BEIJING, Sept 27, 2007 (AFP) - Global banking giant HSBC said Thursday a subsidiary has received the official go-ahead to set up an insurance joint venture in China.

The China Insurance Regulatory Commission, the industry watchdog, has given preliminary approval to a 50-50 joint venture between HSBC Insurance (Asia) Ltd and the Beijing-based National Trust Ltd, HSBC said in a statement.

The final formation and launch of the joint venture is subject to the partners meeting certain regulatory requirements within 12 months, it said.

BUDAPEST, Sept 25, 2007 (AFP) - Hungary's national healthcare system will next year undergo a massive shake-up that will allow in private insurance companies for the first time, the government said Tuesday.

Under a new regionalised system, agreed by the coalition Socialist and Free Democratic parties, the former national healthcare fund will be replaced by 22 separate funds, each responsible for a different county, health minister Agnes Horvath said.

The capital Budapest will have four different funds.

FRANKFURT, Sept 25, 2007 (AFP) - The world's second biggest re-insurance company, Munich Re, said Tuesday will conduct 'Retakaful business' based on principles of Islamic law from its new office in Malaysia.

Munich Re's branch in Kuala Lumpur will be 'entirely devoted to Retakaful business,' said a statement which explained that as the form of reinsurance based on Sharia, or Islamic law.

MIAMI, Sept 25, 2007 (AFP) - A US judge in Miami on Tuesday sentenced three people to five years in jail after they pleaded guilty to participating in a massive insurance scam in Florida.

Raquel Kohler, Ameer Khan, and Stephen Ziegler had pleaded guilty in July to conspiracy in connection with the alleged billion dollar scam by Mutual Benefits Corp (MBC).

Judge Paul Huck on Tuesday sentenced each of the three to 60 months behind bars and ordered them to repay more than 826 million dollars to defrauded investors.

SYDNEY, Sept 20, 2007 (AFP) - Australian financial services group AMP on Thursday appointed internal candidate Craig Dunn to take over as its new chief executive officer next year, company officials said.

Dunn, 43, has served since 2002 as head of the group's largest business, AMP Financial Services, and had been tipped to take over when current CEO Andrew Mohl announced he plans to quit last month. Dunn has been with AMP since 2000.

TOKYO, Sept 18, 2007 (AFP) - Sony Corp's financial arm on Tuesday scaled down its giant initial public offering as renewed worries about the fallout from a global credit squeeze sent financial shares tumbling.

The planned flotation, one of the biggest in Japan in recent years, is being closely watched as a test of investor appetite for financial shares following recent turbulence on global markets.

NEW DELHI, Sept 18, 2007 (AFP) - Wealthier, aging Indians will help transform the country's largely untapped life insurance market into one of the world's fastest growing over the next five years, a global consultancy says.

Life insurance is already the most popular financial product among Indians because of the tax benefits and income protection it offers in a country where there is no social security.

HONG KONG, Sept 14, 2007 (AFP) - HSBC has agreed to buy a 10 percent stake of a leading Vietnamese insurance company, as the global banking giant continues its Asian expansion strategy.

HSBC said in a statement it will pay 255 million US dollars for the stake in Vietnam Insurance Corporation (BaoViet), the country's leading insurance and financial group.

The London and Hong Kong-listed bank will provide the Hanoi-based company technical assistance, training and will second some staff as part of the deal, in an effort to tap into the expanding insurance market in Vietnam.

WASHINGTON, Sept 12, 2007 (AFP) - The cost of health insurance in the United States climbed nearly twice as fast as wages in the first half of 2007, with family coverage costing employers around 1,000 dollars (714 euros) a month, a poll showed Wednesday.

Premiums for employer-sponsored health insurance rose an average of 6.1 percent in 2007, while wages went up by 3.7 percent, the Employer Health Benefits Survey released by the Kaiser Family Foundation and the Health Research and Educational Trust showed.

