Insurance

Market names a price for closed insurers

23 Dec 2003

Six months ago, investors didn't want to buy AMP's UK insurance interests at any price. Now they have snapped them up. True, it took a whopping discount to whet appetites. But investors no longer think closed insurers are too risky to touch.

Arbs fail to score off Scor’s rights issue

11 Dec 2003

Arbitrageurs looking to exploit the troubled French insurer's capital raising have hit a brick wall no one will lend them the stock. But there is a consolation. They have at least been offered chunky fees for the subunderwriting.

Unicredito launches E1.3bn Generali convertible

4 Dec 2003

The Italian bank has been under pressure to reduce its exposure to the insurance group. The issue should cut its funding cost, while allowing Unicredito to keep its influence at Generali.

Swiss Life issues convert to finance buyback

3 Dec 2003

The insurer wants to simplify its structure by buying the 7% of its operating subsidiary which it doesn t already own. But it is going through the complex process of issuing one form of quasiequity to retire another.

HSBC gatecrashes Scor rights issue

2 Dec 2003

The French insurer's capital raising looked dicey until HSBC entered the fray. It has made its extensive balance sheet available. Other distressed companies might take note.

AMP demerger exploits Anglo-Australian rivalry

28 Nov 2003

The Australian insurer's UK operations will raise £100m by turning its forthcoming demerger into an IPO on the cheap. UK investors have shown interest in the stock at the right price. And British interest may keep existing Australian investors on board.

Munich Re follows rights issue with bad results

25 Nov 2003

This is shabby. The German reinsurer's Q3 numbers are disappointing on almost every measure. No wonder it rushed to tap investors for E4bn only last month. Shareholders and credit rating agencies will be unimpressed to say the least.

LBO firms struggle to clinch UK insurance deals

24 Nov 2003

Everyone is talking down the prospects for British insurers creating ideal conditions for private equity firms to launch bids. But deals aren t being done. Either private equity has lost its appetite for risk, or sellers are demanding silly prices.

Scor admits it is in peril

20 Nov 2003

The French reinsurer has said the downgrade of its credit rating to junk will seriously damage its business. With rating agency Fitch endorsing the market's concerns over Scor's solvency, the company might as well be frank.

Investors fret about Zurich recovery

19 Nov 2003

A year ago, Jim Schiro had a clear plan to turn round the insurer. Now he has gone all vague. It looks as if the easy part may be over.

San Paolo IMI prepares for insurance deal

18 Nov 2003

The Italian bank is on the verge of announcing a plan to pool its farflung insurance units into one new entity. It can cut costs and prime the business for M&A. Like clockwork it's readying a deal as the contracts of its three CEOs need renewing.

Allianz, ING struggle to please in Q3

14 Nov 2003

The latest results from two of Europe s largest insurers have cautioned investors not to be overly bullish about the industry s prospects. The costs of the past still weigh heavily. And insurers may not be as geared to the recovery as they were to the downturn.

Scor downgraded despite rights issue

7 Nov 2003

The reinsurer has been downgraded to one notch above junk, and its bankers have yet to agree to fully underwrite its rescue rights issue. Now they have an excuse to pull out. Such halfhearted underwriting is pretty pointless.

Scor needs more

6 Nov 2003

The French reinsurer has launched a second rescue rights issue to cover the spiralling cost of claims in the US. But there is no guarantee that the E600m targeted proceeds will do the job. And Scor probably needs twice that to restore its credit rating.

Aviva disappoints in Q3

23 Oct 2003

UK life insurance stocks have ridden the equity market turnaround, but firm evidence of a recovery in sales is needed to sustain valuations. Now the last of the Big Three insurers to report Q3 results has shown that sales momentum is volatile. But at least there's some pickup.

Munich Re launches E3.8bn rights issue

17 Oct 2003

The German reinsurer is tapping shareholders for E1bn more than they expected. That minimises the need to sell assets at poor prices. Munich Re said it wouldn t raise capital to just to please the rating agencies. It has climbed down because the market wanted it to.

RSA rights issue almost fully taken up

15 Oct 2003

The fall in the UK insurer's share price during the roadshow saw arbitrage funds bet on the issue being left with underwriters. But RSA was not just raising capital. It was seeking longterm investors too. Its success prevented the arbitrage gamble paying off.

Munich Re needs rights issue despite tax boost

13 Oct 2003

A whopping halfyear tax provision was one factor behind the German reinsurer s downgrade by S&P in August. Reports suggest that the provision may now be released. But Munich Re still needs a rights issue, and more, to win back its credit rating.

AMP struggles to keep its promises on UK demerger

10 Oct 2003

The Australian insurer told its shareholders it could demerge its UK arm without tapping them for further capital. But the UK arm needs more capital. And shareholders in the new company AMP s investors must cough up or be diluted.

Arbitrageurs circle Royal & Sun Alliance rights

1 Oct 2003

A fall in the insurer's share price has created an opportunity for the arbs. But it is a risky one.