Insurance

Unipol should return E2.6bn cash pile

2 Feb 2006

The Italian insurer should abandon hopes of buying BNL and hand back the cash it raised to fund this misguided bid. That could have a dramatic effect on the shares, which are currently betting that management will squander E1bn of it.

Skandia minorities don’t need special protection

12 Jan 2006

As many as 30% of the Swedish insurer s shareholders appear to be holding out against Old Mutual s E5bn hostile takeover. But their demand for board seats goes too far. They already enjoy protection, and Old Mutual has much to lose by disadvantaging them.

Investors should brace for Aviva M&A

11 Jan 2006

The UK insurer seems to have tried and failed to do a $3bn deal with a US peer. But a rising share price will help it fund alternative buys. That s no bad thing. Aviva needs to diversify away from its lowgrowth home market and has a solid M&A record as both buyer and seller.

Ebner’s back: a ghost of Christmas past

23 Dec 2005

The corporate raider, who used to instil fear in Swiss boardrooms, was nearly bankrupted by the stock market crash three years ago. Now he is making a comeback with a 12% stake in Converium the troubled reinsurer also trying to repair its reputation.

Skandia’s fall shows power of hedge funds in M&A

20 Dec 2005

The Swedish insurer has it lost its independence to Old Mutual and even failed to tease a higher price, despite hiring Goldman to defend it. The defence was probably doomed. Old Mutual had cleverly played to Skandia s hedge funds investors, who served it up on a plate.

Old Mutual shouldn’t raise its E5bn Skandia bid

5 Dec 2005

A higher offer is not guaranteed to win a unanimous recommendation from the Swedish insurer s board. True, the South Africans may have to live with recalcitrant Skandia minority shareholders. But that s not such a bad thing.

Prudential’s new strategy is a tough sell

26 Oct 2005

The UK insurer s new CEO Mark Tucker plans to use its Egg banking unit to sell insurance. He also wants to move beyond life and pensions. But bancassurance is a tough nut to crack. And greater focus would be preferable to diversification.

Pru would be unwise to keep egg

12 Oct 2005

The UK company should focus on selling insurance. It has no place for a bank which is heavily exposed to the consumer slowdown. Mark Tucker, Pru s new boss, should get shot of egg before it blights his reign, as it did that of his predecessor.

Skandia chomps through advisers

5 Oct 2005

The Swedish insurer has fired Morgan Stanley and taken on Goldman Sachs to defend it against Old Mutual s E4.8bn takeover offer. The bid has divided Skandia s dysfunctional board. Goldman is gambling its own reputation if it thinks it can broker a peace.

Ras savers hold Allianz to ransom

29 Sep 2005

Owners of the Italian insurance group's savings shares have exploited a legal loophole to get a huge price for their shares. This windfall has sparked interest in other Italian savings shares. But not everyone will be able to pull off the same trick as Ras.

Trygvesta’s E2bn IPO looks deceptively cheap

27 Sep 2005

The price range for the biggest insurance float since Toro has the Danish general insurer being sold on a lowly earnings multiple. That looks designed to tease in investors from outside Denmark. They should note that the pricetobook ratio looks less favourable.

Skandia board split in rejecting Old Mutual

23 Sep 2005

A majority say no, but a minority says yes. Meanwhile, an independent fairness opinion gives the bid the thumbs up. It feels as if the majority doesn't want the odium of selling a Swedish national institution. Old Mutual is rightly pressing on.

Skandia reveals internal differences over strategy

15 Sep 2005

The Swedish insurer has published secret business plans provided to its suitor Old Mutual as part of due diligence. It has also been forced to acknowledge management doubts over its ability to execute its strategy. That plays into Old Mutual's hands.

Allianz pioneers new form of M&A financing

12 Sep 2005

The German insurer is raising all the equity it needs to fund its potential cash offer for RAS. But it has devised a way of scaling back the fundraising if RAS investors decline the cash offer it s shorting its own stock.

Allianz deal shines spotlight on Generali

12 Sep 2005

The market is speculating that the Italian insurer might "do an Allianz" and buy out minority investors in its subsidiary Alleanza. The industrial case looks weak. But there are still some intriguing reasons why a buyout may eventually be an interesting option.

Skandia board split on Old Mutual approach

8 Sep 2005

It s not hard to see why it is struggling to give a recommendation. Patriotic feelings towards the Swedish insurance company run high. But it is hard to see shareholders backing a standalone strategy. And there are no alternative offers. The board should recommend.

Old Mutual bids E4.8bn for Skandia

2 Sep 2005

The South African insurer s offer is dependent on a recommendation from its Swedish counterpart within three weeks. To dismiss it, Skandia will have to show that Old Mutual has undercooked the synergies it s proposing to justify the price.

KKR leaves investors fuming over Alea debacle

2 Sep 2005

The private equity firm sold the insurer s shares in London two years ago with the help of hedge funds tempted by an unambitious valuation. But Alea keeps having to top up its reserves. Had it listed in the US, KKR and its advisers would probably be facing shareholder litigation.

Old Mutual tries to bear hug Skandia

30 Aug 2005

The South African insurer isn t showering Skandia s reluctant board with cash. Its SKr42 (E4.50) a share bid is hardly a knockout blow. It seems to be hoping that Skandia s investors and a lack of alternatives will force the board to agree to a deal.

Aviva sounds bum note on UK life market

11 Aug 2005

The UK insurance market leader sees weak growth in its home turf this year. It also faces increasing competition. The result? Scale and diversification matter more than ever. Small wonder Aviva is signalling more M&A.