Category: Politics

  • MIL-OSI USA: Ernst Unplugs Biden’s Green Dreams

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    WASHINGTON – In her latest fight to prioritize taxpayers in Washington, U.S. Senator Joni Ernst (R-Iowa) is defunding another billion-dollar Biden boondoggle.
    Ernst is introducing the Unplug the Electric Vehicle Charging Stations Programs Act to end the failed electric vehicle (EV) charging station programs from the so-called infrastructure bill that resulted in just 59 stations being built nationwide in over three years despite the $7.5 billion price tag.
    “Joe Biden’s green dreams short-circuited, and it is time to pull the plug,” said Ernst. “The EV charger boondoggle is a textbook example of waste and inefficiency that needs to be eliminated. Instead of spending hundreds of millions per charging station, I am doing something truly revolutionary in Washington – putting taxpayers first.”
    Congressman Tony Wied (R-Wis.) is introducing companion legislation in the House of Representatives.
    “I am proud to stand with Senator Ernst in introducing the Unplug the Electric Vehicle Charging Stations Programs Act,” said Wied. “The fact that the Biden Administration was only able to produce 59 stations nationwide with a $7.5 billion budget is the exact reason why the American people overwhelmingly support President Trump in reducing waste and inefficiencies in our government. As a small business owner, I could have built 1,500 more gas stations with that kind of money. It is time to repeal this funding and put an end to President Biden’s wasteful vanity project.”
    Click here to view the bill.

    MIL OSI USA News

  • MIL-OSI USA: Welch, Durbin Raise First Amendment Concerns on Trump Visa Vetting Orders: “President Trump won the 2024 election. He did not, however, win a mandate to circumvent the Constitution through executive decree.”

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.), Ranking Member of the Senate Judiciary Subcommittee on the Constitution, and Judiciary Committee Ranking Member Dick Durbin (D-Ill.) recently wrote to the Department of State, Department of Education, and Department of Homeland Security (DHS) raising the alarm about President Trump’s recent Executive Orders that institute speech-restrictive vetting requirements for visa holders and applicants. The Senators warned these orders could run afoul of the First Amendment and violate the Departments’ constitutional obligations. 
    “President Trump’s Orders purportedly advance these speech restrictions in pursuit of  ‘combat[ting] anti-Semitism’ and ‘protecting the United States from foreign terrorists and other national security and public safety threats.’ Though commendable aims, these vaguely written Orders appear to direct you to exceed your statutory authority and, on their face, could restrict constitutionally protected speech. Through their implementation, they could sweep even further,” the Senators wrote to Secretary of State Marco Rubio and Secretary of Homeland Security Kristi Noem. 
    “Congress has authorized the Executive Branch to protect the homeland from noncitizens who support terrorist organizations or advocate for the overthrow of the United States government,” the Senators wrote to Acting Secretary of Education Denise Carter. “However, Congress has not authorized the Executive Branch to surveil students engaged in the free expression of ideas on college campuses. Nor could Congress have adopted such a measure without running afoul of the First Amendment.” 
    The Senators concluded: “We urge you to ensure Executive Orders 14161 and 14188 are implemented in a manner consistent with federal law and the First Amendment. We will closely monitor your implementation of these Orders, and, if necessary, vigorously exercise the oversight tools at our disposal to ensure compliance with the law and the Constitution.”  
    On January 20, 2025, President Donald Trump issued Executive Order 14161, which directed the Department of State and DHS to promptly “recommend any actions necessary to protect the American people from the actions of foreign nationals” who “preach or call for … the overthrow or replacement of the culture on which our constitutional Republic stands.” That Order also instructed the Departments to “ensure that admitted aliens and aliens otherwise already present in the United States do not bear hostile attitudes toward its citizens, culture, government, institutions, or founding principles.” 
    Executive Order 14188, issued by President Trump on January 29, 2025, directed the Departments of State, Education, and DHS to provide guidance to institutions of higher education to help them “monitor for and report activities by alien students and staff relevant to [grounds for inadmissibility.” It also ordered the Departments to ensure that such reports yield “investigations and, if warranted, actions to remove such aliens.” The Administration released an accompanying fact sheet, which explained that any noncitizen “who joined in the pro-jihadist protests” will be “deport[ed]” and pledged to clear out college campuses that “have been infested with radicalism like never before.  
    Read the full letter to Denise Carter, Acting Secretary of the Department of Education here. 
    Read the full letter to Secretary of State Marco Rubio, Secretary of Homeland Security Kristi Noem here. 

    MIL OSI USA News

  • MIL-OSI USA: Governor Josh Stein Advocates For $19 Billion In Federal Helene Recovery Funds

    Source: US State of North Carolina

    Headline: Governor Josh Stein Advocates For $19 Billion In Federal Helene Recovery Funds

    Governor Josh Stein Advocates For $19 Billion In Federal Helene Recovery Funds
    lsaito

    Raleigh, NC

    Today, Governor Josh Stein announced he is requesting $19 billion in federal funds for Helene recovery and rebuilding. The Governor met with Senators Tillis and Budd Thursday to advocate for critical investments in western North Carolina’s recovery. Read Governor Stein’s full statement below:  

    “Hurricane Helene destroyed so much across western North Carolina – lives, homes, businesses, farms, and infrastructure — and our state is facing nearly $60 billion in damages. Despite a focused response from federal, state, local, and private sector and nonprofit partners in the immediate aftermath, five months later, it is clear that much more help is needed to restore and rebuild western North Carolina. That’s why I am requesting $19 billion in federal funds for Helene recovery. We must support home rebuilding, restore critical infrastructure, keep businesses open, shore up local governments, and reduce impacts from future natural disasters. The state has already committed more than $1 billion in funding, and I am working with the legislature to deliver more needed resources. With continued commitment of the federal and state governments, we will enable the people of western North Carolina to come back stronger than ever before.” 

    Feb 20, 2025

    MIL OSI USA News

  • MIL-OSI Security: Owner of Unlicensed D.C. Row House Found Guilty in the Deaths of Two People in Fatal Kennedy Street Fire

    Source: Office of United States Attorneys

                WASHINGTON – James G. Walker, 67, of Washington, D.C., was found guilty today in Superior Court of the District of Columbia on two counts of second-degree murder, and 27 criminal building code violations, for the deaths of Fitsum Kebede and Yafet Solomen, announced U.S. Attorney Edward R. Martin, Jr., Attorney General for the District of Columbia, Brian L. Schwalb, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of the Washington Field Division Anthony Spotswood, Chief Pamela Smith, of the Metropolitan Police Department (MPD), and Fire and Emergency Medical Services (EMS) Chief John A. Donnelly, Sr.

                Walker was indicted and arraigned on January 16, 2020, on two counts of second-degree murder, two counts of the lesser included charges of involuntary manslaughter and numerous criminal building code violations by Superior Court Judge Ronna L. Beck.

                According to the government’s evidence, the defendant, James Walker, owned commercial property located at 708 Kennedy Street, N.W.  Walker did not have a certificate of occupancy for the building and the structure was in violation of several fire safety codes. Walker operated the building as an illegal “rooming house.” Some of the building’s rooms were too small to be considered habitable space; some had no windows, and the defendant failed to install or maintain functional smoke alarms throughout the building, including the basement. The most egregious violation, however, was the failure to provide an unobstructed means to escape the property, which included erecting multiple security gates that required keys from both sides, the worst offense being a double-keyed security gate installed within the property that blocked access from the kitchen to the front door. Importantly, the defendant had received specific warnings on March 21, 2019, from the Metropolitan Police Department that the building was in violation of several building codes specifically related to fire safety and hazardous conditions. He was instructed to correct the conditions and have the building inspected for residential use. He did not.

                On the morning of August 18, 2019, a fire erupted in the basement of 708 Kennedy Street. Three tenants were present at the time of the fire. 40-year-old Fitsum Kebede and 10-year-old Yafet Solomen were in the basement and were unable to exit the premises. They subsequently died from thermal burns and smoke inhalation. The government’s evidence was that the defendant’s knowledge of the danger posed by the conditions of the property and his conscious disregard of the extreme risk that death or serious bodily injury could occur were the but-for cause of the deaths of the decedents.   

                This case was jointly tried by the United States Attorney’s Office for the District of Columbia and the District of Columbus Office of the Attorney General.

                In announcing the verdict, U.S. Attorney Martin, D.C. Attorney General Schwalb, ATF Special Agent in Charge Spotswood, MPD Chief Smith, and Fire and EMS Chief Donnelly, commended the work of the ATF Arson and Explosives Task Force that investigated the case, including MPD, ATF, and Fire and EMS.  Finally, they acknowledged the work of Assistant United States Attorney Vinet Bryant, Assistant Attorney General Jeffrey Cargill and Assistant Attorney General Keith Ingram who prosecuted the case.

    MIL Security OSI

  • MIL-OSI Security: Illinois Woman Pleads Guilty to Marriage Fraud and Perjury

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Kalee Ann Huff, 27, of Fairbury, Illinois, pleaded guilty today to marriage fraud and perjury.

    According to court documents and statements made in court, on September 3, 2021, Huff married a foreign national in Greenbrier County, West Virginia. Huff admitted that she agreed to marry the foreign national in exchange for $10,000, as part of a plan to keep him in the United States as his immigration visa was about to expire. Huff further admitted that she and the foreign national planned to divorce once he obtained lawful permanent resident status, commonly known as a Green Card.

    Huff also admitted that she was pressured to enter the fake marriage scheme by two members of her family with whom she was living in Greenbrier County, because the family needed money to pay for household expenses. One of the two family members, brother-in-law Joseph Sanchez, pleaded guilty on January 29, 2025, to participating in an immigration marriage fraud conspiracy. Sanchez admitted to helping to arrange the fake marriage, with the understanding that half of the $10,000 would be paid upon the marriage being final and the other $5,000 would be paid once the foreign national received his Green Card. Huff admitted that only $5,000 of the promised amount was ever paid and that she never directly received or spent the money.

    On October 17, 2021, Huff signed a United States Citizenship and Immigration Services (USCIS) Form I-864, Affidavit of Support Under Section 213A of the Immigration and Nationality Act (INA). Huff listed her address as an apartment in White Sulphur Springs. Huff admitted that address was the foreign national’s and that she never lived there, and that he caused to be filed a falsified lease agreement with immigration officials listing her as a co-tenant of the apartment.  

    On March 8, 2023, Sanchez drove Huff and the foreign national to Pittsburgh, Pennsylvania. The purpose of the trip was for Huff and the foreign national to attend an interview with U.S. immigration officials and trick those officials into believing the marriage was entered into in good faith and that the relationship between Huff and the foreign national was genuine. The scheme was unsuccessful, and the foreign national’s application was denied. Huff admitted that the foreign national coached her on how to lie about their relationship and marriage in advance of the interview.

    On August 8, 2023, immigration officers confronted Huff about the fake marriage scheme, and she signed a statement admitting that she knowingly entered into the marriage for the purpose of evading U.S. immigration laws. Huff also told the officers that the foreign national had threatened her by stating she would go to prison if she did not continue helping him obtain a Green Card.

    On December 10, 2024, Huff appeared before a federal grand jury in Charleston, pursuant to a subpoena and a cooperation provision in the marriage fraud case against her. Huff admitted that she committed perjury during her grand jury testimony when she answered questions falsely about material facts relating to the government’s investigation.

    Huff is scheduled to be sentenced on June 12, 2025, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine.

    Sanchez, 33, of Fairbury, Illinois,is scheduled to be sentenced on May 30, 2025, and faces a maximum penalty of five years in prison, up to three years of supervised release, and a $250,000 fine.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and U.S. Citizenship and Immigration Services (USCIS).

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the cases.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:25-cr-20 and 2:25-cr-23.

    ###

     

    MIL Security OSI

  • MIL-OSI Security: Long Island Investment Advisor Charged in Superseding Indictment With Attempted Obstruction of Justice, Bank Fraud Conspiracy, Wire Fraud Conspiracy and Money Laundering Conspiracy Charges

    Source: Office of United States Attorneys

    Adam Kaplan Allegedly Attempted to Injure and Bribe Witnesses, Manufacture Evidence, Bribe Law Enforcement Officials, and Defraud Additional Victims

    Earlier today, at the federal courthouse in Central Islip, a superseding indictment was filed that added two counts against Adam Kaplan for attempted obstruction of justice in connection with a grand jury investigation in the Eastern District of New York and during his pretrial release on fraud charges.  The superseding indictment also added additional charges of conspiracy to commit wire fraud and conspiracy to commit bank fraud against Adam Kaplan for conduct, including while on pretrial release, as well as an additional charge of money laundering conspiracy against Adam Kaplan and Daniel Kaplan.  In July 2023, Adam Kaplan and Daniel Kaplan, investment advisors with a financial services firm (Financial Services Firm), were charged in a 16-count indictment with conspiracy to commit wire fraud, wire fraud, investment advisor fraud and money laundering in connection with a scheme to defraud at least 50 victims of more than $5 million. The defendants, who are twin brothers, will be arraigned on the superseding indictment at a later date.

    John J. Durham, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges. 

    “As alleged in the superseding indictment, before his arrest, and while he was aware of a grand jury investigation into his crimes, Adam Kaplan attempted to threaten and injure victims and witnesses and bribe law enforcement,” stated United States Attorney Durham.  “But his disregard for the law and court-ordered rules didn’t stop there, he also repeatedly and flagrantly violated his conditions of pretrial release.  This Office will not tolerate attempts by defendants to undermine the criminal justice process and will prosecute them to the full extent of the law.”

    Mr. Durham thanked the United States Securities and Exchange Commission, Chicago office, for its work on the case. 

    “Adam Kaplan allegedly ordered threats be made to his victims and attempted to bribe authorities to disrupt a federal investigation into the brothers’ misconduct,” stated FBI Assistant Director in Charge Dennehy.  “Kaplan’s alleged actions reflect remorselessness as he continued to make concerted efforts to protect his multimillion-dollar fraud scheme even following his initial arrest. The FBI will never tolerate individuals who prey upon populations for personal wealth, and then resort to extreme measures to conceal their egregious wrongdoings.” 

    As set forth in court filings and the underlying indictment, between May 2018 and November 2022, Adam Kaplan and Daniel Kaplan defrauded at least 50 clients of the Financial Services Firm, including some elderly and disabled victims, of at least $5 million.  Between January 2023 and September 2024, Adam Kaplan and a co-conspirator defrauded additional individuals of approximately $1 million and also conspired to defraud a financial institution. 

    The superseding indictment charges that, between April 2023 and September 2024, while aware of a federal grand jury investigation into the brothers’ conduct, Adam Kaplan attempted to influence, obstruct and impede the underlying investigation, including through attempts to threaten, injure and pay off witnesses, and destroy evidence. Specifically, Adam Kaplan (i) ordered an associate to create a fake email from a victim so that Adam Kaplan could use the fake email as evidence at trial and to impeach that victim’s credibility; (ii) engaged in a months’ long fraudulent scheme to steal money from victims; and (iii) attempted to tamper with, threaten and pay off witnesses, including telling his associate that a victim needed “to fear,” that a victim should be “peeing blood / missing teeth and another visited / scared,” that a victim should be sent skull and crossbones imagery, and that his associate should “put [a victim’s] phone on fire . . . Seriously, please blow it up.” After his arrest, while on release on a multimillion-dollar bond, Adam Kaplan (i) attempted to bribe a Department of Justice official; (ii) continued his fraudulent schemes and continued to pay off witnesses; and (iii) committed credit card fraud.  To perpetuate these crimes, Adam Kaplan used multiple burner phones to avoid detection and monitoring by law enforcement, used aliases, attempted to break into others’ email accounts and attempted to destroy evidence.

    If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov.  Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint.    

    The charges in the superseding indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Adam Toporovsky and Paul Scotti are in charge of the prosecution, with assistance from Paralegal Specialist Janelle Robinson.

    The Defendants:

    ADAM S. KAPLAN
    Age:  35
    Great Neck, New York

    DANIEL E. KAPLAN
    Age:  35
    Great Neck, New York

    E.D.N.Y. Docket No. 23-CR-293(S-1) (JMA)

    MIL Security OSI

  • MIL-OSI: Altair Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    TROY, Mich., Feb. 20, 2025 (GLOBE NEWSWIRE) — Altair (Nasdaq: ALTR), a global leader in computational intelligence, today released its financial results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Software revenue was $179.4 million compared to $155.9 million for the fourth quarter of 2023, an increase of 15.0% in reported currency and 16.5% in constant currency
    • Total revenue was $192.6 million compared to $171.5 million for the fourth quarter of 2023, an increase of 12.3% in reported currency and 13.8% in constant currency
    • Net income was $1.0 million compared to $19.7 million for the fourth quarter of 2023, a decrease in earnings of $18.7 million. Net income per share, diluted was $0.01 based on 89.3 million diluted weighted average common shares outstanding, compared to net income per share, diluted of $0.22 for the fourth quarter of 2023, based on 89.0 million diluted weighted average common shares outstanding. Net income margin was 0.5% compared to net income margin of 11.5% for the fourth quarter of 2023
    • Non-GAAP net income was $47.4 million, compared to non-GAAP net income of $41.1 million for the fourth quarter of 2023, an increase of $6.3 million. Non-GAAP net income per share, diluted was $0.52 based on 92.6 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $0.47 for the fourth quarter of 2023, based on 89.0 million non-GAAP diluted common shares outstanding
    • Adjusted EBITDA was $61.0 million compared to $53.6 million for the fourth quarter of 2023, an increase of 13.9%. Adjusted EBITDA margin was 31.7% compared to 31.2% for the fourth quarter of 2023
    • Cash provided by operating activities was $37.5 million, compared to $21.7 million for the fourth quarter of 2023
    • Free cash flow was $33.2 million, compared to $19.3 million for the fourth quarter of 2023.

    Full Year 2024 Financial Highlights

    • Software revenue was $611.9 million compared to $550.0 million for the full year of 2023, an increase of 11.3% in reported currency and 12.5% in constant currency
    • Total revenue was $665.8 million compared to $612.7 million for the full year of 2023, an increase of 8.7% in reported currency and 9.8% in constant currency
    • Net income was $14.2 million compared to a net loss of $(8.9) million for the full year of 2023, an improvement in earnings of $23.1 million. Net income per share, diluted was $0.16 based on 88.6 million diluted weighted average common shares outstanding, compared to net loss per share, diluted of $(0.11) for the full year of 2023, based on 80.6 million diluted weighted average common shares outstanding. Net income margin was 2.1% compared to net loss margin of -1.5% for the full year of 2023
    • Non-GAAP net income was $119.6 million, compared to non-GAAP net income of $98.8 million for the full year of 2023, an increase of $20.8 million. Non-GAAP net income per share, diluted was $1.35 based on 91.8 million non-GAAP diluted common shares outstanding, compared to non-GAAP net income per share, diluted of $1.17 for the full year of 2023, based on 84.4 million non-GAAP diluted common shares outstanding
    • Adjusted EBITDA was $149.9 million compared to $129.1 million for the full year of 2023, an increase of 16.1%, Adjusted EBITDA margin was 22.5% compared to 21.1% for the full year of 2023
    • Cash provided by operating activities was $154.1 million, compared to $127.3 million for the full year of 2023
    • Free cash flow was $140.0 million, compared to $117.1 million for the full year of 2023.

    Pending Transaction with Siemens and Conference Call Information

    On January 22, 2025, Altair’s stockholders approved the previously announced merger agreement providing for the acquisition of Altair by Siemens Industry Software Inc. (“Siemens”). Completion of the pending transaction remains subject to certain customary closing conditions. Altair now anticipates that this transaction may close in the first half of 2025. In light of the pending transaction with Siemens, Altair is suspending quarterly financial results conference calls and its quarterly and annual guidance.

    Non-GAAP Financial Measures

    This press release contains the following non-GAAP financial measures: Non-GAAP Net Income, Non-GAAP Net Income Per Share, Billings, Adjusted EBITDA, Free Cash Flow, Non-GAAP Gross Profit and Non-GAAP Operating Expense.

    Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, asset impairment charges, non-cash interest expense, other special items as identified by management and described elsewhere in this press release, and the impact of non-GAAP tax rate to income tax expense, which approximates our tax rate excluding discrete items and other specific events that can fluctuate from period to period.

    Non-GAAP diluted common shares is calculated using the treasury stock method to calculate the effect of dilutive securities, stock options, restricted stock units and employee stock purchase plan shares and using the if-converted method to calculate the effect of convertible instruments. This is the same methodology that is used when calculating GAAP diluted shares. However, the determination of whether the shares are dilutive or antidilutive is made independently on a GAAP and non-GAAP net income (loss) basis and therefore the number of diluted shares outstanding for GAAP and non-GAAP may be different.

    Billings consists of total revenue plus the change in deferred revenue, excluding deferred revenue from acquisitions.

    Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

    Free cash flow consists of cash flow from operations less capital expenditures.

    Non-GAAP gross profit represents gross profit adjusted for stock-based compensation expense and other special items as identified by management and described elsewhere in this press release.

    Non-GAAP operating expense represents operating expense excluding stock-based compensation expense, amortization, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

    Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

    Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

    About Altair

    Altair is a global leader in computational intelligence that provides software and cloud solutions in simulation, high-performance computing, data analytics and AI. Altair enables organizations across all industries to compete more effectively and drive smarter decisions in an increasingly connected world – all while creating a greener, more sustainable future. To learn more, please visit https://www.altair.com.

    Forward-Looking Statements

    This communication contains “forward-looking statements” within the Private Securities Litigation Reform Act of 1995. Any statements contained in this communication that are not statements of historical fact, including statements regarding the proposed transaction, including the expected timing and closing of the proposed transaction; Altair’s ability to consummate the proposed transaction; the expected benefits of the proposed transaction and other considerations taken into account by the Altair Board of Directors in approving the proposed transaction; the amounts to be received by stockholders and expectations for Altair prior to and following the closing of the proposed transaction, may be deemed to be forward-looking statements. All  such forward-looking statements are intended to provide management’s current expectations for the future of Altair based on current expectations and assumptions relating to Altair’s business, the economy and other future conditions. Forward-looking statements generally can be identified through the use of words such as “believes,” “anticipates,” “may,” “should,” “will,” “plans,” “projects,” “expects,” “expectations,” “estimates,” “forecasts,” “predicts,” “targets,” “prospects,” “strategy,” “signs,” and other words of similar meaning in connection with the discussion of future performance, plans, actions or events. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict. Such risks and uncertainties include, among others: (i) the timing to consummate the pending merger transaction with Siemens Industry Software Inc. (the “Merger”), (ii) the risk that a condition of closing of the pending Merger transaction may not be satisfied or that the closing of the proposed transaction might otherwise not occur, (iii) the risk that a regulatory approval that may be required for the pending Merger transaction is not obtained or is obtained subject to conditions that are not anticipated, (iv) the diversion of management time on transaction-related issues, (v) risks related to disruption of management time from ongoing business operations due to the pending Merger transaction, (vi) the risk that any announcements relating to the proposed transaction could have adverse effects on the market price of the common stock of Altair, (vii) the risk that the pending Merger transaction and its announcement could have an adverse effect on the ability of Altair to retain customers and retain and hire key personnel and maintain relationships with its suppliers and customers, (viii) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, dated October 30, 2024, with Siemens Industry Software Inc. (the “Merger Agreement”), (ix) business uncertainties and contractual restrictions on our operations while the proposed Merger transaction is pending, (x) unexpected costs, charges or expenses resulting from the pending Merger transaction, (xi) potential litigation relating to the pending Merger transaction that could be instituted against the parties to the Merger Agreement or their respective directors, managers or officers, including the effects of any outcomes related thereto, (xii) worldwide economic or political changes that affect the markets that Altair’s businesses serve which could have an effect on demand for Altair’s products and impact Altair’s profitability, and (xiii) disruptions in the global credit and financial markets, including diminished liquidity and credit availability, changes in international trade agreements, including tariffs and trade restrictions, cyber-security vulnerabilities, foreign currency volatility, swings in consumer confidence and spending, raw material pricing and supply issues, retention of key employees, increases in fuel prices, and outcomes of legal proceedings, claims and investigations. Accordingly, actual results may differ materially from those contemplated by these forward-looking statements. Investors, therefore, are cautioned against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in Altair’s filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A – Risk Factors of Altair’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Altair’s other filings with the SEC. The list of factors is not intended to be exhaustive. These forward-looking statements speak only as of the date of this communication, and Altair does not assume any obligation to update or revise any forward-looking statement made in this communication or that may from time to time be made by or on behalf of Altair.

    Media Relations
    Altair
    Jennifer Ristic
    216-849-3109
    jristic@altair.com

    Investor Relations
    Altair
    Stephen Palmtag
    669-328-9111
    spalmtag@altair.com

    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
         
      December 31,  
    (in thousands) 2024     2023  
    ASSETS          
    CURRENT ASSETS          
    Cash and cash equivalents $ 561,898     $ 467,459  
    Accounts receivable, net   173,509       190,461  
    Income tax receivable   21,513       16,650  
    Prepaid expenses and other current assets   28,058       26,053  
    Total current assets   784,978       700,623  
    Property and equipment, net   41,008       39,803  
    Operating lease right of use assets   31,117       30,759  
    Goodwill   462,459       458,125  
    Other intangible assets, net   72,937       83,550  
    Deferred tax assets   8,770       9,955  
    Other long-term assets   44,378       40,678  
    TOTAL ASSETS $ 1,445,647     $ 1,363,493  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    CURRENT LIABILITIES          
    Accounts payable $ 7,316     $ 8,995  
    Accrued compensation and benefits   50,328       45,081  
    Current portion of operating lease liabilities   7,876       8,825  
    Other accrued expenses and current liabilities   56,058       48,398  
    Deferred revenue   139,085       131,356  
    Current portion of convertible senior notes, net   227,106       81,455  
    Total current liabilities   487,769       324,110  
    Convertible senior notes, net         225,929  
    Operating lease liabilities, net of current portion   24,141       22,625  
    Deferred revenue, non-current   28,531       32,347  
    Other long-term liabilities   48,017       47,151  
    TOTAL LIABILITIES   588,458       652,162  
    Commitments and contingencies          
    STOCKHOLDERS’ EQUITY          
    Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued or outstanding          
    Common stock ($0.0001 par value)          
    Class A common stock, authorized 513,797 shares, issued and outstanding 60,181
    and 55,240 shares as of December 31, 2024 and 2023, respectively
      6       5  
    Class B common stock, authorized 41,203 shares, issued and outstanding 25,394
    and 26,814 shares as of December 31, 2024 and 2023, respectively
      3       3  
    Additional paid-in capital   1,010,789       864,135  
    Accumulated deficit   (116,328 )     (130,503 )
    Accumulated other comprehensive loss   (37,281 )     (22,309 )
    TOTAL STOCKHOLDERS’ EQUITY   857,189       711,331  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 1,445,647     $ 1,363,493  
                   
    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
               
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands, except per share data) 2024     2023     2024     2023  
    Revenue                      
    License $ 131,943     $ 113,172     $ 435,288     $ 393,144  
    Maintenance and other services   47,433       42,761       176,612       156,830  
    Total software   179,376       155,933       611,900       549,974  
    Engineering services and other   13,255       15,570       53,888       62,727  
    Total revenue   192,631       171,503       665,788       612,701  
    Cost of revenue                      
    License   4,662       3,200       15,099       15,088  
    Maintenance and other services   17,604       14,340       64,014       56,094  
    Total software *   22,266       17,540       79,113       71,182  
    Engineering services and other   11,113       11,633       45,690       50,609  
    Total cost of revenue   33,379       29,173       124,803       121,791  
    Gross profit   159,252       142,330       540,985       490,910  
    Operating expenses:                      
    Research and development *   57,147       52,519       221,161       212,645  
    Sales and marketing *   47,812       43,595       184,280       176,138  
    General and administrative *   35,595       17,096       90,150       70,887  
    Amortization of intangible assets   8,709       7,708       33,022       30,851  
    Other operating (income) expense, net   (976 )     (1,178 )     (5,313 )     146  
    Total operating expenses   148,287       119,740       523,300       490,667  
    Operating income   10,965       22,590       17,685       243  
    Interest expense   1,339       1,533       5,836       6,116  
    Other income, net   (316 )     (8,794 )     (20,781 )     (18,492 )
    Income before income taxes   9,942       29,851       32,630       12,619  
    Income tax expense   8,946       10,176       18,455       21,545  
    Net income (loss) $ 996     $ 19,675     $ 14,175     $ (8,926 )
    Earnings (loss) per share, basic                      
    Earnings (loss) per share $ 0.01     $ 0.24     $ 0.17     $ (0.11 )
    Weighted average shares   85,289       81,760       84,085       80,596  
    Earnings (loss) per share, diluted                      
    Earnings (loss) per share $ 0.01     $ 0.22     $ 0.16     $ (0.11 )
    Weighted average shares   89,346       88,977       88,558       80,596  
     
    *     Amounts include stock-based compensation expense as follows (in thousands):
     
      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024     2023     2024     2023  
    Cost of revenue – software $ 2,167     $ 2,303     $ 8,397     $ 10,095  
    Research and development   6,274       7,332       25,630       33,842  
    Sales and marketing   4,784       6,271       19,459       28,376  
    General and administrative   3,745       3,252       14,194       13,268  
    Total stock-based compensation expense $ 16,970     $ 19,158     $ 67,680     $ 85,581  
                                   
    ALTAIR ENGINEERING INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOW
    (Unaudited)
         
      Year Ended December 31,  
    (in thousands) 2024     2023     2022  
    OPERATING ACTIVITIES:                
    Net income (loss) $ 14,175     $ (8,926 )   $ (43,429 )
    Adjustments to reconcile net income (loss) to net cash provided by
    operating activities:
                   
    Depreciation and amortization   42,164       39,124       35,504  
    Stock-based compensation expense   67,680       85,581       84,787  
    Deferred income taxes   (707 )     (2,319 )     (4,164 )
    Loss (gain) on mark-to-market adjustment of contingent consideration   476       5,706       (7,153 )
    Expense on repurchase of convertible senior notes               16,621  
    Other, net   2,015       1,943       2,179  
    Changes in assets and liabilities:                
    Accounts receivable   14,560       (19,141 )     (34,175 )
    Prepaid expenses and other current assets   (7,622 )     (1,915 )     1,014  
    Other long-term assets   2,431       (52 )     2,852  
    Accounts payable   (2,127 )     (1,878 )     3,771  
    Accrued compensation and benefits   7,013       1,783       280  
    Other accrued expenses and current liabilities   7,791       9,068       (59,463 )
    Deferred revenue   6,235       18,333       40,946  
    Net cash provided by operating activities   154,084       127,307       39,570  
    INVESTING ACTIVITIES:                
    Payments for acquisition of businesses, net of cash acquired   (27,070 )     (3,236 )     (134,541 )
    Capital expenditures   (14,086 )     (10,193 )     (9,648 )
    Other investing activities, net   (4,974 )     (2,423 )     (10,322 )
    Net cash used in investing activities   (46,130 )     (15,852 )     (154,511 )
    FINANCING ACTIVITIES:                
    Settlement of convertible senior notes   (81,729 )            
    Proceeds from the exercise of common stock options   65,537       36,140       3,577  
    Proceeds from employee stock purchase plan contributions   9,157       7,978       8,976  
    Payments for repurchase and retirement of common stock         (6,255 )     (19,659 )
    Proceeds from issuance of convertible senior notes,
    net of underwriters’ discounts and commissions
                  224,265  
    Repurchase of convertible senior notes               (192,422 )
    Payments for issuance costs of convertible senior notes               (1,523 )
    Other financing activities         (97 )     (233 )
    Net cash (used in) provided by financing activities   (7,035 )     37,766       22,981  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (6,453 )     1,397       (5,094 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   94,466       150,618       (97,054 )
    Cash, cash equivalents and restricted cash at beginning of year   467,576       316,958       414,012  
    Cash, cash equivalents and restricted cash at end of period $ 562,042     $ 467,576     $ 316,958  
                           

    Change in Presentation of Revenue and Cost of Revenue

    Effective in the first quarter of 2024, the Company changed the presentation of revenue and cost of revenue in its Consolidated Statements of Operations to combine the financial statement line items (“FSLIs”) labeled “Software related services”, “Client engineering services” and “Other” into one FSLI labeled “Engineering services and other”. The change in presentation has been applied retrospectively and does not affect the software revenue, total revenue, software cost of revenue or total cost of revenue amounts previously reported or have any effect on segment reporting.

