HVB shrinks – and it hurts 13 May 2003 The German bank may have cut its costs, but revenues are falling too as it cuts its balance sheet. While HVB remains short of capital, this process will go on and on.
RSA still needs a rights issue 12 May 2003 Like its pension deficit, the successful float of the UK insurer s Australian unit was not the nightmare investors had earlier anticipated. But doubts over reserves and life solvency are stubborn. With the shares firming, the new CEO should have another go at a rights issue soon.
Generali shaken by further instability 27 Apr 2003 Far from bringing peace to the Italian insurer, the recent assault from the country s biggest banks has brought further instability. The presence of the banks on the board is destabilizing. Management may be right in seeking a buffer zone.
Suez raises E1.8bn from Fortis stake 24 Apr 2003 The indebted French group failed to secure a premium by shopping its 10% stake in the Belgian bank to a trade buyer. It has had to opt for a second best solution offloading a chunk via a mandatory convertible bond and selling the rest in the market.
Allianz’s rights issue should raise over E4bn 9 Apr 2003 The German insurer is to issue 7 shares for every 15 owned, implying an issue price of E30 if it is to raise the minimum E3.5bn it is after. But there are reasons to suppose that Allianz will be able to price the issue more aggressively, and raise much more.
Directors and officers insurance premiums soar 4 Apr 2003 What's the surprise here? Insurers slashed premiums during the bull market even as business volumes soared.. The bear market has exposed the moral hazard intrinsic to the D&O business.
Banks start unbundling commissions 3 Apr 2003 UK fund manager Gartmore is making Goldman and Merrill redirect commissions to other brokers to reward research in a more systematic manner. Greater transparency may put more pressure on equities revenues. But if this is the new model, the two banks have firstmover advantage.
Arbs try to fleece Munich Re in Allianz issue 2 Apr 2003 Munich Re's declaration that it will only partially participate in Allianz's rights issue has created a classic arbitrage opportunity. But shorting Allianz and mopping up Munich Re's unwanted warrants may be riskier than it seems.
Munich Re disappoints, Swiss Re reassures 26 Mar 2003 Munich Re has done little to quash speculation that it may need to have a rights issue. Swiss Re has ruled out a rights issue and cut its dividend. In fact, it's too soon to know whether either will be tapping shareholders.
Fiat avoids Toro fire sale 24 Mar 2003 Given Fiat s obvious need for cash, the sale is an achievement. CEO Morchio s guntothehead auctioneering style surely played a role. But fewer bidders and government meddling suggest he needs a lighter touch to save the sale of Fiat Avio.
What is Generali worth? 24 Mar 2003 The squabbling over who should control Generali has helped pushed its shares higher as the rest of the insurance sector has tumbled. But participants in the recent sharebuying frenzy paid a hefty price.
Allianz to raise E5bn 20 Mar 2003 Here comes another deepdiscounted rights issue that gives investors little choice but to cough up. But with Dresdner Bank in the mire, and Allianz still heavily exposed to equities, it s hard to see positive reasons to back the cashcall.
Aegon’s half-hearted governance revamp 20 Mar 2003 The insurer is the latest big Dutch group to cut the voting rights of its foundation. ABN Amro and ING are doing so too. These are steps in the right direction. Still, the moves aren't radical enough. Why not go for a clean break?
Allianz shouldn’t get stuck on its credit rating 14 Mar 2003 Allianz needs more capital. But the only reason to have a rights issue is to maintain its AA credit rating. The cost of this could be huge. It may be less painful just to let the credit rating slip a few notches.
UK insurers are victims of transparency 13 Mar 2003 Unlike European peers, the UK financial regulator is taking visible steps to show it is on top of the insurers. That is scaring investors. But most firms are still writing new business despite the stock market slump. The question is what that s really worth.
Generali scrum gets still messier 10 Mar 2003 Not only has Intesa built up a stake. Bollore, the French raider, has increased his stake in Mediobanca, Generali's largest shareholder. This elaborate game of intrigue underlines the failings of Italian capitalism. Companies aren't allowed to get on with running themselves.
Insurer dividend cuts are de rigueur 6 Mar 2003 Aegon and Royal & Sun Alliance are cutting payouts to conserve capital. And why not? There is safety in numbers. But Swiss Life, which raised capital recently, has issued a profit warning. Insurers have yet to prove they have got a grip on the past.
Friends Provident is latest insurer to warn on dividend 5 Mar 2003 The UK life assurer is still looking to grow the dividend, only at a lower rate and depending on equity returns. The company should not be punished too harshly for giving greater clarity on its payout than its rivals have.
Generali fails to kick Unicredito offside 4 Mar 2003 The insurer almost managed to use the crossshareholdings rule to stop Unicredito from becoming an important investor. Sounds outrageous? Maybe for another country. But in Italy there s no obvious alternative to the current rule.
Generali battle heats up 3 Mar 2003 The Unicredito camp is fighting Mediobanca by building up a stake in the insurer. Loosening Mediobanca s grip is a good plan. Shame Generali will still be the centre of Italian power struggles.