Insurance

Brookfield finds it’s no fun to be half-married

27 Jun 2023

The private equity firm bought a stake in American Equity with a view to working together, but got disgruntled when the annuity provider partnered with a rival. Now Brookfield wants to buy the whole company for $4 bln. It’s the simplest way for both sides to get what they want.

Ukraine’s push for speedy rebuild faces obstacles

23 Jun 2023

Kyiv is keen to put aid money to work on an early start of the reconstruction effort. Foreign donors and investors remain wary of the war dangers. A scheme to insure those risks could speed up things, but going too fast could also compromise Ukraine’s long-term recovery effort.

Capital Calls: Intel Outside, Amazon Prime beef

21 Jun 2023

Concise views on global finance: The chipmaker struck a deal to sell 20% of a tool-making subsidiary, which should benefit from being put on a path to independence. Meanwhile, the $1.3 trln e-commerce company’s subscription service is unlawfully hard to cancel, says the US FTC.

Green alliance crisis is more than just a US drama

19 Jun 2023

Most insurers have quit their industry’s UN-backed climate body. Sector specifics and fear of US lawsuits partly explain why, but so do European governments focusing on energy security rather than net-zero targets. The same dynamic may affect banks and fund managers.

Capital Calls: Virgin Galactic

16 Jun 2023

Concise views on global finance: Shares of Richard Branson’s space tourism company rocketed 30% higher on news it would launch its first commercial flight in two weeks. The customer demand required alongside competition from Elon Musk and Jeff Bezos make the valuation a moonshot.

Capital Calls: Oil M&A, Bud backlash, L&G’s CEO

15 Jun 2023

Concise views on global finance: Two oil-well servicers find a way to make decline more palatable, while brewer Anheuser-Busch discovers that money doesn’t always buy friends in politics. In the UK, insurer L&G picks a new CEO to try and address its Brexit discount.

Capital Calls: Prudential exit

31 May 2023

Concise views on global finance: The insurance giant’s CFO has abruptly resigned, just as new CEO Anil Wadhwani warms up.

Omaha man sails into Florida’s imperfect storm

9 May 2023

Hurricane Ian’s $50 bln of covered wreckage last year forced insurers in the state to offload risk. At the same time, the price of doing so has been rising. In classic Warren Buffett style, his Berkshire Hathaway justifiably forecasts sun where others see dark financial clouds.

It’s time HSBC’s top owner calms down or sells up

4 May 2023

Ping An’s fight for a rejig is going nowhere, more so after the $150 bln lender’s bumper profit. Continuing risks hurting the Chinese insurer, HSBC and maybe even Hong Kong. Better to peacefully reap the benefits of boss Noel Quinn’s overhaul - and rejoin the fray if he falters.

Insurers put a higher premium on energy transition

22 Mar 2023

Chubb is heaping extra pressure on fossil fuel producers by adding methane-emissions reduction to its underwriting criteria. It’s a cost-effective area to target. Rising public pressure and natural disaster losses also will keep making coverage pricier and harder to secure.

Richard Li’s insurer offers geopolitical cover

22 Mar 2023

The tycoon is trying a fourth time to list his $9 bln upstart. Delays were helpful: the business is hitting its stride, and a Southeast Asia focus is a draw against Hong Kong-listed peers, including China-focused AIA and Prudential. Disadvantages are becoming selling points.

Capital Calls: L&G/UK insurers

8 Mar 2023

Concise views on global finance: The $19 bln group led by Nigel Wilson is expanding rapidly overseas, which should help its depressed valuation.

M&G would be a tricky hop for kangaroo raider

2 Mar 2023

Australia’s $48 bln financial giant Macquarie may bid for the $6 bln UK fund management group. A swoop would be well timed given M&G’s new boss is still bedding in, and the deal math just about works. But any transaction would involve a messy breakup, and the risk of a rival bid.

Capital Calls: Monte dei Paschi, Abrdn

28 Feb 2023

Concise views on global finance: Insurer AXA is selling shares in the Italian bank just four months after joining a risky capital increase; meanwhile, the UK asset management group run by Stephen Bird is still shrinking.

Capital Calls: TikTok’s Beltway visit

30 Jan 2023

Concise views on global finance: The social media app’s CEO Shou Zi Chew is going in front of a U.S. Congressional committee. But it’s leaders outside of Washington that Chew needs to convince.

California floods underscore rising climate costs

24 Jan 2023

Catastrophic storms have devastated the Golden State’s economy and left more than $1 bln in damages. In this Exchange podcast, climatologist Adam Smith explains how global warming has made weather events more expensive, and what governments can do to protect against them.

Capital Calls: California flooding

11 Jan 2023

Concise views on global finance: Heavy rainfalls have revealed the cracks in California lawmakers’ disaster spending measures, that have helped to prepare for fires and earthquakes.

New threats will corrode infrastructure M&A

30 Dec 2022

Blasts that damaged Baltic pipelines in September alerted investors to the physical risks to energy networks from geopolitics. Add growing cyber concerns and the cost of insurance is set to rise. As the appeal of formerly quasi risk-free bets dims, states will surely step in.

Chinese insurer bets on IPO clouds parting

7 Dec 2022

Sunshine has raised $863 mln in its Hong Kong debut despite volatile markets, low interest rates and Covid disruptions to its business. The group may have navigated all three relatively well, but a valuation premium suggests investors expect brighter days ahead.

Guest view: Climate finance club hands over baton

8 Nov 2022

It’s a year since banks, investors and insurers with a collective $130 trln convened in the Glasgow Financial Alliance for Net Zero. Despite some setbacks, the group has made progress, writes Huw van Steenis. Now it’s up to governments to help unlock more green investments.