    Financial Results

    The following table provides a reconciliation of Non-GAAP net income and Non-GAAP net income per share – diluted, to net income (loss) and net income (loss) per share – diluted, the most comparable GAAP financial measures:

        (Unaudited)  
        Three Months Ended
    December 31,
        Year Ended
    December 31,
     
     (in thousands, except per share amounts) 2024     2023     2024     2023  
     Net income (loss) $ 996     $ 19,675     $ 14,175     $ (8,926 )
     Stock-based compensation expense   16,970       19,158       67,680       85,581  
     Amortization of intangible assets   8,709       7,708       33,022       30,851  
     Non-cash interest expense   310       470       1,514       1,869  
     Impact of non-GAAP tax rate(1)   (6,842 )     (4,261 )     (21,406 )     (13,158 )
     Special adjustments and other(2)   27,219       (1,659 )     24,597       2,553  
     Non-GAAP net income $ 47,362     $ 41,091     $ 119,582     $ 98,770  
                            
     Net income (loss) per share, diluted $ 0.01     $ 0.22     $ 0.16     $ (0.11 )
     Non-GAAP net income per share, diluted $ 0.52     $ 0.47     $ 1.35     $ 1.17  
                            
     GAAP diluted shares outstanding:   89,346       88,977       88,558       80,596  
     Non-GAAP diluted shares outstanding:   92,555       88,977       91,767       84,433  
     
    (1)  For the three months and year ended December 31, 2024, the Company used a non-GAAP effective tax rate of 25%. For the three months and year ended December 31, 2023, the Company used a non-GAAP effective tax rate of 26%.
    (2)  The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans and a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans and a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans and a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions and $3.2 million of currency gains on acquisition-related intercompany loans.
                                     

    The following table provides a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP financial measure:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024     2023     2024     2023  
    Net income (loss) $ 996     $ 19,675     $ 14,175     $ (8,926 )
    Income tax expense   8,946       10,176       18,455       21,545  
    Stock-based compensation expense   16,970       19,158       67,680       85,581  
    Interest expense   1,339       1,533       5,836       6,116  
    Depreciation and amortization   11,044       9,853       42,164       39,124  
    Special adjustments, interest income and other(1)   21,746       (6,822 )     1,602       (14,302 )
    Adjusted EBITDA $ 61,041     $ 53,573     $ 149,912     $ 129,138  
    (1) The three months ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $4.7 million of currency losses on acquisition-related intercompany loans, a $0.3 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.5 million of interest income. The three months ended December 31, 2023, includes $2.9 million of currency gains on acquisition-related intercompany loans, a $1.2 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $5.2 million of interest income. The year ended December 31, 2024, includes $22.3 million of expenses related to the pending Merger transaction, $1.9 million of currency losses on acquisition-related intercompany loans, a $0.5 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, and $23.0 million of interest income. The year ended December 31, 2023, includes a $5.7 million loss from the mark-to-market adjustment of contingent consideration associated with acquisitions, $3.2 million of currency gains on acquisition-related intercompany loans, and $16.9 million of interest income.
       

     The following table provides a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024 (1)     2023     2024     2023  
    Net cash provided by operating activities $ 37,530     $ 21,651     $ 154,084     $ 127,307  
    Capital expenditures   (4,347 )     (2,311 )     (14,086 )     (10,193 )
    Free Cash Flow $ 33,183     $ 19,340     $ 139,998     $ 117,114  
    (1) Free Cash Flow for the year ended December 31, 2024, was adversely impacted by approximately $13.2 million of expenses paid related to the pending Merger transaction.
       

    The following table provides a reconciliation of Non-GAAP gross profit to gross profit, the most comparable GAAP financial measure, and a comparison of Non-GAAP gross margin (Non-GAAP gross profit as a percentage of total revenue) to gross margin (gross profit as a percentage of total revenue), the most comparable GAAP financial measure:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024     2023     2024     2023  
    Gross profit $ 159,252     $ 142,330     $ 540,985     $ 490,910  
    Stock-based compensation expense   2,167       2,303       8,397       10,095  
    Pending merger expenses   1,155             1,155        
    Non-GAAP gross profit $ 162,574     $ 144,633     $ 550,537     $ 501,005  
                           
    Gross profit margin   82.7 %     83.0 %     81.3 %     80.1 %
    Non-GAAP gross margin   84.4 %     84.3 %     82.7 %     81.8 %
                                   

    The following table provides a reconciliation of Non-GAAP operating expense to Total operating expense, the most comparable GAAP financial measure:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024     2023     2024     2023  
    Total operating expense $ 148,287     $ 119,740     $ 523,300     $ 490,667  
    Stock-based compensation expense   (14,803 )     (16,855 )     (59,283 )     (75,486 )
    Amortization   (8,709 )     (7,708 )     (33,022 )     (30,851 )
    Loss on mark-to-market adjustment of
    contingent consideration
      (287 )     (1,212 )     (476 )     (5,706 )
    Pending merger expenses   (21,095 )           (21,095 )      
    Non-GAAP operating expense $ 103,393     $ 93,965     $ 409,424     $ 378,624  
                                   

    The following table provides the calculation of non-GAAP diluted common shares and non-GAAP net income per share, diluted:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
      2024     2023     2024     2023  
    Numerator:                      
    Non-GAAP net income $ 47,362     $ 41,091     $ 119,582     $ 98,770  
    Interest expense related to convertible notes, net of tax   1,006       1,006       4,024        
    Numerator for non-GAAP diluted income per share $ 48,368     $ 42,097     $ 123,606     $ 98,770  
    Denominator:                      
    Weighted average shares outstanding, basic   85,289       81,760       84,085       80,596  
    Effect of dilutive shares   7,266       7,217       7,682       3,837  
    Non-GAAP diluted shares outstanding   92,555       88,977       91,767       84,433  
    Non-GAAP net income per share, diluted $ 0.52     $ 0.47     $ 1.35     $ 1.17  
                                   

    The following table provides a reconciliation of Billings to revenue, the most comparable GAAP financial measure:

      (Unaudited)  
      Three Months Ended
    December 31,
        Year Ended
    December 31,
     
    (in thousands) 2024     2023     2024     2023  
    Revenue $ 192,631     $ 171,503     $ 665,788     $ 612,701  
    Ending deferred revenue   167,616       163,703       167,616       163,703  
    Beginning deferred revenue   (140,835 )     (138,933 )     (163,703 )     (144,460 )
    Deferred revenue acquired         (149 )     (1,825 )     (149 )
    Billings $ 219,412     $ 196,124     $ 667,876     $ 631,795  
                                   

    The following table provides Software revenue, Total revenue, Billings and Adjusted EBITDA on a constant currency basis:

      (Unaudited)  
      Three Months Ended
    December 31, 2024
        Three Months Ended December 31, 2023     Increase/
    (Decrease) %
     
    (in thousands) As reported     Currency
    changes
        As adjusted for
    constant
    currency
        As reported     As reported     As adjusted for
    constant
    currency
     
    Software revenue $ 179.4     $ 2.3     $ 181.7     $ 155.9       15.0 %     16.5 %
    Total revenue $ 192.6     $ 2.6     $ 195.2     $ 171.5       12.3 %     13.8 %
    Billings $ 219.4     $ 3.6     $ 223.0     $ 196.1       11.9 %     13.7 %
    Adjusted EBITDA $ 61.0     $ 1.3     $ 62.3     $ 53.6       13.9 %     16.2 %
                                       
                                       
      (Unaudited)  
      Year Ended
    December 31, 2024
        Year Ended
    December 31, 2023
        Increase/
    (Decrease) %
     
    (in thousands) As reported     Currency
    changes
        As adjusted for
    constant
    currency
        As reported     As reported     As adjusted for
    constant
    currency
     
    Software revenue $ 611.9     $ 6.8     $ 618.7     $ 550.0       11.3 %     12.5 %
    Total revenue $ 665.8     $ 7.2     $ 673.0     $ 612.7       8.7 %     9.8 %
    Billings $ 667.9     $ 8.1     $ 676.0     $ 631.8       5.7 %     7.0 %
    Adjusted EBITDA $ 149.9     $ 4.6     $ 154.5     $ 129.1       16.1 %     19.7 %
                                                   

    The MIL Network

  • MIL-OSI: Employers Holdings, Inc. Reports Fourth Quarter 2024 and Full-Year Financial Results; Declares Quarterly Cash Dividend of $0.30 per Share

    Source: GlobeNewswire (MIL-OSI)

    RENO, Nev., Feb. 20, 2025 (GLOBE NEWSWIRE) — Employers Holdings, Inc. (the “Company”) (NYSE:EIG), a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services focused on small and mid-sized businesses engaged in low-to-medium hazard industries, today reported financial results for its fourth quarter ended December 31, 2024.

    Full-Year 2024 Financial Highlights

    (All comparisons versus full-year 2023)

    • Net income of $118.6 million ($4.71 per diluted share), versus $118.1 million ($4.45 per diluted share);
    • Adjusted net income of $94.0 million ($3.73 per diluted share), versus $101.7 million ($3.83 per diluted share);
    • Net investment income of $107.0 million, versus $106.5 million;
    • Gross premiums written of $776.3 million, versus $767.7 million;
    • Net premiums earned of $749.5 million, versus $721.9 million;
    • Net favorable prior year loss reserve development of $18.4 million, versus $44.9 million;
    • GAAP combined ratio of 97.9% (98.6% excluding the LPT), versus 95.0% (96.0% excluding the LPT);
    • Returned $71.7 million to stockholders through a combination of share repurchases and regular quarterly dividends;
    • Record number of ending policies in-force of 130,767, versus 126,409; and
    • Adjusted Book value per share of $50.71, up 9.8% including dividends declared.

    Fourth Quarter 2024 Financial Highlights

    (All comparisons versus fourth quarter 2023)

    • Net income of $28.3 million ($1.14 per diluted share), versus $45.6 million ($1.77 per diluted share);
    • Adjusted net income of $28.7 million ($1.15 per diluted share), versus $36.1 million ($1.40 per diluted share);
    • Net investment income of $26.7 million, versus $26.2 million;
    • Gross premiums written of $176.3 million, versus $178.2 million;
    • Net premiums earned of $190.2 million, versus $187.5 million;
    • Net favorable prior year loss reserve development of $9.1 million, versus $24.9 million;
    • GAAP combined ratio of 95.5% (including and excluding the LPT), versus 88.1% (88.8% excluding the LPT); and
    • Returned $17.5 million to stockholders through a combination of share repurchases and a regular quarterly dividend.

    CEO Commentary

    Chief Executive Officer Katherine Antonello commented: “We are pleased with our fourth quarter and full-year 2024 results. In fact, we closed the year with the highest levels of written and earned premium, ending in-force premium and policies and net investment income in the Company’s history.

    We achieved solid growth in new and renewal premium in 2024, but that growth was offset by lower final audit premiums and endorsements. Our investment performance contributed nicely to our overall results and financial strength. In addition to the record level of net investment income we generated, we also recognized $24.1 million of after-tax unrealized gains from our common stocks and other investments.”

    Ms. Antonello continued, “Our current accident year loss and LAE ratio on voluntary business was 64.0%, slightly above the loss and LAE ratio we maintained throughout 2023 and consistent with that of 2022. Our fourth quarter full reserve study led to the recognition of $8.6 million of net favorable prior year loss reserve development from our voluntary business. Those actions, coupled with our continual focus on our underwriting expenses, yielded an ex-LPT combined ratio of 95.5% for the fourth quarter, and 98.6% for the full year.

    Our active capital management efforts throughout 2024, which consisted of $41.7 million of share repurchases and $30.0 million of regular quarterly dividends, contributed to year-over-year increases of 10.6% and 9.8% in our book value per share including the deferred gain and adjusted book value per share, respectively. Our focus on disciplined underwriting, prudent risk management, and strategic investments has positioned us strongly in the workers’ compensation insurance market, which is evidenced by the recent upgrade to our insurance companies’ AM Best Financial Strength Rating to “A” (Excellent).

    Beyond our financial results, we continue to offer direct-to-consumer policies through the Cerity brand but, with the Cerity integration that was undertaken a year ago, we now do so without any meaningful fixed underwriting expenses. Further, our continued focus for 2025 will be on further appetite expansion, increased self-service options for policyholders, agents and injured workers and greater operational efficiencies.

    Finally, we are saddened by the California wildfires and the impact on the Los Angeles area community and small businesses. Our thoughts are with all of those who have lost their homes, businesses, and livelihoods, and we are working with our partners to provide immediate and long-term assistance. As a monoline workers’ compensation insurance provider, these catastrophic events would not typically have a significant impact on our results, nor our long-term trends. We have analyzed the loss exposure and experience in the affected fire zones and have determined that approximately 1% of our in-force policies, representing less than 1% of our payroll exposure, are within the impacted areas and we are not currently experiencing any significant impacts from these devastating fires.”

    Summary of Consolidated Fourth Quarter 2024 Results

    (All comparisons versus fourth quarter 2023, unless otherwise noted)

    Gross premiums written were $176.3 million, a decrease of 1%. The slight decrease was due to higher new and renewal business writings being offset by lower final audit premiums and endorsements. Net earned premiums were $190.2 million, an increase of 1%.

    Losses and loss adjustment expenses were $113.2 million, an increase of 22%. The increase was due to higher earned premium, lower net favorable prior year loss reserve development and a slightly higher current accident year loss and loss adjustment expense provision. The Company recognized $9.1 million of favorable prior year loss reserve development versus $24.9 million. The Company’s loss and loss adjustment expense ratio was 59.5% for the quarter (including and excluding the LPT) versus 49.5% (50.2% excluding the LPT).

    Total underwriting expenses (consisting of commissions, other underwriting and general and administrative expenses) were $68.6 million, a decrease of 5%. The decrease was primarily related to lower information technology expenses resulting from the Cerity integration plan that was executed in the fourth quarter of 2023, lower compensation-related expenses and a non-recurring commission adjustment, partially offset by higher bad debt expense. The Company’s total underwriting expense ratio was 36.0% versus 38.6%.

    Within the 2024 periods presented herein, the Company refined its presentation of certain expenses associated with its involuntary premium. This revision, which was immaterial, had the effect of reducing both its fourth quarter and full year 2024 commission expense ratios by approximately 0.3 percentage points, and increasing its respective underwriting and general and administrative expense ratios by the same amount. This revision had no net effect on the Company’s total underwriting expenses or net income.

    Net investment income was $26.7 million, an increase of 2%. The increase was due to higher investment yields, partially offset by lower invested balances of fixed maturity securities, short-term investments and cash and cash equivalents, as measured by amortized cost.

    Net realized and unrealized gains (losses) on investments reflected on the income statement were $(0.4) million versus $12.1 million.

    Interest and financing expenses were $0.1 million versus $0.6 million. The decrease resulted from the unwinding of our former Federal Home Loan Bank leveraged investment strategy in the fourth quarter of 2023.

    Other expenses of $1.6 million recorded in the fourth quarter of 2023 consisted of a non-recurring charge in connection with previously capitalized cloud computing costs.

    Federal and state income tax expense was $6.4 million (18.4% effective rate) versus $12.6 million (21.6% effective rate). The effective rates in each period reflect applicable income tax benefits and exclusions associated with tax-advantaged investment income, LPT adjustments, pre-privatization loss and loss adjustment expense reserve adjustments and deferred gain amortization.

    The Company’s book value per share including the deferred gain of $47.35 increased by 10.6% during 2024 and its adjusted book value per share of $50.71 increased by 9.8% during 2024, each including dividends declared. These measures were favorably impacted by $24.1 million of net after tax unrealized gains arising from equity securities and other investments.

    Share Repurchases and First Quarter 2025 Dividend Declaration

    During the fourth quarter of 2024, the Company repurchased 193,857 shares of its common stock at an average price of $51.20 per share. During the period from January 1, 2025 through February 19, 2025, the Company repurchased a further 222,438 shares of its common stock at an average price of $49.38 per share. The Company currently has a remaining share repurchase authorization of $18.7 million.

    On February 19, 2025, the Board of Directors declared a first quarter dividend of $0.30 per share. The dividend is payable on March 19, 2025 to stockholders of record as of March 5, 2025.

    Earnings Conference Call and Webcast

    The Company will host a conference call on Friday, February 21, 2025 at 11:00 a.m. Eastern Standard Time / 8:00 a.m. Pacific Standard Time.

    To participate in the live conference call, you must first register here. Once registered you will receive dial-in numbers and a unique PIN number.

    The webcast will be accessible on the Company’s website at www.employers.com through the “Investors” link.

    Reconciliation of Non-GAAP Financial Measures to GAAP

    Within this earnings release we present various financial measures, some of which are “non-GAAP financial measures” as defined in Regulation G pursuant to Section 401 of the Sarbanes – Oxley Act of 2002. A description of these non-GAAP financial measures, as well as a reconciliation of such non-GAAP measures to our most directly comparable GAAP financial measures is included in the attached Financial Supplement. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    The information in this press release should be read in conjunction with the Financial Supplement that is attached to this press release and available on our website.

    Forward-Looking Statements

    In this press release, the Company and its management discuss and make statements based on currently available information regarding their intentions, beliefs, current expectations, and projections of, among other things, the Company’s future performance, economic or market conditions, including current or future levels of inflation, changes in interest rates, labor market expectations, catastrophic events or geo-political conditions, legislative or regulatory actions or court decisions, business growth, retention rates, loss costs, claim trends and the impact of key business initiatives, future technologies and planned investments. Certain of these statements may constitute “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often identified by words such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “target,” “project,” “intend,” “believe,” “estimate,” “predict,” “potential,” “pro forma,” “seek,” “likely,” or “continue,” or other comparable terminology and their negatives. The Company and its management caution investors that such forward-looking statements are not guarantees of future performance. Risks and uncertainties are inherent in the Company’s future performance. Factors that could cause the Company’s actual results to differ materially from those indicated by such forward-looking statements include, among other things, those discussed or identified from time to time in the Company’s public filings with the Securities and Exchange Commission (SEC), including the risks detailed in the Company’s Quarterly Reports on Form 10-Q and the Company’s Annual Reports on Form 10-K. Except as required by applicable securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    Filings with the SEC

    The Company’s filings with the SEC and its quarterly investor presentations can be accessed through the “Investors” link on the Company’s website, www.employers.com. The Company’s filings with the SEC can also be accessed through the SEC’s EDGAR Database at www.sec.gov (EDGAR CIK No. 0001379041).

    About Employers Holdings, Inc.

    Employers Holdings, Inc. (NYSE: EIG), is a holding company with subsidiaries that are specialty providers of workers’ compensation insurance and services (collectively “EMPLOYERS®”) focused on small and mid-sized businesses engaged in low-to-medium hazard industries. EMPLOYERS leverages over a century of experience to deliver comprehensive coverage solutions that meet the unique needs of its customers. Drawing from its long history and extensive knowledge, EMPLOYERS empowers businesses by protecting their most valuable asset – their employees – through exceptional claims management, loss control, and risk management services, creating safer work environments.

    EMPLOYERS is also proud to offer Cerity®, which is focused on providing digital-first, direct-to-consumer workers’ compensation insurance solutions with fast, and affordable coverage options through a user-friendly online platform.

    EMPLOYERS operates throughout the United States, apart from four states that are served exclusively by their state funds. Insurance is offered through Employers Insurance Company of Nevada, Employers Compensation Insurance Company, Employers Preferred Insurance Company, Employers Assurance Company and Cerity Insurance Company, all rated A (Excellent) by AM Best. Not all companies do business in all jurisdictions. EIG Services, Inc., and Cerity Services, Inc., are subsidiaries of Employers Holdings, Inc. EMPLOYERS® is a registered trademark of EIG Services, Inc., and Cerity® is a registered trademark of Cerity Services, Inc. For more information, please visit www.employers.com and www.cerity.com.

    Contact Information

    Mike Paquette (775) 327-2562 or mpaquette@employers.com

    EMPLOYERS HOLDINGS, INC.
    Table of Contents

    Page

    1. Consolidated Financial Highlights
    2. Summary Consolidated Balance Sheets
    3. Summary Consolidated Income Statements
    4. Return on Equity
    5. Combined Ratios
    6. Roll-forward of Unpaid Losses and LAE
    7. Consolidated Investment Portfolio
    8. Book Value Per Share
    9. Earnings Per Share
    10. Non-GAAP Financial Measures
    EMPLOYERS HOLDINGS, INC.
    Consolidated Financial Highlights (unaudited)
    $ in millions, except per share amounts
                        
        Three Months Ended           Years Ended      
        December 31,           December 31,      
        2024       2023     % change     2024       2023     % change
    Selected financial highlights:                          
    Gross premiums written  $ 176.3     $ 178.2     (1 )%   $ 776.3     $ 767.7     1 %
    Net premiums written   174.7       176.4     (1 )     769.5       760.6     1  
    Net premiums earned   190.2       187.5     1       749.5       721.9     4  
    Net investment income   26.7       26.2     2       107.0       106.5      
    Net income excluding LPT (1)   28.4       44.4     (36 )     113.0       110.9     2  
    Adjusted net income (1)   28.7       36.1     (20 )     94.0       101.7     (8 )
    Net income before income taxes   34.7       58.2     (40 )     146.7       148.4     (1 )
    Net income   28.3       45.6     (38 )     118.6       118.1      
    Comprehensive income (loss)   (8.9 )     116.2     (108 )     122.1       171.0     (29 )
    Total assets                   3,541.3       3,550.4      
    Stockholders’ equity                   1,068.7       1,013.9     5  
    Stockholders’ equity including the Deferred Gain (2)                   1,162.7       1,113.1     4  
    Adjusted stockholders’ equity (2)                   1,245.2       1,199.1     4  
    Annualized adjusted return on stockholders’ equity (3)   9.3 %     12.2 %   (24 )%     7.7 %     8.5 %   (9 )
    Amounts per share:                          
    Cash dividends declared per share  $ 0.30     $ 0.28     7 %   $ 1.18     $ 1.10     7 %
    Earnings per diluted share (4)   1.14       1.77     (36 )     4.71       4.45     6  
    Earnings per diluted share excluding LPT (4)           1.72     (34 )     4.49       4.18     7  
    Adjusted earnings per diluted share(4)   1.14       1.40     (18 )     3.73       3.83     (3 )
    Book value per share (2)   1.15               43.52       39.96     9  
    Book value per share including the Deferred Gain (2)                   47.35       43.88     8  
    Adjusted book value per share (2)                   50.71       47.26     7  
    Combined ratio excluding LPT: (5)                          
    Loss and loss adjustment expense ratio:                          
    Current year   64.2 %     63.5 %         64.1 %     63.4 %    
    Prior Year   (4.7 )     (13.3 )         (2.5 )     (6.2 )    
    Loss and loss adjustment expense ratio   59.5 %     50.2 %         61.6 %     57.2 %    
    Commission expense ratio   12.8       14.0           13.5       13.9      
    Underwriting and general and administrative expense ratio   23.2       24.6           23.5       24.9      
    Combined ratio excluding LPT   95.5 %     88.8 %         98.6 %     96.0 %    
         
    (1) See Page 5 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.
    (2) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.
    (3) See Page 6 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.
    (4) See Page 11 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.
    (5) See Page 7 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.  
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Balance Sheets (unaudited)
    $ in millions, except per share amounts
      December 31,
    2024
        December 31,
    2023
     
    ASSETS            
    Available for sale:            
    Investments, cash and cash equivalents $ 2,532.4   $ 2,504.7  
    Accrued investment income   15.7     16.3  
    Premiums receivable, net   361.3     359.4  
    Reinsurance recoverable, net of allowance, on paid and unpaid losses and LAE   417.8     433.8  
    Deferred policy acquisition costs   59.6     55.6  
    Deferred income taxes, net   38.3     43.4  
    Contingent commission receivable—LPT Agreement       14.2  
    Other assets   116.2     123.0  
    Total assets $ 3,541.3   $ 3,550.4  
                 
    LIABILITIES            
    Unpaid losses and LAE $ 1,808.2   $ 1,884.5  
    Unearned premiums   402.2     379.7  
    Commissions and premium taxes payable   65.8     66.0  
    Deferred Gain   94.0     99.2  
    Other liabilities   102.4     107.1  
    Total liabilities $ 2,472.6   $ 2,536.5  
                 
    STOCKHOLDERS’ EQUITY            
    Common stock and additional paid-in capital $ 424.8   $ 420.4  
    Retained earnings   1,472.9     1,384.3  
    Accumulated other comprehensive loss, net   (82.5 )   (86.0 )
    Treasury stock, at cost   (746.5 )   (704.8 )
    Total stockholders’ equity   1,068.7     1,013.9  
    Total liabilities and stockholders’ equity $ 3,541.3   $ 3,550.4  
                 
