Pru proves it is more than a one-trick pony 12 Mar 2014 The UK-based insurer’s Asian exposure has left some investors questioning whether Prudential will be hit by emerging market outflows. But 2013 results show its eastern growth story is largely intact. Meanwhile improving fortunes in the U.S. mean it has a second area of strength.
Regulator helps Aviva solve overhang problem 6 Mar 2014 The UK insurer is hacking back a complex corporate structure that entailed one part of the group lending heavily to another. Pressure from the UK supervisor was a factor. But Aviva aggressively went along to remove a key uncertainty. That will give investors comfort.
Pimco’s Gross leaves Allianz with a dilemma 27 Feb 2014 Market softness and currency shifts may challenge Pimco, the world’s biggest bond manager, in 2014. Legendary boss Bill Gross has a strong record to fall back on. But questions over both performance and his style mean his German masters can’t ignore the question of succession.
More careful aim needed for U.S. insurance bazooka 25 Feb 2014 Congress is considering both flood and terrorism backstops this week. There may be a role for the feds, but not if it usurps private markets. And if lawmakers want to check Uncle Sam’s actuarial ambitions, they could start with the most sweeping: mortgage guarantees.
Allianz hits back of the net with FC Bayern deal 13 Feb 2014 Germany’s largest insurer is paying 110 mln euros for an 8.3 pct stake in the country’s most successful soccer club. Allianz has got a slightly cheaper deal than Audi’s investment in the team in 2010. And its clout as a giant institutional investor may spur improved governance.
AIG settles for connecting flights to exit ILFC 16 Dec 2013 The insurer is getting $5.4 bln for its aircraft-leasing arm - just 75 pct of book value. AIG gets two-fifths of the price in rival AerCap’s stock, and is providing a $1 bln line of credit. CEO Bob Benmosche hasn’t found the cleanest deal, but it is a glide path to independence.
RSA firesales could bring new headaches 13 Dec 2013 The UK general insurer’s CEO has quit and its shares have tanked after a third profit warning. The chairman is reviewing RSA’s empire and could sell units to shore up the capital position. But a piecemeal sale of crown jewels like Scandinavia would create its own problems.
Pru throws down gauntlet to taper doomsayers 10 Dec 2013 Having hit four-year growth targets, the UK insurer plans to double cash generated from fast-growing Asian operations by 2017. The worry is that Fed tapering leads to a slowdown in the region. But Pru’s market position is so entrenched that it would be wrong to bet against it.
Europe’s Solvency II deal is better than nothing 14 Nov 2013 Brussels has completed its tortuous quest to harmonise the way Europe’s insurers work out capital reserves. Solvency II has so many national carve-outs that its original aim has almost been lost. But it’s a step forward – if only because insurers can now stop fretting about it.
Insurers are killjoys at London’s IPO party 13 Nov 2013 A sales warning lopped 22 pct off Partnership Assurance shares, months after the annuity group listed. Peer Just Retirement, which floated this week, is also underwater. Next year could be better. But the duo have dented the UK’s otherwise robust IPO market.
RSA isn’t in opportunistic bid territory yet 11 Nov 2013 The UK insurer has suspended its Irish bosses and issued a new profit warning. Potential predators like Allianz will have noticed. But despite a share-price rout, RSA isn’t cheap enough to make up for all the uncertainty. That buys management some breathing space.
ING solves first of its two home-grown problems 6 Nov 2013 The Dutch bancassurer is on course to repay 2008 state bailout money with interest, and restructure itself sooner than others that overstretched themselves. But with its own government keener than most to bash banks, ING still faces more regulatory curveballs than European peers.
Prudential can put domicile issue on back burner 12 Aug 2013 The UK-based insurer is meeting cash-generation targets for its fast-growing Asian business. Ultimately it needs to decide if it should move its HQ there. But with the shares strong and potentially harmful EU reform up in the air, Pru can do without radical changes of emphasis.
Apax shows how a clean leveraged buyout works 5 Aug 2013 The private equity firm is selling insurance broker Hub in a $4.4 bln deal for a tidy profit six years after taking it private. Apax used a big slug of equity and doubled EBITDA without siphoning off any special payouts for itself. Over to Hellman & Friedman to repeat the feat.
Texas puts life insurance trading back on the map 17 Jun 2013 The Lone Star state now encourages people to sell their policies, though only to pay for long-term care. Others may soon follow. Individuals get money early – though less of it – and governments save on medical costs. Even Wall Street may benefit if enough buyers step forward.
New York watchdog protests too much over insurance 12 Jun 2013 The state’s brash financial regulator rubbed fellow overseers the wrong way over Standard Chartered. Now he risks doing the same for insurers. His capital-inflation beefs are legitimate, but other U.S. regulators are on the case. What’s needed is coordination, not a vigilante.
Partnership’s success hinges on killer data set 7 Jun 2013 The insurer’s shares are up 20 pct even after pricing at the top of its IPO range. Its superior mortality data help it boss the ghoulish but high-growth market in annuities for those nearing death. Larger peers may crash the party. Then the IPO pricing won’t look so conservative.
How lucky SNS wasn’t based in Nicosia 6 Jun 2013 The Dutch bank has at last released its 2012 results, months after it was nationalised. Had SNS been headquarted in Cyprus, its hideous property losses might have warranted a depositor haircut. Bail-in’s champion, Jeroen Dijsselbloem, was much less gung-ho in his own back yard.
Rating cut says more about S&P than Warren Buffett 16 May 2013 Standard & Poor’s has taken Berkshire Hathaway down a notch to AA. But the downgrade is due to changes in the rater’s methodology rather than Buffett’s firm doing something to make a default more likely. Some tweaks are fine. But S&P could end up making ratings more of a muddle.
Esure’s IPO demands careful risk assessment 8 Mar 2013 An IPO could value the British motor and home insurer at 1.15 bln pounds. Rival Direct Line’s successful recent float helps, but the sector is undergoing dramatic changes. Investors need to believe esure when it claims that those will help, not harm, its business.