Chubb to Seek More Rate in Northeast; Q4 Profit Drops 77% on Sandy Losses

Chubb Corp. says it plans to seek higher rate increases for Homeowners insurance in the Northeast, following the impact of Superstorm Sandy—the largest catastrophe in Chubb’s history.

Sandy, which made landfall at Southern New Jersey in late October 2012, affected core states for the Warren, N.J.-based insurer.

The storm set records for the company in terms of claims and net catastrophe loss—$882 million pretax.

And as Chubb looks forward, Dino E. Robusto, president of personal lines, says during an earnings conference call, “We plan to file for rate increases up to the low teens in some areas of the Northeast.
Chubb had been seeking mid-single-digit rate increases in Homeowners insurance in the Northeast prior to the storm.

About 90 percent of Sandy claims came from New York, New Jersey and Connecticut, he says. About 53 percent of the losses were from Chubb’s commercial segment. The balance was from its personal lines segment.

Sandy took its toll on Chubb’s 2012 fourth-quarter net income—dropping it more than 77 percent to $102 million, compared to net income of $452 million during the same period a year ago.
Net income for the year was $1.5 billion compared to $1.7 billion in 2011.

The storm sky-rocketed the company’s fourth-quarter combined ratio, which was 131.3 for homeowners and 118.7 for commercial. Overall the fourth-quarter combined ratio for Chubb was an unprofitable 111.2 compared to 89.9 in 2011.

However, looking beyond the impact of catastrophes was much more promising for Chubb. CEO John D. Finnegan say the fourth quarter combined ratio excluding catastrophes was 81.5—an 8-point improvement over the same time in 2011.

During the conference call, Finnegan says Chubb was able to turn a profit in the quarter despite the huge hit from Sandy “through the pursuit of renewal rate increases, writing new business only when we believe we are securing adequate rates, and continually refining our risk selection to improve profitability of our book of business.”

Renewal rate increases were seen in each of Chubb’s business units. Rates were up 9 percent for Professional Liability, 8 percent for Commercial and 6 percent for Personal lines, Finnegan reports.
Paul J. Krump, president of commercial and specialty lines, says Chubb received rate increases on 90 percent of its renewal book in the segment, compared to 70 percent a year ago.

Pure Michigan Ad Promoting Business In Michigan Anger's Some

By now it’s no secret that many people are riled up about an advertisement in the Wall Street Journal that tied the Pure Michigan logo to a message about the controversial right to work law.

The move angered some Pure Michigan fans who said it wrongly politicized what has been a very popular tourism campaign. And marketing experts questioned whether the move hurt Pure Michigan’s brand image.

But there are others who are sticking up for the move, pointing out that Pure Michigan has been used to promote economic development in the state, and right to work is just another business attraction tool.

Michigan Economic Development Corp. President and CEO Michael Finney posted a blog about the issue on Friday. He discusses the background behind using the Pure Michigan brand for economic development marketing, and provides this explanation:

The campaign is being paid for with Michigan Economic Development Corporation corporate funds. No general fund tax dollars appropriated to the Michigan Strategic Fund are being used for the campaign.

Our state policymakers enacted Freedom-to-Work legislation, and it’s our job as the state’s economic development organization to do all we can to communicate with site selection professionals about every single factor in doing business here, including Freedom to Work. As our newest tool, it is the logical launching pad for a larger business attraction campaign.

We are listening to the feedback we are receiving and will continue to roll out the campaign in a way we think is most effective in reaching our target audiences. Please share any additional feedback in the comments section below or on the Michigan Economic Development Corporation Facebook page at www.facebook.com/miadvantage.

Many people have sounded off on Twitter, and Facebook  in the past few days. Here’s what some of them are saying:

Shannon Nobles of Lansing wrote on Pure Michigan’s Facebook page:

You have lost a fan, Pure Michigan. And a "like". Shame on your for bringing politics (and especially such terrible and divisive politics!) into what WAS such a lovely campaign. SeriouslyJohn Rupp Sr. of West Bloomfield Township also was among the fans that left angry comments on Facebook:

Is nothing sacred? I have lived in Michigan for 78 years and was proud of our "Pure Michigan" as the best tourism slogan ever. If you want to politize something, get your own slogan and leave ours alone.

