Zurich puts Sandy storm damage claims at $700 million

 Natural gas distributor Laclede Group Inc is buying two utilities from Energy Transfer Equity LP for $1 billion, doubling its customer numbers and boosting its exposure to more stable state-regulated income.
More than 91 percent of Laclede's earnings will come from rate-regulated business after the acquisition of Missouri Gas Energy and New England Gas Co, owned by Energy Transfer's affiliate, Southern Union Co.
About 68 percent of Laclede's operating revenue of $1.12 billion came from its regulated gas distribution business in the year ended September 30.
"With lower ... prices, more and more customers are interested in using natural gas," Chief Executive Suzanne Sitherwood told Reuters. "The other emerging market that is taking place is with natural gas vehicles."
Gas prices have fallen sharply from their peak of more than $13 per million metric British thermal unit (mmBtu) to about $3 now due to vast supplies from shale fields in North America.
This has prompted increased use of gas for heating and power generation. Westport Innovations Inc , General Motors Co , Caterpillar Inc and Ford Motor Co are some of the companies developing technologies to drive the use of the fuel in vehicles.
Laclede too has been working on fueling natural gas vehicles and has received a lot of interest for possible partnerships, Sitherwood said. She did not name the interested parties.
GOOD PRICE FOR ETE
Missouri Gas and New England Gas, which had combined revenue of about $517 million for the year ended September 30, serve more than 500,000 customers in western Missouri and about 50,000 in Massachusetts.
The acquisition, which includes debt of about $20 million, will take Laclede's customer base to 1.2 million, the company said in a statement.
Laclede expects the acquisition to be neutral to its earnings per share in the first full year after close, likely in the third quarter of 2013.
Energy Transfer Partners LP , a unit of Energy Transfer Equity and a party to the deal, said the transaction was part of the company's efforts to divest non-core assets.
The gas utilities passed into Energy Transfer's hands when it bought pipeline operator Southern Union Co last year.
"For the Energy Transfer family, this (deal) compares favorably to our previously modeled $710 million sale estimate," analysts at Robert W. Baird wrote in a note to clients.
St Louis, Missouri-based Laclede said Wells Fargo Bank will provide a $1 billion bridge facility for the purchase.
Laclede shares were down about 2 percent at $39.12 in afternoon trading on Monday on the New York Stock Exchange. Shares of Energy Transfer Equity and Energy Transfer Partners were slightly up.
Wells Fargo Securities LLC advises Laclede, while Credit Suisse Securities LLC is advising Energy Transfer and Southern Union. Moelis & Co gave the fairness opinion to Laclede.

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Laclede to double customers in $1 billion deal with Energy Transfer

 Natural gas distributor Laclede Group Inc is buying two utilities from Energy Transfer Equity LP for $1 billion, doubling its customer numbers and boosting its exposure to more stable state-regulated income.
More than 91 percent of Laclede's earnings will come from rate-regulated business after the acquisition of Missouri Gas Energy and New England Gas Co, owned by Energy Transfer's affiliate, Southern Union Co.
About 68 percent of Laclede's operating revenue of $1.12 billion came from its regulated gas distribution business in the year ended September 30.
"With lower ... prices, more and more customers are interested in using natural gas," Chief Executive Suzanne Sitherwood told Reuters. "The other emerging market that is taking place is with natural gas vehicles."
Gas prices have fallen sharply from their peak of more than $13 per million metric British thermal unit (mmBtu) to about $3 now due to vast supplies from shale fields in North America.
This has prompted increased use of gas for heating and power generation. Westport Innovations Inc , General Motors Co , Caterpillar Inc and Ford Motor Co are some of the companies developing technologies to drive the use of the fuel in vehicles.
Laclede too has been working on fueling natural gas vehicles and has received a lot of interest for possible partnerships, Sitherwood said. She did not name the interested parties.
GOOD PRICE FOR ETE
Missouri Gas and New England Gas, which had combined revenue of about $517 million for the year ended September 30, serve more than 500,000 customers in western Missouri and about 50,000 in Massachusetts.
The acquisition, which includes debt of about $20 million, will take Laclede's customer base to 1.2 million, the company said in a statement.
Laclede expects the acquisition to be neutral to its earnings per share in the first full year after close, likely in the third quarter of 2013.
Energy Transfer Partners LP , a unit of Energy Transfer Equity and a party to the deal, said the transaction was part of the company's efforts to divest non-core assets.
The gas utilities passed into Energy Transfer's hands when it bought pipeline operator Southern Union Co last year.
"For the Energy Transfer family, this (deal) compares favorably to our previously modeled $710 million sale estimate," analysts at Robert W. Baird wrote in a note to clients.
St Louis, Missouri-based Laclede said Wells Fargo Bank will provide a $1 billion bridge facility for the purchase.
Laclede shares were down about 2 percent at $39.12 in afternoon trading on Monday on the New York Stock Exchange. Shares of Energy Transfer Equity and Energy Transfer Partners were slightly up.
Wells Fargo Securities LLC advises Laclede, while Credit Suisse Securities LLC is advising Energy Transfer and Southern Union. Moelis & Co gave the fairness opinion to Laclede.

