INVESTING IN DEATH - Well-respected Conning & Company believes lifetime settlements are set to explode in the next decade, as the market evolves to include healthy seniors looking to sell their life insurance policies. Buoyed by an aging population, the viatical market for healthy seniors, known as "life settlements," is conservatively estimated by Conning at over $100 billion. To purchase the complete study, go to http://www.conning.com. For sales information on life settlements, go to http://www.coventryfinancial.com.

TALKING - German insurer Allianz confirmed that it was in talks with Pacific Life, a potential takeover target. Acquisition of Pacific Life would strengthen Allianz's foothold in the U.S. life insurance market.

EMPLOYERS PAYING - A William M. Mercer survey found that U.S. employers are sweetening health benefits packages even as the cost of providing that coverage is rising at a rate nearly triple inflation. Further, they are not shifting the higher costs to their workforce. Examples: Employee cost for PPO and HMO coverage in 1999 was 20% of the premium, a 3% to 4% decrease from 1998; dental coverage was offered by 54% of employers, up from 49% last year. Reason: Tight job market.

In 1999, the cost of employer-sponsored health plans jumped 7.3%, to an average cost per employee of $4,097. That followed 1998's 6.2% rise in health costs, which ended a 5-year respite from health benefit inflation.

EMPLOYERS NOT PAYING - This also from the Mercer survey... employers are trimming overall health costs by dropping coverage for retirees. For the sixth straight year, the percentage of employers providing coverage to Medicare-eligible retirees dropped -- to 28% in 1999 from 30% the prior year.

NEGATIVE OUTLOOK - Despite a good year in 1999, Standard & Poor's sees a negative outlook for the U.S. life insurance industry. "As financial convergence runs its course, life insurance companies will increasingly be compared in their profitability to other types of financial institutions. Life companies generally do not look good in such comparisons, with ROEs (return on equity) on even well-run companies in the low to mid-teens versus mid to high-teens for other financial businesses," the report says.

RUMORED SALE - The Citigroup unit Travelers Life & Annuity is said to be looking to sell its long-term care insurance business, with MetLife rumored as the most likely buyer.

PRU PURCHASE - Prudential has essentially created a new distribution channel by purchasing a majority interest in Hochman & Baker, an Illinois-based firm which recruits and trains accounting professionals to become licensed to offer investment and insurance products to their tax and business clients. According to Thomas Crawford of Prudential, "This move is a clear reflection of Prudential's commitment to serving its customers through an advice-based business model. As accounting professionals become increasingly important providers of financial advice, Prudential looks forward to helping them meet their clients' insurance and investment needs." Meanwhile, Investment News reports that Pru Securities has introduced Prudential Alliance, which will pay CPAs a percentage of the eligible investment advisory fees generated by each client referred to Pru Securities.

VETERANS' PLIGHT - More and more veterans are finding themselves part of the growing number of uninsured and the Veterans Administration is trying to do more to meet their needs. As they lose their coverage from other sources, more veterans are "signing up" with the VA; expect to see more pressure for veterans' medical services.

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