Insurance

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.

Allianz to raise E5bn

20 Mar 2003

Here comes another deepdiscounted rights issue that gives investors little choice but to cough up. But with Dresdner Bank in the mire, and Allianz still heavily exposed to equities, it s hard to see positive reasons to back the cashcall.

Aegon’s half-hearted governance revamp

20 Mar 2003

The insurer is the latest big Dutch group to cut the voting rights of its foundation. ABN Amro and ING are doing so too. These are steps in the right direction. Still, the moves aren't radical enough. Why not go for a clean break?

Allianz shouldn’t get stuck on its credit rating

14 Mar 2003

Allianz needs more capital. But the only reason to have a rights issue is to maintain its AA credit rating. The cost of this could be huge. It may be less painful just to let the credit rating slip a few notches.

UK insurers are victims of transparency

13 Mar 2003

Unlike European peers, the UK financial regulator is taking visible steps to show it is on top of the insurers. That is scaring investors. But most firms are still writing new business despite the stock market slump. The question is what that s really worth.

Generali scrum gets still messier

10 Mar 2003

Not only has Intesa built up a stake. Bollore, the French raider, has increased his stake in Mediobanca, Generali's largest shareholder. This elaborate game of intrigue underlines the failings of Italian capitalism. Companies aren't allowed to get on with running themselves.

Insurer dividend cuts are de rigueur

6 Mar 2003

Aegon and Royal & Sun Alliance are cutting payouts to conserve capital. And why not? There is safety in numbers. But Swiss Life, which raised capital recently, has issued a profit warning. Insurers have yet to prove they have got a grip on the past.

Friends Provident is latest insurer to warn on dividend

5 Mar 2003

The UK life assurer is still looking to grow the dividend, only at a lower rate and depending on equity returns. The company should not be punished too harshly for giving greater clarity on its payout than its rivals have.

Generali fails to kick Unicredito offside

4 Mar 2003

The insurer almost managed to use the crossshareholdings rule to stop Unicredito from becoming an important investor. Sounds outrageous? Maybe for another country. But in Italy there s no obvious alternative to the current rule.

Generali battle heats up

3 Mar 2003

The Unicredito camp is fighting Mediobanca by building up a stake in the insurer. Loosening Mediobanca s grip is a good plan. Shame Generali will still be the centre of Italian power struggles.

Fiat gets a clever new CEO

27 Feb 2003

The resignation of two independent directors strengthens the grip of the Agnellis. Who's going to look after the other shareholders now? But having a clever dealmaker may not be great for minority shareholders. Morchio is best known for cutting great deals for himself.

Axa investors shrug off dividend cut

27 Feb 2003

The French life and general insurer is at pains to show it is managing its capital base prudently. It has also beaten its own cost cutting targets. But this won't be enough to sustain a share price rally.

Royal & Sun Alliance keeps on falling

26 Feb 2003

But investors won t stump up for RSA when they reckon stronger insurers are mulling rights issues too. This time it is rumours of a 30pashare rights issue that have bashed the UK insurer's stock price.

Fiat losses complicate Agnelli’s plea

26 Feb 2003

How will Umberto Agnelli persuade his family on Monday to invest in a firm that just lost E4.3bn? There is a way. The bylaws of the family holding company make it attractive for members to follow their money.

Prudential raises doubts over dividend

25 Feb 2003

The UK insurer is eating a healthy portion of humble pie. It cannot recommit to dividend growth following cuts to its credit rating. The Pru s declaration last summer that dividends would keep rising was always tempting hubris.

Fiat seeks call option on Fidis stake

18 Feb 2003

By retaining a right to buy back 51% of its financial services arm from its banks, Fiat is covering its backside. The reason? Some fear Section 6.10 of the master agreement to sell Fiat Auto to GM could be compromised.

S&P cuts Axa’s credit rating

12 Feb 2003

The reassessment should come as no surprise given the downgrades heaped on the insurer s peers last year. What is odd is that Axa, which is heavily exposed to equity markets, has held out for so long.

Fiat mulls Toro sale to Agnellis

12 Feb 2003

There are a few options under consideration to do this. But all of them are rife with potential conflicts. Fiat nonexecs Jack Welch and Felix Rohatyn should keep Fiat s nose clean and push for a competitive auction.

A bad week for UK savers?

7 Feb 2003

Cuts to bonus rates on "withprofits" policies have come thick and fast from some of the UK's best known savings institutions. But policyholders have done much better than ordinary equity investors. If only we knew how it was done.

UK life assurers in the twilight zone

29 Jan 2003

The insurance industry has weathered a 50% decline in stock prices because its liabilities have declined too. But there may be a limit to its ability to soak up punishment.