K: Financial and Insurance Services

Statewide, Hostplus in tie-up talks

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Original article by Joyce Moullakis
The Australian – Page: 13 : 29-Jun-21

Superannuation funds Statewide Super and Hostplus have confirmed they are discussing a merger that would create a fund with assets of $77 billion. Statewide Super is based in Adelaide and has assets of $10.8 billion, while Hostplus has assets of $66 billion and has traditionally focused on workers in the hospitality, tourism, recreation and sports sectors. It recently announced plans to merge with the $3 billion Intrust Super, while the Australian Prudential Regulation Authority suggested in May that any super fund with assets under $30 billion would become increasingly uncompetitive against so-called megafunds.

CORPORATES
STATEWIDE SUPERANNUATION PTY LTD, HOST-PLUS, INTRUST SUPER FUND, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Aussie wealth rockets despite virus

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 23-Jun-21

Just under one in 10 Australians are millionaires in US dollar terms, according to Credit Suisse’s latest global wealth report. Credit Suisse found that Australians increased their wealth by more than all other countries except Switzerland during the pandemic, while it estimates that the number of Australian millionaires will rise by 70 per cent over the next five years to three million. Credit Suisse found that Australia topped the list for median wealth per adult in 2020, while it placed fourth in terms of mean wealth.

CORPORATES
CREDIT SUISSE AG

Soul Patts in $11bn LIC merger

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 17 : 23-Jun-21

Shares in listed investment company Milton rose by as much as 16 per cent to $5.80 on 22 June after it was announced it would be merging with investment house Washington H. Soul Pattinson. Soul Patts, which already owns a three per cent stake in Milton, will acquire it in an all-scrip merger that will increase Soul Patts’ market capitalisation to $10.8 billion. Soul Patts owns major holdings in Australian Pharmaceutical Industries, Brickworks, TPG Telecom and New Hope Group, while both it and Milton are chaired by Robert Milner. Soul Patts CEO Todd Barlow says the merger will mean a larger war chest for future investments and increased portfolio diversification.

CORPORATES
MILTON CORPORATION LIMITED – ASX MLT, WASHINGTON H SOUL PATTINSON AND COMPANY LIMITED – ASX SOL, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, BRICKWORKS LIMITED – ASX BKW, TPG TELECOM LIMITED – ASX TPG, NEW HOPE GROUP, NEW HOPE CORPORATION LIMITED – ASX NHC, WAM CAPITAL LIMITED – ASX WAM

Insurers hit with flood of storm claims

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Original article by Lachlan Moffet Gray
The Australian – Page: 18 : 17-Jun-21

Insurance Australia Group is the latest insurer to advise that its natural hazard allowance for 2020-21 is set to be exceeded as a result of the recent storms in Victoria. IAG says it has received about 4,300 claims arising from the storms to date, which will result in its net natural peril claim costs rising to at least $720m for the financial year. IAG had previously advised that its peril claims costs for the year would be within the range of $660m to $700m, following storms on the east coast earlier in 2021; it has a perils allowance of just $658m for the financial year.

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG

Our biggest M&A boom: $83b and counting

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Original article by James Thomson
The Australian Financial Review – Page: 35 : 9-Jun-21

Some market watchers believe that Australia’s mergers and acquisitions activity in 2021 could top the record $US134bn worth of deals in 2011. Data from Dealogic shows that some $US64.3bn ($82.8bn) worth of M&A deals have been announced in the year to date, compared with just $US56.9bn for the same period in 2011. The surge in M&A activity is being driven by factors such as strong balance sheets and access to low-cost debt, while the boards of target companies have become more willing to engage with suitors following a rebound in valuations in the wake of the pandemic.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD

Buyback bonanza for bank investors

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Original article by Richard Gluyas
The Australian – Page: 16 : 7-Jun-21

Richard Wiles of Morgan Stanley estimates that the combined surplus capital of Australia’s four major banks is within the range of $19.5bn to $28bn. He says the banks could potentially return about $15bn to investors via share buybacks over the next year, with the Commonwealth Bank tipped to repurchase $5bn worth of shares when its 2021 financial results are announced. Buybacks of this magnitude would reduce the number of bank shares on issue by 3-5 per cent.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

