NEW YORK (LowCards.com) -- Two surveys from the Pew Charitable Trusts show that prepaid debit cards have become a popular alternative to checking accounts for more Americans.
Consumers loaded $64.5 billion onto prepaid debit cards in 2012, a 13% increase from $56.8 billion in 2011 and more than double the $28.6 billion in 2009.
According to one survey, 12 million people (or 5% of adults), use prepaid cards at least once a month. The average prepaid card customer had a household income of nearly $30,000 per year. Three-quarters of these consumers are under 50 years of age.
Consumers are using prepaid cards as a way to stay out of credit card debt, control their spending, make purchases online and avoid overdrafts. Among the people who have had a checking account, two in five have had problems with overdraft fees.
Also see: Prepaid Card Popularity Merits Caution From Consumers>> Prepaid cards may be a way to avoid checking accounts, but there are no federal laws or regulations that protect consumers directly from hidden fees, liability for unauthorized transactions or loss of funds in the event of an issuing institution's failure. This may change soon, since the Consumer Financial Protection Bureau is expected to issue some guidelines on prepaid cards this May. Prepaid cards don't have to provide disclosures of fees or terms. The study found that only 32% of consumers compared terms before choosing a card. The Pew study shows the changes in the prepaid market from 2012 to last year, including that retail banks and established financial services companies are now offering them. Prepaid cards offered by large banks were more economical last year, and some of the disclosures were clearer, including what is covered by FDIC insurance. More cards are charging monthly fees similar to traditional checking accounts instead of other transaction-based fees. Of the 66 most popular prepaid cards, the median fees were $5.95 for a monthly fee, $2 for an out-of-network or in-network ATM withdrawal, $1 for a point-of-sale signature or PIN transaction and $1.95 for a live customer service call.
10 Best Construction Stocks To Buy For 2015: ING Groep NV (ISP)
ING Groep N.V. (ING) is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In November 2013, the Company completed the sale of ING Hipotecaria to Banco Santander (Mexico), S.A. In December 2013, the Company completed the sale of its 33.3% interest in China Merchants Fund to its joint venture partners China Merchants Bank Co Ltd and China Merchants Securities Co Ltd, and divested ING Life Korea to MBK Partners. Advisors' Opinion:- [By Tom Stoukas]
UniCredit SpA and Intesa Sanpaolo SpA (ISP), Italy�� biggest banks, dropped more than 1 percent as the nation�� benchmark FTSE MIB Index slid 1.2 percent. Rio Tinto Group led mining companies lower after a measure of Chinese manufacturing missed a preliminary estimate. Aryzta AG rallied the most in six months as the Swiss supplier of bakery products reported results that topped projections.
Top 5 Insurance Stocks To Buy For 2014: Reinsurance Group of America Inc (RGA)
Reinsurance Group of America, Incorporated (RGA) is an insurance holding company. RGA is engaged in the reinsurance of individual and group coverages for traditional life and health, longevity, disability income, annuity and critical illness products, and financial reinsurance. During the year ended December 31, 2011, approximately 65.8% of the Company�� net premiums were from its operations in North America, represented by its United States and Canada segments. Its subsidiaries include RGA Reinsurance Company (RGA Reinsurance), Reinsurance Company of Missouri, Incorporated (RCM), RGA Reinsurance Company (Barbados) Ltd. (RGA Barbados), RGA Americas Reinsurance Company, Ltd. (RGA Americas), RGA Atlantic Reinsurance Company, Ltd. (RGA Atlantic), RGA Life Reinsurance Company of Canada (RGA Canada), RGA Reinsurance Company of Australia, Limited (RGA Australia) and RGA International Reinsurance Company (RGA International). The Company has five geographic-based operational segments: United States, Canada, Europe & South Africa, Asia Pacific and Corporate and Other. On January 1, 2012, it dissolved its United Kingdom reinsurance subsidiary and transferred its business to RGA International, the Company�� Ireland-based subsidiary, to better manage capital resources.
As of December 31, 2011, the Company has operation in Australia, Barbados, Bermuda, People�� Republic of China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, the United Arab Emirates and the United Kingdom. The Company provides reinsurance products to the life insurance companies worldwide. The Company obtains its revenues through reinsurance agreements, which cover a portfolio of life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability income, as well as annuities and financial reinsurance.
!United States Operations
During 2011, the United States operations represented 54.4% of the Company�� net premiums. The United States operations market traditional life and health reinsurance, reinsurance of asset-intensive products, and financial reinsurance, primarily to the United States life insurance companies. The United States Traditional sub-segment provides life and health reinsurance to domestic clients for a range of products through yearly renewable term agreements, coinsurance, and modified coinsurance. Premiums vary for smokers and non-smokers, males and females, and may include a preferred underwriting class discount. Reinsurance premiums are paid in accordance with the treaty. Automatic reinsurance treaty provides that the ceding company will cede risks to a reinsurer on specified blocks of policies where the underlying policies meet the ceding company�� underwriting criteria. The United States facultative reinsurance operation involves the assessment of the risks inherent in multiple impairments, such as heart disease, high blood pressure, and diabetes; cases involving policy face amounts, and financial risk cases, which include cases involving policies disproportionately in relation to the financial characteristics of the proposed insured. During 2011, approximately 20.4% of the United States gross premiums were written on a facultative basis.
Canada Operations
During 2011, the Canada operations represented 11.4% of the Company�� net premiums. During 2011, approximately 85.2% of the recurring new business was written on an automatic basis. The Company operates in Canada through RGA Canada, a wholly owned subsidiary. RGA Canada is a life reinsurer in Canada, based on new individual life insurance production. It assists clients with capital management and mortality and morbidity risk management and is primarily engaged in traditional individual life reinsurance, as well as creditor, group life and health, critical illness, and longev! ity reins! urance. Creditor insurance covers the outstanding balance on personal, mortgage or commercial loans in the event of death, disability or critical illness and is shorter in duration than traditional life insurance. Clients include the life insurers in Canada.
Europe & South Africa Operations
During 2011, the Europe & South Africa operations represented 16.3% of the Company�� net premiums. This segment serves clients from subsidiaries, licensed branch offices and/or representative offices located in France, Germany, India, Ireland, Italy, Mexico, the Netherlands, Poland, South Africa, Spain, the United Arab Emirates and the United Kingdom. These offices operate primarily through the Company�� subsidiaries RGA International and RGA South Africa. The principal types of reinsurance for this segment include life and health products through yearly renewable term and coinsurance agreements, the reinsurance of critical illness coverage, which provides a benefit in the event of the diagnosis of a pre-defined critical illness and the reinsurance of longevity risk related to payout annuities. The reinsurance agreements of critical illness coverage may be either facultative or automatic agreements. Premiums earned from critical illness coverage represented 20.5% of the total net premiums for this segment during 2011. During 2011, the United Kingdom operations generated approximately 62.9% of the segment�� gross premiums.
Asia Pacific Operations
During 2011, the Asia Pacific operations represented 17.8% of the Company�� net premiums. The Company has a presence in the Asia Pacific region with licensed branch offices and/or representative offices in Hong Kong, Japan, South Korea, Taiwan, New Zealand, Labuan (Malaysia) and the People�� Republic of China. The principal types of reinsurance for this segment include life, critical illness, health, disability income, superannuation, and financial reinsurance. Superannuation is the Australian government mandated c! ompulsory! retirement savings program. Superannuation funds accumulate retirement funds for employees, and in addition, offer life and disability insurance coverage. Reinsurance agreements may be either facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. During 2011, the Australian operations generated approximately 52.3% of the total gross premiums for the Asia Pacific operations. The Hong Kong, Labuan, Japan, Taiwan, China and South Korea offices provide full reinsurance services and are supported by the Company�� United States and International Division Sydney office.
