K63 Insurance and Superannuation Funds

ASIC bid for tougher fines on corporate crime

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Original article by Anthony Klan
The Australian – Page: 21 : 27-Aug-14

The Australian Securities & Investments Commission (ASIC) has lodged a submission with the new financial system review conducted by David Murray for the Federal Government. The watchdog argues that harsher penalties should be rolled out for white-collar crimes, to ensure the perpetrators do no profit. ASIC also says it is not convinced that mandatory minimum balances should be introduced for self-managed superannuation fund accounts, and it seeks increased powers to ban unethical financial planners

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. JOINT STATUTORY COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Shareholders get dividend from nib

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Original article by Jessica Gardner
The Australian Financial Review – Page: 18 : 26-Aug-14

NIB Holdings has posted a 2013-14 net profit of $A69.9m, which is four per cent higher than previously. The private health insurer’s operating profit increased by 4.3 per cent to $A72.3m, and revenue was up 15 per cent at $A1.53bn. Shareholders will receive a special dividend of $A0.09 per share. MD Mark Fitzgibbon notes that some customers did not renew their policies after NIB increased its premiums by 7.99 per cent

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, ISELECT LIMITED – ASX ISU, COMPARE THE MARKET PTY LTD

IAG focuses on the bottom line

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Original article by Michael Bennet
The Australian – Page: 21 : 20-Aug-14

Insurance Australia Group (IAG) has announced a 2013-14 full-year net profit increase of 59% to $A1.23bn, as gross written premiums also lifted 3% to reach $A9.8bn. The 12-month distribution has been boosted 8.3% to $A0.39, and on 19 August 2014 the stock closed $A0.03 higher at $A6.20. CEO Mike Wilkins said the Australian-listed company would focus on improved margins rather than to defend market share, as smaller rivals such as Youi, Budget and Progressive as well as supermarket chains and major banks expand their business

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, SUNCORP GROUP LIMITED – ASX SUN, ALLIANZ AUSTRALIA LIMITED, YOUI PTY LTD, BUDGET DIRECT INSURANCE AGENCY PTY LTD, PROGRESSIVE DIRECT INSURANCE COMPANY, NRMA INSURANCE LIMITED, SGIO INSURANCE LIMITED, WESFARMERS LIMITED – ASX WES, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Stricter super rules ‘inevitable’

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 18-Aug-14

Ernst & Young’s Graeme McKenzie forecasts that at some point the Australian Prudential Regulatory Authority will subject the nation’s $A1.8bn superannuation industry to greater supervision. He doubts that the regulatory regime will be tightened in the near-term, as APRA released new standards in 2013, but he argues that the amount of money flowing into the sector will necessitate stricter regulation in the future

CORPORATES
ERNST AND YOUNG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, TOWERS WATSON

Whisky investment not a bad drop

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Original article by Simon Evans, Nassim Khadem
The Australian Financial Review – Page: 3 : 14-Aug-14

Australian investors have turned their attention to rare aged whisky, which they believe can be a worthwhile addition to their portfolios. Demand for this type of asset is strong, with investors willing to pay up to $A30,000 a bottle. Malt Whisky Society of Australia chairman Craig Daniels says speculators have entered the market. CPA Australia policy adviser Michael Davison warns about risks associated with investing in whisky by self-managed superannuation funds

CORPORATES
MALT WHISKY SOCIETY OF AUSTRALIA INCORPORATED, CPA AUSTRALIA, DAN MURPHY’S, WOOLWORTHS LIMITED – ASX WOW, DELOITTE TOUCHE TOHMATSU LIMITED, MARIN ACCOUNTANTS PTY LTD

Nurse injured in violent attack wins payout

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Original article by Nick Toscano
The Age – Page: 4 : 31-Jul-14

The Supreme Court of Victoria will hear a claim by the Victorian WorkCover Authority against Victoria Police. The workers’ compensation provider seeks to recover some of the $A500,000 it paid to a nurse permanently injured in a violent attack by a drug addict at Latrobe Regional Hospital. The employer and the police force have already struck an out-of-court settlement with the victim, and a factor was that three police officers allegedly did not properly restrain the attacker

