Since we had to leave so many important stories off the list, I thought Id dedicate this space to the Honorable Mention topics: Vital stories that had everyone talking and were closedarn closeto making the cut.

Bond Insurance Bruises: Battered by the financial meltdown, 2011 was a rough year for bond insurers such as Ambac, which reported losses of just under $1 billion for the first nine months of 2011; and MBIA, which reported a nine-month net loss of $693 million. Ambac filed for bankruptcy at the end of last year, and MBIA has been embroiled in lawsuits with banks all year.
D&O in Demand: Two lines of insurance did make our Top 10 listand D&O was next in line, as Dodd-Frank, and greater scrutiny of corporate governance in general, helped make this coverage a hot commodity.
Angry Allstate Agents: Like all the large domestic insurers with a heavy presence in personal lines, Allstate had to endure a year of huge catastrophe claims. But the giant carrier also nabbed a number of headlines on moves it made on its own, including its $1 billion purchase of Esurancea deal which drew mostly plaudits from analysts but caused concern among its captive agents. But its most controversial movefrom a producers standpoint, anywaywas a change to its distribution strategy: The plan calls for compensation to agents to be increased from 10 percent to 25 percent commission, based on improvements in the agencys business; but compensation will be dropped from 10 percent to 8 percent on new business and renewals. Our report on this switch was one of our most heavily commented-upon articles of the year.
Buying a Harley: In a deal valued at around $800 million, Nationwide bought Harleysville Mutual Insurance Co. In an exclusive interview with NU, Steve Rasmussen, Nationwides CEO, said: For independent agents, this adds another carrier that has a national footprint and presence [to their portfolio].

New Options on Specialty Distribution Road: Aided by electronic exchanges, some insurers are starting to offer specialty programs directly to retail distributors. While the trend poses the potential for seismic challenges, most wholesale brokers and MGAs feel their experience brings value to the distribution chain that simply cant be disintermediated.

Bryant Rousseau
Editor in Chief
201-526-1239
brousseau@sbmedia.com

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