Corporate and Other
Corporate and Other operations include investment income from invested assets not allocated to support segment operations and undeployed proceeds from the Company�� capital raising efforts, in addition to unallocated investment related gains or losses. Corporate expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance expenses line item, unallocated overhead and executive costs, and interest expense related to debt. In additionally, Corporate and Other includes results from, among others, RGA Technology Partners, Inc. (RTP), a wholly owned subsidiary that develops and markets technology solutions for the insurance industry and the investment income and expense associated with the Company�� collateral finance facilities.
The Company competes with Munich Re, Swiss Re, Hannover Re, SCOR Global Re, Berkshire Hathaway and Generali.
Advisors' Opinion:- [By Brian Pacampara]
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, life and health reinsurer Reinsurance Group of America (NYSE: RGA ) has earned a coveted five-star ranking.
- [By Ben Levisohn]
Although the next purchase was made to meet ownership guidelines, Reinsurance Group of America (RGA) still makes our cut after its EVP and head of international markets and operations Allan O’Bryant bought 6,500 shares for $423,100. This is his first purchase and InsiderScore notes that he owns over 30,000 in stock appreciation rights and adds, ��VPs are expected to own between 5,000-21,000 shares depending on “grade level of position.” O’Bryant is due to receive a base salary of $456,200 this year and is eligible to receive a 2013 bonus between 40% (minimum) and 160% (maximum) of his salary.��/p>
- [By David Sterman]
2. Reinsurance Group of America (NYSE: RGA) I've been singing the praises of insurance stocks throughout 2013, and though they have started to make solid upward moves, they are still quite undervalued. As long as their balance sheets are worth more than the public market value of their stocks, then you should pounce.This reinsurer (which insures the insurance companies against catastrophic payouts) is a perfect example. At the end of the second quarter, tangible book value stood at $82.97 a share. That's roughly 24% above the current stock price. And RGA is doing what any "below book" stock should do: buying back shares. The current buyback will be fueled by a $400 investment that should shrink shares outstanding by more than 5%.
Top 5 Insurance Stocks To Buy For 2014: ING Groep NV (INGA)
ING Groep N.V. (ING) is a global financial institution offering banking, investments, life insurance and retirement services to meet the needs of the customers. The Company�� segments include banking and insurance. Banking segment includes retail Netherlands, retail Belgium, ING direct, retail central Europe (CE), retail Asia, commercial banking (excluding real estate), ING real estate and corporate line banking. Insurance segment includes insurance Benelux, insurance central and rest of Europe (CRE), insurance United States (US), Insurance US closed block VA, insurance Asia/Pacific, ING investment management (IM) and corporate line insurance. In November 2013, the Company completed the sale of ING Hipotecaria to Banco Santander (Mexico), S.A. In December 2013, the Company completed the sale of its 33.3% interest in China Merchants Fund to its joint venture partners China Merchants Bank Co Ltd and China Merchants Securities Co Ltd, and divested ING Life Korea to MBK Partners. Advisors' Opinion:- [By Sofia Horta e Costa]
ING (INGA), which received a 10 billion-euro government bailout in 2008, gained 5.1 percent to 8.26 euros. Underlying pretax profit for the banking unit rose 14 percent to 1.15 billion euros in the second quarter as the interest margin improved and cost cuts paid off, the biggest Dutch financial-services company said.
Top 5 Insurance Stocks To Buy For 2014: Aflac Incorporated(AFL)
Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus (Aflac), provides supplemental health and life insurance. The company offers various voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. It also provides loss-of-income products, such as life and short-term disability plans; and products designed to protect individuals from depletion of assets, which comprise hospital indemnity, fixed-benefit dental, vision care, accident, cancer, critical illness/critical care, and hospital intensive care plans in the United States. The company sells its products through sales associates and brokers, affiliated corporate agencies, independent corporate agencies, and individual agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.
Advisors' Opinion:- [By Dan Burrows]
Stocks to Sell: Aflac (AFL)
Click to Enlarge Source: Source: Charts courtesy of YCharts
The Aflac (AFL) duck would probably cough up a hairball if it knew how bad June was shaping up to be for AFL stock. Shares in the supplemental insurance company have lost more than 8% so far this year, and the technicals say there’s more pain to come.
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