China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
Fosun’s $3 bln U.S. sale is an orderly retreat 6 Dec 2016 Selling U.S. insurer Ironshore is a welcome sign of caution from one of China's most aggressive dealmakers. The deal will shore up Fosun's balance sheet and sharpen its focus on emerging markets. The U.S. will only become tougher for Chinese firms to navigate.
Generali’s cost cuts could go further 23 Nov 2016 Under pressure from low rates and Italian political risk, the insurer wants to boost operating performance. Boss Philippe Donnet is right to slash expenses to help do so. Yet hitting Generali's cost of equity implies cutting more than what is currently planned.
Zurich Insurance overhaul short on big thinking 17 Nov 2016 It's good that the Swiss insurer plans to increase cost-cutting and link dividend payouts to earnings. While the emphasis on capital discipline is laudable, boss Mario Greco has yet to show the kind of strategic revamp investors might have hoped for.
Aegon’s fortunes unhealthily pegged to White House 10 Nov 2016 The Dutch insurer's earnings were helped out by better-than-expected changes to its assumptions. Better still, Treasury yields have spiked as investors assume inflation from President-elect Donald Trump's policies. The flipside of that could be increased volatility.
China Oceanwide buys GE sloppy insurance seconds 24 Oct 2016 The private conglomerate run by Lu Zhiqiang is paying $2.7 bln for U.S. insurer Genworth Financial, which was spun out of the industrial giant and has since wasted away. It is not clear the Chinese buyer has what it takes to turn around Genworth, but the deal puts it on the map.
Dutch insurer tussle could go a number of rounds 5 Oct 2016 NN Group has gone public with a 2.4 bln euro unsolicited bid for domestic peer Delta Lloyd. Insurer mergers make sense, and despite a bolstered capital position, some Delta investors may take the cash. Still, synergy estimates imply NN may have scope to improve its pitch.
Sompo buys $6 bln policy against declining Japan 5 Oct 2016 The Tokyo firm is acquiring U.S.-listed peer Endurance. Japanese insurers' hunger to diversify from a tough home market has sparked a string of big deals, sometimes at crazy prices. A $6.3 bln price tag here looks fairly sane given Endurance's assets and growth prospects.
Anbang IPO is high-profile test for global banks 4 Oct 2016 The Chinese owner of the Waldorf Astoria has rocketed from obscurity to hold nearly $300 bln in assets. Now it is eyeing a Hong Kong offering for a key unit. Investment banks must get comfortable with the ownership and operations of a private group that poses many questions.
Scarcity value in finance fuels bumper Indian IPO 21 Sep 2016 Indian bank ICICI is selling up to $905 mln of shares in its insurance unit. It is the country's biggest listing since 2010. A punchy valuation underscores how investors are willing to pay a premium for the handful of healthy stocks available in India's financial sector.
Anbang’s deal slowdown sounds unconvincing 7 Sep 2016 The Chinese insurer pledges fewer deals after a $16 bln-plus spree. That seems like a pitch for respectability before a Hong Kong IPO. But the bold, opportunistic group will probably keep finding new distractions to buy. That will be a turn-off for prospective investors.
Obamacare fails to cover U.S. insurers 16 Aug 2016 Aetna is the latest to exit exchanges selling subsidized health plans. The Affordable Care Act is getting more people insured. But private insurers seem unable to make money. System gaming, adverse selection and political gridlock over refining the law risk squeezing them out.
Old Mutual takes the slow road to breakup 11 Aug 2016 The South Africa-focused financials group announced a split earlier this year. Favourable currency moves mean its South African operations are now worth more. But a poor first half for its flagship UK wealth manager suggests a listing could take longer to materialise.
Prudential’s Brexit-padding does the job 10 Aug 2016 The UK-based insurer beat forecasts in the first half, helped by the fact 70 pct of operating profit comes from outside the EU. But its UK asset manager is doing worse than peers, and low rates hit it too. Pru still looks reasonably diversified, just not so well balanced.
Megadeal gets India’s insurers set for public life 9 Aug 2016 A fiddly merger between two foreign-backed players will create India's largest private insurer, and give the $10 bln group a public listing. Others are queuing to IPO. Stock markets will help fund growth – and end state dominance of a sector that does not yet reach enough people.
RSA and Aviva have hedge against Brexit gloom 4 Aug 2016 Both UK insurers can dodge post-EU referendum blues. Falling rates pose a risk to their half-year positions, but operations are solid and sterling's slide helps groups with big overseas earnings. Losing EU market access is also less of a threat than it might appear.
UK banks’ light at the end of PPI tunnel darkens 2 Aug 2016 British lenders smarting from Brexit and EU stress tests face redress for mis-sold loan insurance lasting a year longer than expected. An actual cut-off date beats none at all. But the delay means fines relating to commission mis-selling will further inflate PPI's $32 bln cost.
China insurers’ worst habits go almost unchecked 26 Jul 2016 The insurance watchdog is looking for trouble in the wrong places. It is warning over the industry’s riskiest investments from corporate raiding to big M&A. But it could do more to rein in the high-yielding products insurers offer that underpin the hunt for outsize returns.
U.S. health insurer M&A has only death-row chances 21 Jul 2016 The Department of Justice has filed to stop Anthem's $44 bln purchase of Cigna and Aetna's $33 bln deal for Humana. They may try to fight, but the odds aren't with them. The government's arguments look strong, and President Obama's antitrust prosecutors are on a winning streak.
U.S. healthcare mega-deals get grim diagnoses 8 Jul 2016 Aetna's $34 bln acquisition of Humana and Anthem's $44 bln plan to buy Cigna are risky propositions to shrink the industry from five big insurers to three. Investors now expect both mergers to die. If right, the companies also would return to independence worse than they began.