BestWeek: In Louisiana, GOP Hopes to Cruise to Big, Easy Victories.

OLDWICK, N.J. -- Two years after Hurricane Katrina's disastrous aftermath portended a partisan wave that would sweep many Democrats into office nationwide, in the state most directly affected by the storm, the GOP is surging, according to an exclusive story in BestWeek U.S./Canada.

Though hampered by a 2-to-1 edge in Democratic voter registrations, as well as a high-profile sex scandal involving Republican U.S. Senator David Vitter, Louisiana's Republicans stand to fare well in this month's balloting for the state Legislature, the insurance commissioner's post, and the key prize, the governor's seat being vacated by incumbent Democrat Kathleen Blanco.

Under Louisiana's "open primary" system, candidates from all parties will compete in the October 20 ballot. If any receives more than 50% of the vote, he or she automatically wins office. If no majority winner emerges, then the two candidates with the largest pluralities, regardless of party, face off in a November 17 run-off election.

Clearly leading thus far in the governor's race is U.S. Representative Piyush "Bobby" Jindal, a Republican who previously vied against incumbent Kathleen Blanco in the 2003 race. An August poll by Southern Media & Opinion Research showed Jindal commanding 63% support, compared with 14.3% for his nearest competitor, Republican-turned-Democratic state Senator Walter Boasso, and low single-digit support for all other competitors. Jindal's campaign has downplayed their lead, telling reporters late last month the congressman expects to face a run off, but even Boasso's own internal polling showed Jindal with a 55% to 21% advantage.

At the federal level, Jindal has taken a lead role on a number of homeowners insurance-related bills. He is the primary sponsor of H.R. 164, which would allow insurers to build up tax-free reserves to pay for catastrophes like hurricanes and earthquakes. Jindal also is cosponsor of an industry-opposed initiative introduced by Representative Gene Taylor, D-Miss., that would allow the National Flood Insurance Program to begin offering windstorm coverage.

"Frankly, there are things he has done on the federal level that we're not crazy about," conceded Greg LaCost, regional manager for the Property Casualty Insurers Association of America.

In the insurance commissioner's race, Republicans Robert Lansden and Jerilyn Schneider-Kneale and Democrat Jim Crowley are vying to unseat incumbent Republican Jim Donelon. Appointed in February 2006 and the winner of a special election last fall, Donelon has said, if re-elected, he would seek to dissolve the Property Insurance Association of Louisiana, which manages the state's high-risk auto insurance pool and its homeowners insurer of last resort.

Also, in BestWeek Europe:

-- The London insurance market is facing critical shortages of talent and experience in both its underwriting and claims functions, and the market is responding by stepping up recruiting and training efforts.

-- Obesity is rapidly becoming a growing problem that threatens to damage health care systems not just in the United States but also across Europe and Asia.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of October 11 up 14.30% from a year ago. The composite index reflects the performance of 176 insurance stocks.

The week's top performers were Dongbu Insurance Co., Hyundai Marine & Fire Insurance Co., NYMagic, Eastern Insurance Holdings, and LIG Insurance Co.

The bottom five performers were National Atlantic Holdings, Platinum Underwriters, CastlePoint Holdings, Benfield Group, and PMA Capital.

BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, please call A.M. Best's customer service department at [phone], ext. 5742, or e-mail your request to [e-mail].

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.