Standard Life needs to kick mutual habit 4 Jul 2006 The Edinburghbased insurer has become more rational about how it allocates its capital. But its cost base is still too high. This has cost its policyholders. That leaves some upside for incoming investors, if they can persuade management to change.
Credit Suisse exits Winterthur cleanly for E7.9bn 14 Jun 2006 With the sale of its insurance arm to Axa, the Swiss bank has drawn a line under the disastrous dealmaking of former boss Lukas Muehlemann. But it can t claim revenge on Axa for selling it DLJ in 2000. The deal looks sound if strategically unexciting for the French.
Resolution’s Abbey purchase whets its appetite for deals 7 Jun 2006 With targets getting more expensive, and Resolution s chairman Clive Cowdrey on the prowl, that may reflect an acquisition discount. Investors are warming to the closed book specialist s purchase of Abbey life businesses. But they are still leaving a margin for error.
Resolution chases another audacious deal 3 May 2006 The insurance group only recently failed to buy Standard Life. Now it is trying to buy another larger entity Abbey s life business. Why is it being so aggressive? Simple. Its mission is to roll up unwanted UK life businesses. To do that it needs to stay ahead of rivals.
Standard Life shares are a speculative bet 18 Apr 2006 The UK insurer aims to float at a sizeable discount to European peers. Even so, it may not be the bargain it looks. Its recovery remains a work in progress. And a takeover at a meaningful premium may prove elusive.
FSA steps up pressure on hedge funds 23 Mar 2006 The regulator is worried about inaccurate reporting of fund valuations and side letters giving preferential liquidity to larger investors. Fortunately the FSA is not suggesting extra regulation. But it may be looking to claim scalps to prove it is on top of the problem.
Investors shouldn’t dismiss Aviva’s Pru bid 19 Mar 2006 It may seem pretty mean. The UK insurer is only offering a 10% premium to its rival's share price. But the real scope for value creation in this deal comes from a stock market revaluation of the combined business.
Idea of transatlantic bid for ZFS is ridiculous 17 Mar 2006 The market has lapped up suggestions that St Paul Travelers of the US might buy the Swiss insurer. But the financial and strategic merits of the idea are dubious to say the least. ZFS is more likely to buy than be bought.
Allianz deserves benefit of the doubt 16 Mar 2006 The German insurer s fourthquarter results have slightly disappointed an optimistic market. But management remains resolute in its belief that it can deliver on its threeyear plan. And the strategy behind the plan is credible.
Generali’s strategic plan radical but believable 6 Mar 2006 The Italian insurer is at last addressing its flabby balance sheet gearing up to buy out minorities and launch a buyback. Investors may be sceptical of plans to reap groupwide synergies, and hints of M&A. But management s track record should give confidence.
Skandia rout is warning to hostile bid targets 10 Feb 2006 Staterun pension funds and domestic retail investors have reversed their longstanding opposition to Old Mutual s hostile takeover bid. A squeezeout of minorities looks likely. Old Mutual pitched its offer to get a simple majority. Hostile bids are getting harder to defend.
Unipol should return E2.6bn cash pile 2 Feb 2006 The Italian insurer should abandon hopes of buying BNL and hand back the cash it raised to fund this misguided bid. That could have a dramatic effect on the shares, which are currently betting that management will squander E1bn of it.
Skandia minorities don’t need special protection 12 Jan 2006 As many as 30% of the Swedish insurer s shareholders appear to be holding out against Old Mutual s E5bn hostile takeover. But their demand for board seats goes too far. They already enjoy protection, and Old Mutual has much to lose by disadvantaging them.
Investors should brace for Aviva M&A 11 Jan 2006 The UK insurer seems to have tried and failed to do a $3bn deal with a US peer. But a rising share price will help it fund alternative buys. That s no bad thing. Aviva needs to diversify away from its lowgrowth home market and has a solid M&A record as both buyer and seller.
Ebner’s back: a ghost of Christmas past 23 Dec 2005 The corporate raider, who used to instil fear in Swiss boardrooms, was nearly bankrupted by the stock market crash three years ago. Now he is making a comeback with a 12% stake in Converium the troubled reinsurer also trying to repair its reputation.
Skandia’s fall shows power of hedge funds in M&A 20 Dec 2005 The Swedish insurer has it lost its independence to Old Mutual and even failed to tease a higher price, despite hiring Goldman to defend it. The defence was probably doomed. Old Mutual had cleverly played to Skandia s hedge funds investors, who served it up on a plate.
Old Mutual shouldn’t raise its E5bn Skandia bid 5 Dec 2005 A higher offer is not guaranteed to win a unanimous recommendation from the Swedish insurer s board. True, the South Africans may have to live with recalcitrant Skandia minority shareholders. But that s not such a bad thing.
Prudential’s new strategy is a tough sell 26 Oct 2005 The UK insurer s new CEO Mark Tucker plans to use its Egg banking unit to sell insurance. He also wants to move beyond life and pensions. But bancassurance is a tough nut to crack. And greater focus would be preferable to diversification.
Pru would be unwise to keep egg 12 Oct 2005 The UK company should focus on selling insurance. It has no place for a bank which is heavily exposed to the consumer slowdown. Mark Tucker, Pru s new boss, should get shot of egg before it blights his reign, as it did that of his predecessor.
Skandia chomps through advisers 5 Oct 2005 The Swedish insurer has fired Morgan Stanley and taken on Goldman Sachs to defend it against Old Mutual s E4.8bn takeover offer. The bid has divided Skandia s dysfunctional board. Goldman is gambling its own reputation if it thinks it can broker a peace.