INSURANCE BRIEFS

INSURANCE BRIEFS

JAPAN'S LIFE INSURERS

REPORT HEAVY LOSSESJapan's 25 life insurance companies took heavy losses on stocks and bonds in the 1989 business year to March, according to the Nikkei news wire that cited sources.

The sources put total stock appraisal losses at a record of over 800 billion yen (157.63 yen equal US$1) and bond losses at over 500 billion yen.

While foreign exchange losses have been reduced because of the weakening yen, price declines on stock and bond markets had a severe impact on the firms' financial situations, Nikkei reported.

In order to pay bonuses to their long-term policy holders, all the companies were forced to sell securities holdings, it added.

The life insurance firms' stock appraisal losses came from the management of specified money in trust (tokkin) and non-tokkin fund management. Each life insurance company is estimated to have suffered losses ranging from 30-110 billion yen for fiscal 1989 in tokkin management.

FORMER JUA MANAGER

TO AID IN NJ PROBE

NEWARK, N.J. - The former general manager of the state Joint Underwriting Association, indicted on charges of official misconduct 18 months ago, has been granted pretrial probation in exchange for cooperating in an investigation of the insurance industry.

Nelson Ealey was admitted into Morris County's pretrial intervention program at the request of state Attorney General John Smith, The Star-Ledger of Newark reported Tuesday.

Superior Court Judge Peter Conforti approved the arrangement Monday.

The program, which does not require an admission of guilt, gives defendants a chance to have charges against them dismissed after serving a period of probation.

Mr. Ealey, 39, faced up to 40 years in prison for the charges of misconduct and illegally transferring cars to his wife and brother-in-law.

Mr. Smith said Mr. Ealey has promised "Full cooperation, including any testimony necessary in civil and criminal matters involving insurance carriers and other aspects of the insurance industry."

DAMAGES FROM STORMS

ARE SET AT $55 MILLION

NEW YORK - Two severe storms which struck Texas and Oklahoma caused insured property damage estimated at $55 million, said C.E. Hermanson, vice president, Property Claim Services division of American Insurance Services Group, Inc.

The first storm, April 15-16, caused property damage estimated at $25 million. Damage was heaviest in Texas, an estimated $15 million. Wind and hail damage was scattered across the north central region of the state.

This storm also caused property damage in Oklahoma estimated at $10 million, with many of the losses in Bryan County.

The second storm on April 16-17 in Oklahoma caused $30 million in insured property damage. Heaviest losses occurred in and around Oklahoma City.

NIPPON EXECUTIVE

TO RECEIVE AWARD

WASHINGTON - Richard M. Murray, chairman of Nippon Management Group, will receive the International Insurance Award from the International Insurance Council.

A veteran international insurance executive, Mr. Murray is a former chairman and board member of the council.

He has served as the U.S. insurance industry's delegate to the Inter- American Federation of Insurance Companies and was industry adviser to the U.S. delegation to the U.N. Conference on Trade and Development.

He also has represented the industry before the Federation of Afro-Asian Insurers and the Association of Southeast Asian Nations Insurance Council. He was a vice president at Travelers Insurance Co. from 1968 to 1987 before becoming chairman of the Nippon Management Group.