose money on underwriting while generating net returns from investment income. So far, so good. Less edifying, though, is the repeated contrast of Berkshire�� track record of profitability to State Farm��…even though, as a mutual company, State Farm�� profitability goals are inherently different from for-profit insurers like Berkshire. It�� true that through year-end 2013, Berkshire�� underwriters have ��ow operated at an underwriting profit for eleven consecutive years,��but so have ACE (ACE), American Financial (AFG),� AmTrust Financial (AFSI), Arch Capital (ACGL), Chubb (CB), HCC (HCC), Progressive (PGR), RLI (RLI), and W.R. Berkley (WRB), any or all of whom provide a more meaningful comparison than contrasting Berkshire�� results to a company that�� not out to produce a profit in the first place.
5 Best Insurance Stocks To Invest In 2014: NMI Holdings Inc (NMIHZ)
NMI Holdings, Inc. (NMIH), incorporated on May 19, 2011, is a development-stage company. The Company through its subsidiaries provides private mortgage insurance in the United States. The Company�� wholly owned subsidiaries include National Mortgage Insurance Corporation and National Mortgage Reinsurance Inc One.
On April 24, 2012, NMI Holdings, Inc. (NMI) closed an agreement with MAC Financial Ltd. to acquire MAC Financial Holdings Corporation and its wholly owned subsidiaries. On September 30, 2013, the Company merged MAC Financial Holding Corporation into NMIH, with NMIH surviving the merger, and it merged NMRI Two into NMIC, with NMIC surviving the merger.
Advisors' Opinion: - [By Zachary Tracer]
NMI Holdings Inc. (NMIHZ), a mortgage insurer backed by funds tied to Carlyle Group LP (CG) and Kyle Bass, filed to sell shares in an initial public offering as investors bet on a housing-market rebound.
