INSURANCE

Medibank float could raise $5.8b

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 21 & 26 : 20-Nov-14

Strong demand for shares in the Medibank Private IPO has prompted the Australian Government to upgrade the indicative share price range. This was initially set at between $A1.55 and $A2, but will now be from $A2 to $A2.30. Some fund managers expect the final issue price to be set at $A2.10 per share, which would value the float at about $A5.8bn. Retail investors will pay a maximum of $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, TELSTRA CORPORATION LIMITED – ASX TLS, QR NATIONAL LIMITED

Medibank book-build under way

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Original article by Jessica Gardner, Sarah Thompson, Jake Mitchell
The Australian Financial Review – Page: 15 & 26 : 19-Nov-14

An unnamed fund manager says there has been a "bidding frenzy" for shares in the IPO of Medibank Private. The institutional bookbuild commenced on 18 November 2014, with some fund managers tendering to buy shares at a price well above the indicative range of $A1.55 to $A2 per share. The retail component of the share offer attracted some $A17bn worth of bids. CLSA analysts have valued Medibank stock at between $A1.55 and $A1.64

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CLSA AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Medibank Private float stirs hype as retail demand balloons

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 18-Nov-14

There has been strong demand for Medibank Private shares from both retail and institutional investors. Retail investors have expressed interest in buying more than $A4.8bn shares in the IPO, while institutional demand is estimated at $A12bn. The share offer for retail investors closed on 14 November 2014, while the bookbuild for institutional investors will commence on 19 November. Retail investors will pay no more than $A2 per share

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AUSTRALIA. DEPT OF FINANCE, DEUTSCHE BANK AG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, ELEY GRIFFITHS GROUP PTY LTD, PROMINA GROUP LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

Start-up lures Medibank customers

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Original article by Jessica Gardner
The Australian Financial Review – Page: 22 : 5-Nov-14

Online health insurance provider health.com.au enjoyed strong growth in its customer base in 2013-14, and now boasts about 90,000 policyholders. CEO Andy Sheats notes that Medibank Private and Bupa account for the bulk of customers switching to health.com.au. Sheats adds that neither of the big health funds market their products via iSelect, which is the biggest source of customers switching to health.com.au

CORPORATES
HEALTH.COM.AU PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, ISELECT LIMITED – ASX ISU, AHM HEALTH INSURANCE, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, REA GROUP LIMITED – ASX REA

$900m cost of crash claims

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Original article by Gabrielle Knowles, Alex Massey
The West Australian – Page: 3 : 27-Oct-14

The Insurance Commission of Western Australia’s deputy CEO Lew Watts notes that cyclists, motorbike riders and pedestrians accounted for about 16 per cent of claims made under its compulsory third party polices in the last four years. These payouts exceeded $A900m over the period, and Lew adds that 35 per cent of claims made for catastrophic injuries were by "vulnerable"
road users. The average cost of each claim was $A5.9m

CORPORATES
INSURANCE COMMISSION OF WESTERN AUSTRALIA, WESTERN AUSTRALIA. ROAD SAFETY COUNCIL, WESTERN AUSTRALIA. OFFICE OF ROAD SAFETY, WESTERN AUSTRALIAN POLICE SERVICE

Perpetual says Medibank attractive

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Original article by Jessica Gardner
The Australian Financial Review – Page: 13 : 22-Oct-14

The indicative share price range for the IPO of Medibank Private has been set at $A1.55 to $A2. Matt Williams of Perpetual says Medibank will be an attractive investment if the stock is offered at the right price. However, he says Medibank is likely to achieve cost efficiencies in the medium-term rather than immediately after it becomes a public company. He adds that the health insurer could be a player in consolidation of the industry

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, PERPETUAL LIMITED – ASX PPT, QR NATIONAL LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NIB HOLDINGS LIMITED – ASX NHF, BUPA AUSTRALIA PTY LTD, CANACCORD GENUITY (AUSTRALIA) LIMITED, MACQUARIE CAPITAL PTY LTD

Medibank sale to triple George Savvides’s pay with big bonuses

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Original article by Patrick Durkin
The Australian Financial Review – Page: 6 : 21-Oct-14

Medibank Private MD George Savvides will receive a huge pay rise when the company floats on the Australian stock exchange on 25 November 2014. His remuneration will triple from $A1.2 million to $A3.99 million. Savvides’s contribution to the IPO will deliver a bonus of $A750,000 for him, which some analysts believe is excessive

CORPORATES
MEDIBANK PRIVATE LIMITED, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, OWNERSHIP MATTERS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, AURIZON HOLDINGS LIMITED – ASX AZJ, NIB HOLDINGS LIMITED – ASX NHF, RAMSAY HEALTH CARE LIMITED – ASX RHC, SIGMA PHARMACEUTICALS LIMITED – ASX SIP

No-fault insurance proposal

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Original article by Alex Massey
The West Australian – Page: 14 : 16-Oct-14

The Western Australian Government will seek public comments on a proposal to adopt a no-fault compulsory third-party car insurance regime. The proposal has the support of Julie Waylen of National Disability Services, who is critical of the current fault-based system. However, a non-fault system is likely to increase the cost of compulsory third party insurance by $A109 per annum. Several Australian states already have a no-fault regime

CORPORATES
NATIONAL DISABILITY SERVICES LIMITED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, INSURANCE COMMISSION OF WESTERN AUSTRALIA

Life advice so bad it was illegal: ASIC

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Original article by Andrew Main, Ben Butler
The Australian – Page: 21 : 10-Oct-14

Peter Kell, deputy at the Australian Securities & Investments Commission, says a new survey of the life insurance industry shows that standards are disappointingly low. The advice given to some 37% of consumers on such policies was so deficient that it actually contravened the relevant laws. Kell points out that the new Future of Financial Advice legislation puts the onus on providers to act in the best interests of their clients, and that the sector must act to improve its compliance

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, ASSOCIATION OF FINANCIAL ADVISERS LIMITED, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

Rival hits at Medibank for no share giveaway

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Original article by Jessica Gardner
The Australian Financial Review – Page: 5 : 3-Oct-14

Westfund COO Phillip Berner believes that Medibank Private customers’ loyalty should have been rewarded in the health fund’s IPO. Medibank policyholders who pre-register for the IPO may receive a priority allocation of shares, but Berner says they should have been given free shares or some other form of compensation. He adds that some Medibank customers who are unhappy with their treatment in the privatisation may opt to switch funds

CORPORATES
MEDIBANK PRIVATE LIMITED, WESTFUND HEALTH INSURANCE, ROY MORGAN RESEARCH LIMITED, QR NATIONAL LIMITED