INSURANCE COMPANIES – AUSTRALIA

Buffett to play on the ASX

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 13 : 17-Jun-15

Insurance Australia Group (IAG) shares rallied on 16 June 2015 in response to a deal for US investment guru Warren Buffett to acquire a 3.7 per cent stake in the general insurer for $A500m. As part of the deal, Buffett’s Berkshire Hathaway will be paid 20 per cent of IAG’s annual revenue for the next decade, which will be reinvested in a number of large Australian-listed companies. Buffett has indicated that bank stocks may be included in the portfolio.

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, BERKSHIRE HATHAWAY INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, PETERS MACGREGOR CAPITAL MANAGEMENT PTY LTD, WELLS FARGO BANK, BANK OF AMERICA CORPORATION

Insurer’s premiums cast cloud

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Original article by Tim Binsted
The Australian Financial Review – Page: 18 : 1-Jun-15

Morgan Stanley’s Daniel Toohey values Medibank Private shares at $A1.85, compared with the issue price of $A2 for retail investors in the 2014 IPO. Morgan Stanley forecasts that Medibank’s lapse rate will rise from 10 per cent to 15 per cent, while Toohey says the growth of its budget-priced ahm brand may come at the expense of the main brand’s customer base. Medibank’s earnings are also likely to be affected by customers opting to reduce their health insurance coverage in order to save money.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE SECURITIES PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Low rates, yields to hit Suncorp, IAG

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 26-May-15

The earnings of Australian-listed insurance companies are likely to be affected by low interest rates and bond yields. Investment income accounts for around 40 per cent of QBE Insurance Group’s profits, compared with 25 per cent in the case of Insurance Australia Group (IAG) and Suncorp. IAG CEO Mike Wilkins says most of the company’s insurance book comprises "short tail risk".

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, CREDIT SUISSE (AUSTRALIA) LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Bupa nips at Medibank’s heels

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Original article by Jessica Gardner
The Australian Financial Review – Page: 25 : 12-Mar-15

Bupa Australia has reported a pre-tax profit of $A517m for calendar 2014, which is 20.1 per cent higher than previously. Premiums revenue was up 8.4 per cent at $A5.3bn, while its gross margin rose from 13.6 per cent to 14.6 per cent. Bupa Health Services MD Hisham El Ansary says the group’s premiums are lower than those of rival health insurers, adding that Bupa aims to ensure that its products are affordable and offer the best value to consumers

CORPORATES
BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, DENTAL CORPORATION PTY LTD

QBE swings to profit after North American sell-off

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 & 22 : 25-Feb-15

QBE Insurance Group has posted a 2014 profit of $US742m ($A950m), following a loss of $US254m previously. Revenue was six per cent lower at $US18.23bn, while it boasted an insurance profit margin of 7.6 per cent. QBE will gain $US95m from the sale of its workers’ compensation business in Argentina, which follows asset sales in 2014. Shareholders will receive a final dividend of $A0.22 per share

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, STEADFAST GROUP LIMITED – ASX SDF, WESTPAC BANKING CORPORATION – ASX WBC, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, NIKKO ASSET MANAGEMENT GROUP

Roy Morgan announces 2014 winners of Banking and Finance Satisfaction Awards

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Feb-15

Roy Morgan Research announced the winners of its 2014 Customer Satisfaction Awards for the banking and finance industry on 18 February 2015. P&N Bank was named the Bank of the Year, while the Commonwealth Bank won the award for Major Bank of the Year. Bendigo Bank was named the Business Bank of the Year, Defence Service Homes Insurance took out the award for General Insurer of the Year and ESSSuper received the award for Industry Superannuation Fund of the Year

CORPORATES
ROY MORGAN RESEARCH LIMITED, P&N BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BENDIGO BANK, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, DEFENCE SERVICE HOMES INSURANCE SCHEME, ESSSUPER, GREATER BUILDING SOCIETY LIMITED, PEOPLE’S CHOICE CREDIT UNION, CBHS FRIENDLY SOCIETY LIMITED, INSURANCELINE HOLDINGS PTY LTD, NRMA LIMITED, REST SUPER PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, PLUM FINANCIAL SERVICES LIMITED

IAG’s Wilkins here to stay but has insurance

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Original article by Ruth Liew
The Australian Financial Review – Page: 21 & 24 : 19-Feb-15

Insurance Australia Group has reported a 2014-15 interim net profit of $A579m, which is 10 per cent lower than previously. There was a 17.1 per cent increase in gross written premium, to $A5.6bn, while the group’s underlying margin for the half-year was 13.3 per cent. Shareholders will receive an interim dividend of $A0.13 per share. CEO Mike Wilkins has ruled out standing down in the near-term, but stresses that the group has a number of potential internal successors

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, NRMA LIMITED, CGU INSURANCE AUSTRALIA LIMITED, SUNCORP GROUP LIMITED – ASX SUN, WESFARMERS LIMITED – ASX WES, NIKKO ASSET MANAGEMENT GROUP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED

Steadfast set for Asian buy

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Original article by Ruth Liew
The Australian Financial Review – Page: 20 : 17-Feb-15

Australian-listed Steadfast Group has reported a 2014-15 interim profit of $A21m, which is 11.5 per cent higher than previously. The insurance broking group’s cash earnings per share also rose by 11.5 per cent, to $A4.18. Steadfast has secured a deal to acquire Body Corporate Brokers and two underwriting agencies from QBE Insurance Group for $A290m. It is keen to pursue further acquisitions in Australia, as well as in Singapore

CORPORATES
STEADFAST GROUP LIMITED – ASX SDF, QBE INSURANCE GROUP LIMITED – ASX QBE, BODY CORPORATE BROKERS, UNDERWRITING AGENCIES OF AUSTRALIA PTY LTD, CHU UNDERWRITING AGENCIES PTY LTD, UBS HOLDINGS PTY LTD, IC FRITCH, JP MORGAN AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Embrace telematics or lose share, insurers told

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Original article by Ruth Liew
The Australian Financial Review – Page: 21 : 10-Feb-15

Brian Wallace of IT group CSC believes that the introduction of telematics technology in Australia’s insurance industry is inevitable. He says car insurers in particular will need to implement telematics in order to protect their market share. Insurance Australia Group has ruled out offering such products, but QBE Insurance Group says its telematics product has resulted in cost savings of up to 30 per cent for some customers when renewing their policies

CORPORATES
COMPUTER SCIENCES CORPORATION, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, ACCENTURE, CELENT COMMUNICATIONS LLC, NRMA LIFE LIMITED, CGU INSURANCE AUSTRALIA LIMITED

Insurers to weather revenue resistance

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 9-Feb-15

Jan van der Schalk of CLSA forecasts that Insurance Australia Group will post a 2014-15 interim cash net profit of $A591m. This compares with $A642m previously. Meanwhile, CLSA forecasts that QBE Insurance Group’s cash net profit for calendar 2014 will be $US933m ($A1.2bn). Australian insurers have benefited from cost-cutting and rising premiums in recent years

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, CLSA AUSTRALIA PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, WESFARMERS LIMITED – ASX WES, CITIGROUP PTY LTD