A LOMA / Resource Special Report  

Life Insurers Give Generously to Hurricane Relief, 
Offer Flexibility, Special Arrangements to Policyholders

In the aftermath of Hurricane Katrina, which devastated large parts of the U.S. Gulf Coast,  many life insurers quickly responded with large donations to the relief effort. In addition, many insurers acted to give flexibility in premium payments to policyholders in the affected areas, and offered other special  arrangements. 

Part One of this report gives examples of the charitable donations. Part Two gives examples of how insurers are offering special arrangements and flexibility to policyholders, click here to jump to Part Two.

Part One: Donations

By Ron Clark, Editor, Resource   

Prudential Financial, Inc. said that the company and its employees would contribute more than $5 million to help Gulf Coast victims. The company said the contribution reflected the belief that the massive relief effort needed to respond to the death and destruction caused by Hurricane Katrina is an unprecedented challenge the American business community must step up to meet.

"Prudential mourns the loss of life and the devastation caused by Hurricane Katrina. The mounting death toll and destruction have moved everyone at Prudential--from our employees to our shareholders and directors--to take extraordinary steps to relieve the suffering of Gulf Coast residents. We are announcing that Prudential will make a direct contribution of $3 million to the relief effort. In keeping with our tradition, The Prudential Foundation, the company's philanthropic arm, will also match the contributions made by our employees to the Pru CARES Disaster Relief Fund," said Prudential Financial Chairman and CEO Arthur F. Ryan.

The Foundation has waived its annual limit of $5,000 per employee for its matching gifts program for contributions directed toward this fund. The company anticipates the program will raise an additional $2 million for a total contribution of $5 million.

The money will be used to support local charitable organizations dedicated to helping victims by providing housing assistance, job training and other services that will make it possible for people to get back to a normal life. Funds will also be used to assist soldiers returning from Iraq who belong to the Louisiana Army National Guard's 256th Brigade Combat Team, the "Louisiana Tigers." Those soldiers have been attached to New York 's "Fighting 69th" infantry Army National Guard unit. When they return home, they may find that they and their families were victims of the hurricane.

Ryan noted that while the company is making a commitment to assist victims, Prudential employees throughout the country have already responded by collecting water, clothes and other essential items to send to Gulf Coast residents. "I've heard about many selfless acts of kindness by Prudential employees," Ryan said. "The stories make me proud to work with these associates."

New York Life Insurance Co. said that the New York Life Foundation is contributing $1 million to the American Red Cross in support of its disaster relief efforts following Hurricane Katrina. In addition to this $1 million donation, the Foundation will match all donations made by New York Life employees, agents and retirees dollar for dollar to the American Red Cross. The company placed no limit on the matching gift it will make to the American Red Cross.

Sy Sternberg, chairman and chief executive officer of New York Life and chairman of the New York Life Foundation said, "In the aftermath of the hurricane, New York Life is committed to helping the immediate needs of the communities in the Gulf Coast region. Our employees and agents have already begun to donate to the relief efforts and the company pledges to match all of their contributions. Our company was built on humanity, integrity and financial strength, and our ability to deliver on these values is never more critical than in times like these. Our thoughts and prayers are with everyone affected by this disaster." 

The Allstate Foundation established a $1 million "Hurricane Recovery Fund" to aid the thousands of Hurricane Katrina victims. Foundation funds will be administered by organizations in the affected areas.  Also, The Allstate Corporation's 2005 Giving Campaign is accepting donations for The American Red Cross Hurricane Katrina Relief Fund from Allstate's more than 70,000 employees, agents and agency staff. The company will match these donations on a dollar-for-dollar basis with no upward limit.  "Speaking from experience, we recognize the difficulties communities face after a catastrophe," said Edward M. Liddy, chairman and CEO, The Allstate Corporation. "The victims of Hurricane Katrina have experienced unimaginable hardships and we want to do our part to help them. Contributions from the Hurricane Recovery Fund will allow The Allstate Foundation to assist those affected by Katrina to prepare for a new tomorrow."

