Insurance

UnitedHealth plays long game with M&A strategy

29 Mar 2022

A month after watchdogs sued to block a deal by the insurer, it agreed to buy home healthcare firm LHC for $5.4 bln. Both deals may mean UnitedHealth is bogged down in a delayed deal process. But adding LHC to UnitedHealth’s doctors, clinics and other units is worth the hassle.

AIG life IPO marks 5,000 days of post-crisis slog

29 Mar 2022

That’s how long it took to fix the global insurer after its 2008 bailout. It has now reached a point where, with a little help from Blackstone and even BlackRock, it can float its life and retirement business, probably worth at least $22 bln. It’s a key moment in AIG’s reboot.

Buffett does $11.6 bln mini-me deal because he can

21 Mar 2022

Insurance firm Alleghany is built in Berkshire’s likeness, with cultural similarities and a focus on growing book value. The difference: Alleghany is cheaper, even with a 25% premium. Closeness to the Omaha Sage may have clinched the deal; it also may explain the ho-hum price.

Climate change hands states an insurance dilemma

1 Mar 2022

Severe weather caused $343 bln worth of damage last year, and prompted insurers to either drive up premiums or cease home coverage altogether. States can avoid creating insurance black spots by taking over from the likes of Zurich. The catch is they may not be very good at it.

Capital Calls: Block avoids round hole

25 Feb 2022

Concise views on global finance: The former Square, run by Jack Dorsey, gained 20% in value after fourth-quarter numbers showed its core Cash App business still growing. Making the most of the $29 bln Afterpay acquisition is a key challenge for 2022.

UK insurers’ Brexit bonus carries hidden charges

22 Feb 2022

PM Boris Johnson wants to unleash an investment boom by slashing red tape for the sector. In theory, his plans could free up nearly $130 billion for green-energy projects. But regulators may impose other rules. And any added risk means insurers like L&G and Aviva raising prices.

Allianz’s U.S. fund misery is only half over

18 Feb 2022

Europe’s largest insurer has set aside $4.2 bln to compensate savers for complex derivative bets that went wrong. The figure, less than the $6 bln claimed, looks positive for shareholders. But with so much extra cash, U.S. regulators may impose a heftier fine to even things out.

Viewsroom: Ukraine, ECB and India’s giant insurer

17 Feb 2022

Worries about an invasion of Ukraine have rattled markets, but Dasha Afanasieva says Russian investors are more sanguine. The European Central Bank faces a tougher inflation juggling act, argues Swaha Pattanaik. And Una Galani discusses the listing of India’s Life Insurance Corp.

India’s crown jewel IPO deserves healthy discount

14 Feb 2022

The eagerly awaited prospectus for insurer LIC reveals underwhelming growth and profitability. Those can be improved, but its role as New Delhi’s firefighter is a big wildcard. Adviser Citi has a tricky task coordinating the price, and investors should err on the side of caution.

Pru CEO change puts HSBC and StanChart on the spot

10 Feb 2022

Mike Wells is retiring after shaking up the $46 bln insurer and redirecting its focus to emerging markets. Whoever replaces him will be based in Asia instead of London. Where the top brass sit depends on many variables, but the job is harder to do far from the main hub.

Mediobanca’s fortunes are tied to Generali

9 Feb 2022

The bank’s 13% stake in the Italian insurer accounts for a third of its net profit. Mediobanca could sell the 3.8 bln euro shareholding to finance deals, but targets are expensive. Even if CEO Alberto Nagel loses a boardroom battle at Generali, his financial future rests on it.

India’s rush to list LIC is a mistake in making

4 Feb 2022

New Delhi wants to secure proceeds from the insurer’s IPO by the end of the fiscal year. That’s less than two months away and there’s no draft prospectus yet for a company with $500 bln of assets to review. Rising risks include mispriced shares or scaring off overseas investors.

Capital Calls: BlackRock gets an active boost

14 Jan 2022

Concise views on global finance: A renaissance in active strategies at the world’s largest investment manager helped vault it past $10 trillion in assets under management.

The Exchange: Zurich CEO takes on 2022’s big risks

13 Jan 2022

Failure to reduce carbon emissions is top of mind for Mario Greco, who has run the 65 bln Swiss francs insurer for the past six years. But other hazards, like loss of social cohesion and geopolitics, are also on the horizon, he tells Rob Cox in a Breakingviews Predictions chat.

Generali CEO’s bold plan may just save his neck

15 Dec 2021

Philippe Donnet is pledging to grow earnings per share by up to 8% through 2024, ahead of Allianz, and to return capital. It won’t soothe rebel shareholders including Leonardo Del Vecchio, who want him out. But it ups the chance other investors will stick with the status quo.

Richard Li pays steep price for round-trip fare

15 Dec 2021

His Hong Kong-based insurer FWD has raised $1.4 bln from Apollo and others as its $13 bln New York IPO plan fizzles. A 30% valuation discount reflects the need to keep investors sweet ahead of a likely listing back home instead. Super-voting stock also will have to be scrapped.

Capital Calls: Couch-potato habits help Roblox

9 Nov 2021

Concise views on global finance: The video game app’s shares surged 36% on Tuesday after it said sales nearly doubled in the quarter.

Richard Li’s FWD could use an IPO insurance policy

4 Nov 2021

The Asian indemnifier added China risk factors to its U.S. prospectus even though it doesn’t operate there. It feels like a last-ditch attempt to secure SEC approval before any buzz dies down. The Hong Kong bourse, which probably should have been Plan A, makes a suitable Plan B.

Agnelli insurance bonus is asset-inflation victim

29 Oct 2021

The Italian clan revived a $9 bln sale of PartnerRe to Covéa at the same price as last year’s failed deal. But the French group is paying a lower premium for the reinsurer’s assets. Meanwhile, pumped-up valuations of potential targets mean the Agnellis’ windfall will go less far.

Lloyds’ capital cannon is best aimed at investors

28 Oct 2021

New CEO Charlie Nunn is plotting a revamp of Britain’s largest lender. He may be tempted to use the bank’s 4.6 bln pounds of spare capital to bulk up in wealth management or insurance. His group’s low valuation suggests investors would rather have the money themselves.