    Stockholders’ equity including the Deferred Gain (1) $ 1,162.7   $ 1,113.1  
    Adjusted stockholders’ equity (1)   1,245.2     1,199.1  
    Book value per share (1) $ 43.52   $ 39.96  
    Book value per share including the Deferred Gain (1)   47.35     43.88  
    Adjusted book value per share (1)   50.71     47.26  
                 
    (1) See Page 10 for calculations and Page 12 for information regarding our use of Non-GAAP Financial Measures.            
    EMPLOYERS HOLDINGS, INC.
    Summary Consolidated Income Statements (unaudited)
    $ in millions
                             
      Three Months Ended     Years Ended
     
      December 31,     December 31,
     
        2024     2023     2024     2023  
    Revenues:        
    Net premiums earned $ 190.2   $ 187.5   $ 749.5   $ 721.9  
    Net investment income   26.7     26.2     107.0     106.5  
    Net realized and unrealized (losses) gains on investments (1)   (0.4 )   12.1     24.1     22.7  
    Other income (loss)   0.1     (0.1 )   0.1     (0.2 )
    Total revenues   216.6     225.7     880.7     850.9  
    Expenses:        
    Losses and LAE incurred   113.2     92.9     456.2     405.7  
    Commission expense   24.4     26.3     101.2     100.0  
    Underwriting and general and administrative expenses   44.2     46.1     176.5     180.0  
    Interest and financing expenses   0.1     0.6     0.1     5.8  
    Other expenses       1.6         11.0  
    Total expenses   (181.9 )   (167.5 )   (734.0 )   (702.5 )
    Net income before income taxes   34.7     58.2     146.7     148.4  
    Income tax expense   (6.4 )   (12.6 )   (28.1 )   (30.3 )
    Net income   28.3     45.6     118.6     118.1  
    Unrealized AFS investment (losses) gains arising during the period, net of tax   (39.2 )   66.6     (3.5 )   46.6  
    Reclassification adjustment for realized AFS investment gains in net income, net of tax   2.0     4.0     7.0     6.3  
    Total Comprehensive income $ (8.9 ) $ 116.2   $ 122.1   $ 171.0  
    Net income $ 28.3   $ 45.6   $ 118.6   $ 118.1  
    Amortization of the Deferred Gain – losses   (1.6 )   (1.5 )   (6.1 )   (6.3 )
    Amortization of the Deferred Gain – contingent commission       (0.3 )   (0.8 )   (1.5 )
    LPT reserve adjustment   1.7     0.9     1.7     0.9  
    LPT contingent commission adjustments       (0.3 )   (0.4 )   (0.3 )
    Net income excluding LPT Agreement (2) $ 28.4   $ 44.4   $ 113.0   $ 110.9  
    Net realized and unrealized losses (gains) on investments   0.4     (12.1 )   (24.1 )   (22.7 )
    Lease termination and asset impairment charges       1.6         11.0  
    Income tax (benefit) expense related to items excluded from Net income   (0.1 )   2.2     5.1     2.5  
    Adjusted net income (2) $ 28.7   $ 36.1   $ 94.0   $ 101.7  
                             
    (1) Includes unrealized gains on equity securities and other invested assets of $2.4 million and $17.8 million for the three months ended December 31, 2024 and 2023, respectively, and $30.5 million and $36.2 million for the year ended December 31, 2024 and 2023, respectively
    (2) See Page 12 regarding our use of Non-GAAP Financial Measures.
    EMPLOYERS HOLDINGS, INC.
    Return on Equity (unaudited)
    $ in millions
                             
      Three Months Ended    Years Ended  
      December 31,
       December 31,
     
        2024     2023     2024     2023  
           
    Net income A $ 28.3   $ 45.6   $ 118.6   $ 118.1  
    Impact of the LPT Agreement     0.1     (1.2 )   (5.6 )   (7.2 )
    Net realized and unrealized losses (gains) on investments     0.4     (12.1 )   (24.1 )   (22.7 )
    Lease termination and asset impairment charges         1.6         11.0  
    Income tax (benefit) expense related to items excluded from Net income     (0.1 )   2.2     5.1     2.5  
    Adjusted net income (1) B $ 28.7   $ 36.1   $ 94.0   $ 101.7  
               
    Stockholders’ equity – end of period   $ 1,068.7   $ 1,013.9   $ 1,068.7   $ 1,013.9  
    Stockholders’ equity – beginning of period     1,093.4     919.0     1,013.9     944.2  
    Average stockholders’ equity C $ 1,081.1   $ 966.5   $ 1,041.3   $ 979.1  
               
    Stockholders’ equity – end of period   $ 1,068.7   $ 1,013.9   $ 1,068.7   $ 1,013.9  
    Deferred Gain – end of period     94.0     99.2     94.0     99.2  
    Accumulated other comprehensive loss, before taxes – end of period     104.5     108.9     104.5     108.9  
    Income tax related to accumulated other comprehensive loss – end of period     (22.0 )   (22.9 )   (22.0 )   (22.9 )
    Adjusted stockholders’ equity – end of period     1,245.2     1,199.1     1,245.2     1,199.1  
    Adjusted stockholders’ equity – beginning of period     1,232.5     1,175.8     1,199.1     1,189.2  
    Average adjusted stockholders’ equity (1) D $ 1,238.9   $ 1,187.5   $ 1,222.2   $ 1,194.2  
               
    Return on stockholders’ equity A / C   2.6 %   4.7 %   11.4 %   12.1 %
    Annualized return on stockholders’ equity     10.5     18.9      
               
    Adjusted return on stockholders’ equity (1) B / D   2.3     3.0     7.7     8.5  
    Annualized adjusted return on stockholders’ equity (1)     9.3     12.2      
               
    (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.     
    EMPLOYERS HOLDINGS, INC.
    Combined Ratios (unaudited)
    $ in millions, except per share amounts
                                   
          Three Months Ended      Years Ended  
          December 31,     December 31,  
            2024     2023        2024     2023  
    Net premiums earned A   $ 190.2   $ 187.5     $ 749.5   $ 721.9  
    Losses and LAE incurred B     113.2     92.9       456.2     405.7  
    Amortization of deferred reinsurance gain – losses       1.6     1.5       6.1     6.3  
    Amortization of deferred reinsurance gain – contingent commission           0.3       0.8     1.5  
    LPT reserve adjustment       (1.7 )   (0.9 )     (1.7 )   (0.9 )
    LPT contingent commission adjustments           0.3       0.4     0.3  
    Losses and LAE excluding LPT (1) C   $ 113.1   $ 94.1     $ 461.8   $ 412.9  
    Prior year loss reserve development       (9.1 )   (24.9 )     (18.4 )   (44.9 )
    Losses and LAE excluding LPT – current accident year D   $ 122.2   $ 119.0     $ 480.2   $ 457.8  
    Commission expense E   $ 24.4   $ 26.3     $ 101.2   $ 100.0  
    Underwriting and general and administrative expense F   $ 44.2   $ 46.1     $ 176.5   $ 180.0  
    GAAP combined ratio:            
    Loss and LAE ratio B/A     59.5 %   49.5 %     60.9 %   56.2 %
    Commission expense ratio E/A     12.8     14.0       13.5     13.9  
    Underwriting and general and administrative expense ratio F/A     23.2     24.6       23.5     24.9  
    GAAP combined ratio       95.5 %   88.1 %     97.9 %   95.0 %
    Combined ratio excluding LPT: (1)            
    Loss and LAE ratio excluding LPT C/A     59.5 %   50.2 %     61.6 %   57.2 %
    Commission expense ratio E/A     12.8     14.0       13.5     13.9  
    Underwriting and general and administrative expense ratio F/A     23.2     24.6       23.5     24.9  
    Combined ratio excluding LPT       95.5 %   88.8 %     98.6 %   96.0 %
    Combined ratio excluding LPT: current accident year: (1)            
    Loss and LAE ratio excluding LPT D/A     64.2 %   63.5 %     64.1 %   63.4 %
    Commission expense ratio E/A     12.8     14.0       13.5     13.9  
    Underwriting and general and administrative expenses ratio F/A     23.2     24.6       23.5     24.9  
    Combined ratio excluding LPT: current accident year       100.2 %   102.1 %     101.1 %   102.2 %
                 
    (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.      
    EMPLOYERS HOLDINGS, INC.
    Roll-forward of Unpaid Losses and LAE (unaudited)
    $ in millions
                                   
      Three Months Ended      Years Ended  
      December 31,     December 31,  
        2024       2023       2024       2023  
                                   
    Unpaid losses and LAE at beginning of period $ 1,836.5     $ 1,913.4     $ 1,884.5     $ 1,960.7  
    Less reinsurance recoverable on unpaid losses and LAE   413.1       426.6       428.4       445.4  
    Net unpaid losses and LAE at beginning of period   1,423.4       1,486.8       1,456.1       1,515.3  
    Losses and LAE incurred:        
    Current year   122.2       119.1       480.2       457.8  
    Prior years – voluntary business   (8.6 )     (24.6 )     (17.9 )     (44.6 )
    Prior years – involuntary business   (0.5 )     (0.3 )     (0.5 )     (0.3 )
    Total losses incurred   113.1       94.2       461.8       412.9  
    Losses and LAE paid:        
    Current year   57.9       47.6       127.1       111.7  
    Prior years   82.8       77.3       395.0       360.4  
    Total paid losses   140.7       124.9       522.1       472.1  
    Net unpaid losses and LAE at end of period   1,395.8       1,456.1       1,395.8       1,456.1  
    Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE   412.4       428.4       412.4       428.4  
    Unpaid losses and LAE at end of period $ 1,808.2     $ 1,884.5     $ 1,808.2     $ 1,884.5  
     
    Total losses and LAE shown in the above table exclude amortization of the Deferred Gain, LPT Reserve Adjustments, and LPT Contingent Commission Adjustments, which totaled $(0.1) million and $1.2 million for the three months ended December 31, 2024 and 2023, respectively, and $5.6 million and $7.2 million for the year ended December 31, 2024 and 2023, respectively.
    EMPLOYERS HOLDINGS, INC.
    Consolidated Investment Portfolio (unaudited)
    $ in millions
                                 
       December 31, 2024      December 31, 2023   
    Investment Positions:   Cost or
    Amortized
    Cost (1)
      Net Unrealized
    Gain (Loss)
        Fair Value %       Fair Value %  
    Fixed maturity securities $ 2,203.1 $ (104.6)   $ 2,097.4 83 %   $ 1,936.3 77 %
    Equity securities   150.7   109.1     259.8 10       217.2 9  
    Other invested assets   90.9   15.7     106.6 4       91.5 4  
    Short-term investments   0.1       0.1       33.1 1  
    Cash and cash equivalents   68.3       68.3 3       226.4 9  
    Restricted cash and cash equivalents   0.2       0.2       0.2  
    Total investments and cash $ 2,513.3 $ 20.2   $ 2,532.4 100 %   $ 2,504.7 100 %
                                 
    Breakout of Fixed Maturity Securities:                            
    U.S. Treasuries and Agencies $ 61.4 $ (2.1 ) $ 59.3 3 %   $ 60.5 3 %
    States and Municipalities   163.0   (3.7 )   159.3 8       210.2 11  
    Corporate Securities   849.2   (46.0 )   803.0 38       895.8 46  
    Mortgage-Backed Securities   733.1   (47.9 )   684.9 33       426.0 22  
    Asset-Backed Securities   216.0   (2.0 )   214.0 10       128.0 7  
    Collateralized loan obligations   35.5   (0.2 )   35.3 2       91.5 5  
    Bank loans and other   144.9   (2.7 )   141.6 7       124.3 6  
    Total fixed maturity securities $ 2,203.1 $ (104.6 ) $ 2,097.4 100 %   $ 1,936.3 100 %
    Weighted average ending book yield on fixed income securities, cash, and cash equivalents   4.5 %     4.3 %
    Average credit quality (S&P) A+ A
    Duration   4.5       4.5  
     
    (1) Amortized cost excludes an allowance for current expected credit losses (CECL) of $1.1 million  
    EMPLOYERS HOLDINGS, INC.
    Book Value Per Share (unaudited)
    $ in millions, except per share amounts
                       
            December 31,
    2024
          December 31,
    2023
     
    Numerators:                  
    Stockholders’ equity A   $ 1,068.7     $ 1,013.9  
    Deferred Gain       94.0       99.2  
    Stockholders’ equity including the Deferred Gain (1) B     1,162.7       1,113.1  
    Accumulated other comprehensive loss, before taxes       104.5       108.9  
    Income taxes related to accumulated other comprehensive loss, before taxes       (22.0 )     (22.9 )
    Adjusted stockholders’ equity (1) C   $ 1,245.2     $ 1,199.1  
             
    Denominator (shares outstanding) D     24,556,706       25,369,753  
             
    Book value per share (1) A / D   $ 43.52     $ 39.96  
    Book value per share including the Deferred Gain (1) B / D     47.35       43.88  
    Adjusted book value per share (1) C / D     50.71       47.26  
             
    Cash dividends declared per share     $ 1.18     $ 1.10  
             
    YTD Change in: (2)        
    Book value per share       11.9 %     18.1 %
    Book value per share including the Deferred Gain       10.6       16.3  
    Adjusted book value per share       9.8       10.5  
                       
    (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.
    (2) Reflects the change per share after taking into account dividends declared in the period.
    EMPLOYERS HOLDINGS, INC.
    Earnings Per Share (unaudited)
    $ in millions, except per share amounts
                             
      Three Months Ended   Years Ended  
      December 31,
      December 31,
     
        2024     2023     2024     2023  
    Numerators:            
    Net income A   $ 28.3   $ 45.6   $ 118.6   $ 118.1  
    Impact of the LPT Agreement       0.1     (1.2 )   (5.6 )   (7.2 )
    Net income excluding LPT (1) B   $ 28.4   $ 44.4   $ 113.0   $ 110.9  
    Net realized and unrealized (gains) losses on investments       0.4     (12.1 )   (24.1 )   (22.7 )
    Lease termination and asset impairment charges           1.6         11.0  
    Income tax (benefit) expense related to items excluded from Net income       (0.1 )   2.2     5.1     2.5  
    Adjusted net income (1) C   $ 28.7   $ 36.1   $ 94.0   $ 101.7  
                                 
    Denominators:                            
    Average common shares outstanding (basic) D     24,725,425     25,645,821     25,050,605     26,368,801  
    Average common shares outstanding (diluted) E     24,902,459     25,801,380     25,194,814     26,523,651  
                                 
    Earnings per share:                            
    Basic A / D   $ 1.14   $ 1.78   $ 4.73   $ 4.48  
    Diluted A / E     1.14     1.77     4.71     4.45  
                                 
    Earnings per share excluding LPT: (1)                            
    Basic B / D     1.15     1.73     4.51     4.21  
    Diluted B / E     1.14     1.72     4.49     4.18  
                                 
    Adjusted earnings per share: (1)                            
    Basic C / D   $ 1.16   $ 1.41   $ 3.75   $ 3.86  
    Diluted C / E     1.15     1.40     3.73     3.83  
                                 
    (1) See Page 12 for information regarding our use of Non-GAAP Financial Measures.

    Non-GAAP Financial Measures

    Within this earnings release we present the following measures, each of which are “non-GAAP financial measures.” A reconciliation of these measures to the Company’s most directly comparable GAAP financial measures is included herein. Management believes that these non-GAAP measures are important to the Company’s investors, analysts and other interested parties who benefit from having an objective and consistent basis for comparison with other companies within our industry. Management further believes that these measures are more relevant than comparable GAAP measures in evaluating our financial performance.

    The LPT Agreement is a non-recurring transaction that no longer provides any ongoing cash benefits to the Company. Management believes that providing non-GAAP measures that exclude the effects of the LPT Agreement (amortization of deferred reinsurance gain, adjustments to LPT Agreement ceded reserves and adjustments to the contingent commission receivable) is useful in providing investors, analysts and other interested parties a meaningful understanding of the Company’s ongoing underwriting performance.

    Deferred reinsurance gain (Deferred Gain) reflects the unamortized gain from the LPT Agreement. This gain has been deferred and is being amortized using the recovery method, whereby the amortization is determined by the proportion of actual reinsurance recoveries to total estimated recoveries, except for the contingent profit commission, which was amortized through June 30, 2024, the date of its final determination. Amortization is reflected in losses and LAE incurred.

    Adjusted net income (see Page 5 for calculations) is net income excluding the effects of the LPT Agreement, and net realized and unrealized gains and losses on investments (net of tax), and any miscellaneous non-recurring transactions (net of tax). Management believes that providing this non-GAAP measures is helpful to investors, analysts and other interested parties in identifying trends in the Company’s operating performance because such items have limited significance to its ongoing operations or can be impacted by both discretionary and other economic factors and may not represent operating trends.

    Stockholders’ equity including the Deferred Gain (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain. Management believes that providing this non-GAAP measure is useful in providing investors, analysts and other interested parties a meaningful measure of the Company’s total underwriting capital.

    Adjusted stockholders’ equity (see Page 10 for calculations) is stockholders’ equity including the Deferred Gain, less accumulated other comprehensive income (net of tax). Management believes that providing this non-GAAP measure is useful to investors, analysts and other interested parties since it serves as the denominator to the Company’s adjusted return on stockholders’ equity metric.

    Return on stockholders’ equity and Adjusted return on stockholders’ equity (see Page 6 for calculations). Management believes that these profitability measures are widely used by our investors, analysts and other interested parties.

    Book value per share, Book value per share including the Deferred Gain, and Adjusted book value per share (see Page 10 for calculations). Management believes that these valuation measures are widely used by our investors, analysts and other interested parties.

    Net income excluding LPT (see Page 5 for calculations). Management believes that these performance and underwriting measures are widely used by our investors, analysts and other interested parties.

    The MIL Network

  • MIL-OSI: Diginex Limited Announces Secondary Listing on the Frankfurt Stock Exchange and Tradegate Exchange and the Engagement of German-based Kirchhoff Consult GmbH to Broaden Investor Base Across Europe

    Source: GlobeNewswire (MIL-OSI)

    HONG KONG, Feb. 20, 2025 (GLOBE NEWSWIRE) — Diginex Limited (“Diginex Limited” or the “Company”) (Nasdaq: DGNX), a Cayman Islands-based impact technology company specializing in environmental, social, and governance (ESG) issues, announced today that its shares currently traded on The Nasdaq Capital Market (“Nasdaq”), are now cross-listed on the Frankfurt Stock Exchange (Open Market) and the Tradegate Exchange under the symbol “I0Q” effective February 20, 2025. We expect this cross-listing to expand the Company’s global investor reach, and enhance liquidity and accessibility to European investors while reinforcing its presence in key international financial markets.

    In conjunction with the Frankfurt and Tradegate listings, Diginex Limited has engaged Kirchhoff Consult GmbH, a European affiliate of Lambert by LLYC (Lambert), and a leading German investor relations firm, to spearhead an aggressive European investor engagement effort. This initiative aims to expand and diversify Diginex Limited’s investor base across Europe, which the Company hopes to lead to increased liquidity and resilience in stock trading, solidifying the company’s corporate brand value in these regions, and providing greater access to European capital markets.

    “Our cross-listing on the Frankfurt Stock Exchange and the Tradegate Exchange, coupled with our strategic engagement with Kirchhoff Consult, represents a further step in Diginex Limited’s global growth strategy,” said Miles Pelham, Chairman of Diginex Limited. “Europe is a critical market for us, and we remain committed to deepening our relationships with European investors and partners. By increasing visibility and accessibility, we expect to enhance stock liquidity, strengthen brand awareness, support the growth of our European business operations, and drive long-term value creation for all shareholders.”

    The cross-listing follows Diginex Limited’s successful initial public offering (IPO) on Nasdaq, which closed on January 23, 2025. The Frankfurt Stock Exchange is the largest exchange in Germany and the third largest in Europe based on market capitalization. The Tradegate Exchange is a German Stock Exchange that specializes in the execution of private investor orders. With its shares now trading in both the U.S. and Europe, Diginex Limited believes that it is well-positioned to attract a broader range of institutional and retail investors, fostering sustainable growth and financial strength for the Company in global capital markets.

    The engagement with Kirchhoff Consult GmbH builds on the Company’s recent partnership with Lambert and its Hong Kong partner, Strategic Public Relations Group Ltd, reinforcing Diginex Limited’s strategic focus on enhancing visibility and bolstering investor engagement across key global markets.

    About Diginex Limited

    Diginex Limited is a Cayman Islands exempted company incorporated under the laws of the Cayman Islands in 2024, with subsidiaries located in Hong Kong, United Kingdom and United States of America. Diginex Limited conducts operations through its wholly owned subsidiary Diginex Solutions (HK) Limited, a Hong Kong corporation (“DSL”) and DSL is the sole owner of (i) Diginex Services Limited, a corporation formed in the United Kingdom and (ii) Diginex USA LLC, a limited liability company formed in the State of Delaware. DSL commenced operations in 2020, is headquartered in Hong Kong, and is a software company that empowers businesses and governments to streamline ESG, climate, and supply chain data collection and reporting. DSL is an impact technology business that helps organizations to address the some of the most pressing ESG, climate and sustainability issues, utilizing blockchain, machine learning and data analysis technology to lead change and increase transparency in corporate social responsibility and climate action.

    Diginex’s products and services solutions enable companies to collect, evaluate and share sustainability data through easy-to-use software For more information, please visit the Company’s website: https://www.diginex.com/.

    Forward-Looking Statements

    Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s filings with the SEC.

    For investor and media inquiries, please contact:

    Diginex
    Investor Relations
    Email:ir@diginex.com

    European IR Contract
    Jens Hecht
    Phone: +49.40.609186.82
    Email: jens.hecht@kirchhoff.de

    US IR Contract
    Jackson Lin
    Lambert by LLYC
    Phone: +1 (646) 717-4593
    Email: jian.lin@llyc.global

    The MIL Network

  • MIL-OSI United Nations: Signs of ‘Historic Progress’ towards Peace Emerge, Central African Republic’s Delegate Tells Security Council, Requesting Donor Support for 2025 Elections

    Source: United Nations General Assembly and Security Council

    UN Official Notes Fragility in Border Areas despite Overall Security Improvement

    The Central African Republic has made significant progress towards the 2025 elections, the head of the United Nations peacekeeping mission in the country told the Security Council today, while also noting overall security improvements and persistent fragility in border areas.

    Valentine Rugwabiza, Secretary-General’s Special Representative and Head of the United Nations Multidimensional Integrated Stabilization Mission in the Central African Republic (MINUSCA), emphasized that the upcoming electoral cycle represents a historic opportunity to lay the foundation for decentralized governance.  Recently, national authorities along with MINUSCA’s support were able to register 570,000 new voters and had opened the first-ever multiservice post at the country’s border with Chad.

    However, despite this important progress, serious pockets of insecurity persist, particularly in areas where armed groups try to control mining sites and transhumance corridors, she continued.  Implementation of the national border-management policy requires additional support as the conflict in Sudan also threatens to spill over.  While welcoming the dissolution of 9 out of 14 armed groups who signed the Political Agreement for Peace and Reconciliation six years ago, she also said that more needs to be done — in collaboration with regional partners — to facilitate the return of armed group leaders and ensure their disarmament.

    On the human rights front, she urged the Government to launch the Truth, Justice, Reparation and Reconciliation Commission, through the appointment of its new commissioners.  “If left unaddressed, [human rights] crimes could undermine the hard-earned security gains and further erode social cohesion,” she warned. Paying tribute to a 29-year-old Tunisian peacekeeper recently killed in an ambush in Bamingui-Bangoran, she urged the authorities to bring the perpetrators to justice.

    “We need your support to build a stronger and more inclusive economy in the Central African Republic,” said Portia Deya Abazene, President of the Federation of Women Entrepreneurs of the Central African Republic, via video link.  Despite the adoption of international conventions and a constitution guaranteeing equal rights, “harmful practices continue to hinder the progress of women in [Central African Republic]”, she said, highlighting the low representation of women in leadership positions.  Women represent only 15.52 per cent of business owners in certain sectors and face constraints in accessing land, means of production, education, financing, markets and decent employment.

    Women Key to Economic Development

    Ms. Abazene’s organization provides a space for experience-sharing among women entrepreneurs at the local level, as well as training programmes in leadership, management, financial education and digital marketing.  “The achievements of Central African women in entrepreneurship are the result of their determination and political will,” she underscored, calling for policies promoting female entrepreneurship and easier access to financing.  “The Central African Republic will not reach its potential as long as more than 51 per cent of its population” —  women —  continue to be marginalized, she said. 

    Council members emphasized the need to address human rights violations in the country, urged its authorities to seize the opportunity to hold credible elections, and highlighted MINUSCA’s vital role in helping to expand State authority.  Several speakers, however, offered differing views on the root causes of Bangui’s instability.

    United States, United Kingdom, Russian Federation Trade Barbs 

    “It is clear that Kremlin-backed actors, purporting to be security partners, are undercutting Central African Republic’s authorities and undermining peace with the primary goal of stealing [Central African Republic] resources without contributing to its development,” said the representative of the United States. . “It is unacceptable that a member of this Council continues to disseminate disinformation that diminishes the credibility and effectiveness of MINUSCA,” he added, expressing serious concern over the violation of the Status of Forces Agreement, namely the blocking of MINUSCA fuel trucks.

    The United Kingdom’s delegate said his country has information “that proxies directed by the Russian State have plans to interfere with [Central African Republic] elections, including through suppressing political voices and conducting disinformation campaigns to interfere in political debate”.  They are acting without regard for the country’s sovereignty and jeopardizing the dedicated UN role, he said.  Also highlighting reports of Wagner Ti Azande and other armed groups committing atrocities against civilians, he called on all actors to the conflict to uphold their obligations under international law.

    The representative of the Russian Federation said that, given the considerable security improvements in the Central African Republic, it is “surprising” that the United States and United Kingdom continue “whipping the dead horse of their campaign to smear” her country.  This campaign has run out of steam.  Moscow remains committed to cooperating with Bangui to achieve lasting peace and security.  As far as the security situation, she expressed concerns for the area bordering Sudan, which has become an “additional burden” of human rights concerns.  Successful municipal elections in July will be a “milestone on the road to peaceful life” in the Central African Republic.

    The representative of China, Council President for February, speaking in his national capacity, said the situation in the country “is good, in general”, with progress in enhancing governance capacity and consolidating political gains.  MINUSCA must prioritize support for election preparations, he said, adding that the international community should avoid undue external interference.

    Democratic, Inclusive, Fair Elections

    The representative of Somalia, also speaking for Algeria, Guyana and Sierra Leone, welcomed the inauguration of “the first-ever multiservice border post in the Central African Republic” built with MINUSCA’s support. Despite security, logistical and financial challenges — preparations towards local, legislative and presidential elections are progressing.  Emphasizing the need for open and constructive dialogue between the Government and opposition parties, he also called for “concerted” efforts to ensure that all eligible citizens are registered to vote.  “We wish to underline that the success of the local election process is essential for the strengthening of direct democracy, legitimacy, local development and the extension of State authority throughout the national territory,” he added.

    Other speakers also said that the upcoming elections were a unique opportunity for the Central African Republic, with Panama’s delegate emphasizing that 2025 is a “pivotal year” for Bangui.  “These will be the first local elections in more than three decades,” he said, urging the Government to guarantee that “these elections will be carried out in a peaceful environment”.  Slovenia’s delegate said that, while local elections can signify a major step in the further decentralization of the country, they “will only be considered credible and democratic, if all eligible voters are able to register and cast their vote, including women, youth, minorities, internally displaced persons, returnees and refugees”.

    Fear of Sudan Conflict Spillover

    Joining others in expressing concern over the spillover of the conflict in Sudan, the representative of the Republic of Korea said that the presence of the Rapid Support Forces — a paramilitary group in Sudan — in the Central African Republic “only brings more risk to the already-fragile landscape”.  Similarly, Greece’s representative said that recent gains in border-management policy “are undermined by the transiting of armed groups across the porous north-eastern region”.

    Pakistan’s delegate noted that his country had contributed 1,300 troops to MINUSCA and expressed concern over the shortfall in funding.  “As of 4 February, unpaid assessed contributions to the Special Account for MINUSCA amounted to $570.7 million,” he said.  Other Council members also stressed the need to provide financial and material support for the Central African Republic, with France’s delegate noting that Paris has allocated €2 million to the United Nations Development Programme (UNDP) for Bangui’s upcoming elections, and €200,000 to enable the country’s Special Criminal Court to function.  Peacebuilding “depends on progress achieved in combating impunity”, he stressed.