MassMutual Financial Group announced a relief effort designed to aid victims of Hurricane Katrina.  Among the key provisions: Massachusetts Mutual Life Insurance Company (MassMutual) will make a $250,000 donation to the American Red Cross to aid efforts to help the victims of Hurricane Katrina, and will significantly and temporarily expand its employee matching gift program to enable eligible employees and sales representatives to have their donations to the American Red Cross and the Salvation Army double matched by the company.  

"During this most difficult time, our sincerest thoughts and wishes go out to victims of Hurricane Katrina, including MassMutual representatives in the affected areas," said MassMutual President and CEO Stuart H. Reese.  "This has been a devastating experience for countless numbers of people, and we hope our contributions will help bring some relief and comfort to those impacted by the  hurricane."  

In addition to the donation to the American Red Cross, MassMutual's employee matching gift program has been expanded to allow MassMutual to match employee contributions to the American Red Cross and the Salvation Army on a 2-for-1 basis.  For example, for every dollar sent by MassMutual employees to the American Red Cross or Salvation Army, MassMutual will match that gift with $2.  This program will continue for  60 days.   

Thrivent Financial for Lutherans pledged $1 million to aid victims of Hurricane Katrina. The funding will supplement financial gifts by Thrivent Financial's 2.8 million members (customers of the organization) to disaster relief organizations aiding hurricane victims and provide Thrivent chapters (member-volunteer groups) and Lutheran congregations in hurricane-affected areas with additional funding to meet needs in their communities. Thrivent Financial's disaster response efforts are expected to generate at least $3 million.

"Our heart goes out to all those who have suffered loss as a result of this natural disaster," said Brad Hewitt, Thrivent Financial senior vice president of fraternal operations. "Supporting the ways in which our members express their care for others is an important part of our mission. We believe our members will give generously to those affected by this hurricane and our volunteer network will rally to take action on behalf of devastated families and communities."

The organization will supplement member gifts by $1 for every $2 dollars given, up to $300 per member (e.g., if a member gives $600 to a relief organization, Thrivent Financial will provide the relief organization with an additional $300 in funding). Relief organizations eligible for this funding include the Evangelical Lutheran Church in America Domestic Disaster Response, the Lutheran Church-Missouri Synod World Relief/Human Care, the Wisconsin Evangelical Lutheran Synod Committee on Relief, or Lutheran Disaster Response.

In addition, Thrivent Financial is providing additional funding for its Care in Regions® program in hurricane-affected areas. This program provides $1 for every $2 raised by Thrivent chapters (local member-volunteer groups) to address local needs in communities.

In another announcement, Thrivent said as part of its alliance with Habitat for Humanity, it will earmark an additional $5 million to help rebuild homes in the Gulf Coast region. (The alliance, called Thrivent Builds with Habitat for Humanity, represents a four-year-$100 million commitment by Thrivent to work with Habitat nationwide to build affordable housing.

Northwestern Mutual pledged support to the Hurricane Katrina relief effort through a $1 million grant to the American Red Cross from the Northwestern Mutual Foundation.

"The Northwestern Mutual family is deeply saddened by the devastation and destruction caused by this catastrophic event," said Edward J. Zore, president and chief executive officer. "We're committed to helping those affected by the hurricane, including our clients and the company's financial representatives, staff and their families."  

ING's U.S. operations announced a $1 million cash contribution to The American Red Cross-- Hurricane Katrina Relief Fund.  "The widespread devastation and impact to people, homes, communities, schools and businesses in the affected areas is staggering, and ING's businesses and employees across the U.S. are rallying in support," said Fred Hubbell, chairman of ING's insurance company in the Americas . "ING is committed to contributing to the relief effort for the people affected by this tragedy."  ING also said that its real estate asset management group is cooperating with FEMA to offer shelter to victims of Hurricane Katrina in residential and industrial facilities in the Houston and Atlanta areas.  Plus, over and above the $1 million contribution, the ING Foundation in the U.S. will provide a 50-percent match to employee contributions during the annual Employee Giving Campaign. Employees may make individual contributions to The American Red Cross - Hurricane Katrina Relief Fund, or other charity of their choice.  

