Insurance

Richard Li’s family baggage weighs on insurer IPO

11 Oct 2021

The Hong Kong tycoon is putting a limit on how long he can keep the supervoting stock he’ll get in the $2 bln float of Asia-focused FWD. But it can be extended while his nearest and dearest can for a time inherit the rights. That erodes the value of such sunset clauses.

Capital Calls: Pet retail scrap, Chubb, Czech IPO

8 Oct 2021

Concise views on global finance: Buyout firm Hellman & Friedman matches EQT’s 3.4 bln euro bid for Germany’s Zooplus, putting the onus on its rival; the U.S. insurer buys the Asian assets of Cigna for $5.8 bln; haulage-fleet manager Eurowag makes a chaotic market debut.

Capital Calls: U.S. debt, Hollywood, Blue Prism

28 Sep 2021

Concise views on global finance: Republicans have blocked additional federal borrowing, bringing a default closer; talent agencies CAA, ICM, and Endeavor take different strategic directions; private equity group Vista seems to be getting UK software group Blue Prism cheaply.

Pan-Asia insurers helpfully crowd onto bourses

24 Sep 2021

Just days after Prudential tapped Hong Kong for fresh funds, Richard Li’s FWD filed for a New York IPO valuing it at up to $15 bln. The upstart is smaller than its $50 bln rival or $137 bln AIA but at last the three offer a way of comparing performance in the fast-growing region.

Wildfire insurance heading same way as flood cover

23 Sep 2021

Hurricanes are growing stronger and wildfires bigger. That means larger, less predictable losses for insurers. Canceled policies and higher premiums tempt governments to intervene. As federal U.S. flood insurance shows, that’s a recipe for underpriced coverage and delayed action.

Pru’s $3 bln Asia shift sets up new AIA battle

21 Sep 2021

The London-based insurer is completing its pivot to the fast-growing region by selling new shares in Hong Kong. The Fragrant Harbour is already home to the $137 bln rival that Prudential failed to buy a decade ago. Now they’re set to compete over punchy valuations.

Generali needs stable owners more than a new boss

14 Sep 2021

Under Philippe Donnet, the $33 bln Italian insurer’s stock price has kept up with Allianz and bested Axa, although he failed to clinch big acquisitions. Grumbling old Italian billionaires in its shareholder roster, fighting with rival owner Mediobanca, are its bigger weakness.

Capital Calls: Lagarde channels Thatcher

9 Sep 2021

Concise views on global finance: The ECB boss will buy fewer bonds but tells markets: “The lady isn’t tapering.” A tough decision on whether to scale back bond purchases more decisively will come later.

Goldman’s European fund foray may be a taster

19 Aug 2021

David Solomon’s bank bought Dutch insurer NN Group’s asset management arm for 1.6 bln euros. It gives it a boost in sustainable investing, but the real benefit looks like greater scale at a time of slow growth. On that metric, Goldman probably needs to do more deals.

Aviva’s next challenge is to show it can grow

12 Aug 2021

CEO Amanda Blanc is returning 4 bln pounds to investors in the British insurer after flogging assets worth more than 7 bln pounds. The knottier problem is to extract more earnings – and dividends – from a smaller, simpler business. Reduced debt leaves some room for acquisitions.

Capital Calls: Brookfield, Macquarie

9 Aug 2021

Concise views on global finance: An insurance wing of the Canadian financial empire may bring a dash of risk to a conservative Texan insurer, while Australian investment bank Macquarie has snapped up a stake in British utility Southern Water.

Novo Nordisk diet drug may finally be the big one

4 Aug 2021

Obesity costs America over $1 trln a year, but therapies have proved ineffective or worse. The $215 bln Danish group’s new injection works, and a fast start means annual sales may one day near $10 bln. If U.S. insurers play along, it could be one of the best-selling drugs ever.

Policybazaar IPO stacks up in a price comparison

4 Aug 2021

The SoftBank-backed insurance and loans marketplace is worth 42 times sales on a mooted $5 bln valuation. Its leading digital market position and blistering growth justify the high multiple, despite rising competition from rivals like Paytm which could beat it on distribution.

Allianz’s DOJ tangle will mostly hit M&A ambitions

2 Aug 2021

The $95 bln insurer’s shares fell 10% after it warned a U.S. Department of Justice probe could materially impact earnings. Allianz boss Oliver Baete has a sturdy enough balance sheet to withstand a substantial hit. It may mean fewer deals to augment his growth strategy, though.

Third time will be the charm for Aon Willis tie-up

26 Jul 2021

The insurance brokers scrapped their $30 bln merger – their second attempt – because U.S. antitrust regulators opposed it. The disruption of financial services means there may come a time when the idea no longer poses a threat. By then, of course, there will be less to celebrate.

Investors too gloomy over Biogen Alzheimer’s drug

22 Jul 2021

The approval of what might be the top-selling drug of all time has tacked a remarkably meh $5 bln onto Biogen’s value. Sure, the drug seems marginally effective. And it’s costly. But investors are assuming successful payer pushback, which rarely happens in American healthcare.

MSP’s $33 bln listing stretches SPACs to the limit

12 Jul 2021

MSP Recovery dogs insurance firms for healthcare payments the government was forced to pick up. In a dysfunctional U.S. industry, that’s a smart mission. But it’s complex, hard to value and has no real peers. That, plus other unanswered questions, calls for a very strong stomach.

Rothermeres heed Daily Mail’s buyout criticism

12 Jul 2021

The publisher’s controlling family wants to take it private after offloading insurance and car-retail holdings. All in, they will put up a minority of the 810 mln pound cost. Happily for the tabloid organ’s campaign against private equity, other shareholders aren’t being shafted.

Capital Calls: Didi IPO, Space SPAC, Travel SPAC

30 Jun 2021

Concise views on global finance: The Chinese ride-hailing outfit snags an $80 billion valuation early in its New York debut; a blank-check deal for satellite-transport group Momentus cuts its valuation in half; high-end vacation club Inspirato takes subscriptions to a new level.

Hong Kong scion cedes hometown IPO premium

18 Jun 2021

Richard Li, the entrepreneurial son of tycoon Li Ka-shing, plans to list his pan-Asian insurer FWD in New York instead of the city where he’s a familiar face to investors. He is sacrificing both brand recognition and higher valuations. It’s a steep price for keeping more control.