Mar
8
ING Asia Business attracts interest from European Insurers
Filed Under AXA PPP, Allianz, Insurance Company, United Kingdom | 1 Comment
The high-growth of Asian markets is proving to be a tempting proposition for some European Insurers currently making unsolicited bids for the business of ING in that region. As per comments made by industry analysts it is thought that Zurich Financial Services Group, Allianz and Axa may be among the potential suitors for ING’s Asia insurance unit.
As part of the restructuring deal mandated by the European Union, ING is splitting off of its global insurance operations and an IPO had been the initial preferred route, although they would keep their options open as communicated by a spokesman.
The bailout deal reached by ING with the authorities in the Netherlands was valued at more than GBP 7 billion back in 2008. Under the terms of the bailout package the European Commission regulators demanded ING to sell its insurance business within four years and focus on its banking operations.
There seems to be a growing number of trade buyers interested in targetting plans for IPOs. The announcement of Prudential Plc buying AIA from AIG is a good example of the type of interest some European companies are demonstrating, playing their role as industry consolidators, after emerging relatively unscathed of the financial crisis in insurance.
According to a recent comment by ING’s CEO, there have been several companies interested in acquiring their Asia business, although Zurich Financial, AXA and Allianz all have declined to comment whether they are prospective purchasers.
Insurance Companies mentioned:
ING is a global financial institution of Dutch origin offering banking, investments, life insurance and retirement services serving more than 85 million private, corporate and institutional customers in Europe, North and Latin America, Asia and Australia. ING Group is active in banking, investment management, life insurance and retirement services across 14 major economies in the Asia Pacific region, employing over 23,000 staff.
With nearly 155,000 employees worldwide, the Allianz Group serves approximately 75 million customers in about 70 countries. On the insurance side, Allianz is the market leader in the German market and has a strong international presence. In fiscal 2009 the Allianz Group achieved total revenues of over 97.4 billion euros. Allianz is also one of the world’s largest asset managers, with third-party assets of 926 billion euros under management at year end 2009.
AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area.
Zurich Financial Services Group is an insurance-based financial services provider with a workforce of approximately 60,000 people. Founded in 1872, headquartered in Zurich, Switzerland, and serving their customers in more than 170 countries. Aims to become one of the top five global insurers.
Feb
25
4th Quarter Results show Allianz profits up as Aetna’s slide
Filed Under Aetna, Allianz | Leave a Comment
Results are out for the financial period ending December 31 2009, and insurers Allianz and Aetna have had different fortunes.
After reporting their results for 2009 Allianz, based in Munich, Germany, posted a 4th Quarter net income of 1.09 billion euros (US$1.47 billion), a well received change over the 145 million euro loss during the same period in 2008. This was helped greatly by Allianz’s Life and Health insurance unit posting a net income of 432 million euros in Q4 2009 after losing 505 million euros in Q4 2008.
Allianz’s net income for the 2009 fiscal year was 4.74 billion euros, up 13.2% over 2008, prompting Allianz to raise their dividend from 3.50 to 4.10 euros per share as they seek to attract new investors.
Hartford, Connecticut-based Aetna on the other hand reported a Q4 2009 net income of US$165.9 million, down about 14.8% from US$194.7 million during the same quarter in 2008. Despite an increase in yearly revenue from US$30.95 billion in 2008 to US$34.76 billion in 2009, Aetna’s year long earnings are down with net income for 2009 at US$1.276 billion, approximately a 7.8% drop from 2008’s US$1.384 billion.
Aetna’s operating earnings per share fell from US$0.96 in 2008 to US$0.40, which the group said was due to lower operating earnings in the Group insurance business, a lower Commercial underwriting margin due to increase costs, and an increase in pension expenses as well.
Companies Mentioned:
Founded in 1853, Aetna is one of the leading health insurance companies in the USA. Continually working on innovating and improving healthcare and services for their policyholders, Aetna is committed to providing comprehensive insurance coverage for American citizens.
Founded in 1890 as an accident and transport insurer, Allianz has grown into an international group doing business in asset management, banking and insurance, including their international health insurance brand, Allianz Worlwide Care. Allianz Group has over 75 million customers in approximately 70 countries around the world.
Feb
23
U.S Insurers can exploit global opportunities
Filed Under Allianz, BUPA, CIGNA, Insurance Company, USA Health Insurance | 4 Comments
Conning Research and Consulting, a division of Conning & Company, has released a study which finds that insurers operating in the USA’s domestic insurance market should focus their attention overseas if they are to see continuing high rates of growth and profitability.
Conning, a leading provider of insurance industry and asset management research and consulting services, released the study “Global Opportunities for U.S. Health Insurers” to help provide a solid framework for insurance providers to work within when expanding to international markets.
Sherry Manetta, an analyst with the company said, “U.S. health insurers have been successful focusing almost exclusively on the U.S. market up until now… However, the U.S. now accounts for 80 percent of the global health insurance market, while representing just 4.6 percent of the world’s population. Looking forward, both profit pressures at home and higher growth rates overseas will drive increased multinational expansion interest among U.S. health insurers.”