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Sun Life sells U.S. annuity business, shares drop

 Sun Life Financial Inc will sell its U.S. annuity business for $1.35 billion to a firm connected to Guggenheim Partners in a deal that should reduce the exposure of the insurer's earnings to market swings and boost its cash levels.
While the deal could bring long-term benefits to Sun Life, whose earnings have been derailed by wild market swings during recent years, investors pulled the company's shares down by nearly 4 percent as the financial terms fell short of initial expectations.
"The stock's sort of correcting back because the deal isn't quite as big a windfall as I think the market was anticipating," said National Bank financial analyst Peter Routledge.
Delaware Life Holdings, owned by certain Guggenheim clients and shareholders, will rename itself Delaware Life Insurance Co following the cash purchase. Guggenheim will provide investment management services to the new company.
Sun Life, Canada's No. 3 insurer, said last year it would stop selling variable annuities and individual life products in the United States to focus more on group insurance and voluntary benefits.
Variable annuities - retirement products that guarantee the investor a minimum monthly payment - became a source of earnings volatility for Sun Life in the wake of the 2008 financial crisis. That is because low interest rates and Canadian accounting rules force insurers to take upfront losses on products that will not come due for years.
"The business makes money, but not enough," said Routledge.
Weak equity markets and low bond yields sent Sun Life's profit down 87.5 percent during the second quarter of 2012 and caused losses during the third and fourth quarters of 2011.
EARNINGS HIT
The deal will cut Sun Life's profit by 22 Canadian cents a share annually and reduce book value by C$950 million ($965 million), the company said in a statement. According to Thomson Reuters I/B/E/S, Sun Life was expected to earn C$2.53 a share on a net basis in 2013.
The deal has also prompted Sun Life to take a second look at its 2015 financial targets, which include a goal of C$2 billion in operating profit.
In an interview, Sun Life Chief Executive Dean Connor said he would update the market on the targets after the deal closes, which is expected during the second quarter next year.
"I'm not saying we will necessarily reduce them. I'm not saying we will necessarily leave them as they are, because we don't know yet," he said.
The deal is also expected to reduce the company's earnings sensitivity to equity markets by 50 percent and its sensitivity to interest rates by 35 percent, compared with estimates on September 30.
It will raise Sun Life's cash position to C$1.9 billion.
"Over time, we'll redeploy that cash to fund growth," said Connor. He said the growth could include acquisitions on the "smaller end of the spectrum."
Sun Life, which also owns U.S. asset manager MFS Investment Management, is targeting growth in its Asian business.
SHARES DOWN
Sun Life shares, which have outperformed its rivals with a 47 percent year-to-date rise coming into Monday's session, ended down 3.9 percent at C$26.74 on the Toronto Stock Exchange. Despite the strong rise this year, the stock still trades at less than half its all-time high set in 2007.
Robert Sedran, an analyst at CIBC World Markets, said in a research note that the earnings and book value reductions were worse than he had expected.
"Moreover, while the decline in the earnings sensitivity to market variables improves the risk-reward profile, we did not view those sensitivities as excessive to begin with," he said.
However, he said the deal will free up time and capital that would otherwise have been engaged in what is essentially a closed business, which is a positive.
Morgan Stanley & Co advised Sun Life on the transaction financials.
Law firm Debevoise & Plimpton LLP was legal adviser to Sun Life, while Skadden, Arps, Slate, Meagher & Flom advised Guggenheim Partners.