The Pure Michigan Facebook page had more than 473,000 fans as of Friday afternoon. That figure was at more than 420,000 as of Wednesday afternoon, according to The Detroit Free Press.

More than 450 people attend Getman Corp. job fair, some arrive hours early and wait in line

 KALAMAZOO, MI – Getman Corp., looking to fill 150 new positions for its new facility in Comstock Township, should have plenty of qualified applicants to choose from after Saturday.

More than 450 people attended a job fair for the company at the Michigan Works Kalamazoo office on Burdick Street. People started showing up a little after 7 a.m., even though the job fair didn't start until 9 a.m.

Ben Damerow, director of Michigan Works in Kalamazoo and St. Joseph counties, said Getman offers competitive wages and opportunities for advancement for skilled trades workers.

Damerow said the manufacturing industry is making a strong comeback, even though some people don't realize it yet. He said a lot of companies are looking to fill new manufacturing positions.

"It takes a little bit of time for perception to catch up with reality," he said.

Getman Corp., based in Bangor, announced plans in December to invest $5.

Netflix to share your personal viewing history

 Get ready for your Netflix history to be shared with all your friends and online acquaintances. A new bill has been passed that makes it possible for Facebook to share your entire Netflix viewing history – including those guilty pleasures you thought no one would know about.

Netflix will give customers the option to turn off this feature, so those that do not wish for their collection to be shared will have the ability to do so.

Netflix and Facebook plan to roll out the new history sharing option in 2013, once a bill allowing the use of video history to be shared without written consent is signed off on by the President.

Medicare Taxes to Rise In 2013

 2013 Medicare Tax Increase: The Medicare tax is currently being withheld at the rate of 1.45% from all employees. However, beginning in 2013, an additional 0.9% will be added to the income in excess of the threshold; the threshold amount for 2013 is $200,000 for single filers and $250,000 for joint filers. As a result, the tax rate will be 1.45% for wages up to the threshold amount and 2.35% for wages above the threshold amount. For self-employed taxpayers, the tax rate will be 2.9% for income up to the threshold amount and 3.8% for income above the threshold amount.

Late New Years Day Evening Congress Passes Fiscal Cliff Bill

WASHINGTON (AP) - 

Legislation to block the "fiscal cliff" is headed to the White House for President Barack Obama's signature. The bill will avoid, for now, the major tax increases and government spending cuts that had been scheduled to take effect with the new year.

Final approval came in the House on New Year's Night. The vote was 257 to 167.

The Senate passed the bill less than 24 hours earlier.

The measure raises tax rates on incomes over $400,000 for individuals and $450,000 for couples, a victory for Obama.

It also extends expiring unemployment benefits for the long-term jobless, prevents a cut in fees for doctors who treat Medicare patients and cancels a $900 pay increase due to lawmakers in March.

Another provision is designed to prevent a spike in milk prices.

Facebook Starts Charging $1 To Send Some Messages

 Facebook has begun testing a system for users to send messages to people outside their immediate circle of social contacts for a payment of one dollar.


Facebook Inc. said Thursday it has begun testing a system for users to send messages to people outside their immediate circle of social contacts for a payment of one dollar, as the company continues to find new ways to capitalize on its popularity.

In a statement posted online, the Menlo Park, Calif.-based social site cited research showing that "imposing a financial cost on the sender may be the most effective way to discourage unwanted messages and facilitate delivery of messages that are relevant and useful."

Facebook says the new test is designed to route messages sent from outside of a network of contacts around the lower-priority "Other" folder on a Facebook page, and directly into a user's "Inbox"—for a small fee.

Each message sent will initially cost $1, though Facebook plans to continue tinkering with prices.

Facebook said the new message-routing feature will only be for personal messages between people in the U.S., and the maximum number that can be sent around someone's Other folder to their Inbox per week is capped at one.

The latest move comes a few months after Facebook started testing a separate service that enabled users to pay $7 to make their personal posts more visible among contacts on the site.

Facebook, which has garnered one billion monthly active users, is also pursuing a number of online advertising and commerce initiatives as it seeks to bolster investor confidence.

After going public in May with its shares priced at $38, Facebook's stock proceeded to dip below $20.

However, the shares have risen more than 20% in the past three months, and were trading at about $27.30 Thursday afternoon.