K: Financial and Insurance Services

Win for consumers as premiums to weaken

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 16-Dec-14

Suncorp Group’s Anthony Day says a competitive market should result in lower commercial insurance premiums in 2015. The head of commercial insurance forecasts that insurance rates will stabilise after falling in the first several months of 2015. Meanwhile, Day says the recent storm in Brisbane is likely to cost Suncorp no more than $A250m in insurance claims

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, NATIONAL INSURANCE BROKERS ASSOCIATION OF AUSTRALIA, WILLIS GROUP HOLDINGS LIMITED

Injured giving up on compo claims

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Original article by Anna Patty
The Sydney Morning Herald – Page: 4 : 15-Dec-14

New South Wales (NSW) Small Business Minister John Barilaro says the State Government’s workers’ compensation system changes have been a success, with a decline of 15% in claims. Insurance premiums are also down 17.5%. However Law Society of NSW president Ros Everett argues that the new rules, under which claimants can no longer seek the help of lawyers in appealing assessments, have simply shifted the burden to the federal Medicare and Centrelink services. This is as many injured workers are now unable to rely on court action

CORPORATES
NEW SOUTH WALES. WORKCOVER AUTHORITY, NEW SOUTH WALES. WORKERS’ COMPENSATION COMMISSION, THE LAW SOCIETY OF NEW SOUTH WALES, NEW SOUTH WALES. DEPT OF FINANCE AND SERVICES, NEW SOUTH WALES. DEPT OF COMMERCE, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

Low premium rises tipped

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 15-Dec-14

Insurance Australia Group’s Andy Cornish says the storm that hit Brisbane in late November 2014 should not have much impact on premiums. He forecasts a single-digit increase in its premiums for home and car insurance in 2015. The general insurer has received more than 15,000 claims arising from the storm, and it expects to pay out between $A140m and $A150m

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, NRMA LIMITED, CGU INSURANCE AUSTRALIA LIMITED, LUMLEY INSURANCE GROUP LIMITED, COLES INSURANCE

No bail for pair on insider trading charge

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Original article by Georgia Wilkins, Patrick Durkin
The Australian Financial Review – Page: 9 : 12-Dec-14

Lukas Kamay and Christopher Hill could be jailed for at least 10 years after being convicted for engaging in insider trading. The court had been told that Kamay gained $A7m from foreign exchange trades that were based on information supplied by Hill. The two men will be sentenced in February 2015, and will be held in custody after the Supreme Court of Victoria cancelled their bail

CORPORATES
SUPREME COURT OF VICTORIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BUREAU OF STATISTICS, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, JBWERE LIMITED

BlackRock sees a wild ride for shares in 2015

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Original article by Sally Rose
The Australian Financial Review – Page: 22 : 12-Dec-14

BlackRock expects cyclical stocks in the US to perform better than defensive stocks in 2015, while the US economy and currency are also tipped to improve. Meanwhile, the firm anticipates increased volatility in global financial markets in the new year. It also says the downturn in the crude oil price should have a positive impact on global economic growth in the longer-term

CORPORATES
BLACKROCK INCORPORATED, BLACKROCK INVESTMENT INSTITUTE, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, BANK OF JAPAN, NIKKEI 225 INDEX

Stevens calls for US75c dollar

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Original article by Jacob Greber, Michael Stutchbury
The Australian Financial Review – Page: 1 & 10 : 12-Dec-14

The Australian dollar is currently trading at around $US0.83, but Reserve Bank governor Glenn Stevens believes that it needs to fall further. He argues that a more appropriate level for the currency would be about $US0.75, arguing that the decline in Australia’s terms of trade means the dollar needs to be lower. Stevens also says that the need for stability is a major reason why interest rates were kept on hold during 2014, and stresses that any further easing of monetary policy would need to has a positive effect on business and consumer confidence

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Vacuum cleaners keeping us recession-proof: Godfreys

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Original article by Simon Evans
The Australian Financial Review – Page: 19 : 11-Dec-14

Godfreys Group’s stock ended its first day of trading at $A2.85 on 10 December 2014, compared with an issue price of $A2.75. The vacuum cleaner retailer raised $A78m via an IPO, after scaling back plans for a $A103m raising. Godfreys chairman Rod Walker notes that the group’s sales are generally not affected by the economic outlook, as every home needs a vacuum cleaner

CORPORATES
GODFREYS GROUP LIMITED – ASX GFY, ARCADE FINANCE PTY LTD, NOMURA AUSTRALIA LIMITED, INVESTEC AUSTRALIA LIMITED, FREEDOM GROUP LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, UNITAS CAPITAL PARTNERS PTY LTD, ACONEX LIMITED – ASX ACX

Murray inquiry calls for social investment

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 11-Dec-14

Impact Investing Australia has welcomed a call by David Murray, chairman of the inquiry into Australia’s financial system, for greater involvement of the private sector in social impact investing. Murray said the Australian Prudential Regulation Authority should develop a framework for impact investment by superannuation funds. Impact Investing Australia expects the impact investing market to grow to at least $A32 billion by 2025

CORPORATES
IMPACT INVESTING AUSTRALIA LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, BIG SOCIETY COUNCIL, SOCIAL VENTURES AUSTRALIA LIMITED, THE BENEVOLENT SOCIETY OF NEW SOUTH WALES

Property curbs pave way for RBA rate cuts

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 11-Dec-14

Martin Whetton of the ANZ Bank says the decision to implement measures aimed at curbing growth in loans for investment properties could lead a reduction in the cash rate. The bond market had anticipated such action by the Australian Prudential Regulation Authority, with the 10-year bond rate falling below three per cent and the three-year bond rate easing to 2.27 per cent

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COUNCIL OF FINANCIAL REGULATORS, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TRIPLE T CONSULTING LIMITED

Nation needs strong banks, Murray says

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Original article by Michael Bennet
The Australian – Page: 22 : 9-Dec-14

Among the recommendations made in the financial system review report by David Murray for the Australian Government is lifting the capital requirements for the main banks. Murray says the sector needs to be strong enough to withstand another financial crisis, and at the same time cannot rely on being saved by the Government. Estimates of the additional funds likely to be needed if the measures are adopted range from $A8bn to $A32bn. Investors on 8 December 2014 were unconcerned, with the share prices of the four major banks all rising

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF QUEENSLAND LIMITED – ASX BOQ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, DEUTSCHE BANK AG, MERRILL LYNCH (AUSTRALIA) PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, MACQUARIE BANK LIMITED – ASX MBL, UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BANKERS’ ASSOCIATION