WASHINGTON, Sept 12, 2007 (AFP) - The cost of health insurance in the United States is climbing faster than wages, with family packages costing employers around 1,000 dollars (714 euros) a month, a poll showed Wednesday.

Premiums for employer-sponsored health insurance rose an average of 6.1 percent in 2007, while wages went up by 3.7 percent, the Employer Health Benefits Survey released by the Kaiser Family Foundation and the Health Research and Educational Trust showed.

ZURICH, Sept 11, 2007 (AFP) - The Swiss insurance group Zurich Financial Services said Tuesday that it expected that claims from floods in Britain in July would reach up to 260 million dollars (187 million euros).

That would bring Zurich's total claims estimate for summer floods in Britain up to about 660 million dollars, including an earlier figure of 400 million dollars due to floods in northern and central England in June.

The latest 260 million dollar estimate related to floods on July 20 to 23 in southern England, the company said in a statement.

ZURICH, Sept 10, 2007 (AFP) - The world's largest reinsurer, Swiss Re, on Monday said that damage claims for natural disasters for the year were likely to nearly triple and cost the industry an estimated 35 billion dollars in 2007.

The global insurance industry suffered some 12 billion dollars in claims due to natural disasters in 2006, in what was regarded as a 'benign' year, Swiss Re said in a statement.

Swiss Re said its latest estimate marked a continuation of 'the long term trend towards high catastrophe claims.'

BANGALORE, India, Sept 10, 2007 (AFP) - HSBC Holdings signed an agreement Monday to form an insurance venture with two state-owned Indian banks, gaining access to more than 40 million customers in an expanding market.

The global bank will hold a 26 percent stake in the venture -- the maximum allowed to overseas insurance partners. Bangalore-based Canara Bank will take a 51 percent stake, leaving the rest to Oriental Bank of Commerce.

BRUSSELS, Sept 10, 2007 (AFP) - EU antitrust regulators gave the green light Monday to a merger of Britain's Automobile Association with travel and insurance firm Saga after determining that the deal would not stifle competition.

'The (European) Commission has concluded that the transaction would not significantly impede effective competition,' the European Union's top antitrust regulator said in a statement.

BERLIN, Sept 5, 2007 (AFP) - Hurricane Dean, which slammed into Mexico last month killing around 30 people, caused one to two billion dollars (735 million-1.5 billion euros) in total insured damage, German reinsurance giant Munich Re said on Wednesday.

Munich Re, one of the world's top reinsurers, said its own exposure to the monster category-five hurricane was estimated to be 'mid-to-high double digit millions' of euros before tax.

TOKYO, Sept 4, 2007 (AFP) - Sony Corp. said Tuesday it would list its financial arm next month in hopes of raising some three billion dollars to reinvest in the recovering group's core electronics business.

The initial public offering will be one of the largest in recent years and the biggest of 2007 at the Tokyo Stock Exchange, which is the world's second largest bourse.

ZURICH, Sept 4, 2007 (AFP) - The Swiss insurance group Zurich Financial Services said on Tuesday that it was expanding its network across China, one of the world's fastest-growing insurance markets, with a new local partner.

The move follows Swiss insurer's acquisition of a 24.51 percent stake in the Chinese firm Best Harmonious Insurance Brokers, which has received regulatory approval, Zurich said in a statement.

The venture will be renamed Zurich Insurance Brokers (Beijing) Limited and deliver general and life insurance products to customers across China, it added.

TOKYO, Sept 4, 2007 (AFP) - Sony Corp. said Tuesday it will list its financial arm next month in hopes of raising some three billion dollars which it can reinvest in its core electronics business.

The iconic Japanese company is in the midst of a restructuring drive that has finally begun to bear fruit after years of suffering as rival Apple raced ahead with the iPod.

Sony Financial Holdings -- the holding firm of Sony Life Insurance, Sony Assurance and Sony Bank -- said it will sell 75,000 newly issues shares.

