Insurance

Elliott tests activist limits with insurance foray

17 Jun 2020

Paul Singer’s fund is calling for change at $11 bln Dutch life group NN. Some of its demands, such as selling non-core assets, make sense. Others, like cutting costs and piling into riskier debt will be a harder sell. The Covid-19 crisis makes insurers an even trickier target.

UK’s pandemic insurance test will be first of many

15 Jun 2020

A British court will decide in July whether 1,200 firms can claim for lost sales caused by Covid-19. Insurers can easily absorb worst-case losses of around $380 mln. But with other countries planning similar rulings, business interruption policies could yet prove a big headache.

Corona Capital: KKR, Rugby, Centene

12 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: KKR volunteers advisers to share the pain, Super Rugby heads back to the pitch, and Centene's best bet.

SoftBank could end up making lemons from Lemonade

10 Jun 2020

Masayoshi Son’s insurance project is prepping a $2 bln New York listing. Like WeWork, Lemonade is marketed as a disruptor, with an ability to pay claims in seconds. But given its technology may be easy to replicate, a valuation of 30 times sales looks overly fizzy.

Corona Capital: Crisis loans, Jet fighting

3 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: Bank customers are no longer making a dash for cash, loan drawdowns suggest. Meanwhile, a U.S. block on Chinese passenger flights suggests domestic battles haven’t dimmed President Trump’s desire to make China pay.

Corona Capital: Texas bank merger

26 May 2020

Concise views on the pandemic’s corporate and financial fallout: Texas Capital and Independent Bank ditched their almost $3 bln deal as Covid-19 played havoc with oil-and-gas loans. It is, at least, a mutual decision.

Corona Capital: Perpetual WFH, Macy’s

21 May 2020

Concise views on the pandemic’s corporate and financial fallout: Facebook and its peers consider making working from home the new normal, while Macy’s gives an insight into a corner of the retail market that was struggling even before the pandemic.

Pandemic protection will be a governmental affair

14 May 2020

With insurance losses set to top a record $200 bln, enterprising risk managers and investors are trying to capitalise by creating insurance products to mitigate future crises. But unlike 9/11 and earthquakes, the pandemic’s cost is so big states must act as ultimate paymasters.

One odd U.S. healthcare habit to get a viral cure

13 May 2020

About half of Americans are insured through their employers. Many like it that way, which has hindered reform of an irrational system. With millions out of work, firms and workers will be more willing to consider alternatives. The window for improvement is about to crack open.

The Agnellis move from hunting to hunkering down

13 May 2020

With a planned $9 bln cash windfall from selling PartnerRe and fat dividends from merging Fiat with Peugeot, the Italian billionaire family was set just months ago for a global, diversification shopping spree. Exor is a case study in how quickly the pandemic shifts fortunes.

Warren Buffett may have met his match: the Fed

4 May 2020

For the unflappable billionaire, moving Berkshire Hathaway’s annual meeting online and suffering a $50 bln loss from stock swings are minor bumps. His bet-on-America philosophy faces a bigger challenge. Easy money does no favors for an insurance company with $130 bln of cash.

Corona Capital: Exxon, Clorox

1 May 2020

Concise views on the pandemic’s corporate and financial fallout: Exxon is getting clean by manufacturing much-needed medical-grade hand sanitizer while bleach maker Clorox will likely continue its winning streak.

Business interruption fight is black box of risk

1 May 2020

Giant companies and small businesses are demanding compensation for lockdown-related closures. Though some insurers excluded pandemics, others left grey areas. Legal and political fights cloud the vast liability. Uncertainty will be a drag on the industry – and on its customers.

European insurers face virus location lottery

7 Apr 2020

Regulators are divided on investor payouts. French watchdogs have forced firms to cull dividends to absorb pandemic losses, while German and UK ones have been less draconian. Investors in the likes of Allianz and Aviva may face greater regional differences even after the crisis.

Corona Capital: Saudi/Carnival, PG&E

6 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Today, Saudi Arabia’s Public Investment Fund takes an 8% stake in beleaguered cruise outfit Carnival, and the coronavirus may dislodge one of the moving parts in California utility PG&E’s plan to exit bankruptcy.

Insurers are next in line for virus dividend chop

2 Apr 2020

Regulators told the likes of Allianz and Aviva to think twice about giving cash to shareholders. Most payouts look safe even after steep market falls. Yet bond downgrades loom, and pressure to help the economy will sap profitability. Unlike banks, cuts may not fall evenly.

Covea should be haggling hard with the Agnellis

20 Mar 2020

The French insurer’s proposed $9 bln purchase of Exor’s reinsurer PartnerRe has gone from dear to ridiculous in a month. Crashing peer valuations, pressure on Agnelli-owned Fiat Chrysler and a shortage of cash buyers give boss Thierry Derez ample room to negotiate a better deal.

Supply chain insurance pain will hasten defaults

17 Mar 2020

The premium that businesses around the world pay for indemnity against unpaid invoices has jumped by as much as 10% since the beginning of the year. And some are struggling to get any cover at all. That’s a recipe for a temporary cash crunch to cause bankruptcies more quickly.

Virus adds edge to Democratic healthcare debate

11 Mar 2020

The party’s top two presidential candidates have very different ideas for overhauling the U.S medical system. Bernie Sanders’ national health service plan would cost some $12 trln more than Joe Biden’s goal to augment what’s already in place. Covid-19 puts the issue center stage.

Prudential’s U.S. listing throws spotlight on Asia

11 Mar 2020

CEO Mike Wells plans to sell a slab of the UK insurer’s Jackson unit. It’s the second stage of a breakup, and partly satisfies activist Dan Loeb’s call for a full split. But any meaningful boost in the $37 bln company’s value depends on investors reassessing its Asian business.