    The representative of the Central African Republic, detailing his country’s “considerable progress in pursuing peace” since the signing of the 2019 peace agreement, reported that 9 of 14 armed groups have dissolved, 7,000 combatants have disarmed and demobilized, and 20,000 weapons of various calibres have been collected.  “This is a sign of historic progress,” he stressed, while noting the “one major challenge” remaining — “the complete eradication of isolated armed groups, which continue to carry out atrocities against civilians”.  To the armed groups that remain, he underscored:  “The door for dialogue remains wide open.”

    He went on to stress:  “Insecurity directly threatens the democratic process that we intend to consolidate.” Noting that the crisis is Sudan is seriously impacting his own, he called on the international community to support Bangui’s forces; provide training, logistical and intelligence support; and strengthen MINUSCA’s mandate so the Mission can be more proactive in addressing security threats.  And for the ongoing electoral process — “a fundamental pillar for stability and lasting peace” — he appealed for financial support amounting to $7 million. “By supporting this process, the international community will be directly contributing to peace and development in our country,” he said.

    MIL OSI United Nations News

  • MIL-OSI Canada: New provincial task force will focus on food security, growth, economy

    Source: Government of Canada regional news

    To ensure B.C.’s food supply and food economy continues to grow in the face of U.S. tariff uncertainty, and to help farmers find new markets, a new Premier’s task force on agriculture and food economy has been formed.

    “All British Columbians want reliable access to healthy and affordable food,” said Premier David Eby. “We must protect our food sources and our agricultural sector in the face of the threat of unfair and damaging tariffs. The respected industry leaders in our task force will provide the government with first-hand knowledge of how to prepare and respond to these threats, as we continue to grow our agricultural sector.”

    The new task force is a result of ongoing conversations with industry and allows government to work closely with B.C.’s agriculture and food sector to increase the growth and competitiveness of B.C. products. Members will also recommend how to ensure people in British Columbia have continued access to healthy and affordable food, no matter what happens with U.S. tariffs or a trade war. The task force’s work will be guided by diverse, knowledgeable and successful leaders, including primary producers from the province’s farming sector, as well as seafood harvesters, food and beverage processors, distributors and retailers.

    “B.C.’s agricultural communities have demonstrated time and again how strongly they come together and join forces in times of need,” said Lana Popham, Minister of Agriculture and Food. “By including the voices of farmers, processors, retailers and distributors in this task force, we are including expertise from farm to table in building a resilient and sustainable food system that is competitive and strengthens B.C.’s economy and food supply.”

    The task force will have 15 representatives from across the agriculture and food sector. It will be co-chaired by leadership from the BC Agriculture Council, which advocates on behalf of 29 member associations, and BC Food and Beverage, which represents a diverse range of processors throughout the province, along with the deputy minister of the Ministry of Agriculture and Food.

    “B.C.’s agriculture sector has been a significant economic contributor and an important piece of our province’s identity for more than a century, but the long-term viability of farming faces several challenges,” said Danielle Synotte, executive director, BC Agriculture Council (BCAC). “If the economic growth potential of the sector is to be realized, we need to re-evaluate the way we see and value agriculture. The Premier’s task force is an opportunity to build a shared vision for the sector that involves innovative ideas and a shift in perspective, focusing on solutions, and BCAC is thrilled to be a partner on this very important work.” 

    The group will hold its first meeting next week, virtually, and is expected to meet in person on a quarterly basis over the next 12 to 18 months.

    “There has never been a more important time for our industry to work collaboratively with key stakeholders and government to ensure the continued growth and competitiveness of the agriculture, processing and seafood sectors in this province,” said James Donaldson, CEO, BC Food & Beverage. “I look forward to working with the members of this task force who represent a great cross-section of leaders representing the food system in B.C.”

    The task force will also provide targeted recommendations to government about key topics, such as water, land, labour, competitiveness and investment.

    A backgrounder follows.

    MIL OSI Canada News

  • MIL-OSI New Zealand: Industrial hemp regulations to be reviewed

    Source: New Zealand Government

    Minister for Regulation David Seymour says that outdated and burdensome regulations surrounding industrial hemp (iHemp) production are set to be reviewed by the Ministry for Regulation.

    Industrial hemp is currently classified as a Class C controlled drug under the Misuse of Drugs Act, despite containing minimal THC and posing little risk of misuse.

    “This over-regulation stifles economic growth and innovation within the sector,” says Mr Seymour.

    The Ministry for Regulation has received extensive feedback on the red tape hindering the industry, both through its review into Agricultural and Horticultural Products and the red tape tipline.

    In response, the Ministry is working with MedSafe and the Ministry of Health to reassess these nearly twenty-year-old regulations. 

    A 2023 report by MBIE highlighted hemp as a key opportunity for New Zealand’s bioeconomy, with the New Zealand Hemp Industries Association (NZHIA) projecting potential earnings of $2 billion by 2030, contingent on regulatory reform.

    “Despite several government interventions since the legalisation of hemp cultivation in 2006, the sector has seen limited growth.

    “It’s time for a new approach that balances risk management with unlocking opportunities for growers.

    “I will present reform options to Cabinet later this year, to rejuvenate the iHemp sector and drive economic growth.”

    MIL OSI New Zealand News

  • MIL-OSI USA: Governor Lamont Heads Delegation of Connecticut Officials and Business Leaders on Economic Mission in India

    Source: US State of Connecticut

    (HARTFORD, CT) – Governor Ned Lamont today announced that from Sunday, February 23, to Saturday, March 1, 2025, he will head a delegation of state officials and business leaders from Connecticut on an economic development mission in India, where they will meet with executives of companies and key government officials to discuss strategies that will build stronger economic ties between Connecticut and India.

    The delegation includes Connecticut Economic and Community Development Commissioner Daniel O’Keefe; former PepsiCo CEO Indra Nooyi; UConn President Radenka Maric; Yale University Vice Provost for Research Michael Crair; Connecticut Innovations CEO Matthew McCooe; and executives from Advance Connecticut, a business-driven nonprofit organization that works to engage, retain, and recruit businesses to Connecticut. Infosys CEO Salil Parekh, who is a board member of Advance Connecticut and resides in India, will host the group during the visit. The delegation will be traveling to Chennai, Bangalore, and Mumbai.

    “There are several notable Indian companies that have expressed interest in expanding their operations to North America, and we plan on meeting with them to let them know why Connecticut is an excellent place for them to select as their base of operations,” Governor Lamont said. “We will also meet with executives from several Indian companies that are already operating in our state, such as Infosys and Tata Consultancy Services. Connecticut and India have many unique connections, and we want to strengthen that bond and increase it to its full economic potential.”

    In addition to one-on-one meetings with corporate decision makers representing Indian companies, the delegation will be participating in events such as Venture Clash, a roundtable discussion on quantum computing, and an MOU signing, which will be announced during the visit.

    The socio-economic ties between Connecticut and India are strong. Indians make up the second-largest foreign-born population in the state, and Connecticut has the seventh highest population of Indian residents proportionally in the United States, with numerous Indian cultural groups operating in every corner of the state. As a result of this, Connecticut receives the ninth most tourism dollars spent by Indian travelers per capita in the United States.

    India-born residents in Connecticut make up 14% (38,000) of the state’s foreign-born population. Of the19,990 international students studying in Connecticut, 7,200 are from India, making it the top country of origin of international students in the state. Approximately 36.5% of international students in Connecticut are from India, compared to 29.4% nationally.

    “Connecticut has been successful at attracting Indian technology companies, especially fintech and insurtech companies that have clients in Hartford and Stamford,” Commissioner O’Keefe said. “We also have the advantage of an excellent location from which these companies can easily access their clients in the large metro areas of Montreal, Toronto, New York, and Boston from a Connecticut-based headquarters location.”

    “We have a number of Indian companies operating in Connecticut,” John Bourdeaux, president and CEO of Advance Connecticut, said. “Equally, there are several Connecticut-headquartered companies with operations in India, including Amphenol and Stanley Black & Decker, among others. Creating stronger connections with Indian business leaders will be a win-win for the state and for the companies. Indian companies integrate successfully into the Connecticut business ecosystem and the Connecticut economy benefits greatly from their growing businesses.”

    Governor Lamont may adjust his schedule and return to Connecticut earlier than currently planned if it is determined to be necessary.

     

    MIL OSI USA News

  • MIL-OSI USA: Graham Votes To Confirm Kash Patel

    US Senate News:

    Source: United States Senator for South Carolina Lindsey Graham
    WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made this statement after voting to confirm Kash Patel as Director of the Federal Bureau of Investigation (FBI). Patel was confirmed by a vote of 51-49.
    “I am extremely pleased to have cast my vote to confirm Kash Patel as the new director of the FBI. Kash has been a federal defense attorney and prosecutor, and he has been deeply involved in counter terrorism practice and policy. He was also one of the key figures who discovered the Russian hoax against President Trump.
    “Kash is the right man to clean up the FBI to restore Americans’ confidence and trust that the FBI is not a political organization, it is a law enforcement organization. The men and women of the FBI will be in good hands with Kash Patel.”

    MIL OSI USA News

  • MIL-OSI USA: 02.20.2025 Sen. Cruz, Chairman of the Subcommittee on Africa and Global Health Policy, Meets with African Ambassadors

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sen. Ted Cruz (R-Texas), the Chairman of the Subcommittee on Africa and Global Health Policy and a member of the Senate Foreign Relations Committee, held a roundtable with ambassadors and representatives from Africa this week. The countries represented included: Algeria, Egypt, Morocco, Tunisia, Malawi, Ghana, Senegal, Djibouti, Madagascar, Zambia, Equatorial Guinea, Kenya, Uganda, Gabon, Togo, Mozambique, Mauritania, and Ethiopia, as well as a Representative from the African Union.
    Following the meeting, Sen. Cruz said, “I intend to use my chairmanship of the Subcommittee on Africa and Global Health Policy to ensure that America’s policy towards Africa is focused on advancing American national security interests across the continent, with an emphasis on countering China’s efforts to undermine those interests and conduct malign activities. The subcommittee will hold regular and multiple hearings on these and other issues.
    “Right now, the Chinese Communist Party is pouring billions into its Belt and Road Initiative across Africa. These projects serve as a tool for the CCP to lock in crushing debt and undermine the sovereignty of countries across the continent.
    “In this meeting, I also emphasized that national security is inextricably linked to energy, and the issue was raised by at least half of the ambassadors in the room. Economic prosperity hinges on access to reliable energy and critical resources. The United States has a unique opportunity to expand economic ties by fostering partnerships in energy, as well as in critical mineral and other resources, which will bring greater prosperity and a brighter future for Africans while strengthening America’s strategic position in the region.”
    BACKGROUND
    The Subcommittee on Africa and Global Health Policy deals with all matters concerning U.S. relations with countries in Africa (except those, like the countries of North Africa, specifically covered by other subcommittees), as well as regional intergovernmental organizations like the African Union and the Economic Community of West African States. This subcommittee’s regional responsibilities include all matters within the geographic region, including matters relating to: (1) terrorism and non-proliferation; (2) crime and illicit narcotics; (3) U.S. foreign assistance programs; and (4) the promotion of U.S. trade and exports.
    In addition, this subcommittee has global responsibility for health-related policy, including disease outbreak and response.

    MIL OSI USA News

  • MIL-OSI USA: Welch Speaks on Kash Patel’s Willingness to Enable Trump’s Reckless Illegality Before Voting Against His Nomination: “He’s on a mission to wreck the FBI”

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    WASHINGTON, D.C. –Today, U.S. Senator Peter Welch (D-Vt.) spoke on the Senate Floor before voting against Kash Patel, President Trump’s pick to serve as the next Director of the Federal Bureau of Investigation (FBI). Senator Welch expressed his opposition to Mr. Patel and raised concerns about Mr. Patel’s involvement and actions enabling President Trump’s firing spree of career FBI agents and officials, his unwillingness to stand up against President Trump’s demands, and his perpetuation of Trump’s Big Lie about the 2020 election.  
    “Mr. Patel is not the person to lead the FBI. And my hope is that all of us should consider what Mr. Patel will do. He’s going to use the power of the FBI to go after all those in government, those in the media, and those across the country he doesn’t agree with. He cannot serve as the next director of the FBI,” said Senator Welch. 
    Watch the Senator’s full remarks below: 
    Read key excerpts from Senator Welch’s remarks here: 
    “I believe that this country and Congress is in the midst of a slow-moving but rapidly accelerating constitutional crisis. This is real, and we can ignore it or see it. It began most visibly, of course, on January 6, 2021, when two norms of this republic—the peaceful transfer of power and the renunciation of violence to affect the outcome of a vote count and certification— were breached. And where many members of the House and Senate also voted against certifying the election of the person chosen by the people in their own states. The president continues to say that the election was stolen, and he has coached his nominees to embrace the Big Lie.  
    “The first month of the Trump Administration has shown a contempt for the Constitution; an acceptance of lawlessness that is dangerous to the future of our republic. President Trump’s election denialism was only an early sign of his disregard for the norms and requirements of the Constitution. Now, empowered in a second term by a Congress and a Judiciary which refused to assert their independence, Mr. Trump has enacted executive order after executive order to dismantle our institutions. He doesn’t have the authority to do what he’s doing.” 
    ■■■
    “It is my view that this administration is showing maximum contempt for core constitutional values, including, most importantly, the separation of powers. This is not about what the president’s agenda is. This is about his disregard about the limits that apply to each branch of government. And we have a dilemma. There are many in Congress that are fully in support of President Trump’s policies. That’s his right to pursue them, any member’s right to support them.  
    “But it has to be that we accept our unique responsibility—each of the 100 U.S. Senators—that we have to guarantee that in pursuit of those policies, it is done within constitutional boundaries. That is the glue that has held this country together through thick and thin for nearly 250 years. You know, this is not just talk about civic aspiration. It’s a recognition that the separation of powers, that the system of checks and balances—we’re custodians of that, each of us here—that the concept of the executive’s ambition should be matched with the ambition of the legislature. That’s what’s held us together through the turmoil of our own history.” 
    ■■■
    “I’m voting against Mr. Patel, primarily, but not exclusively, because he’s clearly an instrument in [Trump’s] effort to continue eroding the precepts of the Constitution on separation of powers. And I urge all my fellow Senators, Republican and Democrat, to embrace the responsibility we have to assert our responsibility and authority as a coequal branch…   
    “I’m regarding what President Trump has been doing in his first month in office as an illegal rampage—it’s a rampage of illegality. He’s showing a contempt for Congress and a contempt for the United States Judiciary. Mr. Patel has signed onto that agenda. He isn’t just someone who will be forced to participate in the president’s campaign of retribution, he’s an active participant. He’s got his ‘enemies list.’ We know this because his own words said what the FBI—’what was the FBI doing planning January 6 for a year?’ No basis for that, other than to set up the attack on the good men and women of the FBI.”   
    ■■■
    This morning, Senator Welch joined Senate Judiciary Democrats outside of the FBI Headquarters building in Washington, D.C. to call on their Republican colleagues to block the nomination of Mr. Patel on the Senate Floor. 
    Senator Welch has expressed reservations about Mr. Patel’s nomination in the Senate Judiciary Committee. During Mr. Patel’s confirmation hearing, Senator Welch grilled the nominee about his refusal to acknowledge that President Biden won the 2020 Presidential Election and stressed the importance of combatting any attempt to weaponize the Justice Department and the FBI under the Trump Administration. Last week, Senator Welch reacted to reports that Mr. Patel has been personally involved in the Trump Administration’s ongoing efforts to target and fire career FBI agents and officials. Under oath, Mr. Patel told Senator Welch he had no recollection of the purge at the FBI.  

    MIL OSI USA News

  • MIL-OSI USA: ICYMI: Senator Reverend Warnock Spotlights Dangerous Cuts to Medicaid in Presser Addressing Washington Politicians’ Proposed Tax Bill

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    ICYMI: Senator Reverend Warnock Spotlights Dangerous Cuts to Medicaid in Presser Addressing Washington Politicians’ Proposed Tax Bill

    On Wednesday afternoon, Senator Reverend Warnock addressed the impact of proposed Republican cuts to Medicaid on ordinary Georgians
    The press conference came hours after President Trump endorsed the House Republican budget plan, which includes scathing cuts to Medicaid and other programs that hard working Georgians rely on
    Senator Reverend Warnock has long championed Medicaid protections and closing the health care coverage gap
    Senator Reverend Warnock: “This is backward, it’s not only immoral it’s impractical, we’re making the American workforce sicker and weaker, […] we’ve got to straighten out this mess and center to the people”

    Above: Senator Reverend Warnock during the Hands Off Medicaid press conference
    Washington, D.C. – On Wednesday afternoon, U.S. Senator Reverend Raphael Warnock (D-GA) outlined the dire impacts of potential Medicaid cuts on ordinary Georgians. The Senator pushed back on cuts to Medicaid and other key programs proposed by Washington politicians in the recent budget plan.
    The proposed plans potentially set up deep cuts to Medicaid, threatening to shut down more rural hospitals, and rip away healthcare from some of the nation’s most vulnerable communities, including thousands of Georgia seniors and children.
    “A budget is more than a fiscal document. It is also a moral document. Show me your budget and I’ll show you who you think matters, who’s in and who’s out, who you think is expendable, where your priorities are,” said Senator Reverend Warnock.
    This is backward, it’s not only immoral it’s impractical, we’re making the American workforce sicker and weaker, […] we’ve got to straighten out this mess and center to the people,” Senator Reverend Warnock concluded.
    The press conference was hosted by U.S. Senator Tammy Baldwin (D-WI) and also included U.S. Senators Ron Wyden (D-OR), Patty Murray (D-WA), Catherine Cortez Masto (D-NV), Peter Welch (D-VT), and Maggie Hassan (D-NH). The press conference is part of the Health Care Strike Team, created by Senate Democrats to push back on Republicans’ reconciliation efforts.
    Senator Warnock has long championed efforts to expand affordable health care access, starting with his advocacy to close the health care coverage gap in Georgia. In addition to pushing for solutions to close the coverage gap, Senator Warnock led a delegation of Georgia lawmakers in urging the Centers for Medicare & Medicaid Services to provide tools to Medicaid non-expansion states like Georgia to help them protect health care access for Medicaid enrollees who lose eligibility after the end of the public health emergency declaration.
    Watch Senator Warnock’s remarks HERE.
    Below full remarks from Senator Warnock at press conference:
    “A budget is more than a fiscal document. It is also a moral document. Show me your budget and I’ll show you who you think matters, who’s in and who’s out, who you think is expendable, where your priorities are.”
    “As we take stock of what Washington Republicans are trying to do now, this budget, if it were an EKG (electrocardiogram), would suggest that Washington Republicans have a heart problem and that they are in need of moral surgery.”
    “The consequences of the actions that they are trying to take in this moment hits into the lives of ordinary people. I think too often those of us who work in this space and those who cover us, sort of cover the politicians. And when the politics becomes about the politicians, we lose site of where and how this actually matters for ordinary people. What they’re trying to do is both immoral and impractical. I have been working in this health care fight for years, long before I decided to run for the United States Senate, I was fighting for health care in Georgia.”
    “I remember when we passed the Affordable Care Act, how glad I was that that happened and I went into the Georgia Capitol and staged to sit-in in the governor’s office because that governor, and the next governor, and the governor after that have all refused to expand Medicaid in Georgia. It suggested that politicians have a heart problem.”
    “Jesus said, ‘Where your treasure is, there your heart will be also.’ Dr. King, who pastored the church where I now serve, said that ‘Of all the injustices, inequality in health care is the most shocking and the most inhumane.’”
    “They are busy trying to pass a tax cut for the wealthiest people in America, billionaires and millionaires, and they’re doing it on the backs of ordinary people. This cannot stand.”
    “We will continue to hold unaccountable and we encourage all of our constituents to hold them accountable. And because I’ve been focused on this issue, glad now to serve on the finance committee under the great Ron Wyden and we’ll be focused on these issues. I got arrested in Georgia trying to get healthcare for folks. Staging a sit-in and in the governor’s office. In fact, I got arrested in this Capitol in 2017 when they were trying to do the same thing, pass the $2 trillion dollar tax cut at the expense of the poor and the farm bill at the expense of the children’s health care program, but I decided to move from being an agitator to a legislator, but we got to keep on agitating, even if it’s inside of these halls.”
    “When I came to the Senate, I talked to all of my colleagues here in the Democratic Caucus and they agreed with me that we needed to provide Georgia and other non-expansion states some more incentives to expand. Remember, we got 14.2 billion for the non-expansion states to expand, $2 billion just for Georgia alone. You know what Georgia did? Georgia left that money on the table and left over 600,000 Georgians in the healthcare coverage gap.”
    “Some got the message, North Carolina took those incentives and they expanded, a purple state, Kentucky expanded. Now they’re trying to go after these incentives. They want to go after the tax credits that will allow people to get health care and this has consequences on the lives of ordinary people. We’ve seen a dozen hospitals in Georgia close over the last decade, and those hospitals could be opened with paying customers if they could get access to Medicaid.”
    “When I think about this, I often think about Heather Payne, who is a traveling nurse from Dalton, Georgia. Georgia has a health care program, if you want to call it that. That has not enrolled 10,000 people yet. Heather Payne is one of those people stuck in the gap. That’s why my colleagues pointed out, very often we talk about Medicaid expansion, we’re talking about the working poor, people who work every single day. Heather Payne is a traveling nurse who was taking care of patients even during COVID, and then because she was a traveling nurse, some days she had health care, sometimes she didn’t have health care. She wasn’t poor enough to get conventional Medicaid and the programs that she was eligible for would cost between 500 and $1,000 a month, it was too much.”
    “One day she realized that something was happening in her body. She knew something wasn’t right, but she didn’t have enough money to see what it was, and finally, she saved enough money of her own cash to finally go and see a neurologist. And the neurologist said, you’ve actually had a series of mini-strokes that require additional care. And so here she is, she needs additional care, but she doesn’t have health care. And so she’s literally caught up in the gap between the refusal of a state of Georgia to expand Medicaid and these onerous work requirements in states like Georgia. She’s sick, too sick to work, and she’s being asked to prove that she can work, or that she is working, so that she can get health care.”
    “Why’d they give Elon Musk and people like him a tax cut? Let me put this in perspective, in closing, and nobody believes a Baptist preacher when he says ‘In closing’, I was proud that we got $14 billion to help these states to expand Medicaid. Elon Musk has got $18 billion in incentives from our federal government. And he’s the one who’s telling us that the rest of us need to tighten our belts.”
    “This is backwards, it’s not only immoral it’s and impractical, we’re making the American workforce sicker and weaker, which I think ultimately is a national security issue, and so we’ve got a straighten out this mess and center to the people. People like Heather Payne, who’s waiting right in this very moment to get the health care she deserves.”

    MIL OSI USA News

  • MIL-OSI USA: Schatz: Instead Of Addressing Rising Prices, Air Safety Issues, And New Disease Outbreaks, Trump And Republicans Want To Cut Taxes For Billionaires And Make You Pay For It

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz

    WASHINGTON – Today on the Senate floor, U.S. Senator Brian Schatz (D-Hawai‘i) underscored President Donald Trump and congressional Republicans’ efforts to cut taxes for billionaires, while making working families foot the bill as they struggle with soaring prices, persistent air safety concerns, and growing threats to public health.

    “The price of eggs has gone up by 15%, which is the single biggest monthly increase in ten years. Price of coffee is up 25% since the start of the year, and everything from gas to housing to car insurance is getting more expensive. But I don’t want people to worry because Republicans are on it. Donald Trump knows that the main thing people elected him to do is to lower prices. And rest assured, he is working day and night to fix it. Everybody knows that the best way to lower costs for individual Americans is to cut taxes for billionaires. Everybody knows that. If eggs are eight bucks where you’re living, obviously cut tax for billionaires. If coffee is increasingly expensive, cut taxes for billionaires. That is the very first thing that Republicans in the new Congress have decided to do is cut taxes for the richest people to ever exist,” said Senator Schatz.

    Schatz continued, “People are dying because of the flu and the bird flu. Let’s cut taxes for billionaires. Airplanes are falling out of the sky. Let’s cut taxes for billionaires. People are losing their homes and wildfires and losses in Los Angeles and floods in Kentucky. Let’s cut taxes for billionaires. Families can’t afford their health care or housing, no matter how hard they work. Let’s cut taxes for billionaires. Kids are falling behind in school with a third of a third of eighth graders lacking basic reading skills. Let’s cut taxes for billionaires. Trump is illegally cutting funding for pediatric cancer research and disease prevention. Let’s cut taxes for billionaires. Thousands of National Park Service workers fired. I know what we should do. Why don’t we shovel a bunch of money to a bunch of billionaires? Millions of people. Millions of people are on the verge of starvation, disease and death because Trump suddenly and illegally suspended one of our primary arms of foreign policy, USAID. What is their solution? Not to exert any pressure on the State Department or the OMB. Or the President himself. Let’s cut taxes for billionaires.”

    “Their solution to every problem, big or small, domestic or global, complex or simple, is to cut taxes for billionaires,” Schatz concluded.

    Video of his complete remarks is available here.

    The full text of Senator Schatz’s remarks, as delivered, is below.

    The price of just about everything is going up right now. Anyone that has been to the grocery store in the past few weeks now knows how hard it is to find a dozen eggs since the President was inaugurated.

    The price of eggs has gone up by 15%, which is the single biggest monthly increase in ten years. Price of coffee is up 25% since the start of the year, and everything from gas to housing to car insurance is getting more expensive. But I don’t want people to worry because Republicans are on it. Donald Trump knows that the main thing people elected him to do is to lower prices.

    And rest assured, he is working day and night to fix it. Everybody knows that the best way to lower costs for individual Americans is to cut taxes for billionaires. Everybody knows that. If eggs are eight bucks where you’re living, obviously cut tax for billionaires. If coffee is increasingly expensive, cut taxes for billionaires. That is the very first thing that Republicans in the new Congress have decided to do is cut taxes for the richest people to ever exist.

    And they’re going to do it by making regular people pay. Now, that might sound like a partisan accusation. And of course, on some level it is. But if you’re sitting at home listening to the chatter about one big, beautiful bill or two bills and you’re wondering what it all means, here’s what they are doing. They want to cut taxes for billionaires to the tune of about $4.5 trillion, $4.5 trillion.

    And because they already blew up the federal deficit in 2017, and because there are some House Republicans and maybe some Senate Republicans who won’t vote for a package that increases the deficit, they actually need to find some savings elsewhere. It is very hard to find $4.5 trillion worth of savings. So what are they doing? They’re having to cut programs and services that help people on a daily basis.

    Hundreds of billions of dollars from Social Security, Medicare, Medicaid, the Affordable Care Act, subsidies and food assistance. They’re slashing funding for cancer research and disaster recovery and schools and national parks and VA clinics. They are laying off thousands of employees at federal agencies, one third of whom are veterans. And to be clear, this is not for the holy grail of efficiency.

    Food is rotting at the dock. Medicine is rotting. The National Park Service is already backed up. Normally takes one minute to get into a national park, and a lot of places are. It’s not even. It’s like cold outside, taking 90 minutes to get into national parks. That’s not efficiency. They’re laying off probationary people. But let’s be clear what probationary means.

    It does mean new hires. It also means anybody who’s getting a promotion, someone who has performed well. The United States government says, “You’re so good. We want you to do something even more important”. So then you get put into this probationary category, and then you get laid off. Why? Why? Because they need to find $4.5 trillion worth of savings.

    That’s what’s going on. As we speak, there are multiple outbreaks of diseases and illness within the United States. We’re in the middle of the worst flu season in a decade. 13,000 Americans dead. Norovirus cases have skyrocketed by 340% this winter, and there have been 68 cases of the bird flu nationwide. Not to mention that if you can find eggs at all, there’s sometimes 8 or $10 for a dozen.

    In Texas, 58 people, mostly children, have gotten measles. And that’s to say nothing of the Ebola and Marburg virus in eastern Africa. But don’t worry, Trump is on it. And by on it, I mean he’s laying off the very people who are responding to these crises. We learned yesterday that after DOJ’s fired officials at the Department of Agriculture who were working on containing the bird flu, they had to quickly backtrack to try to rehire them.

    Sometimes they don’t have these people’s email addresses. Sorry. Would you please come back? I don’t know how to find you. This is not efficiency. This is an arson job. So they can generate savings so they can shovel $4.5 trillion to the people on that stage at inauguration. That’s what this is. We are less than two months into the year, and we’ve already had four major deadly aviation disasters, including one right here in Washington over the Potomac and Trump is firing hundreds of FAA employees.

