Axa investors shrug off dividend cut 27 Feb 2003 The French life and general insurer is at pains to show it is managing its capital base prudently. It has also beaten its own cost cutting targets. But this won't be enough to sustain a share price rally.
Fiat gets a clever new CEO 27 Feb 2003 The resignation of two independent directors strengthens the grip of the Agnellis. Who's going to look after the other shareholders now? But having a clever dealmaker may not be great for minority shareholders. Morchio is best known for cutting great deals for himself.
Fiat losses complicate Agnelli’s plea 26 Feb 2003 How will Umberto Agnelli persuade his family on Monday to invest in a firm that just lost E4.3bn? There is a way. The bylaws of the family holding company make it attractive for members to follow their money.
Royal & Sun Alliance keeps on falling 26 Feb 2003 But investors won t stump up for RSA when they reckon stronger insurers are mulling rights issues too. This time it is rumours of a 30pashare rights issue that have bashed the UK insurer's stock price.
Prudential raises doubts over dividend 25 Feb 2003 The UK insurer is eating a healthy portion of humble pie. It cannot recommit to dividend growth following cuts to its credit rating. The Pru s declaration last summer that dividends would keep rising was always tempting hubris.
Fiat seeks call option on Fidis stake 18 Feb 2003 By retaining a right to buy back 51% of its financial services arm from its banks, Fiat is covering its backside. The reason? Some fear Section 6.10 of the master agreement to sell Fiat Auto to GM could be compromised.
Fiat mulls Toro sale to Agnellis 12 Feb 2003 There are a few options under consideration to do this. But all of them are rife with potential conflicts. Fiat nonexecs Jack Welch and Felix Rohatyn should keep Fiat s nose clean and push for a competitive auction.
S&P cuts Axa’s credit rating 12 Feb 2003 The reassessment should come as no surprise given the downgrades heaped on the insurer s peers last year. What is odd is that Axa, which is heavily exposed to equity markets, has held out for so long.
A bad week for UK savers? 7 Feb 2003 Cuts to bonus rates on "withprofits" policies have come thick and fast from some of the UK's best known savings institutions. But policyholders have done much better than ordinary equity investors. If only we knew how it was done.
UK life assurers in the twilight zone 29 Jan 2003 The insurance industry has weathered a 50% decline in stock prices because its liabilities have declined too. But there may be a limit to its ability to soak up punishment.
Agnelli’s death spells end of an era 24 Jan 2003 The Fiat patriarch's early promise and flamboyance were not his only legacy. In recent years, Fiat sank deeper and deeper into crisis. The family and the company are now likely to fragment.
Legal & General gains on reserve strengthening 24 Jan 2003 The insurer has moved fast to offer reassurance about the impact on its annuity business of revised estimates of mortality rates. But L&G, which raised funds opportunistically last year, saw new business decline in Q4. The comparatives ahead will be even tougher.
Generali maps outs its future 22 Jan 2003 For the first time, the giant Italian insurer has revealed its strategic plan, with profit forecasts up to 2005. This is a welcome change from a firm better known for obscurantism. Too bad, then, that it has declined to reveal this year s earnings.
Aviva’s sales inch ahead in tough markets 21 Jan 2003 Sales growth has slowed dramatically. But at least the UK s biggest insurer managed to grow last year. 2003 will be tougher. Aviva reckons it will be able to take market share in the downturn. But there s no evidence of that yet.
It’s time to switch out of reinsurers 21 Jan 2003 The pricing boom is drawing to a close. It s only just beginning among direct insurers. What s more, their distribution networks are a natural barrier to entry. So the pricing boom should also last longer.
Battle lines drawn over credit insurers 7 Jan 2003 Ratings agencies and investors are divided over whether credit insurers should mark derivative losses to models or to market prices. Both methods have drawbacks. But investors should not place too much faith in the insurers models or the agencies motives.
Fiat takeover would benefit GM big time 2 Jan 2003 According to an old SEC filing, in a Fiat takeover, the US carmaker could actually force Fiat to buy back its 20% of Fiat Auto. This suggests any bidder, such as Robert Colaninno, would face a huge potential contingent liability that might hinder takeover plans.
Fiat credit rating junked by Moody’s 20 Dec 2002 Fiat may meet debt reduction targets this year. But only through financial engineering. Moody's rightly decided that was insufficient. Fiat may be shocked, but it can't have expected better. Now its banks will likely step up asset sales.