From movement on the TRIA front, to a battle between EnduranceSpecialty Holdings and Aspen Insurance Holdings over the former'shostile bid for the latter, to a warning from Warren Buffett on thevolatility of insuring against hurricanes, the month of Juneoffered up some interesting quotes on key industryissues.

The month also saw two major P&C insurers —AIG and TheHartford — announcing new CEOs.

Below and on the following pages, see the top quotes ofJune.

The Hartford announced earlier this month that CEO Liam McGeewill be stepping down after a medical procedure. CFO ChristopherSwift will assume the CEO role tomorrow.

In a comment run in Bloomberg, Swift says, “I wantto thank Liam for his leadership. We will remain focused onexecuting our strategy to deliver greater shareholder value byprofitably growing our property & casualty, group benefits andmutual funds businesses, reducing the size and risk of our legacyannuity block and becoming a more effective and efficientorganization.”

The FIO received letters commenting on its look intoauto-insurance affordability. The FIO initiative was partly drivenby concerns that the data collected by the National Association ofInsurance Commissioners may not be adequate and that “other datasources will likely be needed,” according to a regulatory bulletinfrom an industry law firm.

But the comment letters themselves were not without some controversy. Aremark in the letter from the National Association of MutualInsurance Companies received an angry response from the ConsumerFederation of America.

Robert Detlefsen, NAMIC's vice president ofpublic policy: “If consumers can choose to spend more oftheir income on alcohol and tobacco, and also more on televisionsets and cable service, than on automobile insurance, it is hard tomake the case that it is difficult for these consumers to affordautomobile insurance.”

J. Robert Hunter, director of insurance,CFA: “NAMIC has slandered a large majority of low-incomeAmericans by implying that they spent more on cigarettes andalcohol than on auto insurance when in fact they spent nothing atall on these two products. Many households spend nothing on theseproducts and this abuse of statistics reveals the underlyingdisrespect that at many auto insurers have for low-income drivers.”

Insurance Information Institute President Robert Hartwigwrites in a story for PC360 about the dangers of post-disasterregulations that change the rules of the game for insurers whowrite and price risks based on their understanding of what theclaims process will be after a loss event.

Hartwig: “After a natural disaster,'Monday morning quarterbacks' both proliferate and pontificate.Some of this can be positive. In fact, staring down disaster anddeciding not to be a victim twice often triggers communityconversations that lead to infrastructure improvements to helpprevent such a scenario from ever getting a replay.

“However, not all hindsight is helpful, particularly when therules going into the 'game of risk' are not the same rules in theimmediate aftermath. Think about it this way: You've got a teamthat runs drills, budgets for expenses and asks players to follow acertain game plan in preparation for the big football game. But ongame day, the team arrived on the field to discover it's notfootball they are playing, but lacrosse.”

The House voted along party lines this month to approve language in anappropriations bill that would deny funding for proposed FederalMotor Carrier Safety Administration (FMCSA) rulemaking aimed atraising the minimum insurance required for interstate carriers. Theminimum limits have not been raised since the 1980s. Discussions onthe amendment led to a disagreement between sponsor Rep. SteveDaines, R-Mont. and Rep. Matt Cartwright, D-Pa., who last yearintroduced legislation that would increase the current minimum formotor carriers transporting property from $750,000 to $4.422million.

Daines: “Current proposals regarding theinsurance increase call for minimum levels to go up by more than500%, and this would lead to a significant reduction in insuranceavailability for motor carriers, especially small businesses. Thebottom line is this: the trial lawyers win, the small businesseslose.”

Cartwright called the Daines amendment“a threat to the safety of Americans on the roadway,” and “counterto the goal we all share to protecting and preserving SocialSecurity and Medicare, two vital safety-net programs in thiscountry. It destroys accountability in the safety rules in thetrucking industry.”

Speaking at the 18th Annual America's Claims Event at theGaylord National Resort in National Harbor, Md., Paul Stachura,chief claims officer and head of global claims transformation forQBE North America addressed the problems the insurance industry experiences whentrying to recruit young talent.

Stachura: “We're having trouble attracting theyounger generations to our profession. It isn't 'sexy,' but we canimprove the reputation of the industry. Tell them how much we giveback to communities and tell them how much they can gain by joiningthis industry. We need to take their innovation and energy andcombine it with our experience to create a dynamicpartnership.”

The month began with the Senate advancing a seven-year TRIAextension that the industry largely supported, although there weresome concerns. But the industry was more unsure of where the Housewould come down on the issue. Later in June, the House advanced a five-year TRIA extension out of the FinancialServices Committee that was somewhat more favorable for theinsurance industry than a three-year extension committee leaderswere contemplating earlier.

Still, the House bill essentially phases out the program overthe five-year period for all attacks other than NBCR events.Representatives on both sides of the issue sounded off before andafter the FSC vote:

Rep. Jeb Hensarling, R-Texas: “Iassure you if I was a committee of one, this is not the bill wewould be considering today. For those who think it goes too far toofast—I for one think it goes not very far and too slowly.”

