Hot on the heels of a $15 million Consumer Financial Protection Bureau settlement with mortgage insurers Genworth Financial (NYSE: GNW ) , MGIC Investment (NYSE: MTG ) , Radian Group (NYSE: RDN ) , and United Guaranty, a subsidiary of AIG (NYSE: AIG ) , over kickbacks�paid to banks for mortgage insurance, comes some bad news in the same vein -- this time, for Bank of America (NYSE: BAC ) .
Insurance and reinsurance
Even as the above insurers are forking over settlement checks to the CFPB, the bureau is investigating further the whole sordid mess that prompted the settlement in the first place. Now, it is turning its gaze to the recipients of those bribes: mortgage lenders like B of A.
But, that is a future concern. Right now, Bank of America will be forced to deal with homeowners who filed suit against the bank last year, claiming just the type of kickback scheme for which the insurers ponied up. B of A tried to get the claims dismissed, but a judge decided a little over a week ago that the bank will have to face those charges.�
Best Communications Equipment Companies To Invest In Right Now: Universal American Corp (UAM)
Universal American Corp., incorporated on December 22, 2010, through its health insurance and managed care subsidiaries, primarily serves the growing Medicare population by providing Medicare Advantage products. It provides a variety of healthcare services, including case management and care coordination, clinical quality and utilization review and behavioral health services to Medicaid agencies and other third parties. The Company�� business segments include Senior Managed Care, which provides Medicare Advantage segment reflects its Medicare Advantage HMO, PPO and PFFS businesses, and Traditional Insurance segment reflects its insurance products not offered through government programs, which includes Medicare supplement, other senior health insurance, specialty health insurance and life insurance. The Company provides medical management services, information and analysis, and other support services to enable its health care partners to serve their patients better.
In addition , it seeks an opportunity to address the high cost of health care for the remaining 75% of the Medicare population enrolled in traditional fee-for-service Medicare and have joined primarily with primary-care and multi-specialty provider groups to form thirty-one Accountable Care Organizations, or ACOs, pursuant to the Medicare Shared Saving Program, or Shared Savings Program.
On March 2, 2012, the Company acquired APS Healthcare, Inc., known as APS Healthcare. APS Healthcare provides specialty healthcare solutions primarily to Medicaid agencies. APS Healthcare offers a broad range of healthcare solutions, including case management and care coordination, clinical quality and utilization review, and behavioral health services that enable its customers to improve the quality of care and reduce healthcare costs.
Senior Managed Care - Medicare Advantage
The Company�� Senior Managed CareMedicare Advantage segment reflects its Medicare Advantage HMO, PPO and PFFS bu! sinesses.. During the year ended December 31, 2012, the Company operated Medicare coordinated care plans including PPOs and HMOs as well as its network-based private fee-for-service (PFFS) and rural PFFS business, which provides coverage to Medicare beneficiaries in 36 states. These businesses provide managed care for persons with Medicare under contracts with CMS. Its HMO plans are offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. It operates HMO plans are offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. It also has Medicare Advantage HMO operations in locations outside of Southeastern Texas including four counties in North Texas offering TexasFirst Health Plans through SelectCare Health Plans; nine counties in Oklahoma City offering Generations Healthcare through Today's Options of Oklahoma, Inc; and three counties in Indianapolis, Indiana offering Today's Options HMO through SelectCare Health Plans.
The Company�� PPO plans are provided under the name Today's Options PPO, which offered under contracts with CMS and provide all basic Medicare covered benefits with reduced member cost-sharing as well as additional supplemental benefits, including a defined prescription drug benefit. This coordinated care product is built around contracted networks of providers who, in cooperation with the health plan, coordinate an active medical management program. In 2012, the Company offered PPO plans to 41 markets in 120 counties in 17 states.
The Company�� PFFS plans are provided under the name Today's Options, which offered under contracts with CMS and provide enhanced health care benefits compared to traditional Medicare, subject to cost sharing and other limitations. These pl! ans have l! imited provider network restrictions, which allow the members to have more flexibility in the delivery of their health care services than other Medicare Advantage plans with limited provider network restrictions. Some of these products include a defined prescription drug benefit. In addition to a fixed monthly payment per member from CMS, individuals in these plans may be required to pay a monthly premium in selected counties or for selected enhanced products. In 2012, it offered PFFS products in a total of 36 states, which included PFFS products with network restrictions to 51 markets in 280 counties in 18 states and PFFS products without network restrictions to 1,052 counties in 32 states.
Traditional Insurance
The Company�� traditional insurance segment reflects the results of its Medicare supplement, other senior health insurance, specialty health insurance, and life insurance. It designed the products in this segment primarily for the senior market and market them through its career agency force and its network of independent general agencies. The Company discontinued marketing and selling traditional insurance products after June 1, 2012. This segment also includes other products that it stopped selling several years ago, such as long-term care, medical insurance and disability insurance, as well as previously produced or acquired term, universal life, and whole life insurance products and single and flexible premium fixed annuities.
