GE finds making bankers sweat doesn’t always pay 2 Jun 2004 The giant conglomerate held Goldman Sachs and Morgan Stanley s feet to the fire over the IPO of its insurance unit. The result was less than a wholehearted success.
Swiss Life opts for huge discount in rights offer 18 May 2004 The company is pressing on with its share and convertible offer even though sentiment towards insurers has turned nasty. It's not so financially stressed that it couldn't have postponed the job. But management probably couldn't bear to be seen in retreat.
Dresdner stops losing money 14 May 2004 But Allianz s illfated banking acquisition is a long way from making a decent return on equity. Going forward, it may be just as hard to jack up profits at the shrunken unit as it was to stop the losses.
Standard Life looks a tough sell 31 Mar 2004 Europe's biggest mutual insurer is right to opt for a demutualisation. But in its current shape it will struggle to attract investors. The twoyear flotation timetable should give it time to reinvent itself if a bid does not put policyholders out of their misery first.
Swiss Life goes cap in hand for another SFr1.2bn 30 Mar 2004 The group's insurance subsidiary has not had success in selling its Banca del Gottardo. So it is selling the bank to the holding company. This is only an excuse for a third capital increase in two years.
Another disappointment from Prudential 24 Feb 2004 The formerly solid performance of the UK insurer has become much harder to rely on. Its latest results have been hit by the falling dollar. But CEO Jonathan Bloomer is hesitant to take advantage of the weak dollar by making acquisitions in the US. He should not be so cautious.
Standard Life liquidates 25% of with-profits fund 18 Feb 2004 Europe's largest mutual insurer sold some £8bn of equities in the last few weeks, boosting its solvency ratios. Market conditions were ideal for such a move. Unfortunately for Standard Life, it cannot take all the credit for the timing of the decision.
Sampo torches E2.7bn IPO plan 11 Feb 2004 The Finnish financial services group was all set to reduce its stake in If, a general insurance firm, along with coshareholders in a float. But it has staged a uturn and bought out the consortium instead. It could be gambling on there being better conditions for an IPO later on.
Axa convertible investors fret over Mony 27 Jan 2004 Shareholders in Mony are becoming increasingly aggressive in their opposition to Axa s recommended offer for the US insurer. That s making investors who bought a special Axa bond to finance the offer worry that it may have to pull out. Such fears look misplaced.
Standard Life admits to demutualisation plan 13 Jan 2004 The mutual insurer has all but announced it is heading for a float that could value it at up to £7bn. It has even appointed a new chief. The UK regulator, which has exposed the fact that its capital isn't as strong as once thought, has effectively forced the move.
Standard Life under scrutiny over solvency 8 Jan 2004 A dispute between the giant mutual insurer and the UK regulator has been exposed. The issue, solvency, couldn t be more serious. That could give ammunition to the dogged moves by some policyholders to get it to sell up.
Market names a price for closed insurers 23 Dec 2003 Six months ago, investors didn't want to buy AMP's UK insurance interests at any price. Now they have snapped them up. True, it took a whopping discount to whet appetites. But investors no longer think closed insurers are too risky to touch.
Arbs fail to score off Scor’s rights issue 11 Dec 2003 Arbitrageurs looking to exploit the troubled French insurer's capital raising have hit a brick wall no one will lend them the stock. But there is a consolation. They have at least been offered chunky fees for the subunderwriting.
Unicredito launches E1.3bn Generali convertible 4 Dec 2003 The Italian bank has been under pressure to reduce its exposure to the insurance group. The issue should cut its funding cost, while allowing Unicredito to keep its influence at Generali.
Swiss Life issues convert to finance buyback 3 Dec 2003 The insurer wants to simplify its structure by buying the 7% of its operating subsidiary which it doesn t already own. But it is going through the complex process of issuing one form of quasiequity to retire another.
HSBC gatecrashes Scor rights issue 2 Dec 2003 The French insurer's capital raising looked dicey until HSBC entered the fray. It has made its extensive balance sheet available. Other distressed companies might take note.
AMP demerger exploits Anglo-Australian rivalry 28 Nov 2003 The Australian insurer's UK operations will raise £100m by turning its forthcoming demerger into an IPO on the cheap. UK investors have shown interest in the stock at the right price. And British interest may keep existing Australian investors on board.
Munich Re follows rights issue with bad results 25 Nov 2003 This is shabby. The German reinsurer's Q3 numbers are disappointing on almost every measure. No wonder it rushed to tap investors for E4bn only last month. Shareholders and credit rating agencies will be unimpressed to say the least.
LBO firms struggle to clinch UK insurance deals 24 Nov 2003 Everyone is talking down the prospects for British insurers creating ideal conditions for private equity firms to launch bids. But deals aren t being done. Either private equity has lost its appetite for risk, or sellers are demanding silly prices.
Scor admits it is in peril 20 Nov 2003 The French reinsurer has said the downgrade of its credit rating to junk will seriously damage its business. With rating agency Fitch endorsing the market's concerns over Scor's solvency, the company might as well be frank.