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FactSet forecasts second-quarter results largely below estimates, shares fall

FactSet Research Systems Inc reported lower-than-expected first-quarter revenue, and the financial information provider forecast current-quarter results largely below estimates as banks and brokerages cut costs.
FactSet shares fell 5 percent before the bell on Tuesday.
The company, which provides data to portfolio managers, research analysts and investment bankers, forecast second-quarter earnings of $1.11 to $1.13 per share, on revenue of $212 million and $215 million.
Analysts on average were expecting earnings of $1.13 per share on revenue of $216.3 million, according to Thomson Reuters I/B/E/S.
FactSet's financial sector clients are cutting staff and trimming costs to cope with increased regulation and a struggling global economy.
In the United States, financial companies have announced plans to cut 28,000 jobs through the first nine months of this year, compared with 54,000 during the same period in 2011, according to executive placement firm Challenger, Gray & Christmas.
FactSet said its net income rose to $49.8 million, or $1.11 per share, in the first quarter, from $45.5 million, or 99 cents per share, a year earlier.
The company earned $1.22 cents per share, excluding items.
Revenue rose 7.5 percent to $211.1 million for the quarter ended November 30.
Analysts on average had expected earnings of $1.11 per share, on revenue of $212.3 million.
FactSet rival Thomson Reuters Corp, the owner of Reuters News, last month reported a 15 percent fall in operating profit for the quarter ended September 30, on declining revenue and higher costs in its division that serves the financial industry.
FactSet's shares closed at $96.39 on the New York Stock Exchange on Monday.

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Jefferies results beat estimates on higher fixed-income revenue

(Reuters) - Jefferies Group Inc reported a higher-than-expected adjusted quarterly profit as the investment bank benefited from higher earnings from its fixed-income unit, and said its business expansion in Asia has started delivering.
The midsized investment bank has been expanding in China and India and recently poached bankers from the Royal Bank of Scotland to expand its business in China.
Jefferies said it also benefited from a pickup in trading across the board in September thanks to fresh stimulus plans from the U.S. Federal Reserve, and that it was gaining market share from larger rivals. The Fed had unveiled a program to purchase $40 billion in mortgage bonds.
The company saw its trading revenue more than double to $293 million from $141 million a year earlier.
"Our competitive position is very strong so across the products within fixed income I think we're gaining market share," Chief Executive Richard Handler said on a post-earnings conference call.
As the first investment bank to report earnings, Jefferies is often viewed as an indicator for larger Wall Street banks such as Goldman Sachs Group and Morgan Stanley .
Jefferies, founded in 1962 in Los Angeles to trade large stock orders away from the New York Stock Exchange, agreed last month to be bought by top shareholder Leucadia National Corp for $2.76 billion in stock.
"Combining our company with an extremely well-capitalized parent will allow us to continue to aggressively add value to our clients," Jefferies said in a statement on Tuesday.
Compensation costs at the company remained high with the company paying 59.9 percent of net revenue to employees, in line with previous periods but higher than the 50 percent industry peers generally target.
Net income rose to $72 million, or 31 cents per share, in the fourth quarter from $48 million, or 21 cents per share, a year earlier.
On an adjusted basis, earnings were 35 cents per share.
Analysts had expected the company to earn 32 cents per share, according to Thomson Reuters I/B/E/S.
Revenue for the quarter rose 39 percent to $769 million, above estimates of $722.6 million. Investment banking revenue rose 8 percent to $283 million.
Jefferies shares, which have risen 12 percent since the Leucadia deal was announced in mid-November, was trading up 2.5 percent at $18.70 on the New York Stock Exchange on Tuesday.

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Facebook Shrugs Off Instagram's New Class Action Lawsuit

For Instagram, there's good news and there's bad news about the class action lawsuit just filed against them. Bad news first: Somebody just filed a class action lawsuit. Good news: the lawyers from Instagram's parent company, Facebook, have plenty of practice getting rid of these pesky things. That might explain why they're so dismissive about the legal inconvenience a group of disgruntled Instagram users left under its tree this year. "We believe this complaint is without merit and we will fight it vigorously," says Facebook spokesman Andrew Nusca. It'll obviously take more than the half-hearted apology Instagram CEO and co-founder Kevin Systrom made at the end of last week.
RELATED: It's Time to Accept the Existence of a Social Media Bubble
The lawsuit's complaint is somewhat understandable. If you've so much as heard the word "Instagram" you've heard about how much their new terms of service stink. In it, the company declared that it "may share User Content and your information (including but not limited to, information from cookies, log files, device identifiers, location data, and usage data)" with Facebook, its subsidiaries and its "affiliates." Instagram users understood this to mean that Instagram could sell their photos to advertisers, though Systrom pushed back at that in his blog post when he more or less said that the company would revert to its old terms of service. "We don't own your photos – you do," he said.
RELATED: And the Actual Retail Price for Instagram Is...
Instagram kept three key new details in place, though. One, the company maintained the ability to serve ads in your feed. Two, it said "that we may not always identify paid services, sponsored content, or commercial communications as such." Lastly, it left in place the mandatory arbitration clause that it added with the new terms of service, forcing users to waive their right to participate in class action lawsuit. That obviously didn't discourage this group of plaintiffs who said in the lawsuit that "Instagram declares that 'possession is nine-tenths of the law and if you don't like it, you can't stop us.'"
RELATED: Mark Zuckerberg Disappears from Google+ Due to Privacy Settings
No big deal. Instagram is a part of Facebook now, and Facebook has dealt with class action lawsuits before. Just seven months ago, it got slammed with a $15 billion class action suit from users who said that the social network was "improperly tracking the internet use of its members even after they logged out of their accounts." They haven't settled yet, but if it winds up anything like the class action lawsuit over the Beacon advertising program a few years ago, it could take years to resolve and could cost Facebook millions. With some good lawyering, though, this latest lawsuit won't cost as many millions as it could. But Instagram will never be the same.