The Company competes with United Healthcare, Humana, Wellpoint, Aetna and Cigna
Advisors' Opinion:- [By Brian Orelli]
Health insurers such as Universal American (NYSE: UAM ) and Humana (NYSE: HUM ) that offer supplementary Medicare insurance could be hurt if seniors decided to drop the added coverage, but I doubt the increased premiums will put a major dent in seniors' budgets. Retirees making more than $85,000 per year will have to pay about $250 more per year than they do right now. Any losses will be more than be made up for by the�Centers for Medicare and Medicaid Services' decision this month to reverse its �previously announced cuts to reimbursement rates.
Top 5 Insurance Companies To Buy For 2014: First American Financial Corp (FAF)
First American Financial Corporation, incorporated on January 14, 2008, through its subsidiaries, is engaged in the business of providing financial services through its title insurance and services segment and its specialty insurance segment. The Company operates in two segments: title insurance and services and specialty insurance.
The title insurance and services segment provides title insurance, closing and/or escrow services and similar or related services domestically and internationally in connection with residential and commercial real estate transactions. It also maintains, manages and provides access to title plant records and images and provides banking, trust and investment advisory services. The specialty insurance segment issues property and casualty insurance policies and sells home warranty products. In addition, its corporate function consists of certain financing facilities as well as the corporate services that support its business operations.
Title Insurance and Services Segment
The Company�� title insurance and services segment issues title insurance policies on residential and commercial property in the United States and offers similar or related products and services internationally. This segment also provides closing and/or escrow services; accommodates tax-deferred exchanges of real estate; maintains, manages and provides access to title plant records and images, and provides banking, trust and investment advisory services. The Company conducts its title insurance and closing business through a network of direct operations and agents. Through this network, it issues policies in the 49 states that permit the issuance of title insurance policies and the District of Columbia. The Company also offers title insurance, closing services and similar or related products and services, either directly or through third parties in foreign countries, including Canada, the United Kingdom, Australia and various other markets.
The Company! distributes its title insurance policies and related products and services directly as well as through its agents through various channels. Its federal savings bank subsidiary offers trust and investment advisory services, deposit services and asset management services. As of December 31, 2012, the Company provides products and services in numerous countries outside of the United States, and its international operations accounted for approximately 7.9% of its title insurance and services segment revenues.
Specialty Insurance Segment
The Company�� property and casualty insurance business provides insurance coverage to residential homeowners and renters for liability losses and typical hazards, such as fire, theft, vandalism and other types of property damage. The Company is licensed to issue policies in all 50 states and the District of Columbia and actively issue policies in 43 states. In its market, California, it also offers preferred risk auto insurance to better compete with other carriers offering bundled home and auto insurance. Reinsurance is used to limit risk associated with natural disasters, such as windstorms, winter storms, wildfires and earthquakes.
The Company�� home warranty business provides residential service contracts that cover residential systems, such as heating and air conditioning systems, and certain appliances against failures that occur as the result of normal usage during the coverage period. Most of these policies are issued on resale residences, although policies are also available in some instances for new homes. Coverage is typically for one year and is renewable annually at the option of the contract holder and upon its approval. It sells renewals directly to consumers. As of December 31, 2012, home warranty business operates in 39 states and the District of Columbia.
The Company competes with Fidelity National Financial, Inc., Stewart Title Guaranty Company, Old Republic International Corporation and Lender Proc! essing Se! rvices, Inc.
Advisors' Opinion:- [By Marc Bastow]
The biggest increase among our dividend stocks this week came from title and specialty insurance management company First American Financial (FAF), which raised its quarterly dividend 100% to 24 cents per share, payable June 16 to shareholders of record as of June 9.
FAF Dividend Yield: 3.47% - [By Jon C. Ogg]
First American Financial Corp. (NYSE: FAF) was raised to Outperform from Market Perform at Keefe Bruyette & Woods.
Fidelity National Financial Inc. (NYSE: FNF) was raised to Outperform from Market Perform at Keefe Bruyette & Woods.
- [By Canadian Value]
Position % of Fund Assets 1) First American Financial Corp. (FAF) 7.0% 2) Apple, Inc. (AAPL) 6.5% 3) Coinstar, Inc. (CSTR) 4.8% 4) EMC Corp. (EMC) 4.4% 5) Coach, Inc. (COH) 4.4% 6) Kohl's Corp. (KSS) 4.1% 7) Blucora, Inc. (BCOR) 4.0% 8) Tetra Tech, Inc. (TTEK) 3.1% 9) OM Group, Inc. (OMG) 3.0% 10) American International Group, Inc. (AIG) 2.8% TOTAL 44.1% One area that we believe still offers some value in the market is in high quality, large��ap technology stocks that may be momentarily out��f��avor as they transition from rapid growth to slower growth. In particular, we become interested when that transition is also accompanied by a change in capital allocation policies designed to return more cash to shareholders in the form of dividends and share repurchases. We believe that Apple and EMC are two of the absolute highest quality technology businesses in the world and both have recently announced very material, shareholder��friendly changes to how they will allocate capital.
