Insurance

Florida has a flood problem and insurance problem

4 Oct 2022

Hurricane Ian could cause insured losses of over $50 billion, making it one of the costliest storms on record. But over 80% of the state’s homes lack flood insurance, and because premiums are skyrocketing, more residents are hitting up the state’s insurance program.

Capital Calls: SoftBank

14 Sep 2022

Concise views on global finance: The $62 bln conglomerate may be considering a third instantiation of its Vision Fund.

Ping An’s reset challenge dwarfs its HSBC battle

24 Aug 2022

The $107 bln Chinese insurer beat forecasts with first-half net profit of $8.8 bln. Its calls for the London-based bank — its largest shareholding — to break up won’t alter its internal issues, though. Shares are down one-fifth this year, underscoring the cost of painful reforms.

Capital Calls: Disney turns screws on Netflix

10 Aug 2022

Concise views on global finance: The Magic Kingdom now has as many subscribers to its streaming products as Netflix. It needs all the fairy dust it can get ahead of a looming price war.

Ray-Ban heirs inherit wasteful Mediobanca feud

9 Aug 2022

Eyewear tycoon Leonardo Del Vecchio, who died in June, bought nearly 20% of the Italian bank as part of a fight with CEO Alberto Nagel. Making a return on the $1.5 bln stake will test his successors. Backing Nagel in his hunt for a target may be the more prudent choice.

Capital Calls: Uber’s cash starts to flow

2 Aug 2022

Concise views on global finance: The $56 billion car-hailing service is growing rapidly and has started generating positive cash flow. It’s still overvalued, though.

UK car insurer pile-up may lure M&A rubberneckers

28 Jul 2022

Direct Line and rivals’ shares have crashed due to inflation and the soaring cost of claims. Yet waning competition may boost future returns. It’s a good time for a potential acquirer, say France’s Cóvea, to step in, especially with private equity on the sidelines.

Santos throws down M&A cost-cutting gauntlet

22 Jul 2022

The $17 bln fossil-gas giant took just six months to deliver promised savings from acquiring Oil Search. That handily beats the 18-month timeframe advocated by McKinsey, and embarrasses ANZ’s six-year timetable for its Suncorp deal. CEO Kevin Gallagher has raised the synergy bar.

Insurers can boost carbon credits, and themselves

19 Jul 2022

The market for planting trees to offset carbon could be worth $50 bln by 2030. But the unregulated space means large corporate buyers could face heavy losses and even fraud. Insurance could help tame the market, and give companies like Allianz and Zurich a sales boost.

Capital Calls: Fed faces inflation divergence

30 Jun 2022

Concise views on global finance: The central bank’s preferred measure of rising prices, the U.S. personal consumption index, rose 6.3% in May. That’s more subdued than the surging consumer price index. But the latter offers a better read on household spending.

Cost of Asia’s recurring floods will trickle down

24 Jun 2022

Swathes of Bangladesh and India’s Assam state were swamped this week, affecting 9 mln people. Insurers shy away from offering cover for such disasters if they’re too frequent. For countries on the front lines as climate change worsens, the burden on the public purse will rise.

Fourth time to be the charm for Richard Li’s IPO

1 Jun 2022

Poor markets have derailed insurer FWD’s $1 bln float. That’s the third delay after a costly Hong Kong to New York round trip, and a flirt with super voting stock. The pause gives the tycoon time to improve the Asian-focused company’s profit record and to freshen its pitch.

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.

BoE pours cold water on bank global-warming panic

24 May 2022

The watchdog’s stress test showed UK lenders can weather a chaotic climate switch without a capital hit. For bank CEOs copping flak for funding polluters, it’s a let-off. The other lesson is that governments will get little help from financial regulators in greening the economy.

Capital Calls: Turkey, Nintendo/Sony, India IPO

10 May 2022

Concise views on global finance: President Erdogan makes another ham-fisted monetary intervention; the Switch maker weathers supply chain ructions better than its larger rival; New Delhi needs to be even more generous in its landmark listing of Life Insurance Corp of India.

HSBC breakup, Big Oil’s surprise restraint

5 May 2022

The $129 bln bank is under pressure from its largest shareholder to spin off its Asian unit. In this Viewsroom podcast, Breakingviews columnists discuss why the plan deserves short shrift. Also, the decision by oil giants to limit production will win few friends.

Italy’s financial order repels attack on Generali

29 Apr 2022

Mediobanca-backed CEO Philippe Donnet overcame opposition from investors with 30% of the $30 bln insurer to win a third term. That preserves a key financial link with the merchant bank. Donnet now has to deliver on his growth plan. The rebel investors will keep him on his toes.

Capital Calls: U.S. GDP fall masks solid economy

28 Apr 2022

Concise views on global finance: Consumer spending and business investment are resilient amid price hikes.

SocGen avoids the worst in costly Russian exit

11 Apr 2022

The French bank is selling Rosbank back to the oligarch it bought the unit from 16 years ago. Despite a 3 bln euro writeoff, the hit to its capital ratio is less than half the worst-case scenario it outlined last month. It’s a fitting end to a long and unhappy Russian story.

Generali investors better off with devil they know

30 Mar 2022

A rebel billionaire is vying for control of the 190-year-old insurer, a linchpin of Italian finance. Francesco Caltagirone promises higher returns and bolder M&A than under CEO Philippe Donnet. Fuzzy targets and slowing growth should make shareholders wary of switching horses.