    People who have jobs like maintenance mechanic, information specialist, safety assistant. They actually asked a bunch of air traffic controllers to quit. We’re short air traffic controllers. We’ve been short air traffic controllers for 6 or 7 years. As a matter of fact, when I was the chairman of the relevant committee, we worked on a bipartisan basis to put a lot of a lot of money behind hiring more air traffic controllers.

    Now, you can be a conservative and think the government should be smaller, or you can be a liberal and think the government should be bigger. I assume nobody thinks we should lay off air traffic controllers.

    And if we’re going to do that, it be it should be because something else even more urgent than air traffic control is at stake. But let’s understand what’s at stake. What’s at stake is $4.5 trillion in tax cuts for the wealthiest people to ever walk this planet. We are less than a month away from the March 14th funding deadline to keep the government open, and we don’t even have topline numbers yet alone, let alone full committee bills.

    We are nowhere near a defense bill, but the only thing that Republicans are focused on right now immediately, urgently is cutting taxes for billionaires. People are dying because of the flu and the bird flu. Let’s cut taxes for billionaires. Airplanes are falling out of the sky. Let’s cut taxes for billionaires. People are losing their homes and wildfires and losses in Los Angeles and floods in Kentucky.

    Let’s cut taxes for billionaires. Families can’t afford their health care or housing, no matter how hard they work. Let’s cut taxes for billionaires. Kids are falling behind in school with a third of a third of eighth graders lacking basic reading skills. Let’s cut taxes for billionaires. Trump is illegally cutting funding for pediatric cancer research and disease prevention. Let’s cut taxes for billionaires.

    Thousands of National Park Service workers fired. I know what we should do. Why don’t we shovel a bunch of money to a bunch of billionaires? Millions of people. Millions of people are on the verge of starvation, disease and death because Trump suddenly and illegally suspended one of our primary arms of foreign policy, USAID. What is their solution? Not to exert any pressure on the State Department or the OMB.

    Or the President himself. Let’s cut taxes for billionaires. Anything and everything comes down to this. Why? Because it’s the main thing they think about. There are so many smart people on the other side of the aisle, so many people who have accomplished so much in their careers. And they are lighting it on fire for this man.

    The solution to every problem, big or small, domestic or global, complex or simple, is to cut taxes for billionaires. This is their project. This is their reason for being. Whatever else has motivated them to run for office in the first place? This is the first thing they’re doing. Instead of a bunch of other stuff.

    It doesn’t have to be like this. You can be a Republican.

    And give them their cabinet and their judges and justices. But my God, stand up for this place. Why would you run for office and then just remove your frontal lobe?

    And do whatever this man thinks. It doesn’t matter how much harm comes to your hospitals or your schools or your roads, or the one third of federal workers who are veterans. The solution always is to cut taxes for billionaires. I yield the floor.

    MIL OSI USA News

  • MIL-OSI USA: Durbin: Kash Patel’s Record Shows He Is A Dangerous, Inexperienced, & Dishonest Trump Loyalist Who Is Not Qualified To Serve As Next FBI Director

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    February 20, 2025

    In a speech on the Senate floor shortly before the vote on his nomination, Durbin summarizes Kash Patel’s disqualifying behavior

    WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, delivered his closing argument against the nomination of Kash Patel to serve as the next Director of the Federal Bureau of Investigation (FBI).  In his remarks delivered shortly before the vote on Patel’s nomination, Durbin underscored Patel’s extremism, his blind loyalty to President Trump, his dangerous support of January 6 insurrectionists, and his history of peddling lies about the federal government.

    “If Senate Republicans confirm Mr. Patel, I believe they will come to regret this vote, probably sooner rather than later.  I, for one, am convinced that Mr. Patel has neither the experience, the judgment, nor the temperament to lead this… criminal investigative agency [FBI],” Durbin began.  “Let me be clear.  This is not a partisan issue.  During my time in the Senate, I have voted for four FBI Director nominations before this one.  Each one was a Republican, and I voted for them, nevertheless.”

    “I oppose Mr. Patel because he is dangerously, politically extreme.  He has repeatedly expressed his intention to use our nation’s most important law enforcement agency to retaliate against his political enemies,” Durbin said.

    Durbin then began to lay out his justification for opposing Patel’s nomination and warned his Republican colleagues about the potential consequences of allowing an unqualified extremist to lead the nation’s top law enforcement agency.  Durbin first pointed to the credible whistleblower allegations that detailed Patel’s direct involvement in the ongoing purge of senior law enforcement officials at the FBI. 

    “The Director is the only political appointment at the FBI. Congress took steps to ensure that this position remains as apolitical as possible by providing for a single term of 10 years for a director and subjecting the appointment to the advice and consent of the Senate… But as we have seen for weeks now, the Trump Administration’s purge of the FBI is a political exercise that has spread to career officials,” Durbin said.  “This purge has dramatically weakened the FBI’s ability to combat national security threats and has made Americans less safe.  Senior leaders with collectively hundreds of years of experience have been forced out, creating a leadership vacuum.”

    Thousands of FBI agents now fear for their jobs because they were assigned to work on cases related to the January 6 insurrection or President Trump’s long list of legal infractions.  Whistleblowers have come forward with evidence that Patel, as a private citizen, called for these agents to be fired—which Patel denied vehemently despite being under oath during his nomination hearing.  Further, these career agents now fear for their own and their families’ safety as January 6 insurrections continue to make credible, serious, and public threats against them.

    “I have heard directly from FBI agents who now fear for their safety and the safety of their families. To understand why, let me tell you about a January 6 rioter named Edward Kelley.  Mr. Kelley was convicted of assaulting law enforcement during the attack on the U.S. Capitol… and he was given a full and unconditional pardon by Donald Trump.  But Mr. Kelley has also been convicted in his home state of Tennessee of conspiracy to murder the FBI agents who investigated his role in the January 6 attack.  Now he is arguing that President Trump’s blanket pardon should cover his attempt to kill FBI agents,” Durbin said.

    “When asked about the possible firings of career FBI officials at his confirmation hearing, Mr. Patel, under oath, said, ‘I don’t know what’s going on right now’ at the FBI.  That’s not true.  Thanks to multiple brave whistleblowers, we now know that Mr. Patel likely committed perjury in making that statement,” Durbin said.  “Even before being confirmed as the FBI Director, Mr. Patel is already directing the ongoing purge of honorable career public servants despite his status as a private citizen.”

    Durbin offered several more examples of Patel’s consistent dishonesty, including the string of lies his told during his own confirmation hearing in the Senate Judiciary Committee.

    “At his hearing, Mr. Patel implausibly told me that he could not recall Stew Peters, a man who has been identified as an antisemitic Holocaust denier… This is simply not true, considering that Mr. Patel appeared on Mr. Peters’s podcast eight times.  Eight times, and he couldn’t recall the man’s name.  And, Mr. Peters has since revealed that he and Mr. Patel directly communicate via their personal cell phones ‘constantly,’” Durbin said.

    As Durbin noted in his remarks, Patel continually offered unequivocal support to insurrectionists, producing a recording of January 6 rioters singing in order to raise money.  Under oath at his nomination hearing, Patel testified that he was not involved in the project despite being quoted saying, “We got this idea to record the January 6 prisoners who recite the national anthem every night from the D.C. prison… Then we took that to studio… So we mastered and digitized that.”

    “Mr. Patel also claimed he ‘didn’t have anything to do with’ the recording of the so-called January 6 Prison Choir, which includes at least six rioters who violently assaulted police officers,” Durbin said.  “Mr. Patel has called these violent January 6 rioters ‘political prisoners.’  That includes Guy Reffitt, who was sentenced to 87 months in prison for his role in the January 6 assault.”

    “Mr. Reffitt brought a gun to the Capitol on January 6…  Mr. Reffitt’s 19-year-old son, Jackson, turned him in to law enforcement after the attack, despite Reffitt’s threats to shoot Jackson and his sister,” Durbin said.  “Mr. Reffitt received a full and unconditional pardon from President Trump.  Guess where he was on January 30 of this year?  Back at the Capitol complex, at Mr. Patel’s confirmation hearing.”

    Durbin then pointed to those who have warned against the nomination of Patel to serve as FBI director, including many of President Trump’s former appointees.

    “Consider who is warning us about Mr. Patel: former Trump officials who know him, like Attorney General Barr, CIA Director Haspel, Defense Secretary Mark Esper, and National Security Advisor John Bolton… All Republican appointees. Mr. Patel has left a long trail of grievances, lashing out at anyone who is not completely aligned with him. He calls Democrats ‘vindictive, evil, [and] vicious,’ and repeatedly attacks Republican Senators who don’t toe the MAGA line,” Durbin said. 

    “I have read Mr. Patel’s book, Government Gangsters.  It includes an enemies list of 60 names, ‘members of the deep state’ in the words of Kash Patel, which includes distinguished public servants from both political parties.  What do they all have in common?  From Attorneys General Bill Barr and Merrick Garland to former FBI Directors Bob Mueller and Chris Wray, they all have had the misfortune of crossing paths with the vindictive Patel,” Durbin said.

    Durbin underscored his final point, reiterating that Patel aims to dismantle the FBI from the inside out. 

    “Mr. Patel claims he respects law enforcement, but his words and actions demonstrate his disdain for the FBI.  He has said that on day one, he plans to ‘shut down’ the FBI headquarters.  And he has falsely claimed that the FBI ‘was planning January 6 for a year,’ beforehand.  There is no truth to that statement,” Durbin said.

    Durbin concluded by emphasizing that Patel will serve as a dangerous, influenceable lackey for President Trump and tarnish the reputation of an independent FBI.

    “Mr. Patel’s record demonstrates that he is dangerous, inexperienced, and dishonest.   He should not and cannot serve as an effective FBI Director.  Mr. Patel has been crystal clear that he plans on using the FBI’s vast surveillance and investigative authority to ‘come after’ the President’s enemies,” Durbin said.

    “It is shocking that my Republican colleagues are willing to support Mr. Patel, despite the serious threat he poses to our national security.  I’m sorry to say that I believe they will quickly come to regret this vote,” Durbin concluded.

    To view Durbin’s questions to Patel in his confirmation hearing click here and here.

    Video of Durbin’s remarks on the floor is available here.

    Audio of Durbin’s remarks on the floor is available here.

    Footage of Durbin’s remarks on the floor is available here for TV Stations.

    -30-

    MIL OSI USA News

  • MIL-OSI USA: Senate Judiciary Democrats Slam DOJ Decision To Replace Apolitical Ethics Official With Inexperienced Political Appointees

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    February 20, 2025

    SJC Democrats to Bondi, Bove: “Your sworn testimony misled Congress and the American people and eliminated a critical safeguard against corruption within the Department.”

    WASHINGTON – Today, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, led all Senate Judiciary Committee Democrats in an oversight letter to Attorney General Pam Bondi and Acting Deputy Attorney General Emil Bove, criticizing Department of Justice (DOJ) officials’ reported decision to replace a high-ranking career official handling sensitive ethics matters with two inexperienced political appointees.

    The decision is a dramatic departure from practice under previous Democratic and Republican administrations. Additionally, the removal is in direct conflict with promises Bondi made to Congress and the American people during her confirmation hearing and may allow Bondi to participate in cases where she otherwise may have been told to recuse due to conflicts of interest.

    The Senators begin by voicing their strong objection, writing: “We write to strongly object to your alarming decision to grant decision-making authority regarding sensitive ethics and personnel issues—responsibilities long assigned to a senior career Department of Justice (DOJ) official—to two inexperienced political appointees. This decision is a dramatic departure from practice under previous Democratic and Republican administrations, where a senior DOJ career official had decision-making responsibilities on matters related to ethics, employee discipline, whistleblower complaints, and information provided to inspectors general and Congress. Previous administrations did not consider granting these responsibilities to political appointees for good reason; politicizing this role is profoundly dangerous to the integrity of the Department and threatens the employees who work there.”

    The Senators continue by underscoring the direct conflicts between this removal and Bondi’s testimony to Congress, writing: “This new directive is in direct conflict with promises you made, under oath, to Congress and the American people in your confirmation hearing. When Ranking Member Durbin asked you about your many potential conflicts of interest as a former lobbyist—including your representation of foreign regimes like Qatar, corporate giants like Amazon and Uber, and the private prison company, the GEO Group—you responded that, to avoid conflicts, you ‘would consult with the career ethics officials within the Department and make the appropriate decision’ (emphasis added). In your written responses to senators’ questions after your confirmation hearing, you again pledged that you would consult with career ethics officials to avoid conflicts of interest. By transferring responsibilities for ethics decisions from a senior career ethics official to political appointees, you have coincidentally removed the appropriate career ethics official with whom you promised to consult.”

    The Senators further highlight Bondi’s misleading testimony to Congress and the American people in light of this removal, writing: “Business leaders from wealthy corporations were reportedly optimistic upon President Trump’s announcement that he intended to nominate you as Attorney General,  and, without a serious check on your decision-making regarding corporate interests, we are concerned that you will fail to hold companies accountable. Already, on February 5, you signed a memo disbanding Task Force KleptoCapture, which coordinated the investigation of certain companies for illegal exports and money laundering, and announced steps to scale back efforts to enforce laws related to foreign lobbying transparency and bribes of foreign officials. And now, important decisions on ethical questions related to companies that you have lobbied on behalf of—businesses with an extraordinary reach that impact millions of American consumers—will be made by political aides who report to you.”

    The Senators conclude with a series of oversight requests—including a copy of the delegation order and related records—for information to be produced to the Committee.

    For a PDF copy of the letter to Attorney General Pam Bondi and Acting Deputy Attorney General Emil Bove, click here.

    -30-

    MIL OSI USA News

  • MIL-OSI USA: In Memoriam: Berrien Moore III [1941–2024]

    Source: NASA

    Berrien Moore III, Dean of the College of Atmospheric and Geographic Sciences at the University of Oklahoma (OU), director of the National Weather Center in Norman, OK, and Vice President for Weather and Climate Programs, died on December 17, 2024. Berrien earned an undergraduate degree from the University of North Carolina in 1963 and a doctorate degree from the University of Virginia in 1969. After graduating, he taught mathematics at the University of New Hampshire (UNH) and became tenured in 1976. 
    In 1987, Berrien became director of the Institute for the Study of Earth, Oceans, and Space (ISEOS) at UNH. NASA chose ISEOS to be one of the 24 founding members of the “Working Prototype Federation” of Earth Science Information Partners (ESIP) in 1998. Still active more than 25 years later, ESIP is now a thriving nonprofit entity funded by cooperative agreements with NASA, the National Oceanic and Atmospheric Administration (NOAA), and the U.S. Geological Survey, which brings together interdisciplinary collaborations (among over 170 partners) to share technical knowledge and engage with data users.
    Berrien left UNH in 2008, to serve as the founding Executive Director of Climate Central, a think-tank based in Princeton, NJ, which is dedicated to providing objective and understandable information about climate change
    Berrien moved to OU in 2010. Given his diverse academic, research, and career experience in global carbon cycle, biogeochemistry, remote sensing, environmental and space policy, and mathematics, Berrien was a natural choice to become the architect and principal investigator for the Geostationary Carbon Cycle Observatory (GeoCARB), a proposed NASA Earth Venture Mission that would have monitored plant health and vegetation stress throughout the Americas from geostationary orbit, probing natural sources, sinks, and exchange processes that control carbon dioxide, carbon monoxide, and methane in the atmosphere. While the mission was ultimately cancelled, the lessons learned are being applied to similar current and future Earth observing endeavors, e,g, NASA’s ECOsystem Spaceborne Thermal Radiometer Experiment on Space Station (ECOSTRESS) mission.
    Berrien served on and chaired numerous government-affiliated scientific committees throughout his career. From 1995–1998 he served on the National Research Council’s Committee on Global Change Research, which produced the landmark report, “Global Environment Change: Research Pathways for the Next Decade.” In 2011, he was an author on the National Research Council’s (NRC) decadal survey, “Earth Science and Applications from Space: A Community Assessment and Strategies for the Future.”
    Berrien participated on international scientific committees as well. From 1998–2002, he was the chair of the Science Committee of the International Geosphere Biosphere Programme (IGBP). He was also a lead author within the Intergovernmental Panel on Climate Change’s Third Assessment Report, which was released in 2001.
    Berrien served in several roles specific to NASA, including as a committee member and later chair of the organization’s Space and Earth Science Advisory Committee. He served as Chair of the Earth Observing System (EOS) Payload Advisory Committee, member and Chair of NASA’s Earth Science and Applications Committee, and member of the NASA Advisory Council. He was also active at NOAA, having chaired the agency’s Research Review Team and served on the Research and Development Portfolio Review Team for NOAA’s Science Advisory Board. 
    Berrien received NASA’s highest civilian honor, the Distinguished Public Service Medal, for outstanding service and the NOAA Administrator’s Recognition Award. He also received the 2007 Dryden Lectureship in Research Medal from the American Institute of Aeronautics and Astronautics and was honored for his contributions to the IPCC when the organization received the 2007 Nobel Peace Prize.

    MIL OSI USA News

  • MIL-OSI USA: A Snapshot of Trump’s First Month: Making America Safe Again

    Source: US Federal Emergency Management Agency

    Headline: A Snapshot of Trump’s First Month: Making America Safe Again

    em>“President Trump said from the start: criminal illegals have no place in our homeland. He is keeping his promise.” – Secretary of Homeland Security Kristi Noem
    WASHINGTON – In a single month, President Trump and Secretary Noem have made massive strides to address the crisis at the southern border and remove violent criminal aliens from American communities. This is just the beginning of the golden age of America. PROMISES MADE, PROMISES KEPT:   

    On day one, President Trump declared a national emergency at the southern border and restarted construction of the border wall.   
    President Trump instantly reinstated “Remain in Mexico” and ended catch and release.   
    The Trump administration has empowered our brave men and women in ICE, Border Patrol, and Coast Guard to use common sense to do their jobs effectively.   
    DHS has repealed Biden Era rules that allowed criminal aliens to hide from law enforcement in places like schools and churches to avoid arrest.    
    DHS returned to using the term “illegal alien” to use statutory language and stop political correctness from hindering law enforcement.   
    ICE arrests of criminal aliens have doubled and arrests of fugitives at large has tripled.   
    Daily border encounters have plunged 93% since President Trump took office.  
    To fulfill President Trump’s promise to carry out mass deportations, the administration is detaining illegal aliens, including violent criminals, at Guantanamo Bay.    
    President Trump designated international cartels and other criminal gangs, such as MS-13 and Tren de Aragua, as Foreign Terrorist Organizations.    
    President Trump signed the Laken Riley Act which mandates the federal detention of illegal immigrants who are accused of theft, burglary, assaulting a law enforcement officer, and any crime that causes death or serious bodily injury.    
    President Trump stopped the broad abuse of humanitarian parole and returned the program to a case-by-case basis.  
    Secretary Noem ended the previous administration’s extension of Venezuelan Temporary Protected Status.   
    DHS froze all grants to non-profit organizations that facilitate illegal immigration.   
    DHS deputized  the Texas National Guard, Drug Enforcement Administration, Bureau of Prisons, U.S. Marshals, the Bureau of Alcohol, Tobacco, Firearms and Explosives, members of the State Department and the IRS to help with immigration operations.   
    Secretary Noem clawed back $80 million that FEMA deep state activists unilaterally gave to put illegal aliens up in luxury New York City hotels. 

    Bottom Line: Since President Trump was inaugurated, he’s made it clear there is a new sheriff in town. The President and Secretary Noem will continue fighting every day to secure our borders and keep American communities safe.  

    MIL OSI USA News

  • MIL-OSI USA: Lunar Cold Electronics Assessment Workshop (Apr 30 – May 1, 2025)

    Source: NASA

    The workshop will be hosted by NASA Jet Propulsion Laboratory.Virtual and in-person attendance are available. Registration is required for both. (Link coming soon!)Virtual attendees will receive connection information one week before the workshop.

    The NASA Engineering and Safety Center (NESC) is conducting an assessment of the state of cold capable electronics for future lunar surface missions. The intent is to enable the continuous use of electronics with minimal or no thermal management on missions of up to 20 years in all regions of the lunar surface, e.g., permanently shadowed regions and equatorial.

    The scope of the assessment includes: capture of the state of cold electronics at NASA, academia, and industry; applications and challenges for lunar environments; gap analyses of desired capabilities vs state of the art/practice; guidance for cold electronics selection, evaluation and qualification; and recommendations for technology advances and follow-on actions to close the gaps.

    The preliminary report of the assessment will be available the first week of April 2025 on this website, i.e., 3 weeks prior to the workshop. Attendees are urged to read the report beforehand as the workshop will provide only a limited, high-level summary of the report’s key findings.
    The goal of the workshop is to capture your feedback with regards to the findings of the report, especially in the areas below:

    Technologies, new or important studies or data that we missed.
    Gaps, i.e. requirements vs available capabilities that we missed.
    Additional recommendations, suggestions, requests, that we missed.

    Day 1, April 30, 2025

    8:00 – 9:00      Sign-in
    9:00 – 10:00    Introduction – Y. Chen
    10:00 – 11:00  Environment and Architectural Considerations – R. Some
    11:00 – 12:00 Custom Electronics – M. Mojarradi
    12:00 – 13:00  Lunch
    13:00 – 14:00  COTS Components – J. Yang-Scharlotta
    14:00 – 15:00  Power Architecture – R. Oeftering
    15:00 – 15:30  Energy Storage – E. Brandon
    15:30 – 17:00  Materials and Packaging and Passives – L. Del Castillo
    17:00 – 17:30  Qualification – Y. Chen
    18:30               Dinner

    Day 2, May 1, 2025

    8:00 – 9:00      Sign-in
    9:00 – 12:00    Review and discussion of key findings  
    12:00 – 13:00  Lunch
    13:00 – 15:00  Follow on work concepts & discussions.

    Please be prepared to discuss: 15 min each from industry primes and subsystem developers
    What would you like to see developed and how would it impact your future missions/platforms?

    15:00 – 17:30  Follow on work concepts & discussions

    15 min each from technology & component developers, academia, government agencies, etc.
    What would you like to be funded to do and what are benefits to NASA/missions?

    17:00 – 17:30  Wrap up – Y. Chen

    If you have any questions regarding the workshop, please contact Roxanne Cena at Roxanne.R.Cena@jpl.nasa.gov and Amy K. Wilson at Amy.K.Wilson@jpl.nasa.gov

    MIL OSI USA News

  • MIL-OSI USA: Summary of the Joint NASA LCLUC–SARI Synthesis Meeting

    Source: NASA

    Introduction
    The NASA Land-Cover and Land-Use Change (LCLUC) is an interdisciplinary scientific program within NASA’s Earth Science program that aims to develop the capability for periodic global inventories of land use and land cover from space. The program’s goal is to develop the mapping, monitoring and modeling capabilities necessary to simulate the processes taking place and evaluate the consequences of observed and predicted changes. The South/Southeast Asia Research Initiative (SARI) has a similar goal for South/Southeast Asia, as it seeks to develop innovative regional research, education, and capacity building programs involving state-of-the-art remote sensing, natural sciences, engineering, and social sciences to enrich land use/cover change (LUCC) science in South/Southeast Asia. Thus it makes sense for these two entities to periodically meet jointly to discuss their endeavors.
    The latest of these joint meetings took place January 1–February 2, 2024, in Hanoi, Vietnam. A total of 85 participants attended the three-day, in-person meeting—see Photo.  A total of 85 participants attended the three-day, in-person meeting. The attendees represented multiple international institutions, including NASA (Headquarters and Centers), the University of Maryland, College Park (UMD), other American academic institutions, the Vietnam National Space Center (VNSC, the event host), the Vietnam National University’s University of Engineering and Technology, and Ho Chi Minh University of Technology, the Japanese National Institute of Environmental Studies (NIES), Center for Environmental Sciences, and the University of Tokyo. In addition, several international programs participated, including GEO Global Agricultural Monitoring (GEOGLAM), the System for Analysis, Research and Training (START), Global Observation of Forest and Land-use Dynamics (GOFC–GOLD), and NASA Harvest.

    Meeting Overview
    The purpose of the 2024 NASA LCLUC–SARI Synthesis meeting was to discuss LUCC issues – with a particular focus on their impact on Southeast Asian countries. Presenters highlighted ongoing projects aimed to advance our understanding of the spatial extent, intensity, social consequences, and impacts on the environment in South/Southeast Asian countries. While presenters reported on specific science results, they also were intentional to review and synthesize work from other related projects going on in Southeast Asia. 
    Meeting Goal
    The meeting’s overarching goal was to create a comprehensive and holistic understanding of various LUCC issues by examining them from multiple angles, including: collating information; employing interdisciplinary approaches; integrating research; identifying key insights; and enhancing regional collaborations. The meeting sought to bring the investigators together to bridge gaps, promote collaborations, and advance knowledge regarding LUCC issues in the region. The meeting format also provided ample time between sessions for networking to promote coordination and collaboration among scientists and teams. 
    Meeting and Summary Format
    The meeting consisted of seven sessions that focused on various LUCC issues. The summary report that follows is organized by day and then by session. All presentations in Session I and II are summarized (i.e., with all speakers, affiliations, and appropriate titles identified). The keynote presentation(s) from Sessions III–VI are summarized similarly. The technical presentations in each of these sessions are presented as narrative summaries. Session VII consisted of topical discussions to close out the meeting and summaries of these discussions are included herein. Sessions III–VI also included panel discussions, but to keep the article length more manageable, summaries of these discussions have been omitted. Readers interested in learning more about the panel discussions or viewing any of these presentations in full can access the information on the Joint LCLUC–SARI Synthesis meeting website.
    DAY ONE
    The first day of the meeting included welcoming remarks from the U.S. Ambassador to Vietnam (Session I), program executives of LCLUC and SARI,  as well as from national space agencies in South and Southeast Asia (Session II), and other LCLUC-thematic/overview presentations (Session III).
    Session 1: Welcoming Remarks
    Garik Gutman [NASA Headquarters—LCLUC Program Manager], Vu Tuan [VNSC’s Vietnam Academy of Science and Technology (VAST)—Vice Director General], Chris Justice [University of Maryland, College Park (UMD)—LCLUC Program Scientist], Matsunaga Tsuneo [National Institute of Environmental Studies (NIES), Japan], and Krishna Vadrevu [NASA’s Marshall Space Flight Center—SARI Lead] delivered opening remarks that highlighted collaborations across air pollution, agriculture, forestry, urban development, and other LUCC research areas. While each of the speakers covered different topics, they emphasized common themes, including advancing new science algorithms, co-developing products, and fostering applications through capacity building and training.
    After the opening remarks, special guest Marc Knapper [U.S. Ambassador to Vietnam] gave a presentation in which he emphasized the value of collaborative research between U.S. and Vietnamese scientists to address environmental challenges – especially climate change and LUCC issues. He expressed appreciation to the meeting organizers for promoting these collaborations and highlighted the joint initiatives between NASA and the U.S. Agency for International Development (USAID) to monitor environmental health and climate change, develop policies to reduce emissions, and support adaptation in agriculture. The U.S.–Vietnam Comprehensive Strategic Partnership emphasizes the commitment to address climate challenges and advance bilateral research. He concluded by encouraging active participation from all attendees and stressed the need for ongoing international collaboration to develop effective LUCC policies.
    Session-II: Programmatic and Space Agency Presentations
    NOTE: Other than Ambassador Knapper, the presenters in Session I gave welcoming remarks and programmatic and/or space agency presentations in Session II,.
    Garik Gutman began the second session by presenting an overview of the LCLUC program, which aims to enhance understanding of LUCC dynamics and environmental implications by integrating diverse data sources (i.e., satellite remote sensing) with socioeconomic and ecological datasets for a comprehensive view of land-use change drivers and consequences. Over the past 25 years, LCLUC has funded over 325 projects involving more than 800 researchers, resulting in over 1500 publications. The program’s focus balances project distribution that spans detection and monitoring, and impacts and consequences, including drivers, modeling, and synthesis. Gutman highlighted examples of population growth and urban expansion in Southeast Asia, resulting in environmental and socio-economic impacts. Urbanization accelerates deforestation, shifts farming practices to higher-value crops, and contributes to the loss of wetlands. This transformation alters the carbon cycle, degrades air quality, and increases flooding risks due to reduced rainwater absorption. Multi-source remote sensing data and social dimensions are essential in addressing LUCC issues, and the program aims to foster international collaborations and capacity building in land-change science through partnerships and training initiatives. (To learn more about the recent activities of the LCLUC Science Team, see Summary of the 2024 Land Cover Land Use Change Science Team Meeting.)
    Krishna Vadrevu explained how SARI connects regional and national projects with researchers from the U.S. and local institutions to advance LUCC mapping, monitoring, and impact assessments through shared methodologies and data. The initiative has spurred extensive activities, including meetings, training sessions, publications, collaborations, and fieldwork. To date, the LCLUC program has funded 35 SARI projects and helped build collaborations with space agencies, universities, and decision-makers worldwide. SARI Principal Investigators have documented notable land-cover and land-use transformations, observing shifts in land conversion practices across Asia. For example, the transition from traditional slash-and-burn practices for subsistence agriculture to industrial oil palm and rubber plantations in Southeast Asia. Rapid urbanization has also reshaped several South and Southeast Asian regions, expanding both horizontally in rural areas and vertically in urban centers. The current SARI solicitation funds three projects across Asia, integrating the latest remote sensing data and methods to map, monitor, and assess LUCC drivers and impacts to support policy-making.
    Vu Tuan provided a comprehensive overview of Vietnam’s advances in satellite technology and Earth observation capabilities, particularly through the LOTUSat-1 satellite (name derived from the “Lotus” flower), which is equipped with an advanced X-band Synthetic Aperture Radar (SAR) sensor capable of providing high-resolution imagery [ranging from 1–16 m (3–52 ft)]. This satellite is integral to Vietnam’s efforts to enhance disaster management and climate change mitigation, as well as to support a range of applications in topography, agriculture, forestry, and water management, as well as in oceanography and environmental monitoring. The VNSC’s efforts are part of a broader strategy to build national expertise and self-reliance in satellite technology, such as developing a range of small satellites (e.g., NanoDragon, PicoDragon, and MicroDragon) that progress in size and capability. Alongside satellite development, the VNSC has established key infrastructure, facilities, and capacity building in Hanoi, Nha Trang, and Ho Chi Minh City to support satellite assembly, integration, testing, and operation. Tuan showcased the application of remotely sensed LUCC data to map and monitor urban expansion in Ha Long city from 2000–2023 and the policies needed to manage these changes sustainably – see Figure 1.

