K63 Insurance and Superannuation Funds

Review may force funds to merge

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Original article by Michael Roddan
The Australian – Page: 23 : 22-Sep-16

Superannuation industry experts suggest that any move to introduce alternatives to the default super fund system could result in more consolidation in the sector. Potential options that have been canvassed by the Productivity Commission in an issues paper include a tender system for default funds. Financial Services Council CEO Sally Loane notes that smaller funds with high fees may be forced to merge if the default super regime is opened to more competition.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, FINANCIAL SERVICES COUNCIL, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Insurance complaints spike

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Original article by Andrew White
The Australian – Page: 23 : 6-Sep-16

Australia’s Financial Ombudsman Service received 34,095 complaints from consumers in 2015-16, compared with 31,895 in 2014-15. There was a large rise in complaints about insurance products and services, which comprised 31 per cent of all complaints. The FOS resolved some 32,871 complaints during 2015-16, which is five per cent lower than previously, and this has been attributed to the rise in the number of grievances submitted to the agency.

CORPORATES
FINANCIAL OMBUDSMAN SERVICE LIMITEDAUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMANAUSTRALIA. DEPT OF FINANCEAUSTRALIAN LABOR PARTY

SMSFs head for managed funds in volatile times

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Original article by Sally Patten
The Australian Financial Review – Page: 29 : 12-Aug-16

A survey by Investment Trends and Vanguard shows that 17 per cent of Australia’s self-managed superannuation funds expect to increase their exposure to managed funds in the next 12 months, compared with about 14 per cent in 2015. Meanwhile, the proportion of SMSF trustees who intend to invest in blue-chip stocks has fallen from 65 per cent to 55 per cent. There has also been a decline in investment expectations regarding exchanged traded funds and high-yield shares.

CORPORATES
INVESTMENT TRENDS PTY LTD, VANGUARD INVESTMENTS AUSTRALIA LIMITED

Suncorp insures itself against more storms

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Original article by Sally Rose
The Australian Financial Review – Page: 17 & 20 : 5-Aug-16

Suncorp Group has reported an 8.3 per cent decline in net profit for 2015-16, to $A1.04 billion. Michael Cameron, the CEO of the Australian-listed insurance group, stated on 4 August 2016 that Suncorp has increased its reinsurance protection by $A300 million because of the higher frequency of weather-related events. Shares in Suncorp rose 0.7 per cent to $A13.30.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, MAPLE-BROWN ABBOTT LIMITED, JP MORGAN AUSTRALIA LIMITED, SUNCORP LIFE AND SUPERANNUATION LIMITED, ASTERON LIFE LIMITED, CONTANGO ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Retirees urged to tap into home equity

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 13-Jul-16

AustralianSuper CEO Ian Silk says the superannuation fund may seek to offer a broader range of retirement income products in coming years. This could include home equity release products, which allow homeowners to capitalise on the value of their home without the risks associated with reverse mortgages. Silk concedes that there are significant problems with some retirement income products that are currently available, and says the industry must work hard to address the issue.

CORPORATES
AUSTRALIANSUPER PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Vanguard sees lower returns

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Original article by Sally Patten
The Australian Financial Review – Page: 8 : 11-Mar-16

Vanguard Group CEO and chairman Bill McNabb is bearish about the outlook for global investment returns over the next decade. He expects returns to be around two per cent below the long-term average over this period, although he anticipates a subsequent upturn. Meanwhile, McNabb says there should be greater transparency regarding Australian superannuation funds’, while he argues that consolidation in the industry could also be used to put downward pressure on fees.

CORPORATES
THE VANGUARD GROUP INCORPORATED

Besieged bank vows to improve process

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Original article by Michael Bennet
The Australian – Page: 7 : 11-Mar-16

The Commonwealth Bank has promised to thoroughly investigate recent allegations of unethical behaviour at its insurance business. Reports in the media outline allegations of doctors being under pressure to change their diagnoses of life insurance policyholders to match CommInsure’s commercial goals. Superannuation fund HESTA is reviewing its relationship with CommInsure.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Large rivals may spur nib M&A

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Original article by Tim Binsted
The Australian Financial Review – Page: 17 : 23-Feb-16

Australian-listed private health insurer NIB Holdings has posted a 2015-16 interim profit of $A43.4m, which is five per cent higher than previously. The group’s net premium revenue was up 10.5 per cent at $A781.3m, and gross margins rose from 13.4 per cent to 15.1 per cent. MD Mark Fitzgibbon says NIB would be open to acquisitions, particularly as Medibank Private and Bupa are becoming increasingly competitive.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, ONEPATH AUSTRALIA LIMITED, SOUTHERN CROSS HEALTH LIMITED, AUSTRALIA. DEPT OF HEALTH

Suncorp profit hit by natural disaster claims

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 12-Feb-16

Australian-listed insurer Suncorp Group has reported a 2015-16 interim net profit of $A530m, which is 16 per cent lower than previously. The result was marred by factors such as lower returns from its investment portfolio and an increase in claims arising from natural disasters. The core general insurance division has booked a half-year profit of $A297m, while the banking arm’s profit was $A194m. Shareholders will receive an interim dividend of $A0.30 per share.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, GIO AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BKI INVESTMENT COMPANY LIMITED – ASX BKI, FIDELITY WORLDWIDE INVESTMENT, CLSA AUSTRALIA PTY LTD, GPT GROUP – ASX GPT

Retail funds not exempt from disclosure rules: O’Dwyer

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Original article by Sally Rose
The Age – Page: 23 : 29-Jan-16

There will be no exemptions from the product disclosure "dashboard" rules that are designed to allow investors to compare the performance and fees of superannuation funds. Industry Super Australia stated on 28 January 2016 that exemptions from the disclosure rules would apply to about 72 per cent of choice of fund products. However, Assistant Treasurer Kelly O’Dwyer says all funds will have to comply with the new rules.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, SUPERRATINGS PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES