What’s new: In brief (July 07, 2004)

U.S. life and health insurers posted a 310% jump in net income for 2003, earning US$30 billion versus US$7.3 billion in 2002, according to data from Weiss Ratings Inc. Rebounding equity markets were the major force, with capital losses dropping to US$4.6 billion from US$15.5 billion year-over-year. Capital and surplus rose almost 13% in 2003, to hit US$274 billion at the end of the year, versus US$242.7 billion at the end of 2002. The full report is at www.weissratings.com.

A study of compensation for boards of directors in the U.S. finds pay levels are rising, with the increased responsibility and liability faced by those directors, according to a survey by Pearl Meyer & Partners. Total remuneration was up 1% in 2003, but the cash portion of pay shot up 10%. Stock options dropped in prevalence, and almost no companies retain director pension programs. About one-quarter of companies differentiate pay for directors’ service on the audit committee.

CU wishes to pass on its condolences on the sudden passing of Randy Hutchinson of Farmers’ Mutual (Lindsay) on June 27 at the age of 51. During his 31 year career in the mutual insurance industry, he obtained his FCIP designation and rose to the position of general manager at Farmers’ Mutual. He served on the Ontario Mutual Insurance Association (OMIA) board from 1980-1988, including as president, and on the Farm Mutual Reinsurance Plan (FMRP) board from 1992-1994. He also served on the National Association of Mutual Insurance Companies (NAMIC) board from 1998-2001, and was president-elect of the Lindsay Rotary Club. He is remembered by fiancee Jennifer Thompson and her son Matthew, and his children Erin and Greg, as well as a his father Norm.