Insurance

Capital Calls: OPEC+, Michaels

4 Mar 2021

Concise views on global finance in the Covid-19 era: Recovery concerns keep a lid on the oil cartel’s supply taps; Apollo tries its hand at craft retailer Michaels.

Capital Calls: BoE, Soros, Infrastructure, Pay

3 Mar 2021

Concise views on global finance in the Covid-19 era: The Bank of England starts to embrace the green transition; George Soros has some advice for France; Joe Biden gets a timely reminder of the importance of infrastructure; climate laggards risk getting hit in their wallets.

Insurers’ Brexit pleading deserves short shrift

24 Feb 2021

Domestic firms want the government to ease capital requirements following the UK’s departure from the EU. It’s true dividend restrictions mean they may already have ample capital. But amid a slump that’s not enough to make already confusing solvency metrics even more so.

Capital Calls: WeWork, HSBC offices, Wells Fargo

23 Feb 2021

Concise views on global finance in the Covid-19 era: Co-founder Adam Neumann may get a big payment for failure after all; The bank’s plan to shrink its property footprint recalls an earlier effort; And the scandal-plagued lender takes another small step towards rehabilitation.

Corona Capital: Exxon, Uber

2 Feb 2021

Concise views on the pandemic’s corporate and financial fallout: Exxon dodges M&A questions, while Uber guzzles up a beverage delivery firm.

Prudential’s shortcut adds pace to Asia pivot

28 Jan 2021

The $46 bln insurer is demerging its American unit and raising up to $3 bln in equity as it focuses on Asia. Investors expecting a capital bonus will now worry about its ability to fund future growth. But if the move helps Pru achieve an AIA-like multiple, it’s worth the trouble.

The Exchange: Too much stimulus stores up big risk

26 Jan 2021

That’s the view of Oliver Baete, CEO of Allianz. Markets are pricing in vaccination perfection, as they’ve grown dependent on central bank and government largesse, he tells Rob Cox. But for the $97 billion German insurer, there’s still opportunity to be had in the year ahead.

Corona Capital: M&A boost, Purell

22 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Goldman Sachs, JPMorgan and other banks collectively reaped billions in fees related to advice on transactions with the expectation the money will keep rolling in; hand sanitizer makers hope good habits linger.

Corona Capital: Private jet deal

17 Dec 2020

Concise views on the pandemic’s corporate and financial fallout: Blackstone bets that plutocrats will be back in the air before the rest of us.

Zurich CEO adds feather to cap with MetLife buy

11 Dec 2020

Mario Greco struck a shrewd, if somewhat complicated, $4 bln deal to buy MetLife’s U.S. property and casualty businesses. These should generate a 10% return on the minimal capital invested. Zurich’s greater American tilt should ensure its outperformance against European rivals.

Pandemic makes bold M&A infectious for insurers

18 Nov 2020

British group RSA has agreed a 7.2 bln pound offer from Danish and Canadian peers Tryg and Intact. The price is rich, and the plan to break up the firm risky. Yet with insurance rates set to rise thanks to Covid-19, companies have an extra reason to pursue aggressive deals.

Corona Capital: Walt Disney

12 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Walt Disney is light-years ahead on projections for its streaming business.

Corona Capital: Lyft, Vaccine minefield, Peru

11 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: The U.S. ride-hailing company is tempted by food delivery; Pfizer could face high demand for its coronavirus vaccine; and Peru gets another leadership shuffle just as Covid-19 cases soar.

Corona Capital: Warren Buffett, Burger boost

9 Nov 2020

Concise views on the pandemic’s corporate and financial fallout: Rising share prices take the sting out of Berkshire Hathaway’s Covid-19 profit hit; and McDonald’s reports a good quarter for American nugget-lovers.

RSA should finally tie knot via latest altar visit

5 Nov 2020

Five years after a union with Zurich Insurance fell through, the UK insurer has a 7.1 bln pound offer from Canadian and Danish suitors. RSA will grab an all-cash bid that comes with a 50% premium. The buyers’ need for fat synergies will discourage counter-proposals.

AIG is shrinking itself into a digestible target

27 Oct 2020

The $27 bln U.S. insurer changed CEOs and said it will separate its life and retirement arm. Unloading a business weighed down by ultra-low rates should please shareholders. More importantly, the move may make the firm synonymous with trouble easier for hungry buyers to swallow.

Brookfield dabbles in insurance alchemy

19 Oct 2020

The Canadian fund giant is taking a 20% stake in Iowa-based American Equity, which has chosen the deal over a cash takeover offer. Brookfield gets a toehold in a growing business with investment needs that may match its offerings. American Equity's decision is harder to explain.

Corona Capital: Black Friday, JPMorgan’s new tower

14 Oct 2020

Concise views on the pandemic’s corporate and financial fallout: Walmart’s Black Friday rejig makes for a curious experiment; JPMorgan goes all-in on New York real estate.

Clover Health takes knife to two sick systems

6 Oct 2020

The insurer reckons if doctors had better data, Americans’ medical bills would be lower. So its job of cutting the fat in a market stuffed with middlemen has promise. It’s apt, too, that Clover is listing via a so-called SPAC, a structure that takes the same approach to finance.

Corona Capital: U.S. sports’ virus-bubble success

29 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Professional hockey and basketball associations scored victories keeping infection rates low or at zero in spectator-free games. And less traveling and more sleep helped players up their game. Wall Street take note.