INSURANCE COMPANIES – AUSTRALIA

Health insurers’ poor prognosis

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Original article by Sarah-Jane Tasker
The Australian – Page: 17 & 19 : 15-Jan-19

HBF CEO John Van Der Wielen says that affordability concerns remain an issue for the health insurance sector. Members Own Health Fund CEO Matthew Koce warns that even a small fall in private health insurance membership could have a big impact on the public hospital system, given that 40 per cent of medical procedures are carried out in private hospitals. Dwayne Crombie of Bupa notes that not everyone understands the community-rated health system under which health insurers operate; the system means that costs are spread across all fund members.

CORPORATES
HBF HEALTH LIMITED, MEMBERS OWN HEALTH FUNDS LIMITED, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, NIB HOLDINGS LIMITED – ASX NHF

Insurers urge caution over hail sales

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Original article by Lucas Baird
The Australian Financial Review – Page: 5 : 10-Jan-19

Cars that were damaged by a hailstorm that struck Sydney in late December are now being offered by sale by car dealers. However, Youi and Suncorp are among the insurers that have advised consumers to exercise caution when buying hail-damaged cars. They say bargain-hunters should consider factors such as the cost of repairing such vehicles, the likely resale value and whether they will be able to obtain insurance. Both companies have ruled out offering comprehensive insurance for cars that were damaged in the storm.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, YOUI PTY LTD, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, GIO AUSTRALIA LIMITED, BINGLE.COM PTY LTD

AMP hotlines to bury fears of charging dead

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Original article by Duncan Hughes
The Australian Financial Review – Page: 4 : 3-Jan-19

Embattled financial services group AMP has implemented a range of measures aimed at avoiding a repeat of the scandal in which clients continued to be charged fees after they had died. Amongst other things, AMP has established a deceased estates hotline and an online services for administrators, executors and legal representatives of the deceased. AMP’s share price has fallen sharply in the wake of the financial services royal commission’s revelations, while five law firms are preparing class actions.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESOLUTION LIFE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED

Insurers shun Adani’s Carmichael mine

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Original article by Ben Potter
The Australian Financial Review – Page: 9 : 20-Dec-18

Activist group Market Forces claims that 10 leading insurance companies have ruled out providing coverage for Adani’s Carmichael coal mine in Queensland. They are said to include global insurers such as Allianz and AXA, as well as Australia’s QBE and Suncorp. Market Forces executive director Julien Vincent says insurers have the power to ensure that the mine does not proceed. Adani has scaled back the size of the project and announced that it will be self-funded after banks refused to provide financing for it.

CORPORATES
ADANI MINING PTY LTD, MARKET FORCES, ALLIANZ AG HOLDING, AXA SA, QBE INSURANCE GROUP LIMITED – ASX QBE, SUNCORP GROUP LIMITED – ASX SUN, SWISS REINSURANCE COMPANY, MUNICH REINSURANCE COMPANY, FM GLOBAL, ZURICH INSURANCE COMPANY, GENERALI, BERKSHIRE HATHAWAY INCORPORATED, SCOR SA, HANNOVER RUCKVERSICHERUNGS-AG, AMERICAN INTERNATIONAL ASSURANCE COMPANY, FRIENDS OF THE EARTH

ASIC goes to court in AMP document hunt

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Original article by Ben Butler, Joyce Moullakis
The Australian – Page: 15 & 19 : 18-Dec-18

The Australian Securities & Investments Commission is seeking a court order to compel AMP to provide access to documents relating to the fees-for-no-service scandal. AMP contends that the transcripts of Clayton Utz’s interviews with AMP employees regarding the scandal are subject to legal professional privilege, which ASIC disputes. The financial services royal commission had been told that Clayton Utz’s report on the scandal had been altered following discussions with key AMP executives.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLAYTON UTZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, FEDERAL COURT OF AUSTRALIA

AMP digs in as fresh queries arise over insurance arm sale

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Original article by James Frost
The Australian Financial Review – Page: 15 & 22 : 1-Nov-18

AMP’s acting CEO Mike Wilkins has defended the wealth manager’s $3.45bn deal to sell its life insurance arm, arguing that it is in the best interests of long-term shareholders. He adds that AMP’s board felt that it was appropriate to proceed with the transaction without putting it to a shareholder vote, although Dean Paatsch of proxy advisory firm Ownership Matters believes that the size of the deal means it should have been approved by shareholders. An ASX Limited spokesman has indicated that the deal is unlikely to breach listing rules.

CORPORATES
AMP LIMITED – ASX AMP, OWNERSHIP MATTERS PTY LTD, ASX LIMITED – ASX ASX

Fundies blast AMP over $3.4b fire sale

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Original article by James Frost
The Australian Financial Review – Page: 1 & 22 : 31-Oct-18

Allan Gray Australia and Merlon Capital Partners are among the institutional investors that have criticised AMP’s proposal to divest its life insurance business. They believe that the $3.4bn sale price undervalues the life business, and Merlon has flagged the possibility of seeking an extraordinary general meeting to challenge the deal. Merlon has written to AMP arguing that the deal demonstrates a "reckless disregard" for shareholders’ funds, while Simon Mawhinney of Allan Gray describes it as a "disastrous deal" for AMP’s shareholders.

CORPORATES
AMP LIMITED – ASX AMP, ALLAN GRAY AUSTRALIA PTY LTD, MERLON CAPITAL PARTNERS PTY LTD, MACQUARIE COUNTRYWIDE MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESOLUTION LIFE GROUP LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED

Suncorp kept misleading ads campaign

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Original article by Michael Roddan, Ben Butler
The Australian – Page: 17 & 20 : 21-Sep-18

The financial services royal commission has been told that Suncorp-owned insurer AAMI faced potential fines of up to $7.2m for misleading advertising in November 2017, but it was fined just $43,800 by the Australian Securities & Investments Commission. The radio ads promoted AAMI’s commitment to completely replace a policyholder’s home if it was destroyed, but failed to disclose that this was subject to a cost limit. AAMI’s in-force premium revenue from these policies was $426m for the year, providing a strong incentive to continue the ad campaign.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL OMBUDSMAN SERVICE LIMITED, AAI LIMITED

Insurance shambles left homes in danger

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Original article by Michael Roddan
The Australian – Page: 17 & 21 : 20-Sep-18

The banking royal commission has heard evidence from customers of budget insurer Youi who had lodged insurance claims for storm damage to their homes. Amongst other things, the inquiry was told that Youi has yet to authorise repairs to a home in Queensland that was damaged by Cyclone Debbie in March 2017. Jason Storey, the chief operating officer of claims handling at Youi, conceded that the insurer lacks sufficient resources to cope with major natural disasters.

CORPORATES
YOUI PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RAND MERCHANT INSURANCE HOLDINGS GROUP LIMITED, NEW SOUTH WALES. ENVIRONMENT PROTECTION AUTHORITY

Sack them all, says insurance boss

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Original article by Michael Roddan, Elizabeth Redman
The Australian – Page: 2 : 11-Sep-18

The banking royal commission commenced its investigation into the life insurance sector on 10 September. Senior counsel assisting the commission, Rowena Orr QC noted the industry had paid $6 billion worth of commissions to financial planners over the five years to 2017, suggesting this was a key factor behind the sector’s unethical behaviour. ClearView chief risk officer Greg Martin admitted to the commission that it had breached anti-hawking laws more than 300,000 times, and that it had a "full on sales" culture.

CORPORATES
AUSTRALIA. JOINT COMMITTEE OF PUBLIC ACCOUNTS AND AUDIT, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLEARVIEW WEALTH LIMITED – ASX CVW