The Phoenix Companies, Inc. announced an enhanced employee matching gift program to support disaster relief efforts.  "Our hearts go out to everyone affected by Hurricane Katrina," said Dona D. Young, chairman, president and chief executive officer. " Phoenix is doing everything possible to lessen the burden of this tragedy and accommodate those we serve."  Until December 31, 2005, The Phoenix Foundation, Inc. will contribute $2.00 for every $1.00 donated by employees to support disaster relief, earmarking a total of up to $100,000 to be donated to agencies such as the American Red Cross, America's Second Harvest and the Salvation Army.

MetLife Foundation is contributing $1 million to various organizations providing assistance to Gulf Coast residents.  "Our thoughts are with everyone who lives and works in the areas that have been impacted by the terrible destruction caused by Hurricane Katrina," said Robert H. Benmosche, chairman and chief executive officer of MetLife, Inc. "The entire MetLife enterprise has quickly mobilized to help our customers in the Gulf Coast region, including offering additional time to make premium payments and providing assistance through MetLife Foundation."

Western & Southern Financial Group said it is contributing $1 million toward the relief effort.  ”We are deeply concerned about the victims of Hurricane Katrina and their communities. Our thoughts and prayers go out to them,” said John F. Barrett, Chairman, President & Chief Executive Officer. “We will provide the $1 million, the largest, one-time contribution in our organization's history, to several charitable organizations, including: The American Red Cross, Catholic Charities, and the Salvation Army.”

Blue Cross and Blue Shield companies’ donations to the American Red Cross have exceeded $3 million to aid the victims of Hurricane Katrina--more than triple the initial $1 million pledged. In addition, the Blues are providing volunteers, adjusting claims processing, as well as other non-monetary donations. Efforts to provide relief to the injured and homeless have poured in from Blue Plans across the country and continue to grow.

"As the scope of this tragedy continues to grow, our efforts to help provide relief during this human crisis will not stop," said Scott P. Serota, president and CEO of the Blue Cross and Blue Shield Association (BCBSA). "Throughout the Blues System of 40 independent companies, our commitment has always been community first. And we are doing whatever we can to help the people and families affected in the Gulf-state communities."

The $3 million in Blues pledges includes donations from BCBSA and individual Blue Cross and Blue Shield companies, as well as employee-matching programs and individual employee contributions.

As recovery efforts continue and evacuation of affected areas goes into full swing, Blue Cross and Blue Shield companies are providing many in-kind contributions to the relief effort as well. For example, the Blues are providing assistance to relocate critical hospital patients and storm victims to safety -- including newborns and the elderly who are most vulnerable. As evacuees begin to be relocated across the country, local Blue Cross and Blue Shield companies are providing mobile health units to provide immunizations for children, health screenings and eyeglasses.

Aflac said the company will assist Hurricane Katrina victims with a $1 million contribution to the American Red Cross. The Columbus, GA.-based insurer earmarked the donation to the charitable organization for immediate relief efforts to help displaced residents of the hurricane-stricken Gulf Coast . A total of $800,000 will go to the national headquarters of the Red Cross to provide support to affected parishes and counties. The remaining $200,000 will go to the West-Central Georgia chapter of the Red Cross to aid Katrina evacuees who have been relocated to Columbus , GA. and surrounding areas.

"As we continue to pray for those who have been so deeply impacted by this disaster, we will also do our part to help individuals and communities recover from this enormous hardship," said Dan Amos, Aflac chairman and chief executive officer. "Many of the hurricane victims are our customers, agents and clients. Aflac is committed to supporting them just as they have supported our business over the years."  In addition to the monetary donation, Aflac has also organized a series of ongoing blood drives in which company employees donate blood to the Red Cross.