    Tsuneo Matsunaga provided a detailed overview of Japan’s Greenhouse Gases Observing Satellite (GOSAT) series of satellites, data from which provide valuable insights into global greenhouse gas (GHG) trends and support international climate agreements, including the Paris Agreement.
    Matsunaga reviewed the first two satellites in the series: GOSAT and GOSAT-2, then previewed the next satellite in the series: GOSAT-GW, which is scheduled to launch in 2025. GOSAT-GW will fly the Total Anthropogenic and Natural Emissions Mapping Observatory–3 (TANSO-3) – an improved version of TANSO-2, which flies on GOSAT-2. TANSO-3 includes a Fourier Transform Spectrometer (FTS-3) that has improved spatial resolution [10.5 km (6.5 mi)] over TANSO-FTS-2 and precision that matches or exceeds that of its predecessor. TANSO-FTS-3 will allow estimates with precision better than 1 ppm for carbon dioxide (CO2) and 10 ppb for methane (CH4), as well as enabling nitrogen dioxide (NO2) measurements. GOSAT–GW will also fly the Advanced Microwave Scanning Radiometer (AMSR3) that will monitor water cycle components (e.g., precipitation, soil moisture) and ocean surface winds. AMSR3 builds on the heritage of three previous AMSR instruments that have flown on NASA and Japan Aerospace Exploration Agency (JAXA) missions.
    Matsunaga also highlighted the importance of ground-based validation networks, such as the Total Carbon Column Observing Network, COllaborative Carbon Column Observing Network, and the Pandora Global Network, to ensure satellite data accuracy.
    Son Nghiem [NASA/Jet Propulsion Laboratory (JPL)] addressed dynamic LUCC in Cambodia, Laos, Thailand, Vietnam, and Malaysia. The synthesis study examined the factors that evolve along the rural–urban continuum (RUC). Nghiem showcased this effort using Synthetic Aperture Radar (SAR) data from the Copernicus Sentinel-1 mission to map a typical RUC in Bac Lieu, Vietnam – see Figure 2.

    Nghiem described the study, which examined the role of rapid urbanization, agricultural conversion, climate change, and environment–human feedback processes in causing non-stationary and unpredictable impacts. This work illustrates how traditional trend analysis is insufficient for future planning. The study also examined whether slower or more gradual changes could inform policy development. To test these hypotheses, his research will integrate high-resolution radar and hyperspectral data with socioeconomic analyses. The study highlights the need for policies that are flexible and responsive to the unique challenges of different areas, particularly in “hot-spot” regions experiencing rapid changes.
    Peilei Fan [Tufts University] presented a study that synthesizes the complex patterns of LUCC, identifying both the spatial and temporal dynamics that characterize transitions in urban systems. The study explores key drivers, including economic development, population growth, urbanization, agricultural expansion, and policy shifts. She emphasized the importance of understanding these drivers for sustainable land management and urban planning. For example, the Yangon region of Myanmar has undergone rapid urbanization – see Figure 3. Her work reveals the need for integrated approaches that consider both urban and rural perspectives to manage land resources effectively and mitigate negative environmental and social impacts. Through a combination of case studies, statistical analysis, and policy review, Fan and her team aim to provide a nuanced understanding of the interactions between human activities and environmental changes occurring in the rapidly transforming landscapes of Southeast Asia.

    Session III: Land Cover/Land Use Change Studies
    Tanapat Tanaratkaittikul [Geo-Informatics and Space Technology Development Agency (GISTDA), Thailand] highlighted GISTDA activities, which play a crucial role in advancing Thailand’s technological capabilities and addressing both national and global challenges, including Thailand Earth Observation System (THEOS) and its successors: THEOS-2 and THEOS-2A. THEOS-1, which launched in 2008, provides 2-m (6-ft) panchromatic and 15-m (45-ft) multispectral resolution with a 26-day revisit cycle, which can be reduced to 3 days with off-nadir pointing. Launched in 2023, THEOS-2 includes two satellites – THEOS-2A [a very high-resolution satellite with 0.5-m (1.5-ft) panchromatic and 2-m (6-ft) multispectral imagery] and THEOS-2B [a high-resolution satellite with 4-m (12-ft) multispectral resolution] – with a five-day revisit cycle. GISTDA also develops geospatial applications for drought assessment, flood prediction, and carbon credit calculations to support government decision-making and climate initiatives. GISTDA partners with international collaborators on regional projects, such as the Lancang-Mekong Cooperation Special Fund Project.
    Eric Vermote [NASA’s Goddard Space Flight Center] presented a keynote that focused on atmospheric correction of land remote sensing data and related algorithm updates. He highlighted the necessity of correcting surface imaging for atmospheric effects, such as molecular scattering, aerosol scattering, and gaseous absorption, which can significantly distort the satellite spectral signals and lead to potential errors in applications, such as land cover mapping, vegetation monitoring, and climate change studies.
    Vermote explained that the surface reflectance algorithm uses precise vector radiative transfer modeling to improve accuracy by incorporating atmospheric parameter inversion. It also adjusts for various atmospheric conditions and aerosol types – enhancing corrections across regions and seasons. He explained that SkyCam – a network of ground-based cameras – provides real-time assessments of cloud cover that can be used to validate cloud masks, while the Cloud and Aerosol Measurement System (CAMSIS) offers additional ground validation by measuring atmospheric conditions. He said that together, SkyCam and CAMSIS improve satellite-derived cloud masks, supporting more accurate climate models and environmental monitoring. Vermote’s work highlights the ongoing advancement of atmospheric correction methods in remote sensing.
    Other presentations in this session included one in which the speaker described how Yangon, the capital city in Myanmar, is undergoing rapid urbanization and industrial growth. From 1990–2020, the urban area expanded by over 225% – largely at the expense of agricultural and green lands. Twenty-nine industrial zones cover about 10.92% of the city, which have attracted significant foreign direct investment, particularly in labor-intensive sectors. This growth has led to challenges with land confiscations, inadequate infrastructure, and environmental issues (e.g., air pollution). Additionally, rural migration for employment has resulted in informal settlements, emphasizing the need for comprehensive urban planning that balances economic development with social equity and sustainability.
    Another presentation highlighted varying LUCC trends across Vietnam. In the Northern and Central Coastal Uplands, for example, swidden systems are shifting toward permanent tree crops, such as rubber and coffee. Meanwhile, the Red River Delta is seeing urban densification and consolidation of farmland – transitioning from rice to mixed farming with increased fruit and flower production. Similarly, the Central Coastal Lowlands and Southeastern regions are experiencing urban growth and a shift from coastal agriculture – in this case, to shrimp farming – leading to mangrove loss. The Central Highlands is moving from swidden to tree crops, particularly fruit trees, while the Mekong River Delta is increasing rice cropping and aquaculture. These changes contribute to urbanization, altered farming practices, and biodiversity loss. Advanced algorithms (e.g., the Time-Feature Convolutional Neural Network model) are being used to effectively map these varied LUCC changes in Vietnam.
    Another presenter explained how 10-m (33-ft) resolution spatially gridded population datasets are essential to address LUCC in environmental and socio-demographic research. There was also a demonstration of PopGrid, which is a collaborative initiative that provides access to various global-gridded population databases, which are valuable for regional LUCC studies and can support informed decision-making and policy development.
    DAY TWO
    The second day’s presentations centered around urban LUCC (Session IV) as well as interconnections between agriculture and water resources. (Session V).
    Session IV: Urban Land Cover/Land Use Change
    Gay Perez [Philippines Remote Sensing Agency (PhilSA)] presented a keynote focused on PhilSA’s mission to advance Philippines as a space-capable country by developing indigenous satellite and launch technologies. He explained that PhilSA provides satellite data in various categories, including sovereign, commercial, open-access, and disaster-activated. He noted that the ground infrastructure – which includes three stations and a new facility in Quezon – supports efficient data processing. For example, Perez stated that in 2023, PhilSA produced over 10,000 maps for disaster relief, agricultural assessments, and conservation planning.
    Perez reviewed PhilSA’s Diwata-2 mission, which launched in 2018 and operates in a Sun-synchronous orbit around 620 km (385 mi) above Earth. With a 10-day revisit capability, it features a high-precision telescope [4.7 m (15ft) resolution], a multispectral imager with four bands, an enhanced resolution camera, and a wide-field camera. Since launch, Diwata-2 has captured over 100,000 global images, covering 95% of the Philippines. Looking to the near future, Perez reported that PhilSA’s launch of the Multispectral Unit for Land Assessment (MULA) satellite is planned for 2025. He explained that MULA will capture images with a 5-m (~16-ft) resolution and 10–20-day revisit time, featuring 10 spectral bands for vegetation, water, and urban analysis.
    Perez also described the Drought and Crop Assessment and Forecasting project, which addresses drought risks and mapping ground motion in areas, e.g., Baguio City and Pangasinan. Through partnerships in the Pan-Asia Partnership for Geospatial Air Pollution Information (PAPGAPI) and the Pandora Asia Network, PhilSA monitors air quality across key locations, tracking urban pollution and cross-border particulate transport. PhilSA continues to strengthen Southeast Asian partnerships to drive sustainable development in the region.
    Jiquan Chen [Michigan State University] presented the second keynote address, which focused on the Urban Rural Continuum (URC). Chen emphasized the importance of synthesizing studies that explore factors such as population dynamics, living standards, and economic development in the URC. Key considerations include differentiating between two- and three-dimensional infrastructures and understanding constraints from historical contexts. Chen highlighted critical variables from his analysis including net primary productivity, household income, and essential infrastructure elements, such as transportation and healthcare systems. He advocated for integrated models that combine mechanistic and empirical approaches to grasp the dynamics of URC changes, stressing their implications for urban planning, environmental sustainability, and social equity. He concluded with a call for collaboration to enhance these models and tackle challenges arising from the changing urban–rural landscape.
    Tep Makathy [Cambodian Institute For Urban Studies] discussed urbanization in Phnom Penh, Cambodia. He explained that significant LUCC and infrastructure developments have been fueled by direct foreign investment; however, this development has resulted in environmental degradation, urban flooding, and infrastructure strain. Tackling pollution, congestion, preservation of green spaces, and preserving the historical heritage of the city will require sustainable urban planning efforts.
    Nguyen Thi Thuy Hang [Vietnam Japan University, Vietnam National University, Hanoi] explained how flooding poses a significant annual threat to infrastructure and livelihoods in Can Tho, Vietnam. Therefore, it is essential to incorporate climate change considerations into land-use planning by enhancing the accuracy of vegetation layer classifications. Doing so will improve the representation of land-cover dynamics in models that decision-makers use when planning urban development. In addition, Hang reported that a more comprehensive survey of dyke systems will improve flood protection and identify areas needing reinforcement or redesign. These studies could also explore salinity intrusion in coastal agricultural areas that could impact crop yields and endanger food security.
    In this session, two presenters highlighted how SAR data, which uses high backscatter to enhance the radar signal, is being used to assist with mapping urban areas in their respective countries. The phase stability and orientation of building structures across SAR images aid in consistent monitoring and backscatter, producing distinct image textures specific to urban settings. Researchers can use this heterogeneity and texture to map urban footprints, enabling automated discrimination between urban and non-urban areas. The first presenters showed how Interferometric Synthetic Aperture Radar techniques, such as Small Baseline Subset (SBAS) and Persistent Scatterer (PS) have been highly effective for mapping and monitoring land subsidence in coastal and urban areas in Vietnam. This approach has been applied to areas along the Saigon River as well as in Ho Chi Minh, Vietnam. The second presenter described an approach (using SAR data with multitemporal coherence and the K-means classification method) that has been used effectively to study urban growth in the Denpasar Greater Area of Indonesia between 2016 and 2022. The technique identified the conversion of 4376 km2 (1690 mi2) of rural to built-up areas, averaging 72.9 hectares (0.3 mi2) per year. Urban sprawl was predominantly observed in the North Kuta District, where the shift from agricultural to built-up land use has been accompanied by severe traffic congestion and other environmental issues.
    Another presenter showed how data from the QuikSCAT instrument, which flew on the Quick Scatterometer satellite, and from the Sentinel-1 C-band SAR can be combined to measure and analyze urban built-up volume, specifically focusing on the vertical growth of buildings across various cities. By integrating these datasets, researchers can assess urban expansion, monitor the development of high-rise buildings, and evaluate the impact of urbanization on infrastructure and land use. This information is essential for urban planning, helping city planners and policymakers make informed decisions to accommodate growing populations and enhance sustainable urban development.
    Session V – LUCC, Agriculture, and Water Resources
    Chris Justice presented the keynote for this session, in which he addressed the GEOGLAM initiative and the NASA Harvest program. GEOGLAM, initiated by the G20 Agriculture Ministers in 2011, focuses on agriculture and food security to increase market transparency and improve food security. These efforts leverage satellite-based Earth observations to produce and disseminate timely, relevant, and actionable information about agricultural conditions at national, regional, and global scales to support agricultural markets and provide early warnings for proactive responses to emerging food emergencies. NASA Harvest uses satellite Earth observations to benefit global food security, sustainability, and agriculture for disaster response, climate risk assessments, and policy support. Justice also emphasized the use of open science and open data principles, promoting the integration of Earth observation data into national and international agricultural monitoring systems. He also discussed the development and application of essential agricultural variables, in situ data requirements, and the need for comprehensive and accurate satellite data products.
    During this session, another presentation focused on how VNSC is engaged in several agricultural projects, including mapping rice crops, estimating yields, and assessing environmental impacts. VNSC has created high-accuracy rice maps for different seasons that the Vietnamese government uses to monitor and manage agricultural production. Current initiatives involve using satellite data to estimate CH4 emissions from rice paddies, biomass mapping, and monitoring rice straw burning. For example, in the Mekong Delta, numerous environmental factors, including climate change-induced stress (e.g., sea-level rise), flooding, drought, land subsidence, and saltwater intrusion, along with human activities like dam construction, sand mining, and groundwater extraction, threaten the sustainability of rice farming and farmer livelihoods. To address these challenges, sustainable agricultural practices are essential to improving rice quality, diversify farming systems, adopt low-carbon techniques, and enhance water management.
    Presentations highlighted the importance of both optical and SAR data for LUCC studies, particularly in mapping agricultural areas. A study using Landsat time-series data demonstrated its value in monitoring agricultural LUCC in Houa Phan Province, Laos, and Son La Province, Vietnam. Land cover types were classified through spectral pattern analysis, identifying distinct classes based on Landsat reflectance values. The findings revealed significant natural forest loss alongside increases in cropland and forest plantations due to agricultural expansion. High-resolution imagery validated these results, indicating the scalability of this approach for broader regional and global land-cover monitoring. Another study showcased the effectiveness of SAR data from the Phased Array type L-band Synthetic Aperture Radar-2 (PALSAR-2) on the Japanese Advanced Land Observing Satellite-2 (ALOS-2) for mapping and monitoring agricultural land use in Suphanburi, Thailand. This data proved particularly useful for capturing seasonal variations and diverse agricultural practices. Supervised machine learning methods, such as Random Forest classifiers, combined with innovative spatial averaging techniques, achieved high accuracy in distinguishing various agricultural conditions.
    In the session, presenters also discussed the use of Sentinel-1 SAR data for mapping submerged and non-submerged paddy soils was highlighted, demonstrating its effectiveness in understanding water management issues see – Figure 4. Additionally, large-scale remote sensing data and cloud computing were shown to provide unprecedented opportunities for tracking agricultural land-use changes in greater detail. Case studies from India and China illustrated key challenges, such as groundwater depletion in irrigated agriculture across the Indo-Ganges region and the impacts on food, water, and air quality in both countries.

    The session also focused on Water–Energy–Food (WEF) issues related to the Mekong River Basin’s extensive network of hydroelectric dams, which present both benefits and challenges. While these dams support sectors such as irrigated agriculture and hydropower, they also disrupt vital ecosystem services, including fish habitats and biodiversity. Collaborative studies integrating satellite and ground data, hydrological models, and socio-economic frameworks highlight the need to balance these benefits with ecological and social costs. Achieving sustainable management requires cross-sectoral and cross-border cooperation, as well as the incorporation of traditional knowledge to address WEF trade-offs and governance challenges in the region.
    DAY THREE
    The third day included a session that explored the impacts of fire, GHG emissions, and pollution (Session VI) as well as a summary discussion on synthesis (Session VII).
    Session VI: Fires, Greenhouse Gas Emissions, and Pollution
    Chris Elvidge [Colorado School of Mines] presented a keynote on the capabilities and applications of the Visible Infrared Imaging Radiometer Suite (VIIRS) Nightfire [VNF] system, an advanced satellite-based tool developed by the Earth Observation Group. VIIRS Nightfire uses four near- and short-wave infrared channels, initially designed for daytime imaging, to detect and monitor infrared emissions at night. The system identifies various combustion sources, including both flaming and non-flaming activities (e.g., biomass burning, gas flaring, and industrial processes). It calculates the temperature, source area, and radiant heat of detected infrared emitters using physical laws to enable precise monitoring of combustion events and provide insight into exothermic and endothermic processes.
    Elvidge explained that VNF has been vital for near-real-time data in Southeast Asia. The system has been used to issue daily alerts for Vietnam, Thailand, and Indonesia. Recent updates in Version 4 (V4) include atmospheric corrections and testing for secondary emitters with algorithmic improvements – with a 50% success rate in identifying additional heat sources. The Earth Observation Group maintains a multiyear catalog of over 20,000 industrial infrared emitters available through the Global Infrared Emitter Explorer (GIREE) web-map service. With VIIRS sensors expected to operate until about 2040 on the Joint Polar Satellite System (JPSS) platforms, this system ensures long-term, robust monitoring and analysis of global combustion events, proving essential for tracking the environmental impacts of industrial activities and natural combustion processes on the atmosphere and ecosystems.
    Toshimasa Ohara [Center for Environmental Science, Japan—Research Director] continued with the second keynote and provided an in-depth analysis of long-term trends in anthropogenic emissions across Asia. The regional mission inventory in Asia encompasses a range of pollutants and offers detailed emissions data from 1950–2020 at high spatial and temporal resolutions. The study employs both bottom-up and top-down approaches for estimating emissions, integrating satellite observations to validate data and address uncertainties. Notably, emissions from China, India, and Japan have shown signs of stabilization or reduction, attributed to stricter emission control policies and technological advancements. Ohara also highlighted Japan’s effective air pollution measures and the importance of extensive observational data in corroborating emission trends. His presentation emphasized the need for improved methodologies in emission inventory development and validation across Asia, aiming to enhance policymaking and environmental management in rapidly industrializing regions.
    Several presenters during this session focused on innovative approaches to understand and mitigate GHG emissions and air pollution. One presenter showed how NO2 data from the TROPOspheric Monitoring Instrument (TROPOMI) on the European Sentinel-5 Precursor have been validated against ground-based observations from Pandora stations in Japan, highlighting the influence of atmospheric conditions on measurement accuracy. Another presenter described an innovative system that GISTDA used to combine satellite remote sensing data with Artificial Intelligence (AI). This system was used to monitor and analyze the concentration of fine particulate matter (PM) in the atmosphere in Thailand. (In this context fine is defined as particles with diameters ≤ 2.5 µm, or PM2.5.) These applications, which are accessible through online, cloud-based platforms and mobile applications for iOS and Android devices, allow users, including citizens, government officers, and policymakers, to access PM2.5 data in real-time through web and mobile interfaces.
    A project under the United Nations Economic and Social Commission for Asia and the Pacific in Thailand is focused on improving air quality monitoring across the Asia–Pacific region by integrating satellite and ground-based data. At the core of this effort, the Pandora Asia Network, which includes 30 ground-based instruments measuring pollutants such as NO₂ and sulfur dioxide (SO₂), is complemented by high-resolution observations from the Geostationary Environment Monitoring Spectrometer (GEMS) aboard South Korea’s GEO-KOMPSAT-2B (GK-2B) satellite. The initiative also provides training sessions to strengthen regional expertise in remote sensing technologies for air quality management and develops decision support systems for evidence-based policymaking, particularly for monitoring pollution sources and transboundary effects like volcanic eruptions. Future plans include expanding the Pandora network and enhancing data integration to support local environmental management practices.
    PM2.5 levels in Vietnam are influenced by both local emissions and long-range pollutant transport, particularly in urban areas.The Vietnam University of Engineering and Technology, in conjunction with VNSC, continues to map and monitor PM2.5 using satellites and machine learning while addressing data quality issues that stem from missing satellite data and limited ground monitoring stations – see Figure 5.
    In addition to mapping and monitoring pollutants, another presentater explained that significant research is underway to address their health impacts. In Hanoi, exposure to pollutants ( e.g., PM2.5, PM10, and NO2) has led to increased rates of respiratory diseases (e.g., pneumonia, bronchitis, and asthma) among children,  as well as elevated instances of cardiovascular diseases among adults. A substantial mortality burden is attributable to fine particulate matter – particularly in densely populated areas like Hanoi. Compliance with stricter air quality guidelines could potentially prevent thousands of premature deaths. For example, preventive measures enacted during the COVID-19 pandemic resulted in reduced pollution levels that were associated with a decrease in avoidable mortality rates. In response to these challenges, Vietnam has implemented air quality management policies, including national technical regulations and action plans aimed at controlling emissions and enhancing monitoring; however, current national standards still fall short of the more stringent guidelines recommended by the World Health Organization. Improved air quality standards and effective policy interventions are needed to mitigate the health risks associated with air pollution in Vietnam.

    Another presenter explained how food production in Southeast Asia contributes about 40% of the region’s total GHG emissions – with rice and beef production identified as the largest contributors for plant-based and animal-based emissions, respectively. Another presentation focused on a study that examined GHG emissions from agricultural activities, which suggests that animal-based food production – particularly beef – generates substantially higher GHG emissions per kg of food produced compared to plant-based foods, such as wheat and rice. Beef has an emission intensity of about 69 kg of CO2 equivalent-per-kg, compared to 2 to 3 kg of CO2 equivalent-per-kg for plant-based foods. The study points to mitigation strategies (e.g., changing dietary patterns, improving agricultural practices) and adopting sustainable land management. Participants agreed that a comprehensive policy framework is needed to address the environmental impacts of food production and reduce GHG emissions in the agricultural sector.
    In another presentation, the speaker highlighted the fact that Southeast Asian countries need an advanced monitoring, reporting, and verification system to track GHG emissions – particularly within high-carbon reservoirs like rice paddies. To achieve this, cutting-edge technologies (e.g., satellite remote sensing, low-cost unmanned aerial vehicles, and Internet of Things devices) can be beneficial in creating sophisticated digital twin technology for sustainable rice production and GHG mitigation.
    Another presentation featured a discussion about pollution resulting from forest and peatland fires in Indonesia, which is significantly impacting air quality. Indonesia’s tropical peatlands – among the world’s largest and most diverse – face significant threats from frequent fires. Repeated burning has transformed forests into shrubs and secondary vegetation regions, with fires particularly affecting forest edges and contributing to a further retreat of intact forest areas. High-resolution data is essential to map and monitor changes in forest cover, including pollution impacts.
    Another speaker described a web-based Geographic Information Systems (GIS) application that has been developed to support carbon offsetting efforts in Laos – to address significant environmental challenges, e.g., deforestation and climate change. Advanced technologies (e.g., remote sensing, GIS, and Global Navigation Satellite Systems) are used to monitor land-use changes, carbon sequestration, and ecosystem health. By integrating various spatial datasets, the web GIS app enhances data collection precision, streamlines monitoring processes, and provides real-time information to stakeholders for informed decision-making. This initiative fosters collaboration among local communities, government agencies, and international partners, while emphasizing the importance of government support and international partnerships. Ultimately, the web GIS application represents a significant advancement in Laos’s commitment to environmental sustainability, economic growth, and the creation of a greener future.
    Session VII. Discussion Session on Synthesis
    The meeting concluded with a comprehensive discussion on synthesizing themes related to LUCC. The session focused on three themes: LUCC, agriculture, and air pollution. The session focused on trends and projections as well as the resulting impacts in the coming years. It also highlighted research related to these topics to inform more sustainable land use policies. A panel of experts from different Southeast Asian countries addressed these topics. A summary of the key points shared by the panelists for each theme during the discussion is provided below.
    LUCC Discussions
    This discussion focused on the challenges of balancing economic development with environmental sustainability in Southeast Asian countries, e.g., mining in Myanmar, agriculture in Vietnam, and rising land prices in Thailand. More LUCC research is needed to inform decision-making and improve land-use planning during transitions from agriculture to industrialization while ensuring food security. The panelists also discussed urban sprawl and infrastructure development along main roads in several Southeast Asian countries, highlighting the social and environmental challenges arising from uncoordinated growth. It was noted that urban infrastructure lags behind population increases, resulting in traffic congestion, pollution, and social inequality. Cambodia, for example, has increased foreign investments, which presents similar dilemmas of economic growth accompanied by significant environmental degradation. Indonesia is another example of a Southeast Asian nation facing rapid urbanization and inadequate spatial planning, leading to flooding, groundwater depletion, and pollution. These issues further highlight the need for integrated satellite monitoring to inform land-use policies. Finally, recognizing the importance of public infrastructure in growth management, it was reported that the Thai government is already using technology to manage urban development alongside green spaces.
    Panelists agreed that LUCC research is critical for guiding policymakers toward sustainable land-use practices – emphasizing the necessity for improved communication between researchers and policymakers. While the integration of technologies (e.g., GIS and remote sensing) is beginning to influence policy decisions, room for improvement remains. In summary, the discussions stressed the importance of better planning, technology integration, and policy-informed research to reconcile economic growth with sustainability. Participants also highlighted the need to engage policymakers, non-government organizations, and the private sector in using scientific evidence for sustainable development. Capacity building in Laos, Cambodia, and Myanmar, where GIS and remote sensing technologies are still developing, is crucial. Community involvement is essential for translating research findings into actionable policies to address real-world challenges and social equity.
    Agriculture Discussions
    These discussions explored the intricate relationships between agricultural practices, economic growth, and environmental sustainability in Southeast Asia. As an example, despite national policies to manage the land transition in Vietnam, rapid conversions from forest to agricultural land and further to residential and industrial continue. While it is recognized that strict land management plans may hinder future adaptability, further regulation is needed. These rapid shifts in land use have increased land for economic development – especially in industrial and residential sectors – and contribute to environmental degradation, e.g., pollution and soil erosion. In Thailand, land is distributed among agriculture (50%), forest (30%), and urban (20%) areas. Despite a long history of agricultural practices, Vietnam faces new challenges from climate change and extreme weather.
    Thailand, meanwhile, is exploring carbon credits to incentivize sustainable farming practices – although this requires significant investment and time. The nation is well-equipped with a robust water supply system, and ongoing efforts to enhance crop yields on Vietnam’s Mekong Delta, salinity levels, and flooding intensity have increased as a result of the rise in incidents of extreme weather, prompting advancements in rice farming mechanization to be implemented that are modeled after practices that have been successfully used in the Philippines.
    Despite these advances, issues (e.g., over-application of rice seeds) remain. The dominant land cover type in Malaysia is tropical rainforest, although agriculture – particularly oil palm plantations – also plays a significant role in land use. While stable, it shares environmental concerns with Indonesia. The country is integrating solar energy initiatives, placing solar panels on former agricultural lands and recreational areas, which raises coastal environmental concerns. In Taiwan, substantial land use changes have stemmed from solar panel installations to support green energy goals but have led to increased temperatures and altered wind patterns.
    All panelists agreed that remote sensing technologies are vital to inform agricultural policy across the region. They emphasized the need to transition from academic research to actionable insights that directly inform policy. Panelists also discussed the challenge of securing funding for actionable research – underlining the importance of recognizing the transition required for research to inform operational use. Some countries (e.g., Thailand) have established operational crop monitoring systems, while others (e.g., Vietnam) primarily depend on research projects. Despite progress in Malaysia’s monitoring of oil palm plantations, a comprehensive operational monitoring system is still lacking in many areas. The participants concluded that increased efforts are needed to promote the wider adoption of remote sensing technologies for agricultural and environmental monitoring, with emphasis on developing operational systems that can be integrated into policy and decision-making processes.
    Air Pollution Discussions
    The discussion on air pollution focused on various sources in Southeast Asia, which included both local and transboundary factors. Panelists highlighted that motor vehicles, industrial activities, and power plants are major contributors to pollutants, such as PM2.5, NO2, ozone (O3), and carbon monoxide (CO). Forest fires in Indonesia – particularly from South Sumatra and Riau provinces – are significantly impacting neighboring countries, e.g., Malaysia. A study found that most PM2.5 pollution in Kuala Lumpur originates from Indonesia. During the COVID-19 pandemic, pollution levels dropped sharply due to reduced economic activity; however, data from 2018–2023 shows that PM2.5 levels have returned to pre-pandemic conditions.
    The Indonesian government is actively working to reduce deforestation and emissions, aiming for a 29% reduction by 2030. Indonesia is also participating in carbon markets and receiving international payments for emission reductions. Indonesia’s emissions also stem from energy production, industrial activities, and land-use changes, including peat fires. The Indonesian government reports anthropogenic sources – particularly from the energy sector and industrial activities, forest and peat fires, waste, and agriculture – continue to escalate. While Indonesia is addressing these issues, growing population and energy demands continue to drive pollution levels higher.
    Vietnam and Laos are facing similar challenges related to air pollution – particularly from agricultural residue burning. Both governments are working on expanding air quality monitoring, regulating waste burning, and developing policies to mitigate pollution. Vietnam has been developing provincial air quality management plans and expanding its monitoring network. Laos has seen increased awareness of pollution, accompanied by government measures aimed at restricting burning and improving waste management practices.
    The panelists agreed that collaborative efforts for regional cooperation are essential to address air pollution. This will require collaboration in research and data sharing to inform policy decisions. There is a growing interest in leveraging satellite technology and modeling approaches to enhance air quality forecasting and management. To ensure that research translates into effective policy, communication of scientific findings to policymakers is essential – particularly by clearly communicating complex research concepts in accessible formats. All panelists agreed on the importance of improving governance, transparency, and scientific communication to better translate research into policy actions, highlighting collaborations with international organizations – including NASA – to address air quality issues. While significant challenges related to air pollution persist in Southeast Asia, noteworthy efforts are underway to improve awareness, research, and collaborative governance aimed at enhancing air quality and reducing emissions.
    Conclusion
    The LCLUC–SARI Synthesis meeting fostered collaboration among researchers and provided valuable updates on recent developments in LUCC research, exchange of ideas, integration of new data products, and discussions on emerging science directions. This structured dialogue (particularly the discussions in each session) helped the attendees identify priorities and needs within the LUCC community. All panelists and meeting participants commended the SARI leadership for their proactive role in facilitating collaborations and discussions that promote capacity-building activities across the region. SARI activities have significantly contributed to enhancing the collective ability of countries in South and Southeast Asia to address pressing environmental challenges. The meeting participants emphasized the importance of maintaining and expanding these collaborative efforts, which are crucial for fostering partnerships among governments, research institutions, and local communities. They urged SARI to continue organizing workshops, training sessions, and knowledge-sharing platforms that can equip stakeholders with the necessary skills and resources to tackle environmental issues such as air pollution, deforestation, climate change, and sustainable land management.
    Krishna VadrevuNASA’s Marshall Space Flight Centerkrishna.p.vadrevu@nasa.gov
    Vu TuanVietnam National Science Center, Vietnamvatuan@vnsc.org.vn
    Than NguyenVietnam National University Engineering and Technology, Vietnamthanhntn@vnu.edu.vn
    Son NghiemJet Propulsion Laboratoryson.v.nghiem@jpl.nasa.gov
    Tsuneo MatsunagaNational Institute of Environmental Studies, Japanmatsunag@nies.go.jp
    Garik GutmanNASA Headquartersggutman@nasa.gov
    Christopher JusticeUniversity of Maryland College Parkcjustice@umd.edu

