Insurance

Hong Kong lender tests Elliott’s patience anew

24 Sep 2020

After a long review, $6 bln Bank of East Asia is ready to sell its life insurer. It also promises better cost controls and hints at more deals. Since the pushy hedge fund showed up in 2015, however, the stock price has halved. Perseverance may be less rewarding than in Argentina.

UK insurers’ regulatory bruises will heal quickly

22 Sep 2020

Direct Line and RSA shares fell after Britain’s Financial Conduct Authority proposed that existing customers shouldn’t pay higher rates than new ones. Spiking Covid-19 claims are hitting the sector too. But with the FCA pain evenly shared, the move may actually help margins.

Corona Capital: Zooming through Covid

1 Sep 2020

Concise views on the pandemic’s corporate and financial fallout: Zoom Video Communications, the ubiquitous video-calling outfit, reports another blowout quarter.

Corona Capital: Vroom, Estonia WFH, Johnny Rockets

13 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: How Vroom can power through the pandemic; Estonia tries to lure those with wanderlust; Casual dining puts on the Covid-19.

Corona Capital: Aviva’s restructuring

6 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: New CEO Amanda Blanc is reinstating the UK insurer’s dividend and is even open to selling its Asian and European businesses. That’s music to investors’ ears.

Corona Capital: Disney movie magic, “Call of Duty”

5 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The Magic Kingdom’s decision to send “Mulan” straight to streaming impressed investors, but is bad news for cinema chains; Activision Blizzard’s shoot-‘em-up game brings a profit surge.

Sampo takes pricey UK joyride with Hastings deal

5 Aug 2020

The Finnish group has made a $2.2 billion offer for the London-listed motor insurer. A 42% premium looks chunky given few cost savings on offer. CEO Torbjorn Magnusson needs to boost revenue in the cut-throat British market and swerve a likely increase in claims to avoid a crash.

Corona Capital: PizzaExpress, Aerospace pain

4 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The UK restaurant chain’s restructuring is not that tasty a meal for creditors; Airplane-parts maker Spirit’s reliance on Boeing’s 737 MAX has it heading into worse turbulence.

Zimbabwe launches quixotic war on modern finance

14 Jul 2020

The government is blaming South African insurer Old Mutual and phone-based payment systems for a currency collapse. Its fondness of money printing is the more likely culprit. Attacking the stock market and mobile money will damage savings and confidence, and spur capital flight.

MultiPlan pays up for alternative IPO medicine

13 Jul 2020

Merging with a cash-shell run by former Citi banker Michael Klein gives the healthcare payment company a quick listing, $2 bln of cash and a partial exit for buyout firm Hellman & Friedman. It’s more expensive than a conventional IPO, but improves on that process in several ways.

KKR’s Kravis pulls a Buffett with insurance deal

8 Jul 2020

The $26 bln buyout firm will buy Global Atlantic for its book value, currently $4.4 bln, multiplying its so-called permanent capital – an investing trick mastered by the Sage of Omaha. Wednesday offers a tale of two deals: Allstate’s similar-sized purchase looks less disciplined.

New Aviva CEO can break more than one mould

6 Jul 2020

The $13 bln UK insurer that dates back to 1696 has got its first female boss. Amanda Blanc could revive the group by carving out general cover from life insurance. With Covid-19 pressuring costs, it’s a risky move. Sticking with the same conglomerate model is even less appealing.

Ping An untangles one knot in its leadership

2 Jul 2020

Ma Mingzhe is giving up his CEO role and will remain chairman of the $187 bln insurer. The split is welcome but quirky governance endures with three other co-CEOs. Multiple bosses can be effective when responsibilities are clearly divided. Ping An mostly ticks that box.

IPO pricing gets back to business-as-unusual

1 Jul 2020

Dun & Bradstreet shares leapt 18% on their debut, even after its underwriters raised the price range – as they also did with insurer Lemonade, which starts trading on Thursday. Last week Albertsons aimed too high in its debut. Which strategy is better depends who is asking.

Corona Capital: Drug hoarding, Vacation-free world

1 Jul 2020

Concise views on the pandemic’s corporate and financial fallout: Stockpiling of Covid-19 treatment remdesivir may come back to haunt the Trump administration, while a forecast of $3.3 trillion in lost tourism is more than an inconvenience for some national economies.

Lemonade’s secret ingredients are tech and hope

25 Jun 2020

The digital insurer’s $1.3 bln valuation is leagues above what a regular insurer would command. Then again, Lemonade is less of an insurance company and more of a marketing machine with some charming quirks. Its biggest threat is that old-school insurers copy the recipe.

Ray-Ban mogul’s late financial quest is baffling

19 Jun 2020

Leonardo Del Vecchio is building his shareholding in Mediobanca. The investment bank’s stake in insurer Generali puts it at the heart of Italian corporate power. The 85-year-old may be motivated by financial gains or prestige. Equally unclear is who inherits his expanded empire.

Lloyd’s makes apt Black Lives Matter target

18 Jun 2020

The 334-year-old insurance market has pledged an undisclosed sum to atone for its role in the Atlantic slave trade. Amid global protests, it has little choice but to rethink its past. But there’s also a need to change its approach to diversity in the present.

Corona Capital: Carnival, Cheap funds, Salmon

18 Jun 2020

Concise views on the pandemic’s corporate and financial fallout: What lies on the horizon for the cruise operator; locking in cheap financing; and a fishy tale of coronavirus-related swings in demand.

China-UK stock link’s glitches go beyond politics

17 Jun 2020

China Pacific Insurance is just the second Shanghai-listed company to offer shares in London, raising $2 bln. Political tension between Britain and the People’s Republic may be a factor. But lack of liquidity and trouble hanging onto foreign investors are the bigger impediment.