Insurance

U.S. Senate healthcare bill lacks “heart” to pass

26 Jun 2017

Donald Trump wanted a less "mean" rollback of Obamacare. Yet the Senate spared only 1 mln of 23 mln set to lose health cover under the House plan, by Congressional Budget Office figures. The White House is undermining the CBO, but even a Republican-only deal will need surgery.

Viewsroom: Helping Uber hail a new CEO

22 Jun 2017

Filling departed founder Travis Kalanick’s seat is no easy task, so we offer some suggestions. Elsewhere, Amazon CEO Jeff Bezos’ seemingly crazy $13.7 bln offer for struggling grocer Whole Foods has some logic. Anbang lands in hot water in China. And the lure of 100-year debt.

U.S. Senate’s “better” healthcare is still worse

22 Jun 2017

Upper-chamber Republicans unveiled their hitherto secret Obamacare alternative. Unlike the House bill it keeps income-based subsidies, but there are big cuts to Medicaid. Millions would probably lose insurance coverage. With costs ballooning, that's what Trump might call "mean."

Buffett reaffirms value of his seal of approval

22 Jun 2017

Berkshire Hathaway is buying up to 38 pct of Canada's Home Capital and extending it C$2 bln in credit. It’s a rescue out of Buffett's 2008 playbook that promises to steady the troubled mortgage lender. The favorable terms illustrate how his imprimatur is as coveted as his cash.

China underscores new hard line on outbound M&A

22 Jun 2017

The banking regulator is probing loans made to serial acquirers Anbang, Fosun, HNA and Wanda, reports say. Following the detention of Anbang's chairman, the message is clear: bold foreign M&A is out of bounds. The puzzle is why the authorities let the splurge last for so long.

Pressure on Anbang could ripple outwards

20 Jun 2017

Following its chairman’s detention, the Chinese insurer’s access to funding is in doubt. If it can no longer sell so many policies, or if investors want out early, asset sales could follow. Beijing will want to avoid turmoil. But Anbang’s size and sprawl create added uncertainty.  

Insurers take one step closer to intelligibility

18 May 2017

New accounting rules will force insurers to give a clearer picture of their liabilities. That should sweep aside national oddities, and stop firms using outdated assumptions that complicate comparisons. Yet while a step forward, aligning capital positions will remain a chore.

AIG goes back to the future for new CEO

11 May 2017

The $58 bln insurer may soon hire Brian Duperreault as its next boss. He has the experience, managerial clout, investor support and fintech nous that AIG needs. He’s also white, 70 and a former Hank Greenberg acolyte. Finding the next successor is Duperreault’s main task.

AXA takes out double hedge against U.S. and itself

10 May 2017

The French insurer is listing a minority stake in its American operations. Should the Trump administration revisit regulatory equivalence, the move will simplify a sale. In the meantime, investing a few extra billion euros might help AXA hit the upper end of its 2020 targets.

Buffett’s praise of Jack Bogle sounds self-serving

7 May 2017

At his annual Omaha gala, the Oracle gave a well-deserved shout-out to Vanguard's founder. With big slugs of Berkshire Hathaway's portfolio struggling, including Wells Fargo and IBM, returns are converging with the S&P 500. That makes Buffett's strategy look more like Bogle's.

U.S. state insurance watchdogs need EU credibility

31 Mar 2017

With deregulation in the air, AIG and Prudential could lose their systemically risky labels – along with MetLife. That would end Fed monitoring. But they're also global SIFIs in the eyes of regulators in the EU and elsewhere. Fragmented state oversight might not cut it overseas.

Lloyd’s exemplifies London’s phantom Brexodus

30 Mar 2017

The insurance marketplace is creating a new company in Brussels. Yet safeguarding access to European clients only means moving a maximum of a tenth of staff. Companies are readying their parachutes, but this is a long way from threatening the city’s pre-eminence.

Life is looking up for China’s insurance giants

23 Mar 2017

Low interest rates and stricter capital rules made 2016 hard for mainland life insurers like Ping An and China Life. Now, the tide is turning as bond yields rise. For major players, a crackdown on high-return investment products should also help them regain market share.

Corona Capital, March 18: Elizabeth Warren

18 Mar 2020

Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.

Generali’s M&A rumble leaves fading wake-up call

16 Mar 2017

After facing down a bid by Intesa, the insurer is speeding up cost cuts and hiking its dividend. The danger for investors is the Italian bank’s interest looks a one-off. If so, the impetus to streamline Generali and fend against an Italian crisis and declining rates might slow.

Pru’s plain sailing faces potential Asian squall

14 Mar 2017

The UK insurer beat forecasts and is on track to meet 2017 growth targets. One wrinkle is that its Asian business is increasingly reliant on sales in Hong Kong, which could be hit by Chinese capital-flight curbs. Any slowdown will, however, take a while to dent earnings.

New AIA boss can retain Tucker’s policies

13 Mar 2017

The Asian insurer has chosen continuity in promoting regional chief and industry veteran Ng Keng Hooi. Growth might not match the stellar run under outgoing boss Mark Tucker but, barring dividend tweaks and bolt-on deals, his successor need not change much. AIA is in good shape.

HSBC’s new chairman ticks the right boxes

13 Mar 2017

The emerging markets bank has picked AIA boss Mark Tucker to succeed Douglas Flint. He brings deep understanding of Asia, good contacts with regulators, and finance sector knowledge. As the first external chair in HSBC’s 152-year history, he will need all those skills – and more.

CEO ouster takes AIG from frying pan to fire

9 Mar 2017

Peter Hancock is leaving the insurer a month after a surprise $5.6 bln charge. His replacement needs a better handle on risk and communication than predecessors and the nous to fend off a probable revived push for a breakup from Carl Icahn and John Paulson. It’s a tough call.

Aviva’s transition from zero to hero gathers pace

9 Mar 2017

The UK insurer beat forecasts and is on track to hit 2018 targets on operating profit, cash generation and dividends. It’s a far cry from its hapless performance post-financial crisis. Increasingly, CEO Mark Wilson’s job is to avoid splurging his excess capital on duff deals.