Top 5 Insurance Companies To Buy For 2014: Genworth Financial Inc (GNW)
Genworth Financial, Inc., a financial security company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company offers various insurance and fixed annuity products, including life and long-term care insurance products; payment protection insurance products for consumers primarily to meet specified payment obligations; and wealth management products, such as managed account programs with advisor support and financial planning services. It also provides mortgage insurance products and related services to insure prime-based, individually underwritten residential mortgage loans or flow mortgage insurance; and mortgage insurance on a structured or bulk basis, as well as offers services, analytical tools, and technology that enable lenders to operate and manage risk. In addition, the company provides institutional products consisting of funding agreements, funding agreements backing notes, and guaranteed in vestment contracts. Genworth Financial, Inc. distributes its products and services through financial intermediaries, advisors, independent distributors, affinity groups, and sales specialists. The company was founded in 2003 and is headquartered in Richmond, Virginia.
Advisors' Opinion:- [By Ben Levisohn]
Its big day has also boosted other insurers. Radian Group (RDN) has risen 7.2% to $14.39, while Old Republic International (ORI) has advanced 2.1% to $15.24, Genworth Financial (GNW) is up 3.6% at $13.41 and MBIA Inc. (MBI) has jumped 4.3% to $10.76.
- [By David Sterman]
Lastly, you'll note that both Reinsurance Group of America and Genworth Financial (NYSE: GNW) appear on two separate tables here, as they both sport high free cash flow yields and trade below tangible book value. Those deep value metrics have surely caught the eye of Buffett and his research team.
Top 5 Insurance Companies To Buy For 2014: HCI Group Inc (HCI)
HCI Group Inc, formerly Homeowners Choice, Inc., incorporated in 2006, is a holding company. The Company, through its subsidiaries, is primarily engaged in the property and casualty insurance business. The Company is authorized to underwrite homeowners' property and casualty insurance in the state of Florida through its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPC). Through HCPC and subsidiaries, primarily Homeowners Choice Managers, Inc. (HCM), Southern Administration, Inc., Claddaugh Casualty Insurance Company, Ltd., and its subsidiary, HCPCI Holdings LLC, the Company provides property and casualty homeowners' insurance, condominium-owners' insurance, and tenants' insurance to individuals owning property in Florida. The Company�� subsidiaries also include TV Investment Holdings LLC, which owns and operates a marina facility located in Florida; Unthink Technologies Private Limited, which is a software development firm. During the year ended December 31, 2011, the Company organized TV Investment Holdings LLC, HCI Holdings LLC and HCI Technical Resources, Inc. In November 18, 2011, the Company acquired Unthink Technologies Private Ltd. In November 2011, it acquired the Florida policies of HomeWise Insurance Company.
The Company�� subsidiary, HCM provides underwriting policy administration, marketing, accounting and financial services to HCPC, and participates in the negotiation of reinsurance contracts. Southern Administration, Inc. provides policy administration services. Claddaugh Casualty Insurance Company Ltd. provides reinsurance coverage to HCPC. Asof December 31, 2011, the Company has approximately 119,000 policies in force. Citizens Property Insurance Corporation requires the Company to offer renewals on the policies the Company acquires for a period of three years subsequent to the initial expiration of the assumed policies. The policyholders have the option to renew with the Company or they may ask their agent to place their co! verage with another insurance company.
Advisors' Opinion:- [By Marc Bastow]
Property and casualty insurance holding company HCI Group (HCI) raised its quarterly dividend 22.2% to 27.5 cents per share, payable Dec. 20 to shareholders of record Nov. 15.
HCI Dividend Yield:�2.48% - [By Ben Levisohn]
Tower Group has dropped 12% to $3.88 today at 11:39 a.m., while Stewart Information Services (STC) has dipped 0.1% to $31.16, the�Navigators Group�(NAVG) has fallen 1.4% to $54.78 and HCI Group�(HCI) has gained 1% to $38.16.
- [By Ben Levisohn]
Tower Group has dropped 40% to $4.43 today, and some other small insurers are also getting dinged this morning. HCI Group (HCI) has fallen 1.8% to $39.36, Stewart Information Services (STC) has declined 0.7% to $31.36 and the Navigators Group (NAVG) has ticked down 0.4% to $56.10.
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