The Knights of Columbus Supreme Council announced the largest disaster relief effort in its history. The Order has pledged a minimum of $2.5 million in financial assistance and will match any funds beyond that amount donated to the Knights of Columbus Katrina Relief Fund over the next 60 days.  Of that money, $250,000 will be immediately distributed to Catholic Charities in affected areas, and $1.25 million will be used in the immediate future to assist those displaced and made indefinitely homeless. An additional $1 million will be set aside and used to rebuild the estimated 130 Catholic schools destroyed or seriously damaged by the storm and its aftermath.  The Knights have nearly 50,000 members in Louisiana , Alabama and Mississippi . Of those about one-third have life insurance through the Order.  

John Hancock Life Insurance Company (USA) announced that it is donating $1 million worth of canned peaches, pears and apricots to survivors of Hurricane Katrina and Hurricane Rita via the Houston and Baton Rouge food banks.The company is donating approximately 53,000 cases of peaches, pears and apricots canned by Signature Fruit, its Modesto, California-based subsidiary, for Hurricane Katrina and Hurricane Rita relief efforts.

“We know that one of the most pressing needs of the survivors of the hurricanes who have been displaced from their homes is non-perishable food items. Through Signature Fruit, we have the capacity to provide a significant amount of canned goods immediately and we are pleased to assist in the relief efforts,” said Warren Thomson, Executive Vice President, U.S. Investments, John Hancock Life Insurance Company ( USA ).

Signature Fruit is shipping the goods to Fort Worth , Texas . Sysco Corporation, a Signature Fruit customer, has donated its services and will transport the goods from Fort Worth for hurricane relief efforts in Houston and other Gulf Coast areas.

“We’re proud to be able to provide California-grown, hand-picked peaches, pears and apricots to help the storm survivors,” said Dave Long , President and Chief Executive Officer of Signature Fruit. “These are our highest quality fruits and we’re pleased to be in a position to help out in this way. We are thankful as well to our friends at Sysco Corporation who are helping in this important effort.”

“We sincerely appreciate this generous donation and cooperative effort by John Hancock and Sysco,” said Jackie Nally of the Houston Food Bank. “As the victims of Hurricane Katrina and Hurricane Rita struggle with the massive disruption to their lives, even the simple pleasure of a good meal is welcome. We have thousands of people to feed daily and these much needed canned goods will help us and help them in this effort.”

Woodmen of the World Life Insurance Society has surpassed one million dollars in direct and in-kind assistance for the victims of Hurricane Katrina and Hurricane Rita, and Woodmen members have given more than 191,000 hours of hurricane-related volunteer service. In addition to these relief efforts, Woodmen is offering special assistance to members living in the impacted areas. Woodmen is a leading fraternal benefit organization, with 800,000 members and a network of community-based lodges. Woodmen lodges are active in volunteer service activities, including a national disaster relief partnership with the American Red Cross. The hurricane assistance includes monetary donations from Woodmen members, lodges and employees to the Woodmen Hurricane Relief Fund; and the donation of food, water, ice, generators and other much-needed supplies. A corporate contribution has also been made, which includes a dollar-for-dollar match of employee donations and a partial match of lodge donations. 

Part of the volunteer effort has involved the provision of hot meals, water and supplies to residents of the hurricane-ravaged Gulf Coast region by Woodmen members and employees. A cooking team, staffed and supplied by Woodmen members, served more than 78,000 meals in Alabama and Mississippi over a five-week period. A Woodmen cooking operation, in Lufkin, Texas, served more than 12,000 meals to evacuees of Hurricane Rita. In all, Woodmen volunteers have prepared or served 450,00 meals at shelters and other relief sites.

Part Two
Special Arrangements for Affected Policyholders   

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