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How 'Doctor Who' Kept Its Big Christmas Secret Off Twitter

Tonight Doctor Who fans get to gorge on their annual Christmas fix -- a full-length special episode the series has produced every year for the holiday since 2005. This time, however, there's some extra spice in the form of a new regular cast member: Jenna-Louise Coleman debuts in "The Snowmen" as the Doctor's next companion.
Except it's not her debut. Coleman actually made her first appearance in the series premiere back in September. Actually, make that surprise appearance. In preseason interviews, Doctor Who's producers had explicitly told fans they'd have to wait until Christmas before they'd see Coleman in the show.
[More from Mashable: Top 10 Twitter Pics of the Week]
But there she was, fighting Daleks and making soufflés, way ahead of schedule. This was unheard of for the series, which has seen major plotlines leak online -- usually months before broadcast -- several times over the past few years. The show had gotten to the point where it would simply announce any major developments far in advance in order to get ahead of the spoiler hunters.
Yet somehow the show's producers kept Coleman's early debut a secret -- a feat made even more challenging since there were several preview screenings of the episode, each attended by hundreds of rabid fans, all carrying smartphones. How did Doctor Who keep every single one of them from tweeting about it?
[More from Mashable: How Music Ruled Twitter in 2012]
"I asked. That's it," says Steven Moffat, Doctor Who's current showrunner. "I don't think anyone thought it would work. I certainly didn't. At the London premiere, I just stood up and said, 'Please, nobody, no fan, no newspaper -- nobody at all -- mention that she's in it. And to my surprise it worked."
SEE ALSO: How 'Doctor Who' Won Over America
Moffat says the idea of misleading the audience about when Coleman would debut "grew" as he was writing the current series. But it almost didn't happen since others at the BBC wanted to get ahead of the news and announce her presence at the first preview screening. Moffat, however, was convinced (rightly, it turns out) that he could persuade the fans and journalists in attendance to guard the secret.
"They tried to talk me out of it at the last minute," he says. "And it did involve a lot of charming journalists and saying 'Please don't...' It was the polite embargo, really. We couldn't really embargo it. And I was always clear, 'There is no punishment here. You don't get blacklisted -- I'm just asking, and the show will be better if you keep this secret.' And they did."
But did really not a single person on fire off a quick tweet about Coleman being on the show? It appears so. Although Twitter doesn't offer a way to search tweets within a specific date range, searching the Twitter domain on Google during the month of August (the series premiered on Sept. 1) for her name reveals just regular promotion for the show.
"You can get a long way just by asking politely," says Moffat. "Who knew that's all you had to do? What's remarkable about it is not one single person broke. And I really didn't think that was going to work, because if any website had broken it -- if any forum had broken it -- the press would have just leapt in. They would have felt no further need for restraint. But they didn't."
Now Coleman makes her "proper" debut in the Christmas special, but is she playing the same character as before (who was -- spoiler alert -- abruptly killed off), or someone different? Moffat's already told fans not to expect any great explanations under the tree. What's going on with Coleman's character (characters?) won't be fully revealed until the series returns in the New Year.
But who knows? Maybe that's another mislead.
Will you be watching Doctor Who tonight? Does the show still surprise you? Share your thoughts in the comments.
BONUS: Doctor Who Series 7 Premiere
Doctor Who Returns
Matt Smith (The Doctor) and Karen Gillan (Amy Pond) attended a special screening of the premiere of Doctor Who Series 7 at New York City's Ziegfeld Theater. The episode, "Asylum of the Daleks," debuts on BBC America on Sept. 1.