CORPORATES
VICTORIA POLICE, VICTORIAN WORKCOVER AUTHORITY, LATROBE REGIONAL HOSPITAL PTY LTD, SUPREME COURT OF VICTORIA, AUSTRALIAN NURSING AND MIDWIFERY COUNCIL INCORPORATED, AUSTRALIAN NURSING FEDERATION

IAG lifts full-year profit margin outlook

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 25-Jul-14

Insurance Australia Group (IAG) has upgraded its full-year profit margin forecast for 2013-14 to between 18 per cent and 18.3 per cent, from the previously announced range of 14.5 per cent to 16.5 per cent. The new estimate takes the group’s profit margin to its highest levels since the company listed on the sharemarket in 2000. CEO Mike Wilkins said IAG benefited from warm weather and a lack of claims

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG|ASX LIMITED – ASX ASX|NRMA INSURANCE LIMITED|CGU INSURANCE AUSTRALIA LIMITED|COMMONWEALTH BANK OF AUSTRALIA – ASX CBA|BKI INVESTMENT COMPANY LIMITED – ASX BKI|TYNDALL INVESTMENT MANAGEMENT LIMITED|GOLDMAN SACHS AUSTRALIA PTY LTD|WESFARMERS LIMITED – ASX WES

Telstra tops super list, warns of coming slowdown

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Original article by Sally Patten
The Australian Financial Review – Page: 13 &16 : 21-Jul-14

Data from SuperRatings shows that the average Australian superannuation achieved a return of 12.7 per cent in 2013-14. Telstra Super outperformed with a return of 15.8 per cent, followed by Intrust Super, UniSuper and AustralianSuper. Telstra also had the highest return over the last five years, with its balanced fund achieving an average return of 10.7 per cent annually over this period

CORPORATES
SUPERRATINGS PTY LTD, TELSTRA SUPERANNUATION SCHEME, INTRUST SUPER FUND, UNISUPER LIMITED, AUSTRALIANSUPER PTY LTD, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, MORGAN STANLEY CAPITAL INTERNATIONAL WORLD ACCUMULATION INDEX, REST SUPER PTY LTD, RETAIL EMPLOYEES SUPERANNUATION PTY LTD, WESTERN AUSTRALIA. GOVERNMENT EMPLOYEES’ SUPERANNUATION BOARD, RUSSELL INVESTMENTS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VISION SUPER PTY LTD, VICSUPER PTY LTD, HOST-PLUS, ENERGY SUPER, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CLUBSUPER

Retirees left to flounder after they leave work

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Original article by Karen Maley, Ruth Liew
The Australian Financial Review – Page: 6 : 16-Jul-14

The financial system inquiry has found that retirees are not given sufficient guidance by the superannuation sector. It is argued in the interim inquiry report that the sector does not offer sufficient risk management options to retirees in the draw-down phase. For instance, few income stream products with longevity risk cover are available in Australia. A new round of submissions on how to cope with an ageing population is sought by the inquiry

CORPORATES
FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, CHALLENGER FINANCE PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Fee cap will worsen pain for motorists, warn lawyers

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Original article by Anna Patty
The Sydney Morning Herald – Page: 8 : 30-Jun-14

The Motor Accidents Authority in New South Wales (NSW) has issued a proposal to reduce the maximum fees that can be charged by lawyers lodging claims under the Green Slip Insurance Scheme on behalf of injured motorists. The measure could be enabled by the State Government via regulation, meaning no new legislation is needed. NSW Law Society president Ros Everett warns that the planned capped fees will not cover solicitors’ costs, and that as a result many who have suffered traffic accident injuries will have no option but to represent themselves

CORPORATES
NEW SOUTH WALES. MOTOR ACCIDENTS AUTHORITY, NEW SOUTH WALES. DEPT OF FINANCE AND SERVICES, THE LAW SOCIETY OF NEW SOUTH WALES