    MIL OSI USA News

  • MIL-OSI: Federal Home Loan Bank of Indianapolis Announces Fourth Quarter 2024 Dividends, Reports Earnings

    Source: GlobeNewswire (MIL-OSI)

    INDIANAPOLIS, Feb. 20, 2025 (GLOBE NEWSWIRE) — Today the Board of Directors of the Federal Home Loan Bank of Indianapolis (“FHLBank Indianapolis” or “Bank”) declared its fourth quarter 2024 dividends on Class B-2 activity-based capital stock and Class B-1 non-activity-based stock at annualized rates of 9.50% and 4.50%, respectively. The higher dividend rate on activity-based stock reflects the Board’s discretion under the Bank’s capital plan to reward members that use FHLBank Indianapolis in support of their liquidity needs.

    The dividends will be paid in cash on February 21, 2025.

    “I am proud that FHLBank Indianapolis delivered strong financial results in 2024, a reflection of our steadfast commitment to serving our members’ liquidity needs while maintaining the Bank’s financial strength and stability,” President and CEO Cindy Konich said.

    She added: “In addition to another strong dividend for our members, these results allowed us to invest at record levels in the communities our members serve, including an additional voluntary contribution of 7.5% of 2023 net earnings – bringing the total support of housing and community initiatives in 2024 to 17.5%. Building on the success of 2024, we look forward to continuing this support in 2025 at 17.5% of 2024 net earnings.”

    Earnings Highlights

    Net income, for the fourth quarter of 2024, was $67 million, a net decrease of $37 million compared to the corresponding quarter in the prior year. The decrease was primarily due to a significant increase in voluntary contributions to affordable housing and community investment programs and unrealized losses on qualifying fair-value hedging relationships.

    Net income, for the year ended December 31, 2024, was $342 million, a net decrease of $35 million compared to the prior year. The decrease was primarily due to a significant increase in voluntary contributions to affordable housing and community investment programs and net realized gains on the extinguishment of consolidated obligations in 2023 that did not occur in 2024. However, such decrease was partially offset by higher earnings on the portion of the Bank’s assets funded by its capital.1

    Affordable Housing Program Allocation

    The Bank’s Affordable Housing Program (“AHP”) provides grant funding to support housing for low- and moderate-income families in communities served by its Michigan and Indiana members. For the year ended December 31, 2024, AHP assessments2 totaled $40 million. Such required allocations will be available to the Bank’s members in 2025 to help address their communities’ affordable housing needs, including construction, rehabilitation, accessibility improvements and homebuyer down-payment assistance.

    In addition, as part of the Bank’s commitment to further support its AHP and additional affordable housing and community investment programs, the Bank voluntarily contributed additional funding in 2024 totaling $33 million. Additionally, the Bank made a supplemental voluntary contribution to its AHP totaling $4 million. As a result, voluntary contributions to housing and community investment programs in 2024 totaled $37 million, all of which have been recognized and reported in other expenses.

    The Bank’s combined required and voluntary allocations recognized in 2024 totaled $77 million, an increase of $29 million, or 60%, compared to the prior year.

    __________________

    FHLBank Indianapolis earns interest income on advances to and mortgage loans purchased from its Michigan and Indiana member financial institutions, as well as on long- and short-term investments. Net interest income is primarily determined by the size of the Bank’s balance sheet and the spread between the interest earned on its assets and the interest cost of funding with consolidated obligations. Because of the Bank’s inherent relatively low interest-rate spread, it has historically derived a substantial portion of its net interest income from deploying its interest-free capital in floating-rate assets.

    2 Each year, Federal Home Loan Banks are required to allocate to the AHP 10% of earnings, defined for this purpose as income before assessments plus interest expense on mandatorily redeemable capital stock.

    Condensed Statements of Income

    The following table presents unaudited condensed statements of income ($ amounts in millions):

        Three Months Ended
    December 31,
      Year Ended
    December 31,
          2024     2023     2024     2023
    Interest income(a)   $ 989   $ 1,013   $ 4,130   $ 3,755
    Interest expense(a)     866     873     3,623     3,260
    Provision for credit losses                
    Net interest income after provision for credit losses     123     140     507     495
    Other income(b)     6     7     32     46
    Other expenses(c)     54     31     157     120
    AHP assessments     8     12     40     44
                     
    Net income   $ 67   $ 104   $ 342   $ 377
    (a) Includes hedging gains (losses) and net interest settlements on fair-value hedge relationships. The Bank uses derivatives, specifically interest-rate swaps, to hedge the risk of changes in the fair value of certain of its advances, available-for-sale securities and consolidated obligations. These derivatives are designated as fair-value hedges and, therefore, changes in the estimated fair value of the derivative, and changes in the fair value of the hedged item that are attributable to the hedged risk, are recorded in net interest income.
    (b) Includes impact of purchase discount (premium) recorded through mark-to-market gains (losses) on trading securities and net interest
    settlements on derivatives hedging trading securities, while generally offsetting interest income on trading securities is included in
    interest income.
    (c) Includes voluntary contributions to the Bank’s AHP and other affordable housing, small business and community investment programs.
       

    Balance Sheet Highlights

    Total assets, at December 31, 2024, were $84.5 billion, a net increase of $7.9 billion, or 10%, from December 31, 2023, primarily due to an increase in advances and mortgage loans outstanding.

    Advances 3

    The carrying value of advances outstanding, at December 31, 2024, totaled $39.8 billion, a net increase of $4.3 billion, or 12%, from December 31, 2023. The par value of advances outstanding increased by 12% to $40.1 billion, which included a net increase in short-term advances of 54% and a net decrease in long-term advances of 4%. At December 31, 2024, based on contractual maturities, long-term advances composed 63% of advances outstanding, while short-term advances composed 37%.

    The par value of advances outstanding to depository institutions — comprising commercial banks, savings institutions and credit unions — increased by 18%, while advances outstanding to insurance companies increased by 1%. As a percent of total advances outstanding at par value at December 31, 2024, advances to commercial banks and savings institutions were 52% and advances to credit unions were 14%, resulting in total advances to depository institutions of 66%, while advances to insurance companies were 34%.

    In general, advances fluctuate in accordance with members’ funding needs, primarily determined by their deposit levels, mortgage pipelines, loan growth, investment opportunities, available collateral, other balance sheet strategies, and the cost of alternative funding options.

    Mortgage Loans Held for Portfolio 4

    Mortgage loans held for portfolio, at December 31, 2024, totaled $10.8 billion, a net increase of $2.2 billion, or 25%, from December 31, 2023, as the Bank’s purchases from its members significantly exceeded principal repayments by borrowers. Purchases of mortgage loans from members, for the year ended December 31, 2024, totaled $3.2 billion.

    In general, the Bank’s volume of mortgage loans purchased is affected by several factors, including interest rates, competition, the general level of housing and refinancing activity in the United States, consumer product preferences, the Bank’s balance sheet capacity and risk appetite, and regulatory considerations.

    Liquidity Investments 5

    Liquidity investments, at December 31, 2024, totaled $12.9 billion, a net increase of $759 million, or 6%, from December 31, 2023. The Bank’s liquidity remained well above regulatory requirements and continues to enable the Bank to be a reliable liquidity provider to its members.

    Cash and short-term investments increased by $271 million, or 2%, to $11.8 billion. The portion of U.S. Treasury obligations classified as trading securities increased by $488 million, or 81%, to $1.1 billion. As a result of this activity, cash and short-term investments represented 92% of the total liquidity investments at December 31, 2024, while U.S. Treasury obligations represented 8%.

    The total outstanding balance and composition of the Bank’s liquidity investments are influenced by its liquidity needs, regulatory requirements, actual and anticipated member advance activity, market conditions, and the availability of short-term investments at attractive interest rates, relative to the cost of funds.

    Other Investment Securities

    Other investment securities, which consist substantially of mortgage-backed securities and U.S. Treasury obligations classified as held-to-maturity or available-for-sale, at December 31, 2024, totaled $20.2 billion, a net increase of $738 million, or 4%, from December 31, 2023.

    Consolidated Obligations 6

    FHLBank Indianapolis’ consolidated obligations outstanding, at December 31, 2024, totaled $78.1 billion, a net increase of $7.0 billion, or 10%, from December 31, 2023, which reflected increased funding needs associated with the net increase in the Bank’s total assets.

    Capital 7

    Total capital, at December 31, 2024, was $4.2 billion, a net increase of $491 million, or 13%, from December 31, 2023. The net increase resulted primarily from issuances of capital stock to support advance activity and the growth in retained earnings.

    The Bank’s regulatory capital-to-assets ratio8, at December 31, 2024, was 5.44%, which exceeds all applicable regulatory capital requirements.

    __________________

    3 Advances are secured loans that the Bank provides to its member institutions.
    4 The Bank purchases mortgage loans from its members to support its housing mission, provide an additional source of liquidity to its members, and diversify its investments.
    5 The Bank’s liquidity investments consist of cash, interest-bearing deposits, securities purchased under agreements to resell, federal funds sold and U.S. Treasury obligations.
    6 The primary source of funds for FHLBank Indianapolis, and for the other FHLBanks, is the sale of FHLBanks’ consolidated obligations in the capital markets. FHLBank Indianapolis is the primary obligor for the payment of the principal and interest on the consolidated obligations issued on its behalf; additionally, it is jointly and severally liable with each of the other FHLBanks for all of the FHLBanks’ consolidated obligations outstanding.
    7 FHLBank Indianapolis is a cooperative whose member financial institutions and former members own all of its capital stock as a condition of membership and to support outstanding credit products.
    8 Total regulatory capital, which consists of capital stock, mandatorily redeemable capital stock and retained earnings, as a percentage of total assets.

    Condensed Statements of Condition

    The following table presents unaudited condensed statements of condition ($ amounts in millions):

        December 31, 2024   December 31, 2023
    Advances   $ 39,833     $ 35,562  
    Mortgage loans held for portfolio, net     10,796       8,614  
    Liquidity investments     12,911       12,152  
    Other investment securities(a)     20,189       19,451  
    Other assets     806       829  
             
    Total assets   $ 84,535     $ 76,608  
             
    Consolidated obligations   $ 78,085     $ 71,053  
    MRCS     363       369  
    Other liabilities     1,852       1,442  
    Total liabilities     80,300       72,864  
             
    Capital stock(b)     2,555       2,285  
    Retained earnings(c)     1,684       1,532  
    Accumulated other comprehensive income (loss)     (4 )     (73 )
    Total capital     4,235       3,744  
             
    Total liabilities and capital   $ 84,535     $ 76,608  
             
    Total regulatory capital(d)   $ 4,602     $ 4,186  
             
    Regulatory capital-to-assets ratio     5.44 %     5.46 %
    (a) Includes held-to-maturity and available-for-sale securities.
    (b) Putable by members at par value.
    (c) Includes restricted retained earnings, at December 31, 2024 and December 31, 2023, of $466 million and $398 million, respectively.
    (d) Consists of total capital less accumulated other comprehensive income plus mandatorily redeemable capital stock.
       

    All amounts referenced above are unaudited. More detailed information about FHLBank Indianapolis’ financial condition as of December 31, 2024, and its results for the year then ended, will be included in Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Bank’s Annual Report on Form 10-K.

    Safe Harbor Statement

    This news release includes forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 concerning plans, objectives, goals, strategies, future events and performance. Forward-looking statements can be identified by words such as “will,” “believes,” “may,” “temporary,” “estimates,” and “expects” or the negative of these words or comparable terminology. Each forward-looking statement contained in this news release reflects FHLBank Indianapolis’ current beliefs and expectations. Actual results or performance may differ materially from what is expressed in any forward-looking statements.

    Any forward-looking statement contained in this news release speaks only as of the date on which it was made. FHLBank Indianapolis undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Readers are referred to the documents filed by the Bank with the U.S. Securities and Exchange Commission (“SEC”), specifically reports on Form 10-K and Form 10-Q, which include factors that could cause actual results to differ from forward-looking statements. These reports are available at www.sec.gov.

    Media Contact:
    Scott Thien
    Senior Corporate Communications Associate
    317-902-3103
    sthien@fhlbi.com

    Building Partnerships. Serving Communities.
    FHLBank Indianapolis is a regional bank included in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost funding for their member financial institutions, with particular attention paid to providing solutions that support the housing and small business needs of members’ customers. FHLBanks are privately capitalized and funded, and receive no Congressional appropriations. FHLBank Indianapolis is owned by its Indiana and Michigan financial institution members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com. Also, follow the Bank on LinkedIn, as well as Instagram and X at @FHLBankIndy. Please note that content the Bank shares on its website and social media is not incorporated by reference into any of its filings with the SEC unless, and only to the extent that, a filing by the Bank with the SEC expressly provides to the contrary.

    The MIL Network

  • MIL-OSI Asia-Pac: Speech by SJ at 8th IBA Asia Pacific Regional Forum Biennial Conference (English only)

    Source: Hong Kong Government special administrative region

         Following is the speech by the Secretary for Justice, Mr Paul Lam, SC, at the 8th IBA Asia Pacific Regional Forum Biennial Conference today (February 20): Mr Menzer (Vice-President of the International Bar Association (IBA), Mr Jorg Menzer), Mr Dhillon (Co-Chair of the IBA Asia Pacific Regional Forum Mr Dinesh Dhillon), Mr Liu (Co-Chair of the IBA Asia Pacific Regional Forum Mr David Liu), Winnie (Secretary of the IBA Asia Pacific Regional Forum and co-chair of the conference, Ms Winnie Tam, SC), other friends from the IBA, distinguished guests, ladies and gentlemen,      Good evening. I wish to begin by thanking the organiser, in particular, my good friend Winnie, for inviting me to this dinner. I also wish to congratulate the conference co-chairs and the conference organising committee for hosting this eighth edition of the International Bar Association Asia Pacific Regional Forum Biennial Conference. I was told that more than 360 persons coming from 36 jurisdictions have signed up for the conference. Apart from 20 jurisdictions in the Asia Pacific region (including the Mainland and Hong Kong), we have friends coming from South Asia, Central Asia, Europe, North and South America, as well as Africa.      In 2008, Hong Kong hosted the IBA Asia Pacific Forum with the theme “New focus of international business: Asia, the centre stage”. Time flies. As at today (February 20, 2025), what had been described as the “new focus” back in 2008, 17 years ago has become the “main focus”.      In these circumstances, the theme of this conference is most pertinent, namely “Vibrant Asia – Land of opportunity and promise”. This theme, of course, applies to Hong Kong, being one of the major international cities in Asia. But I wish to be more specific tonight by spending the next 15 minutes or so to convince you why, from the legal perspective, Hong Kong is a land of opportunity and promise.      The short answer is that, as we always say, Hong Kong serves as the “super connector” and “super value-adder” between China and the rest of the world. We perform such roles by making use of our unique strengths and advantages under the principle of “one country, two systems”. One of these unique strengths and advantages is that we have very strong rule of law based on our common law system. You may wonder: there are many jurisdictions in the world including Asia, which practise the common law; what is so special about Hong Kong’s common law system? My answer is that there are at least six key characteristics of our common law system which, when combined together, have rendered our legal system unparalleled.     First, our legal system is very stable. Hong Kong is the only common law jurisdiction in China. The continuation of the common law system is guaranteed by various provisions in the Basic Law which implements the fundamental national policy of “one country, two systems”. It is most significant to note that, in his speech delivered on July 1, 2022, at the celebration of the 25th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR), President Xi Jinping made it crystal clear that the principle of “one country, two systems” is a good policy that must be adhered to in the long run. Equally important is that he mentioned the common law twice in his speech. Apart from acknowledging the contribution of the common law to the success of Hong Kong since China’s resumption of sovereignty over Hong Kong on July 1, 1997, he said that “The Central Government fully supports Hong Kong in its effort … to maintain the common law …”. More recently, on December 20, 2024, at the celebration of the 25th anniversary of Macao’s return to the motherland, President Xi repeated that “one country, two systems” is a good system that sustains the long-term prosperity and stability of Hong Kong and Macao. He also pointed out that the values embodied in the principle of “one country, two systems”, namely, peace, inclusiveness, openness and sharing are relevant to not only China but also the whole world.     Second, our legal system is very credible and reliable. In particular, we have an utmost reputable and independent judiciary. The Basic Law provides that our courts shall enjoy the independent power of adjudication and also that our Court of Final Appeal (CFA) shall enjoy the power of final adjudication. There are also express provisions which guarantee judicial independence. For example, judges in Hong Kong are appointed on the recommendation of an independent commission, with the only criteria considered being their judicial and professional quality. Non-permanent judges from other common law jurisdictions of the highest calibre have been invited to sit on our CFA. The most recent appointee, former Chief Justice of the Federal Court of Australia, Mr Justice Allsop, came to Hong Kong last week to hear his first case. The judgments of our courts, in particular those of the CFA, are often cited in other common law jurisdictions. All court hearings, subject to very few exceptions, are conducted openly; and court judgments are always published. These measures enable people to see that judges have in fact discharged their duties independently without any improper interference. A strong piece of evidence, which I will mention with great reluctance, is that in litigation involving the Government, the Secretary for Justice was, on some occasions, not the successful party. The integrity and quality of our judiciary is never in doubt.      Third, our legal system provides a very safe and secure environment. Fundamental human rights and freedoms based on international standards set by the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights, as well as private property rights, are fully protected by Hong Kong law. Our law enforcement agencies and regulatory bodies, such as the Police, the ICAC (Independent Commission Against Corruption), the SFC (Securities and Futures Commission), always enforce the relevant laws strictly and fairly. In this respect, it is very important to note that we have consistently been ranked as one of the least corrupt places in the world. According to the Corruption Perceptions Index 2024 released by Transparency International very recently on February 11, 2025, Hong Kong ranks 17 out of 180 jurisdictions, well ahead of many Western developed countries such as the United States and the United Kingdom.      Fourth, our legal system is very user-friendly. It is the only bilingual common law system using both English and Chinese. This is important because English is the linqua franca of the international business community. Our laws (both substantive and procedural) are aligned with prevailing international practices, and hence are familiar to the international community. For example, our Arbitration Ordinance is based on the United Nations Commission on International Trade Law Model Law. In the latest World Competitiveness Yearbook 2024 published by the International Institute for Management Development in June 2024, Hong Kong ranked first in “Business legislation”.      Furthermore, we strive to update our laws continuously to ensure that they will meet the demand of the latest developments and trends around the world. Let me give two examples. We have just completed a consultation in relation to the proposed amendments to the Copyright Ordinance to cater for the fast development of AI generated works. Second, a draft legislation is now being considered by our Legislative Council which aims at creating a regulatory regime for the issuance and offers of stablecoins.      Fifth, our legal system is well connected to both the Mainland and other parts of the world. With the strong support of the Central Government, Hong Kong has signed nine mutual legal assistance arrangements in civil and commercial matters with the Mainland covering three main areas: first, procedural assistance on, for example, service of judicial documents and taking of evidence; second, arbitration-related assistance; and third, reciprocal recognition and enforcement of civil and commercial judgments. These MLA (mutual legal assistance) arrangements give Hong Kong an advantage that is unavailable in other jurisdictions.      In this respect, it is necessary to mention the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), which consist of nine cities in the Guangdong Province, the HKSAR and the Macao SAR. The population of the GBA has exceeded 86 million; its size is similar to Croatia; its total GDP has already exceeded Australia and is among the top 10 in the world. It is the home of giant tech companies such as Tencent and BYD. Great efforts have been made to harmonise the rules and regulations in the three different legal territories in the GBA. For example, to promote and facilitate the use of mediation to resolve civil and commercial disputes in the GBA, there is now a uniform set of rules on mediation and also a consolidated panel of GBA mediators. Furthermore, important measures have been introduced to give business entities the option to use Hong Kong law in their contracts, and choose Hong Kong as the place for arbitration when they set up their businesses in the GBA. Just last Friday (February 14), the Supreme People’s Court and the Ministry of Justice of the People’s Republic of China announced that Hong Kong-invested enterprises registered in any of the nine Mainland cities in the GBA may choose Hong Kong as the seat of arbitration. And for enterprises registered in Shenzhen or Zhuhai, they may also choose to use Hong Kong law as the governing law of their commercial contracts. These additional options will certainly create more demands and, hence, opportunities for legal practitioners in Hong Kong.      Sixth and lastly, we have very strong legal professionals and dispute resolution institutions with high expertise and vast experience in providing legal and dispute resolution services involving Mainland and international elements. A very important point is that, while most of our lawyers are very good at handling international legal issues, at the same time, they are also proficient in both Chinese and English, and have intimate knowledge of the Chinese culture and business practices. According to the latest statistics updated to February 20, 2025, published by the Law Society of Hong Kong, 299 law firms have overseas offices, and 86 have representative offices in the Mainland. Because of these strong Mainland and international connections, by engaging a Hong Kong lawyer or law firm, the client would in effect be able to obtain a one-stop legal service regarding different jurisdictions.      Our dispute resolution bodies are of course very popular and well regarded worldwide. According to the statistics published by the Hong Kong International Arbitration Centre (HKIAC) (the main arbitral institution in Hong Kong), in 2024, 352 new arbitration cases were submitted to the HKIAC, with the total amount in dispute reaching approximately US$13.6 billion. Both figures represent a record high for the HKIAC. Parties from 53 jurisdictions participated in these arbitrations. In 86 per cent of these cases, at least one of the parties was not from Hong Kong; and in 14.5 per cent of these cases, neither party came from Asia. These figures demonstrate and reinforce Hong Kong’s status as a world class leading and popular international arbitration centre.      As there are many friends from the Mainland and other countries here tonight, I wish to stress that we adopt a very open policy and welcome lawyers from other jurisdictions to practise here in appropriate circumstances. As a matter of fact, there are already 83 foreign law firms and 1 571 foreign registered lawyers practising in Hong Kong. On the other hand, King’s Counsel from England come to Hong Kong from time to time on an ad hoc basis to appear in difficult and complex litigations.      Turning to arbitration, we place no restriction at all on the nationalities or professional qualifications of the parties, legal advisers or arbitrators to participate in arbitral proceedings in Hong Kong. As a further step to facilitate people from other places to take part in arbitrations in Hong Kong, starting from next month, individuals participating in arbitrations in Hong Kong may do so without the need to obtain any employment visa. These individuals include not only to parties to the arbitration, arbitrators and counsel, but also expert and factual witnesses, tribunal secretaries, and tribunal-appointed experts. And it does not matter that the seat of arbitration is indeed somewhere else so long as the arbitral proceedings take place physically in Hong Kong.      While I am very confident that Hong Kong’s legal system is unparalleled, and provides abundant opportunities to legal practitioners from not just Hong Kong but also the Mainland and other parts of the world, we recognise that there is no room for complacency. Therefore, we will spare no effort to further promote Hong Kong as an international legal and dispute resolution services centre as well as a capacity building centre. I am excited to say that the signing ceremony of the international treaty regarding the establishment of the International Organization for Mediation (IoMED) will take place in Hong Kong later this year. The establishment of the IoMED is the result of successful negotiations between China and a number of friendly states. Its headquarters will be located in Hong Kong, and it will be the world’s first intergovernmental international legal organisation dedicated to resolving international disputes of different natures through mediation.      In addition, the Department of Justice established the Hong Kong International Legal Talents Training Academy last November which aims at providing capacity building programmes, organising practical training courses, and international exchange programmes to promote sharing of knowledge and experience among legal talents in the region and beyond.      I think I have said enough, and it is time for you to enjoy your well-deserved dinner. To my dear friends coming from overseas, I do hope that, apart from taking part in this conference, you will have some spare time to explore our wonderful city. Seeing is believing. I am very confident that you will be convinced that Hong Kong has remained to be a very open and vibrant society full of energy, hopes and opportunities, as is always the case.       I wish you all a very pleasant evening. Thank you.

