Insurance

Mediobanca tries to have Generali cake and eat it

20 Sep 2017

The bank may sell a 3.2 bln euro stake in Assicurazioni Generali to a vehicle shared with other investors. The baroque plan would give Mediobanca capital to grow, and allow it to keep its influence over Italy’s biggest insurer. The appeal for its potential partners is less clear.

Healthcare’s nonprofit status belongs in the grave

13 Sep 2017

Publicly traded Centene is buying tax-exempt insurer Fidelis for $3.75 bln. The seller’s priest-CEO earns an ungodly sum. Exorbitant pay is rife in nonprofit healthcare, yet is rarely tied to community benefit. Euthanizing these firms’ tax break would be a social good.

U.S. healthcare for all inches toward mainstream

13 Sep 2017

Though the idea has kicked around for years, Bernie Sanders has been shouting into the Washington wind. Democrats will now give his universal-coverage pitch fresh momentum. It's a pricey plan, but one that warrants fresh consideration given rising costs and Obamacare strife.

China’s “insurtech” star over-stresses the tech

12 Sep 2017

Banks underwriting Zhong An’s IPO value it at up to $12.9 bln, says IFR. The tech-style valuations assume years of fast growth for the group, founded by the chairmen of Alibaba, Ping An and Tencent. Ping An itself offers a cheaper way to play the same theme.

U.S. banks suffer summer squalls of their own

11 Sep 2017

A less destructive Hurricane Irma than expected should be a relief for lenders from Citi to SunTrust. Interest rates and trading revenue are falling, though, as global tensions and credit costs rise. Dimming hopes for major policy change also keep the industry forecast cloudy.

Insurance giants may get another chance in China

8 Sep 2017

The industry watchdog in Beijing is hinting it will further open the market for foreign firms like Chubb and Manulife. China’s market has long under-delivered for global insurers. After a recent shakeup of both the regulatory regime and business, this time may be different.

Viewsroom: Harvey’s path of financial destruction

7 Sep 2017

Texas is facing $180 bln in hurricane cleanup costs, the most of any U.S. natural disaster. The Lone Star State has the wherewithal and chutzpah to cover a large chunk, yet expects Washington to pick up most of the tab. Global water risks, meanwhile, may require $12 trln to fix.

Irma alone can’t wash away reinsurance excess

7 Sep 2017

Take a plentitude of capital and a paucity of disasters. Mix in a Florida building boom and massive hurricane, and the result looks like a giant hit to reinsurers. But the history of catastrophes suggests underwriting won’t become much more rational when the storm clears.

Harvey’s damage will long outlast the storm

31 Aug 2017

The sun is out over South Texas but the toll from the hurricane’s record rains keeps rising. With refinery closures extending eastward and a chemical plant exploding, the governor says losses could top Katrina’s. Gas shortages and surging prices will spread the economic fallout.

Harvey intensifies brewing flood-insurance storm

29 Aug 2017

The Texas disaster will put U.S. federal coverage, already $25 bln in debt, further under water. Among other snags, the subsidized program encourages building in high-risk areas. Climate change will worsen future events, too. Houston’s crisis is the ideal catalyst for reforms.

British banks edge closer to painful PPI clarity

29 Aug 2017

The UK watchdog is encouraging consumers to claim for mis-sold loan insurance by Aug. 2019. If it works, the 36 bln pounds big banks have set aside so far may not be enough. A firm deadline could make the final bill larger but is a necessary step in fixing finance’s reputation.

Mitsui Sumitomo makes pricey advance in Asia

24 Aug 2017

The Japanese group has swooped on Singapore’s biggest property and casualty insurer for $1.6 bln in cash. That equates to an expensive-looking 3.3 times book value. Still, the deal will consolidate the buyer’s already strong presence in fast-growing Southeast Asia.

Jack Ma’s MassMutual deal shows promise

18 Aug 2017

The Alibaba founder’s unit Yunfeng Financial is buying MassMutual’s Hong Kong arm. The $1.7 bln deal with the U.S. insurer helps turn Yunfeng into a broader financial group, by adding insurance and pensions operations. Once again, Ma is melding online and offline businesses.

Prudential’s UK combo creates a bigger target

10 Aug 2017

The insurer is combining its British asset management and life insurance arms to create a bigger savings and investments provider. Annual cost savings of 145 mln pounds by 2022 will help boost subdued UK earnings. The combination may also be more alluring for prospective buyers.

Need and yield make cat bonds roar

8 Aug 2017

Low rates and a hunger for uncorrelated returns are fueling demand for bonds insuring against catastrophes, like the World Bank's new deal for Mexico. Yields on these instruments have fallen even as issuance has soared. Disaster, if it strikes, may only increase their popularity.

China’s trophy case could become discount rack

1 Aug 2017

Big dealmakers such as Anbang and Wanda might have to hold a yard sale. HNA is still keen on ousted White House adviser Anthony Scaramucci's firm SkyBridge, but it too may need to cut back. Bargain-hunters will benefit from any Chinese selling spree.

AIA’s new boss starts from position of strength

28 Jul 2017

Booming sales in China and Hong Kong helped the Asian life insurer report a 42 pct surge in new business. New CEO Ng Keng Hooi has a $11 bln surplus to play with. Even if he can’t run all of that down, that still leaves a lot of firepower to fund growth, deals, and dividends.

Hong Kong’s IPO naming and shaming hits new low

25 Jul 2017

AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.

Third Senate GOP health attempt is most charmless

18 Jul 2017

Having twice failed to pass alternatives to Obamacare, Republicans may try to repeal it with no replacement. Based on a similar 2015 effort an estimated 32 mln Americans would lose insurance cover, some 10 mln more than under the nixed bills. It’s hard to see senators backing it.

Time for Hong Kong to steer a new economic course

27 Jun 2017

The fragrant harbour has long been China’s gateway to the world in trade, finance, and much else. Two decades after the handover, some traditional middleman roles are waning. Reinvigorating the economy means playing to existing strengths - and fixing some glaring problems.