Insurance

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.

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.