    MIL OSI Asia Pacific News

  • MIL-OSI Security: Suburban Chicago Man Sentenced to More Than Five Years in Prison for $1.5 Million COVID-Relief Fraud

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    CHICAGO — A federal judge has sentenced a suburban Chicago man to more than five years in prison for fraudulently obtaining more than $1.5 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

    Over a five-month period in 2021, FEROZ JALAL participated in a scheme to defraud banks and the U.S. Small Business Administration.  The SBA’s Paycheck Protection Program allowed qualifying small businesses to receive low-interest, government-backed loans to cover a temporary loss of revenue during the Covid pandemic.  As part of the scheme, Jalal submitted to lenders and the SBA at least a dozen applications for PPP loans on behalf of businesses that he and others purportedly owned.  The applications contained false statements and misrepresentations concerning the purported entities’ employees, revenues, costs, and statuses of operations.  In support of his applications, Jalal provided, among other things, fake IRS tax filings and bogus spreadsheets that purported to document the companies’ payroll expenses.

    Jalal and co-schemers submitted fraudulent applications for PPP loans in amounts totaling $1.792 million, causing $1.644 million to be disbursed by lenders.

    Jalal, 51, of Niles, Ill., pleaded guilty last year to bank fraud and money laundering charges.  On Feb. 11, 2025, U.S. District Judge John F. Kness sentenced Jalal to five years and two months in federal prison and ordered him to pay more than $1.5 million in restitution to the SBA.

    The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Sean Fitzgerald, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations.  Substantial assistance was provided by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).  The government was represented by Assistant U.S. Attorney Brian Hayes.

    Anyone with information about attempted Covid-relief fraud can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    MIL Security OSI

  • MIL-OSI Economics: DDG Ellard urges support for multilateral trading system amid geopolitical challenges

    Source: World Trade Organization

    Good morning, Chairman Lange, esteemed Members of the European Parliament, and the Steering Committee of the Interparliamentary Union.

    It is a privilege to be here with you today. I have a deep appreciation for the complexities of your work and the pivotal position you occupy in bringing together international institutions with the public you represent.

    As Parliamentarians, your engagement on WTO matters is essential — not only for shaping trade policy but for ensuring that our work delivers real and meaningful benefits to the public. Parliaments serve as the voice of the people in global trade discussions, and your leadership is crucial in making multilateralism both effective and responsive to the needs of your citizens.

    Today, as the WTO marks its 30th anniversary, and its 80th beginning as the GATT, I will focus on two pressing topics. First, I will describe the negotiating priorities outlined by the WTO’s Members as we gear up for the 14th Ministerial Conference, scheduled to take place in March next year in Cameroon. Second, I will touch upon the broader geopolitical context — a subject that I know is front and center.

    Fish

    Let me begin with a subject that is especially important to showing the success of the multilateral trading system for economic and environmental sustainability:  fisheries subsidies. One of our Members’ most pressing priorities is to ensure the entry into force of the Agreement on Fisheries Subsidies, while also advancing and completing the negotiations on the second phase, to achieve even deeper disciplines. These efforts are vital to protecting our oceans and promoting sustainable fishing practices worldwide.

    The landmark WTO Agreement on Fisheries Subsidies concluded at MC12 in 2022 brought WTO Members a major step closer to fulfilling the SDG 14.6 mandate by prohibiting subsidies to fishing activities considered to be among the most harmful to the sustainability of our oceans. It is estimated that USD 22 billion of harmful fisheries subsidies are provided each year. Through this Agreement, WTO Members have banned such subsidies provided to vessels involved in illegal, unreported, and unregulated (IUU) fishing, fishing of overfished stocks, and fishing in the unregulated high seas.

    IUU fishing accounts for approximately 20% of the world’s catch, depleting global fish stocks. Moreover, the FAO estimates that almost 38% of global fish stocks are overfished, and by some measures, the devastation is even higher. The AFS can help to reverse this significant and worsening loss of natural resources.

    However, the full potential of the Agreement will be realized only once it enters into force, which requires the acceptance of two-thirds (or 111) of WTO Members. To date, 90 Members have deposited their instruments of acceptance, bringing us within striking distance of our goal — we need just 21 more.

    I would like to sincerely thank the European Union for being among the first to accept the Agreement. In addition, generous contributions by the EU and its member States to the Fish Fund will support developing and least-developed Members with the implementation of the Agreement if they have deposited their acceptances. We are so close to entry into force but not quite there yet.  I strongly urge you to continue your leadership by encouraging and helping those who have not yet formally accepted the Agreement to do so as soon as possible. And for those here today from the IPU Steering Committee who have not deposited, please count on the WTO Secretariat to help you any way we can. We are aiming for the entry into force of the Agreement before the Third UN Ocean Conference (UNOC3), taking place in June in Nice, co-hosted by France and Costa Rica. The need to get this done is urgent, and we are counting on everyone to work to meet the goal.

    The second priority related to fisheries subsidies is concluding the second wave of negotiations on additional disciplines.

    At the WTO General Council meeting last December, it was clear that nearly all Members, with the exception of just a few, were ready to conclude the negotiations based on the most recent draft text circulated last November (TN/RL/W/285). While some Members have noted that the disciplines are not perfect, they still acknowledge the substantial value of the current package in curbing subsidies that contribute to overcapacity and overfishing. However, those Members that do not support the text have expressed fundamental differences.

    While no agreement is perfect and every Member may have aspects they wish to modify, it is in everyone’s interest to achieve an outcome. If Members fail to do so, the absence of disciplines on overcapacity and overfishing will mean continued deterioration of fish stocks for everyone. We are at a tipping point. 

    We remain committed to bringing this second wave of negotiations across the finish line and will continue to rely on the  constructive engagement of those present here today to make this a reality. Urgent action is needed for both economic and environmental sustainability.

    Dispute Settlement

    The second priority is reforming the WTO’s dispute settlement system to ensure that WTO rules remain meaningful for the benefit of all Members.

    At MC12 in 2022, WTO Members committed to having “a fully and well-functioning dispute settlement system accessible to all Members by 2024” and reiterated this objective at MC13 last year. This deadline has passed, and Members are currently working to establish a path forward. I wish to thank the European Union and others in this room for their constructive stance and continued engagement in the reform process.

    Following MC13, the reform of the DS system was formally advanced under the leadership of the Permanent Representative of Mauritius, who, together with six co-convenors at the expert level, worked to address outstanding issues. These included the topics of appeal/review, accessibility, and “works done thus far”. Since the departure of Mauritius’ Ambassador in last November, the General Council (GC) Chair continued to directly oversee the reform process, engaging with Members to gather perspectives on how to build upon the progress and further advance the reform.

    The reform process has already resulted in several draft texts different areas. Notably, Members have developed an advanced substantive draft on “Capacity Building” and “Technical Assistance”. This is crucial for enhancing the technical support we provide to developing Members. While Members made strides in the discussions surrounding appeal/review, this remains one of the more challenging aspects of the reform, and further efforts are needed to resolve the outstanding issues.

    I know that our Members are awaiting word from the United States as to its position. I remain hopeful that we will continue to make progress on this crucial work.

    In the meantime, the WTO continues to serve as the primary forum for resolving international trade disputes. Eight disputes are currently ongoing, along with eleven active consultations. We have also observed an increase in negotiated solutions among Members, with the panel process often serving as a catalyst for these agreements. The dispute settlement work at the WTO remains robust.

    Agriculture

    Third, it is vital that WTO Members make progress on agriculture.

    Agriculture is expected to be a central element on the MC14 agenda, especially because of its fundamental role in supporting food security and driving socio-economic development, particularly across the African continent. Consensus has remained out of reach as to the process and timeline for these negotiations. As the outgoing Chair of the negotiations outlined in his recent report (JOB/AG/265), rebuilding trust and setting credible targets is essential to progressively restoring an effective negotiating process and achieving an agricultural outcome in March 2025 in Yaoundé.

    Plurilateral initiatives

    The fourth priority is for Members to find a way to incorporate the results of plurilateral joint initiatives — the Investment Facilitation for Development (IFD) Agreement and the Agreement on E-commerce — into the WTO rulebook.

    These plurilateral initiatives represent the opportunity for like-minded Members to establish new and ambitious rules among themselves and break new ground within the WTO framework. They co-exist with the concept of multilateralism and do not reduce any WTO rights for non-participants.

    The IFD Agreement currently has 126 WTO Members as parties, including 90 developing and 27 LDC Members, as well as the EU. It aims to foster sustainable development by improving the investment climate through greater transparency and predictability and to facilitate investment flows, particularly to developing and LDC Members. The proponents of the Agreement seek to incorporate it into Annex IV of the WTO Agreement as a plurilateral agreement, with its benefits applied on an MFN basis to all WTO Members. Doing so requires consensus among our Members. However, a few Members have expressed opposition to its incorporation, citing systemic concerns and the impact on multilateralism. The proponents continue work to chart a path to integrate these important disciplines into the WTO rulebook.

    Ninety-one WTO Members, including the EU, have concluded negotiations on the text of the Agreement on Electronic Commerce and presented it to the General Council the day before yesterday for incorporation into the WTO rulebook. The Agreement aims at enabling electronic transactions and promoting digital trade facilitation, ensuring an open environment for digital trade, and promoting trust in e-commerce. It also has provisions on cooperation and development. As with IFD, a few Members oppose on systemic grounds.

    Multilateral work on e-commerce

    In terms of multilateral work on e-commerce, engagement continues under the multilateral Work Programme on Electronic Commerce, as outlined in the MC13 Decision, to be completed by MC14. In January, we held a Dedicated Discussion on bridging the digital divide, focusing on infrastructure, connectivity, and internet access. Another session in February will explore legal and regulatory frameworks, including consumer protection, privacy, and cybersecurity. These sessions aim to share national experiences, delve deeper into key themes, and reflect on actionable ideas. The goal is to identify concrete steps and recommendations for Ministers’ consideration at MC14.

    Another critical decision point is whether to extend the moratorium on the collection of duties on digital transmissions, set to expire on 31 March 2026 or at MC14, whichever comes first. In December, we convened a dedicated information session featuring input from the WTO Secretariat, IMF, UNCTAD, OECD, and South Centre. The session aimed to review existing studies on the moratorium’s impact, foster discussions on its scope and definition, and explore alternative taxation approaches. I encourage you to engage in an open dialogue and explore elements that could help establish a common ground to advance on this important issue.

    Development

    Each of these workstreams carries a strong development dimension, which remains a top priority for many of our Members, as developing countries make up two-thirds of our membership. Just a few weeks ago, WTO Members held a forward-looking retreat focused on leveraging trade as a tool for development and charting a path forward. We will build on this successful engagement in the lead up to MC14. 

    Geopolitical context

    Members of Parliaments, I would be remiss not to say anything about the current geopolitical situation and its impact on trade. We live in tumultuous times — times when trade measures and also countermeasures are announced and implemented within mere days, sometimes hours. The climate of uncertainty affects businesses that operate internationally and rely on supply chains spread across different corners of the world. Such volatility can disrupt economic stability, affect investment plans, and upset supply chains not only within Europe but across the globe.

    It is in times like these that a stable and predictable trading environment, anchored by the multilateral trading system and the World Trade Organization, is more necessary than ever. We were established and designed to promote transparency, stability, and predictability in global trade. Over the past 30 years, the WTO — which an entity composed of its Members — has been working diligently to uphold these principles, to secure a business environment that fosters growth and cooperation. The WTO continues to cover 80% of global trade, which remains unchanged despite recent developments. No single Member dominates the system — not even the United States, which accounts for 15.9% of global trade.

    Europe, with its commitment to open markets and a rules-based trading order, has been a cornerstone of the multilateral system and has long championed the cause of multilateralism and of a predictable trading environment.

    However, let us remember that the multilateral system cannot be taken for granted. Its strength and effectiveness is not automatic; it depends on you, its Members. Our estimates indicate that a collapse of the trading order could result in a staggering double-digit loss in global GDP. And even the mere presence of uncertainty chips away at our collective prosperity, eroding welfare bit by bit.

    That is why today, I appeal to you with an important reminder: the future of the multilateral trading system, and the WTO’s role as a guardian of security and predictability in global commerce, is in your hands.

    If you value the WTO, please help us deliver on the negotiating agenda I have just laid out.

    If you consider WTO rules inadequate or imperfect, I encourage you to collaborate with other Members to strengthen and improve them.

    If you think that your interests are being harmed by measures taken by other Members, I urge you to make full use of the WTO’s platform — whether through our committees, bilateral consultations, or the dispute settlement system — to address and resolve these issues constructively.

    And as you consider the application of your own trade measures, particularly in response to those taken by others, I urge you to remain level-headed and consider not just the immediate effects, but also the broader, long-term consequences, on consumers, industries, and the global trading system. And let us not forget the impact on developing countries — when elephants fight, the grass gets trampled. And that hurts the elephants too.

    In a time when trade is increasingly disrupted by unpredictable and destabilizing actions, your support is crucial in ensuring that the rules-based system we’ve worked so hard to build endures, ultimately benefiting all.  

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    MIL OSI Economics

  • MIL-OSI Economics: Frank Elderson: Interview with Nederlandse Vereniging Duurzame Energie (NVDE)

    Source: European Central Bank

    Interview with Frank Elderson, conducted by NVDE

    20 February 2025

    TIME has named you one of the 100 most influential climate leaders in business. Why are you so motivated to integrate climate and nature-related risks into exercising the mandate of central banks and supervisors?

    Climate, nature and the economy are deeply interconnected and interdependent. The twin climate and nature crises are sources of financial risk. For central banks and supervisors, addressing these issues is therefore neither an option nor a political choice – it is an obligation that falls squarely within our mandate. If central bankers and supervisors want to effectively pursue their tasks of maintaining price stability and keeping the banking sector safe, they need to be mindful of the environment in which they operate. This means considering the impact of the climate and nature crises on inflation and banks’ safety and soundness.

    Is the energy transition in Europe progressing too slowly? If so, why?

    Europe has made significant progress in its energy transition, but if it wants to reach the agreed target, it needs to remain determined and avoid undermining what has been achieved so far. The facts are that current policies put Europe on a 3.1°C warming trajectory over the course of the century, which is too far from the 1.5°C target.[1] The economic risks associated with delayed action are stark: a late, abrupt transition away from fossil fuels would weaken the economy and increase losses for the financial system, making the path to net zero far more costly.[2] In fact, the United Nations has warned that climate mitigation must increase sixfold globally to stay on track for the Paris Agreement.[3] These figures underscore the urgent need for Europe not to relent in its transition efforts if it wants to avoid severe economic and environmental consequences.

    In a previous study, you demonstrated that most European companies and banks face significant financial risks when natural ecosystems collapse due to climate change and biodiversity loss. What are examples of these financial risks? What is the most important recommendation in the report?

    The interdependencies between banks, businesses and nature lead to financial risks. Damage to ecosystems through nature degradation and biodiversity loss poses a significant threat to the economic viability of companies and, by extension, to the financial stability of banks that grant them loans. The study you mention showed that, in the euro area, 72% of non-financial corporations rely heavily on at least one ecosystem service, while 75% of corporate bank loans – approximately €3.24 trillion – are tied to these ecosystem-dependent borrowers.[4] Key ecosystem services such as surface and ground water, together with mass stabilisation[5] and erosion control, are particularly critical, exposing banks to credit risks through affected firms.

    One of the most important lessons from the report is the recognition that biodiversity loss is both an economic and financial risk. A second lesson is that climate and biodiversity are, to a large extent, two sides of the same coin, and they cannot be addressed in isolation. Lastly, the report shows that we are still missing the data needed to better take into account the risks stemming from nature loss. To address this, we need to improve the way we collect and organise information about nature.

    What is the impact of climate change on inflation?

    The economic impacts of climate change and extreme weather events are impossible to ignore. Following 2023’s record-breaking temperatures, 2024 became the warmest year on record globally, reaching 1.5°C above pre-industrial levels.[6] Europe, the fastest-warming continent, saw temperatures soar to 2.9°C above pre-industrial levels in 2024. The physical impacts of climate change – such as more frequent and severe weather events like floods, droughts, and city and forest fires – disrupt supply chains, reduce agricultural yields and drive up food prices. For example, an interdisciplinary study by ECB economists and climate scientists showed that the 2022 heatwave in Europe added 0.8 percentage points to euro area food price inflation.[7]

    The green transition will also bring about structural economic changes, which could influence inflation. Although the overall impact of the green transition remains very uncertain and may vary over time, we need to account for it to effectively deliver on our mandate. This is why we are increasingly incorporating green transition policies, such as climate-related fiscal policies or assumptions on carbon pricing under the EU Emissions Trading System 2, into our macroeconomic analyses.[8]

    To what extent do oil and gas reserves, as stranded assetslosing their value due to the necessity of staying within the 1.5°C climate goalpose an economic risk?

    Generally, stranded assets pose greater economic and financial risks to the extent that industries and banks are not prepared. As the economy moves towards meeting climate goals, industries need to adjust how they operate. And since most companies in the EU with high-emitting production facilities rely on bank financing, this also has a significant impact on banks’ balance sheets. Last year, we released a study on the banking sector’s alignment with EU climate objectives, where we found that 90% of analysed banks faced elevated transition risks due to substantial misalignment with the Paris Agreement.[9] The biggest risk stems from exposures to companies in the energy sector that are lagging behind in phasing out high-carbon production processes and are slow to scale up renewable energy production.[10]

    To what extent does the ECB incorporate climate-related risks into its monetary policy?

    The ECB has taken significant steps to integrate climate-related risks into its monetary policy framework. It has reduced the carbon footprint of the Eurosystem’s corporate bond holdings and expanded annual climate disclosures to cover over 99% of assets held for monetary policy purposes. We’re also making progress in embedding climate considerations in our modelling and forecasting. Through exercises such as climate stress tests, we’ve deepened our understanding of the impact of the green transition and the physical impacts of the climate crisis. To improve data availability, which is key if we want to keep incorporating climate and nature risks, the ECB has developed climate-related statistical indicators.

    How does the ECB ensure that the financial sector properly manages the risks associated with climate change?

    Five years on from the publication of the ECB Guide on C&E risks in 2020, banks have made significant progress in managing climate-related and environmental (C&E) risk. Initially, fewer than 25% of banks had worked on climate-related risk management, and in 2021 a self-assessment conducted by the banks revealed that 90% of their practices fell short of our expectations.

    Following thorough assessments in 2022, we came to the conclusion that the glass was filling up, but that it wasn’t yet half full. Based on what the banks themselves considered reasonable when we first started discussing C&E risk management with them, we set interim deadlines resulting in three milestones: by March 2023 banks were expected to draw up adequate materiality assessments; by December 2023 they needed to integrate C&E risks into their governance, strategy and risk management; and by the end of 2024 they were expected to comply with the full scope of ECB expectations on C&E risk.

    Encouragingly, most banks met the targets set by the 2023 deadlines, and frameworks for climate and nature-related risks are now broadly in place. However, a few banks are still lagging behind and could face potential penalties. For the third and final deadline, which just passed at the end of 2024, we are proceeding with our compliance assessments in the same way as for the two previous deadlines.

    What specific sustainability measure will you personally advocate for within the ECB in 2025?

    In 2025 we will closely monitor progress and, where necessary, use all the tools at our disposal to ensure the banking sector is resilient in the face of the unfolding climate and nature crises. As part of the ECB’s multi-year agenda for banking supervision, we will make sure that the banks we supervise directly – whose assets total over €26 trillion – fully account for climate and nature-related risks in their strategies and risk management. Ensuring banks comply with the new regulatory requirement to develop transition plans to prepare for the risks and potential changes in their business models associated with the green transition is particularly high on the agenda.

    What are your thoughts on Mario Draghi’s report, particularly his call for further financial and economic integration within the EU through, for example, establishing a capital markets union? This plan aims to create a single integrated capital market in the EU, allowing investments and savings to flow more freely across borders.

    From an ECB perspective, we have always been supportive of a deeper capital markets union (CMU). The renewed political momentum we have seen recently in furthering CMU – or a savings and investment union – has come at a crucial time. In fact, the bulk of the additional financing needed for the green transition has to come from the private sector.[11]

    The European Commission estimates that the EU needs an extra €477 billion (equivalent to 3.4% of GDP in 2023) of green investment per year by 2030. This number increases to €620 billion when considering the EU’s broader environmental ambitions. While banks are expected to make an important contribution, expanding and integrating capital markets is essential for directing the flow of funds towards green innovation. The public sector also has a key role to play in mobilising private green investment by crowding in private investment through, for example, lowering borrowers’ financing costs or de-risking green investment activities.

    Sustainable energy technologies and electricity infrastructure have higher investment costs than fossil fuel technologies. As a result, high interest rates slow the energy transition, despite its potential to help combat inflation. Recent high inflation was partly driven by high fossil energy prices. Could a lower interest rate for investments in sustainable energy accelerate the shift away from fossil fuels?

    The ECB’s primary objective is to maintain price stability, and this will always remain the cornerstone of our actions. But we also have a secondary objective, which requires us to support the general economic policies in the EU, including contributing to a high level of protection and improvement of the quality of the environment.[12] Within this mandate, accounting for the effects of climate and nature-related events is part and parcel of our tasks. Importantly, any direct incentives and tools must align with our monetary policy stance. In the specific case you mention, further challenges – such as data coverage and quality, defining appropriate green targeting criteria and establishing robust verification processes – still exist. Some of these issues require agreement on a European level, where we are dependent on legislation.

    Having said that, the ECB’s euro area bank lending survey tells us that European banks are already offering more favourable lending conditions to green firms or firms in transition.[13] In addition, governments can support green projects in a more targeted and effective way by offering more favourable lending through for instance public development banks. Despite this, the ECB still actively monitors regulatory developments.

    Are you optimistic about the energy transition in Europe?

    I am generally an optimistic person. In this case, the progress made speaks for itself: the share of renewables in the EU’s final energy use more than doubled between 2005 and 2023.[14] And last year, nearly half of the EU’s electricity was powered by renewables.[15] Much-needed investment in climate change mitigation has also grown, increasing by 42% between 2005 and 2022.[16]

    We know progress is possible, but we now need to go further and faster. Our research shows that a quicker transition will lower costs – being ready can offer a competitive advantage. Consumer preferences are already changing and these will support the transition. In that respect, we welcome the European Commission’s focus on both decarbonisation and competitiveness.

    Last but not least, through my involvement with the Network for Greening the Financial System (NGFS), which I co-founded and of which I was the first Chair, I’ve also witnessed first-hand the impact a committed group of central banks and supervisors working towards a common goal can have. The NGFS has grown from its original eight members to 143 members today. This “coalition of the committed” is prepared to help future-proof the economy and the banking sector. Regardless of the political winds that are blowing, the reality of the climate and nature crises doesn’t change. And as most Europeans know, it is a reality we must face head on.

    How sustainably do you live and travel?

    We have a fully electric car, and as a proud Dutchman, I love to ride my bike.

    MIL OSI Economics

  • MIL-Evening Report: I looked at 35 years of data to see how Australians vote. Here’s what it tells us about the next election

    Source: The Conversation (Au and NZ) – By Intifar Chowdhury, Lecturer in Government, Flinders University

    In the 2022 federal election, two demographics were key to the final outcome: women and young people.

    With another election fast approaching, will they swing the result again?

    To answer this question, I turned to the Australian Election Study (AES) data spanning the period from 1987 to 2022, to investigate how different demographics have voted over time.

    I found that, generally, Australian women and young people tend to favour left-of-centre parties.

    However, specific election issues can have a substantial impact, making the political context of each election crucial. So what can we expect this time around?

    Leaning to the left

    Last year highlighted a growing gulf in political leanings between the sexes worldwide.

    Young women are increasingly progressive. Young men – particularly Gen Z (born after 1994) – are leaning more conservative in many countries, including the United States, China, South Korea and Germany.

    My analysis of the Australian data mirrors global trends, but with a twist.

    Young Australian women are moving sharply to the left. But unlike in many other countries, young Australian men are also shifting left, just at a slower pace.

    Australia’s leftward move across generations is reflected in both self-placement on a left-right ideological scale, and in the vote in federal elections.

    In the 2022 Australian election, the Coalition received its lowest-ever share of the women’s vote at just 32%.

    Only 24.3% of Millennials (21.9% of men and 25.7% of women) voted for the Coalition in 2022.

    These are the lowest levels of support for either major party among younger people in the history of the survey.

    Among Gen Z, a slightly higher proportion of 24.6% voted for the Coalition (34.0% of men and 19.8% of women).

    What’s driving this?

    In theory, women’s leftward shift is driven by several factors. These include higher education levels, greater participation in professional work, and exposure to feminist values. Despite Australia’s post-industrial, egalitarian image, persistent gendered inequalities and discrimination also play a role.

    Meanwhile, young men’s move to the left can be attributed to progressive and egalitarian socialisation. Plus, unlike in other countries, Australia lacks Donald Trump-like figures who could mobilise anti-feminist or hardline conservative sentiments. This limits the expression of such views at an aggregate level.

    This leftward shift is, in part, a generational effect – or at least a reflection of the times.

    The generational angle is crucial, as the 2025 federal election will be the first in which Millennials and Gen Z together will outnumber Baby Boomers as the dominant voting bloc in Australia.

    This shift should shape how political parties campaign, whom they target, and which issues take centre stage.

    Policies are voter priorities

    My analysis highlights another important angle. Over the study period, voting decisions have increasingly been driven by policy issues, with 48% of Australians citing them as the primary factor. This is followed by party affiliation (29%), party leaders (14%) and local candidates (9%).

    In 2022, 54% of voters reported policy issues as the main factor influencing their choice.

    Across election years, I identified the most prominent and recurrent election issues that voters identified as influential. I added these issues to my model to see how people who care about these issues lean (left-right) and whether men and women differ in their political leanings (progressive-conservative). I also considered other factors known to impact voting, including:

    • sociodemographic factors (education, marital status, social class, home ownership and rural/urban residency)

    • familial socialisation (what their parents’ political preferences were)

    • social network factors (whether they’re religious or a member of a union)

    • electoral context (what each respondent said were the most important voting issues)

    Overall, women tend to be slightly more left-leaning on policy issues than men, and while this difference is statistically significant, it is small and the general trend holds across both sexes.

    Compared with Boomers, each successive generation is more likely to vote for a left party. Gen Z is the most left-leaning (though their smaller sample size warrants some caution in interpretation).

    So who votes for whom?

    Unsurprisingly, people vote according to who they think will best address the policy areas they care about most.

    Those prioritising interest rates, taxation or economic management favour right-wing parties. Voters most concerned with health, Medicare and climate change are more likely to vote for the left.

    Education, class and social networks matter, too. Highly educated, working-class, non-religious and union-affiliated voters tend to support left parties. So, too, do those raised in left-leaning households.

    While the size of these effects varies slightly between men and women, the overall direction remains the same.

    How might this play out in 2025?

    The thing about election issues is that they are highly time-sensitive. Take the GST: it was one of the defining issues of the 1998 election, yet was largely irrelevant after 2004.

    In recent years, left-leaning issues — the environment, health and Medicare — were more likely to be front-of-mind when Australians all of ages headed to the polls. This gives Labor and the Greens an issue-owner advantage.

    Cost of living (spanning day-to-day expenses, interest rates and housing affordability) has now become the defining issue of this election cycle. At first thought, among the two major parties, the Coalition is traditionally seen as a better economic manager.

    However, my analysis from 2022 election data shows that, compared with the 2019 election, fewer people considered the Coalition the best manager of the economy among those who considered it the most important election issue.

    Further, for the first time in the past five elections, a majority of the voters perceived Labor as more aligned with their own views on immigration, refugees and asylum seekers. These issues, historically seen as Coalition strongholds, are also likely to be key this time around.

    For the Coalition, this is bad news. But for Labor, the challenge is twofold: retaining younger, progressive voters while addressing broader economic anxieties.

    With growing voter volatility and a diminished sense of party loyalty, neither major party can rely on a stable base.

    Australians are increasingly willing to shift allegiances, including to the increasing supply of independent alternatives. Both Prime Minister Anthony Albanese and Opposition Leader Peter Dutton will have to convince voters they have the best solutions for the key issues.

    Intifar Chowdhury does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. I looked at 35 years of data to see how Australians vote. Here’s what it tells us about the next election – https://theconversation.com/i-looked-at-35-years-of-data-to-see-how-australians-vote-heres-what-it-tells-us-about-the-next-election-249368

    MIL OSI AnalysisEveningReport.nz