The study comes at a time when increased expansion is at the forefront of many international insurance provider agendas. With companies such as CIGNA, Allianz Worldwide Care, Aetna Global Benefits, and BUPA International all actively moving to consolidate their positions in the growing international marketplace, the study by Conning is a timely notification for many American insurance companies looking to revitalize their services.
Regarding the study, Stephen Christiansen said “In reviewing growth opportunities in health insurance beyond the U.S. market, Asia and Europe represent key near-term opportunities.” The Conning Director of Research went on to further elaborate saying that “U.S. insurers have built and are managing the world’s most complex managed health care system. With this infrastructure and expertise, U.S. insurers have the potential to emerge as front-runners of a vast global managed health care system should they decide to enter the competition already underway with Western European and Canadian multinational insurers.”
Companies Mentioned
Conning Research and Consulting
A provider of asset management research and consulting services to the insurance industry, Conning Research and Consulting has over 50 years experience in providing far reaching analysis to key industry decision makers.
BUPA is an international health insurance company that provides health insurance for individuals and companies all over the world. This company has offices on three continents and over 7 million customers’ world wide. As a provident association BUPA has no shareholders, because of this it uses its profits to invest in healthcare and medical facilities around the world.
For more than 125 years, CIGNA has been helping people lead healthier, more secure lives. The company provides health care and related benefits offered through the workplace. Key product lines include health care products and services (medical, pharmacy, behavioral health, clinical information management, dental and vision benefits, and case and disease management); and group disability, life and accident insurance. In addition, CIGNA also provides life, accident, health and expatriate employee benefits insurance coverage in selected international markets, primarily in Asia and Europe.
Allianz Worldwide Care was established in 2000 as the international medical insurance specialist of the Allianz Group. Allianz Worldwide Care is dedicated to providing superior health insurance policies to expatriates and their families all over the world. Headquartered in Ireland, this insurer has regional offices in Africa, the Middle East, Europe, and Asia, serving to provide their clients with the most comprehensive support network available.
Feb
9
Allianz Buys Up Remaining Stake in Allianz Seguros from Itaú Unibanco
Filed Under Allianz, Insurance Company | Leave a Comment
This January, Allianz cemented its control of Brazilian subsidiary Allianz Seguros after it purchased the remaining 14% of the subsidiary’s shares from Itaú Unibanco.
Allianz Seguros is one of the top 7 insurers participating in Brazil’s property and casualty insurance markets with a market share of 5.6%. The subsidiary reported 1.4 billion reais (about 511 million euros) in Gross Written Premiums between January and September 2009, a 26.5% increase over the same time period of the previous year. The deal to buy the remaining shares in Allianz Seguros was closed on January 14, 2010 and has now been submitted for approval by local regulators.
The now total control of the subsidiary comes at a time when Allianz Group sees great growth potential in the future for Brazil, with Allianz Group economists predicting 5% growth in the nation’s GDP. The economists firmly believe that both the FIFA World Cup in 2014 and the Olympic Games in 2016, along with all the infrastructure projects necessary to make them happen, will further increase development in the country.
Companies Mentioned:
Founded in 1890 as an accident and transport insurer, Allianz has grown into an international insurer with over 75 million customers in approximately 70 countries.
Itaú Unibanco:
Established on November 3, 2008 when Itaú and Unibanco agreed to merge their financial operations. Headquartered in São Paolo, Brazil Itaú Unibanco is the Largest financial conglomerate in the southern hemisphere and is the 10th largest bank in the world by market value.
Feb
4
International Health Insurers Expanding Overseas Operations
Filed Under Allianz, BUPA, China, China insurance, Expat Insurance, IHI Bupa, IHI Danmark, Insurance Company, Spain | 3 Comments
Both Bupa and Allianz are making moves to expand their international operations this year. Bupa has added a sales and support center in Fuengirola, Spain to provide administrative support for Bupa International and IHI Bupa customers. The 12 person service center will also aid distributors in Europe, Africa and the Middle East.
Allianz, on the other hand, is opening new gateways in China. It has recently been given approval from regulators to change the status of their fully-owned Allianz Insurance Co. Guangzhou Branch from a branch office to a subsidiary of Allianz Versicherungs A.G.
Previously, China only allowed foreign joint-venture companies to enter two new provinces a year. Changing the status of the company to a subsidiary makes the company an independent legal entity which allows it to apply for setting up its own branch offices in other provinces in China. While this may allow Allianz to enter more than two provinces in China per year, it still depends heavily on collaboration and negotiations between the Allianz subsidiary and a variety of Chinese regulators.
The Allianz casualty and property branch office opened in 2003, they have been growing their business selling engineering, domestic credit, liability, property, marine, short-term health insurance and accident insurance in the province to clients both foreign and domestic.
Given the new opportunities for expansion into new provinces, Allianz intends to keep the focus on growing their core industrial and commercial business, as well as expanding retail distribution of their products during 2010.
Companies Mentioned:
Bupa – Since being started in 1947, The British United Provident Association, or Bupa, has grown to an international company offering health insurance, health and care services to over 10 million customers in 190 countries around the world.
Allianz – Founded in 1890 as an accident and transport insurer, Allianz has grown into a international insurer with over 75 million customers in approximately 70 countries.