ZURICH, Sept 4, 2007 (AFP) - Insurer Swiss Life said on Tuesday it posted a net profit of 635 million Swiss francs (525 million dollars, 386 million euros) in the first half of 2007, up 21 percent from the previous year and ahead of analysts' expectations.

The company also said it was not affected by the crisis on the US subprime mortgage market, as its exposure represented 140 million Swiss francs, or just 0.1 percent of its investments.

OSLO, Sept 3, 2007 (AFP) - Norway's biggest insurance group Storebrand said Monday it had agreed with Swedish bank Handelsbanken to buy its life insurance and pension unit SPP for 1.9 billion euros (2.6 billion dollars) in cash.

'The combination of Storebrand and SPP will create the leading life insurance and pensions provider in the Nordic region,' Storebrand said.

To finance the deal, Storebrand said it would issue new shares worth 9.0-10.7 billion kroner (1.1-1.3 billion euros, 1.5-1.8 billion dollars) and make use of a temporary banking loan of 4.6 billion kroner.

SYDNEY, Aug 27, 2007 (AFP) - Australia's second-largest general insurer, Suncorp Metway Ltd, said Monday its annual net profit rose 16.2 percent to a record 1.06 billion dollars (883 million US), aided by 15 weeks of contributions from Promina Group.

Suncorp bought general insurer Promina for 7.9 billion dollars in a deal completed in March.

The company said that despite booking a loss of 160 million dollars due to storms in New South Wales, its general insurance division made a pretax profit in the year to June of 835 million dollars.

BEIJING, Aug 24, 2007 (AFP) - China's two leading oil producers have snubbed a new policy forcing companies to buy pollution insurance, claiming insurers cannot afford the compensation, state media said Friday.

China National Petroleum Corporation (CNPC) and China Petroleum and Chemicals Corporation (Sinopec) said that large chemical firms should not be forced to buy the insurance, according to the China.com.cn website.

SYDNEY, Aug 24, 2007 (AFP) - Australia's largest car and home insurer IAG Friday said wild storms in Australia and Britain, combined with lower investment returns, were behind a 27 percent drop in annual net profits.

Insurance Australia Group Ltd. (IAG) said its year to June net profit was 552 million dollars (449 million US) -- well off the market consensus estimate of 623 million dollars.

The company said growth across its businesses saw premium revenue grow 15 percent to 7.4 billion dollars.

LONDON, Aug 21, 2007 (AFP) - Organisers of a duathlon in Scotland have taken out a one-million-pound (1.46-million-euro, 1.97-million-dollar) insurance policy against attack by or sighting of the fabled Loch Ness monster.

First Monster Duathlon race director Malcolm Sutherland said they were planning for all eventualities.

Jon Woodman, trading director at R and SA said: 'This is one of our more unusual requests but it certainly gave our team something to get their teeth into.'

ZURICH, Aug 16, 2007 (AFP) - The Swiss insurance group Zurich Financial Services on Thursday reported a 33 percent increase in first half net profit to 2.68 billion dollars (two billion euros) despite a large charge due to flood damage claims in Europe.

Operating profit over the first six months of the year rose 12 percent to 3.3 billion dollars, including a 51 million dollar increase in general insurance to 1.8 billion dollars, Zurich said in a statement.

THE HAGUE, Aug 14, 2007 (AFP) - Dutch insurer Aegon said Tuesday it will buy the Merrill Lynch life insurance companies for 1.3 billion dollars (960 million euros) in a deal that sees the firms enter a strategic partnership in insurance and investment products.

The price for Merrill Lynch Life Insurance Company and ML Life Insurance Company includes an excess surplus of about 425 million dollars, Aegon said.

The deal, subject to regulatory approval, is expected to be completed in before the end of 2007.

BRUSSELS, Aug 10, 2007 (AFP) - Belgian banking and insurance group KBC reported on Friday a 27-percent hike in second-quarter net profit, beating analysts' expectations, and hailed a strong start to the third quarter.

The group, which is focused on growth in eastern Europe, said that net profit rose to 936 million euros (1.28 billion dollars) compared to 736 million euros for the same period last year.

Net profit for the first half of the year reached 1.9 million euros.

LONDON, Aug 9, 2007 (AFP) - Aviva, the biggest insurer in Britain, on Thursday reported an 8.0-percent drop in first-half profits as claims for flood-damaged homes and businesses offset growth in the US and Asia.

Profit before tax and interest payments fell to 1.541 billion pounds (2.277 billion euros, 3.137 billion dollars) in the six months ended June 30, compared with operating earnings of 1.699 billion pounds in the first half of 2006.

The latest profit figure was slightly below the 1.563 billion-pound earnings expected by analysts's consensus forecast.

SHANGHAI, Aug 8, 2007 (AFP) - China said Wednesday it will restrict foreign investors in the insurance business to firms that have assets of at least two billion dollars, the latest effort by Beijing to slow foreign participation.

Overseas investors must have had three years of top marks from an international credit rating agency and also show a viable earnings track record over the same period, the insurance regulator announced on its website.

LONDON, Aug 8, 2007 (AFP) - British insurer Royal and Sun Alliance said Wednesday it planned to eliminate 700 jobs as it looked to further cut costs by mid-2008.

The news comes as the Royal and Sun said that Britain's heaviest flooding for 60 years earlier this summer has cost the group 120 million pounds (177 million euros, 243 million dollars).

Royal and Sun Alliance chief executive Andy Haste said the group was 'working with unions' over the planned job losses, which will number 500 in Britain.

LONDON, Aug 7, 2007 (AFP) - Britain's recent floods will cost insurers up to three billion pounds (4.5 billion euros, 6.2 billion dollars), the main industry body said Tuesday, significantly upping its previous estimate.

The floods, the country's worst for 60 years, led to almost 60,000 claims for damage in both the north and south of England, said the Association of British Insurers.

It had previously forecast costs of more than two billion pounds, although analysts had already said it was more likely to be nearer three.

BEIJING, Aug 7, 2007 (AFP) - China will require domestic insurers to confine their overseas stock investments to blue chips listed on main boards in a bid to reduce risks, state press said Tuesday.

This is part of new detailed rules on insurers' overseas investments to be published by the China Insurance Regulatory Commission, the industry watchdog, within a month, the Shanghai Securities News reported.

ZURICH, Aug 7, 2007 (AFP) - Swiss Re, the world's largest reinsurance group, maintained strong growth in the second quarter, recording a 45 percent increase in net profit to 1.2 billion Swiss francs (730 million euros, 1.0 million dollars).

Premium earnings increased 17 percent to eight billion Swiss francs compared to the equivalent quarter in 2006, Swiss Re said in a statement Tuesday.

Annualised return on equity for the second quarter improved to 15.9 percent from 13.3 percent in 2006, well above the company's target of 13 percent, it added.

FRANKFURT, Aug 6, 2007 (AFP) - German reinsurance giant Munich Re raised its full-year forecasts on Monday and said it was pursuing record net profits of between 3.5 and 3.8 billion euros after a better-than-expected second quarter.

'We have made such good progress to date that we are increasing our profit guidance and, with the one-off income resulting from tax reforms, are even setting our sights on a new record result,' chief executive Nikolaus von Bomhard said.

Munich Re made record net profit of 3.5 billion euros in 2006.

FRANKFURT, Aug 3, 2007 (AFP) - German insurance giant Allianz, shrugging off potential damage from US credit market woes, said Friday it was targeting record net profit of about eight billion euros (10.9 billion dollars) this year after a strong first half.

'With the good results in the first half year we are in an excellent position to reach our goals for the 2007-2009 period,' said chief executive Michael Diekmann.

'For the full year we are expecting net profit of about eight billion euros.'