CBA breaks through $100 for first time

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 16 : 27-May-21

Shares in the Commonwealth Bank of Australia reached a record intra-day high of $100.20 on 26 May, ending the session at $99.58. CBA’s share price has risen by 12 per cent so far in May, giving it a market capitalisation of $176.7bn. It is now the biggest stock on the local bourse, and the world’s 11th largest bank in terms of market capitalisation. Brett Le Mesurier of Velocity Trade expects CBA shares to trade at around $100 in the near-term, but Dean Fergie of Cyan Investment Management says the stock could rise further.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, VELOCITY TRADE, CYAN INVESTMENT MANAGEMENT PTY LTD

Banks, miners set for big payout boost

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Original article by William McInnes
The Australian Financial Review – Page: 24 : 26-May-21

Jane Shoemake of global asset manager Janus Henderson is upbeat about the outlook for Australian dividend payouts in 2021. She notes that mining companies and the major banks dominated the list of the 10 biggest dividend payers in 2019 and 2020, and investors are set to benefit from high commodity prices and a rebound in dividend payments in the banking sector. Shoemake also expects energy stocks and defensive retailers such as Coles Group and Woolworths to increase their dividends.

CORPORATES
JANUS HENDERSON GROUP PLC – ASX JHG, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Super fund satisfaction soars to a new record high as Australia recovers from the COVID-19 pandemic

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-May-21

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 71.7% in April 2021 – an increase of 7.0% points from a year ago and up 10.7% points since October 2020. Self-Managed Funds still have the highest customer satisfaction of 81.1%, up 5.8% points from a year ago. Public Sector Funds are in a clear second place with customer satisfaction of 78.9%, up 4.8% points on a year ago. The two largest increases in satisfaction over the last year are for Industry Funds, up 6.8% points to a record high of 71.8% and Retail Funds, up by an impressive 7.2% to a near record high 67.8%. UniSuper has the highest customer satisfaction rating of the Industry Funds, ahead of Cbus, AustralianSuper and Catholic Super. The highest placed Retail Super Fund is OnePath, followed by MLC, Colonial First State and ASGARD. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 50,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

Overall satisfaction with Big 4 banks is higher than a year ago with CBA & NAB the top two

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-May-21

New data from Roy Morgan shows that 80.5% of customers are satisfied with their bank(s) in April 2021, an increase of 1.3% points on a year ago when the COVID-19 pandemic began. The increase was built upon increases in satisfaction for building societies (up 3% points on a year ago), foreign banks (up 2.3% points) and Australia’s ‘Big 4’ banks (up 0.3% points). Satisfaction for the four major banks as a group is 77.1%, up 0.3% points on April 2020, and up 0.2% points on January 2021. The big improver over the last year has been the NAB which has increased its customer satisfaction by 1.9% points to 78.6%, to be just behind the Commonwealth Bank on 78.8% (down 0.2% points). Third is ANZ on 75.0% (up 0.6% points on April 2020), followed by Westpac on 73.5% (down 0.4% points). Among banks as a whole, Beyond Bank scored the highest in April, on 92.7% (up 1.8% points in 12 months). ING was the highest rated foreign bank on 90.6% (up 1.7% points), Newcastle Permanent led the way for building societies on 94.8% (up 3.1% points), while Credit Union Australia was the highest ranked credit union, on 86.9% (up 3.9% points). The findings, taken from Roy Morgan’s Customer Satisfaction report on Consumer Banking in Australia, reflect the successful way the banking sector responded to financial challenges faced by millions of Australians as a result of the 2020 COVID-19 pandemic.

CORPORATES
ROY MORGAN LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, BEYOND BANK AUSTRALIA, ING BANK (AUSTRALIA) LIMITED, NEWCASTLE PERMANENT BUILDING SOCIETY LIMITED, CREDIT UNION AUSTRALIA LIMITED