Prudential chops dividend by 40% 29 Jul 2003 The case for a deeper cut is not compelling the UK insurer still has proceeds from previous disposals squirreled away under the mattress. The Pru's growth strategy is proving very expensive. It will be some time before it can afford to jack the dividend up again.
Lloyds TSB hints at Scottish Widows sale 18 Jul 2003 Given Swiss Life's failure to sell its UK life unit, it would be hard to see Lloyds getting a good price for an asset the size of Widows. And quitting life assurance would trash Lloyds' bancassurance strategy. But Lloyds has a new CEO who may find it easier to bite the bullet.
Allianz needs another share sale 8 Jul 2003 But the German insurer would not get away with a second rights issue to combat lingering doubts over the solidity of its credit rating. Instead, it may have to offload some of its noncore investments. That could spell M&A activity among German midcaps.
Unipol pays E1.5bn for Winterthur Italy 23 Jun 2003 That s a massive bite for the Italian insurer, which will roughly double in size. And Unipol is paying a hefty price. One theory is that the historically leftwing groups that control Unipol could be strengthening the red financial alliance.
Swiss Re’s new boss issues profit warning 19 Jun 2003 John Coomber has made a bit of a gaffe in giving out a grim outlook in an interview with Reuters. Investors thinking that the market rebound means all the reinsurance sector's troubles are over need to think again.
Investors lap up Benfield IPO 13 Jun 2003 This is clearly encouraging for those seeking to take companies public. But it doesn't mean that the IPO market is open to allcomers.
Munich Re says the worst is over 2 Jun 2003 Given its performance in Q1, the world's number one reinsurer looks set to deliver a decent operating result this year. But Munich Re has yet to demonstrate that it will not need a rights issue.
Royal & Sun Alliance pleases in Q1 22 May 2003 The UK insurer's share price has warmed to a strong underwriting result. But the underlying performance may not be strong enough to guarantee RSA's return to the FTSE just yet.
Allianz writes down E2.3bn in Q1 16 May 2003 Claims that Dresdner has stabilised kid no one. Investors who thought Allianz s rights issue was the turning point should brace themselves. The German insurer says there will be additional gigantic impairment charges this year if markets hold flat, never mind if they fall.
HVB shrinks – and it hurts 13 May 2003 The German bank may have cut its costs, but revenues are falling too as it cuts its balance sheet. While HVB remains short of capital, this process will go on and on.
RSA still needs a rights issue 12 May 2003 Like its pension deficit, the successful float of the UK insurer s Australian unit was not the nightmare investors had earlier anticipated. But doubts over reserves and life solvency are stubborn. With the shares firming, the new CEO should have another go at a rights issue soon.
Generali shaken by further instability 27 Apr 2003 Far from bringing peace to the Italian insurer, the recent assault from the country s biggest banks has brought further instability. The presence of the banks on the board is destabilizing. Management may be right in seeking a buffer zone.
Suez raises E1.8bn from Fortis stake 24 Apr 2003 The indebted French group failed to secure a premium by shopping its 10% stake in the Belgian bank to a trade buyer. It has had to opt for a second best solution offloading a chunk via a mandatory convertible bond and selling the rest in the market.
Allianz’s rights issue should raise over E4bn 9 Apr 2003 The German insurer is to issue 7 shares for every 15 owned, implying an issue price of E30 if it is to raise the minimum E3.5bn it is after. But there are reasons to suppose that Allianz will be able to price the issue more aggressively, and raise much more.
Directors and officers insurance premiums soar 4 Apr 2003 What's the surprise here? Insurers slashed premiums during the bull market even as business volumes soared.. The bear market has exposed the moral hazard intrinsic to the D&O business.
Banks start unbundling commissions 3 Apr 2003 UK fund manager Gartmore is making Goldman and Merrill redirect commissions to other brokers to reward research in a more systematic manner. Greater transparency may put more pressure on equities revenues. But if this is the new model, the two banks have firstmover advantage.
Arbs try to fleece Munich Re in Allianz issue 2 Apr 2003 Munich Re's declaration that it will only partially participate in Allianz's rights issue has created a classic arbitrage opportunity. But shorting Allianz and mopping up Munich Re's unwanted warrants may be riskier than it seems.
Munich Re disappoints, Swiss Re reassures 26 Mar 2003 Munich Re has done little to quash speculation that it may need to have a rights issue. Swiss Re has ruled out a rights issue and cut its dividend. In fact, it's too soon to know whether either will be tapping shareholders.
Fiat avoids Toro fire sale 24 Mar 2003 Given Fiat s obvious need for cash, the sale is an achievement. CEO Morchio s guntothehead auctioneering style surely played a role. But fewer bidders and government meddling suggest he needs a lighter touch to save the sale of Fiat Avio.
What is Generali worth? 24 Mar 2003 The squabbling over who should control Generali has helped pushed its shares higher as the rest of the insurance sector has tumbled. But participants in the recent sharebuying frenzy paid a hefty price.