Insurance

Emerging markets make up for NYSE’s German loss

23 Sep 2009

Allianz is the latest European company to cut back on surplus stock exchange listings including New York. The move will save the insurer cost and regulatory hassle. NYSE will be sorry to see another issuer go. But a recovery in emergingmarket listings offers ample recompense.

AIG starts slowly in post-Lehman marathon

2 Sep 2009

The UScontrolled insurer has finally taken real steps towards recovery like finding a committed CEO. The stock has rallied. But actual progress is sluggish. Genuine health looks a long way off, says Lauren Silva Laughlin and any return to taxpayers appears even more distant.

EU banks face conundrum on state aid approval

2 Sep 2009

The European Commission will insist on its pound of flesh in return for signing off banks bailouts. The 30 affected banks, including Lloyds, may be tempted to call Brussels bluff, but that carries significant risks. A proactive, speedy resolution might serve investors better.

AIG, Feds should cast sceptical eye on insider bid

31 Aug 2009

The head of its aircraft leasing business reportedly wants to buy a chunk of its assets and set up a rival firm. The governmentcontrolled insurer should think thrice before accepting a potentially lowball bid from so conflicted a buyer.

Is the FDIC acting like a zombie bank?

27 Aug 2009

The US deposit insurer is running low on funds. It says there s no need to borrow cash from the Treasury. That may be true. But if constrained coffers are impeding a more aggressive approach to shutting bad banks, it should swiftly recapitalise.

Crisis may kick a limping financial model

13 Aug 2009

A panoply of restructuring efforts has failed to stabilise ING, whose results again confounded investors. The Dutch group cryptically suggested additional strategic options . The drastic step of splitting banking and insurance may be the only and best one left.

Friends to mull £1.9bn Resolution offer

9 Aug 2009

The UK insurer is to review its robust opposition to a takeover by Resolution after its suitor mooted a higher price. But Resolution is budging only slightly on other issues behind Friends earlier rejection. Investors should be glad that both sides are open to compromise.

AIG’s Q2 a sunny spot but forecast remains gloomy

7 Aug 2009

The troubled insurer made a quarterly profit as markets rallied strongly. But it is unlikely to repeat this performance very often. The tarnish on the firm s reputation makes it hard for AIG to underwrite new business at attractive prices.

Aviva finds low-pain ways to raise capital

6 Aug 2009

Only five months ago, the UK insurer boasted that it was maintaining the dividend. Now capital strength is paramount. So the payout is being cut and Aviva s Dutch business is to be floated. The uturn is embarrassing, but shareholders may be glad not to see a rights issue.

Cowdery and pals could make nearly £100m from Friends

20 Jul 2009

And that wouldn t be a stretch. To achieve that, they would merely need to boost its value by 15% a year. For a proposed acquisition that is neither in cash nor involves a premium, this incentive structure is too rich. Something will have to give.

Aviva investors might welcome dividend cut

14 Jul 2009

The UK s largest insurer saw its shares slump by a third in March when it made a loss yet held its dividend. A cut at its interims next month would assuage concerns that the company is not set up for the downturn. It could maintain Aviva s share price better than holding firm.

Friends shareholders hold the key for Cowdery

13 Jul 2009

The UK life insurer s board has rebuffed an allshare offer at a meagre premium from the insurance entrepreneur. But many of its shareholders have also backed Cowdery s vehicle, Resolution. They must decide whether to back Friends reviving on its own or Cowdery s magic.

Metlife should take advantage of buyer’s market

9 Jul 2009

The US insurer s strong balance sheet means it is better placed than others to take advantage of rivals low valuations. AIG s sale of its international life insurance business looks ideal the sale is forced and the fit is good.

AIG shares rise 20-fold, but directors matter more

30 Jun 2009

The giant US governmentsupported insurer will again have stock trading in the $20s but only because of a reverse stock split. More importantly, a fresh slate of directors brings a range of potentially useful skills. With luck, they can help recoup taxpayers sunken treasure.

AIG may find Asian IPO a tough sell

19 May 2009

The crippled US insurer wants to float the Asian business it couldn t unload earlier this year. But if rivals weren t prepared to pay $20bn for it, why should the public? Chinese investor exuberance will be a help, but that might not overcome the economic headwinds.

US regulation revamp could let insurers slip leash

14 May 2009

The systemic risk and resolution schemes for big institutions under consideration in the US increase the odds that the federal government will end up regulating insurance, supplanting state watchdogs. Unfortunately, that has the potential to increase the industry s risk.

Crisis makes simplicity harder for ING

13 May 2009

The Dutch bancassurer is making strides cutting risk and getting its house in order. But that couldn t prevent a disappointing Q1 loss. ING has more work to do in managing its exposure to market ructions and economic headwinds.

Credit Suisse’s life swap should be lucrative

13 May 2009

The investment bank has a product that lets UK pension schemes protect against retirees who live unexpectedly long lives. CS is taking on a risk that s hard to hedge away. But it has one advantage. Nervous scheme managers have only one alternative a costly buyout.

Inefficient financial regulation has its charms

22 Apr 2009

That s the position of US state insurance watchdogs, who oppose the federal government s attempt to gain oversight of the industry. The feds say the state system is outdated and hampers innovation. Experience suggests that s not entirely bad, argues Dwight Cass.

Enough already from Hank Greenberg

2 Apr 2009

He s right that AIG s leadership since 2005 and its bailout have been disastrous. But he thinks only someone as smart as him can manage the insurance empire. In reality, the best gloss is that he created a beast only he could control. He should admit that failure or keep quiet.