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Facebook in 2012: A Billion Users and Counting

Facebook is the most popular social network on the planet. It celebrated its eighth birthday on Feb. 4, 2012. Although Facebook has only been around since 2004, it certainly seems like much longer.
For many of us, it feels like we've grown up habitually checking to see who has liked our photos and commented on our status updates. We love to use it. Sometimes we hate ourselves for loving it so much. We complain about it. We use it to complain about almost everything else. It's a revolution and an addiction. In many ways it's like a chair, but in other ways it's not like a chair at all.
[More from Mashable: What Happens to Your Social Media Life When You Die?]
Regardless, 2012 was arguably Facebook's biggest year in terms of noteworthy accomplishments. And that's saying a lot, since it was widely credited with facilitating the Arab Spring in 2011.
Here's a look back at Facebook's biggest milestones of 2012:
[More from Mashable: 8 Startups to Watch in 2013]
1 Billion Users
Facebook CEO Mark Zuckerberg announced that the network had surpassed 1 billion active users on Oct. 4. There are 7 billion people on the entire planet. Only two countries in the world — China and India — have more inhabitants than Facebook has users.
The billion active Facebook users have forged more than 140 billion friendships.
To celebrate these accomplishments, Facebook released its first commercial, which compared the network to, among other things, chairs, doorbells and a great nation.

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Jessica Simpson's Christmas tweet seems to confirm pregnancy rumor

 Actress, singer and fashion designer Jessica Simpson sent a Christmas Twitter message that apparently confirms media rumors that she is pregnant - showing a photo of her daughter Maxwell with the words "Big Sis" spelled out in sand.
The picture's caption reads "Merry Christmas from my family to yours."
Simpson had her first child, Maxwell Drew Johnson, in May. She has since become a spokeswoman for Weight Watchers.
A representative for Simpson was not immediately available for comment.
Simpson rose to fame as a teen pop star and became a household name after starring in a TV reality show with her then-husband Nick Lachey, a member of the boy band 98 Degrees. The pair divorced after three years of marriage.
She went on to star in the 2005 film version of "The Dukes of Hazzard" and re-invented herself as a country singer in 2008. She currently designs apparel, accessories and other fashion products and is a mentor on the TV contest "Fashion Star."
Simpson's fiance, Eric Johnson, is a former U.S. professional football player whose career spanned seven seasons for both the San Francisco 49ers and New Orleans Saints.

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New laws at a glance: Eyedrops, brakes, Facebook

As 2013 begins, many states are enacting new laws dealing with gay rights, child safety, abortion, immigration and other perennial concerns. Some other topics states are dealing with in new laws:
ANIMAL WELFARE
Pennsylvania will prohibit use of carbon monoxide chambers to destroy animals at shelters and will make it easier for shelters to get drugs for a more humane method. Activists say animals are often old, young, sick or hurt and not good candidates for gas chamber euthanasia. Some provisions are about to take effect, while others will be in place later in 2013.
AUTISM
Alaska becomes the 31st state to require insurance coverage for autism, with a law mandating coverage for the diagnosis, testing and treatment of autism spectrum disorders for children and young adults. Illinois, which previously approved autism insurance coverage, now also will require insurance companies to cover medical services related to autism.
BRAKE PADS
Washington state is requiring manufacturers of brake pads to phase out the use of copper and other heavy metals as a way to prevent the metal from polluting waters and harming salmon. When brakes wear down, they release copper shavings onto roads that eventually wash into rivers. The first phase of the law takes effect Jan. 1, when manufacturers of friction brakes will be required to report the concentrations of heavy metals in their products.
EYEDROPS
New Mexico will allow more frequent refills of prescription eye drops, such as those used by glaucoma patients. Under the law, insurance companies could not deny coverage for a refill requested by a patient within a certain amount of time — for instance, within 23 days for someone with a prescription for a 30 day supply of the eye drops. Supporters of the measure say some patients find it difficult to control how many drops they put onto their eye, causing individuals to prematurely run out of medication before an insurer will pay for a refill.
PARTY BUSES
California will start to hold party bus operators to the same standards as limousine drivers, making them legally responsible for drinking by underage passengers. The law is named for Brett Studebaker, a 19-year-old from San Mateo who died in 2010 after drinking on a party bus and crashing his own vehicle while driving home later.
ONLINE PRIVACY
California and Illinois are both making it illegal for employers to demand access to employees' social media accounts. Illinois Gov. Pat Quinn signed the law in August at the Illinois Institute of Technology, where several students lamented that online snooping by bosses has caused some to lose out on jobs and forced others to temporarily deactivate their profiles. In September, California Gov. Jerry Brown said the legislation will protect residents from "unwarranted invasions."
UNEMPLOYMENT
To raise money for its unemployment insurance fund, Georgia will start charging employers for the unemployment insurance tax on the first $9,500 in taxable wages earned by workers, an increase over the previous $8,500. The new law stretches forward the suspension of another unemployment insurance tax, though it allows the labor commissioner to impose it to help repay money borrowed from the federal government or if fund balances dip below $1 billion.

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