Rep. Randy Neugebauer, R-Texas,speaking to PC360 in the weeks before the vote: “TRIA was meantto be a temporary program. We are transitioning the program inorder to transfer risk where it belongs—to the private sector; tothe professionals in the insurance industry.”

“We are trying to respond to what the insurance industry isalready telling us, that there is capacity in the private sector totake on more risk.”

Rep. Carolyn B. Maloney, D-N.Y.: “Ican't support a bill that would, I believe, undermine the wholepoint of TRIA — to make sure that terrorism insurance is readilyavailable, and affordable, to all American businesses.”

Rep. Maxine Waters, D-Calif.: “Ibelieve that this bill will jeopardize a program that has createdjobs, spurred economic growth, and protects our nation's economyfrom the costs of a terrorist attack.”

“This proposal arbitrarily bifurcates types of terroristattacks–forcing insurers to pay significantly more should an attackbe of 'conventional' means, rather than one that is Nuclear,Chemical, Biological or Radiological.”

Endurance's hostile bid for Aspen led to heated rhetoric as both sides sent letters to Aspenshareholders asking them to either support or reject proposals fromEndurance that would pave the way for its takeover bid.

Endurance chairman and CEO John R.Charman: “We know from our extensive engagement with Aspenshareholders that many have been frustrated by the dismissive andentrenched response of Aspen's board and management to thesignificant opportunity for value creation that Endurance hasproposed.

“Despite the heated rhetoric Aspen has directed at Endurance,Aspen's board and management have presented no credible plan todeliver value that can compete with what we are offering. WhatAspen's board and management have failed to achieve for 10 years,we are prepared to deliver today.

“We urge Aspen shareholders to speak forcefully by supportingour two shareholder proposals” of expanding the board and acourt-sanctioned scheme of arrangement.

Glyn Jones, chairman of Aspen's board:“The Aspen board of directors is unanimous in its belief that theEndurance offer significantly undervalues Aspen and fails toreflect the value of our business and strong future prospects. Weare highly confident that Aspen can achieve more value for itsshareholders—and without the significant risks that are inherent ina merger with Endurance—by continuing to execute its strategicbusiness plan.”

“Beyond the [Endurance] offer's significant undervaluation ofour company, we believe that there is a fundamental strategicmismatch between Aspen and Endurance and that a combination wouldcreate significant dis-synergies.

“Additionally, the 60% stock component of Endurance's offer ishighly unappealing given Endurance's unattractive business mix,with an over-reliance on the volatile, low-margin and challengedcrop-insurance business and a dependency on reserve releases tofuel earnings.

“We urge shareholders not to tender their shares intoEndurance's offer.”

Luis A. Aguilar, an SEC commissioner since 2008, said June10 at the New York Stock Exchange that many corporate boardsare not taking the proper steps to address cyber-securityissues.

Aguilar: “Given the significant cyberattacks that are occurring with disturbing frequency, and themounting evidence that companies of all shapes and sizes areincreasingly under a constant threat of potentially disastrouscyber attacks, ensuring the adequacy of a company's cyber-securitymeasures needs to be a critical part of a board of director'srisk-oversight responsibilities.”

But he says “evidence suggests that there may be a gap thatexists between the magnitude of the exposure presented by cyberrisks and the steps, or lack thereof, that many corporate boardshave taken to address these risks.”

Bond buyers appear undeterred by warnings from Warren Buffett about the volatility of theweather. A Bloomberg story says demand for notes linked toinsurance against hurricanes and other natural disasters isprompting investors to accept the lowest relative yields in almosta decade for this time of the year. Buffett, though, said June 9 atthe Edison Electric Institute's annual convention in Las Vegas thatBerkshire Hathaway Inc. is avoiding writing hurricane insurance inFlorida because premiums have been pushed too low.

Buffett: “The hurricane does not know the ratethat was charged for the hurricane policy, so it's not going torespond to how much you charge. And if you charge an inadequatepremium, you will get creamed over time.”

Earlier this month, AIG announced Peter D. Hancock, currentlyCEO of AIG Property Casualty, will assume the role of AIG CEO in September. He succeedsRobert Benmosche, who was named CEO in 2009 as the insurance giantsought to repay the federal government for its 2008 bailout. AIGrepaid its debt in 2012.

Hancock: “I am deeply honored to takeon this responsibility as our entire organization unites around acommitment to excellence in every aspect of our work. Under[Benmosche's] leadership, AIG has re-emerged from crisis as apre-eminent leader in the global insurance industry. In just underfive years, Bob transformed AIG's culture into one that fostersempowerment and tenacity, reinvigorating our employees around theworld and enabling them to achieve the impossible.”

Jim Auden, managing director at Fitch, speakingto what Hancock will bring to the table as CEO: “He's made a lot ofsteps with the P&C operations,” Auden says. “They've done a lotto really adjust the portfolio and bring in more technology andinfrastructure and more sophisticated pricing and underwritingmethods that should help them get to a better underwriting footingin the future.”