Investors fret about Zurich recovery 19 Nov 2003 A year ago, Jim Schiro had a clear plan to turn round the insurer. Now he has gone all vague. It looks as if the easy part may be over.
San Paolo IMI prepares for insurance deal 18 Nov 2003 The Italian bank is on the verge of announcing a plan to pool its farflung insurance units into one new entity. It can cut costs and prime the business for M&A. Like clockwork it's readying a deal as the contracts of its three CEOs need renewing.
Allianz, ING struggle to please in Q3 14 Nov 2003 The latest results from two of Europe s largest insurers have cautioned investors not to be overly bullish about the industry s prospects. The costs of the past still weigh heavily. And insurers may not be as geared to the recovery as they were to the downturn.
Scor downgraded despite rights issue 7 Nov 2003 The reinsurer has been downgraded to one notch above junk, and its bankers have yet to agree to fully underwrite its rescue rights issue. Now they have an excuse to pull out. Such halfhearted underwriting is pretty pointless.
Scor needs more 6 Nov 2003 The French reinsurer has launched a second rescue rights issue to cover the spiralling cost of claims in the US. But there is no guarantee that the E600m targeted proceeds will do the job. And Scor probably needs twice that to restore its credit rating.
Aviva disappoints in Q3 23 Oct 2003 UK life insurance stocks have ridden the equity market turnaround, but firm evidence of a recovery in sales is needed to sustain valuations. Now the last of the Big Three insurers to report Q3 results has shown that sales momentum is volatile. But at least there's some pickup.
Munich Re launches E3.8bn rights issue 17 Oct 2003 The German reinsurer is tapping shareholders for E1bn more than they expected. That minimises the need to sell assets at poor prices. Munich Re said it wouldn t raise capital to just to please the rating agencies. It has climbed down because the market wanted it to.
RSA rights issue almost fully taken up 15 Oct 2003 The fall in the UK insurer's share price during the roadshow saw arbitrage funds bet on the issue being left with underwriters. But RSA was not just raising capital. It was seeking longterm investors too. Its success prevented the arbitrage gamble paying off.
Munich Re needs rights issue despite tax boost 13 Oct 2003 A whopping halfyear tax provision was one factor behind the German reinsurer s downgrade by S&P in August. Reports suggest that the provision may now be released. But Munich Re still needs a rights issue, and more, to win back its credit rating.
AMP struggles to keep its promises on UK demerger 10 Oct 2003 The Australian insurer told its shareholders it could demerge its UK arm without tapping them for further capital. But the UK arm needs more capital. And shareholders in the new company AMP s investors must cough up or be diluted.
Arbitrageurs circle Royal & Sun Alliance rights 1 Oct 2003 A fall in the insurer's share price has created an opportunity for the arbs. But it is a risky one.
Axa bid offers arbitrage gamble 18 Sep 2003 The outcome of the French insurer s bid for Mony is in doubt following opposition from the US company s shareholders. The convertible bond issued to fund the bid represents a chance to lay a wager on Axa s chance of success.
Axa to pay $1.5bn for US rival 18 Sep 2003 The puzzle is why MONY has agreed to sell out for a measly 6% premium. Rivals will be running the numbers to see if they can pay more. Small wonder that Axa is being coy about the potential for cost savings.
Munich Re admits HVB exposure is too big 11 Sep 2003 The world s largest reinsurer has said its strategic relationship with HVB does not require it to hold a 26% stake in the German bank. But finding a way of realising good value from this stake won't be easy and, in any case, won't change the need for a rights issue.
Swiss Life back in the black 10 Sep 2003 After multiple disappointments, Switzerland's largest life assurer has delivered a nice surprise. Its turnaround is gathering pace. And despite the latest rally, it is not hard to see further upside to the shares.
Aviva launches £1.2bn hybrid capital issue 10 Sep 2003 The UK life insurer was first with its dividend cut. Now it is leading the pack in tapping the debt markets early after the summer break. Aviva hasn't spoilt the market for others. Demand for hybrids is so strong that rivals should find it easy to follow suit.
Munich Re’s rights issue will be sooner not later 9 Sep 2003 Standard & Poor's has given the German reinsurer a healthy sixmonth window to raise capital and avoid another humiliating downgrade. But for all its protests to the contrary, Munich Re would benefit from a rights issue as soon as possible and has an excuse for one.
RSA pays over the top for underwriting 8 Sep 2003 The insurer is paying £48m in fees for its £1bn rights issue, even though the shares are being sold at a thumping discount. The theoretical cost of a put option on its shares at such a discount would have been a tiny fraction of this.
RSA puts gun to investors’ head 4 Sep 2003 The £744m gap in the UK insurer's reserves is much bigger than feared. That's why the discount on its £1bn rights issue is much deeper than expected. That will force shareholders to cough up.
RAS has more cash than it knows what to do with 2 Sep 2003 With nothing much to buy on the horizon, RAS could come under pressure to return some cash to shareholders. While European rivals are passing the cap round, the Italian insurer has some E900m of excess capital.