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Sell Surely? DL on Ageas's "uncertain, unattractive" approach "significantly undervalued" DL & prospects; Door open to offers Ageas or others. DL new CEO Adam Winslow tenure began just two days after Ageas announced its bid, has not yet had a chance to make his mark on the company. Direct Line warned in early January 2023 that a combination of winter weather claims, motor claims inflation and a drop in the valuation of its commercial property investments meant its 2022 solvency ratio would be at the lower end of its 140% to 180% target range, and so it was cancelling its final 2022 dividend. Two weeks later, group CEO Penny James stepped down. The company eventually reported a solvency ratio of 145%. To bolster its solvency capital, Direct Line sold its brokered commercial lines business to fellow UK insurer RSA Insurance Group Ltd., a subsidiary of Intact Financial Corp., which it estimated would raise its solvency ratio by 45 percentage points...

Further consolidation in the #Baltics non-life insurance market: German-based international insurance group ERGO Group AG (part of Munich Re) will acquire the Baltic operations of Gjensidige for a consideration of EUR 80m. The consideration represents a price to book multiple of 2.0x for ADB Gjensidige, payable fully in cash at closing. GWP for 2023 stood at EUR 151m, indicating a multiple of 0.53x. Legal merger will commence once the transaction is approved by competition authorities and Lietuvos bankas | Bank of Lithuania; until then, the two companies will operate separately, and the Gjensidige brand will remain for a further one-year transition period before being integrated into ERGO. Jointly, companies would have had GWP of EUR 358m in 2023, thus the merger provides a solid boost to ERGO operations, and brings them close to 20% market share in key segments, and above 10% in overall non-life insurance market share. #insurance #deals #nonlife #ergo #gjensidige #baltics

📢 QBE Increases Australian Premiums, but Growth Slows QBE Insurance Group has raised premiums in Australia, though the pace of these increases is decelerating. This strategic adjustment aims to balance profitability with market dynamics. Key points: - QBE has implemented premium hikes to mitigate rising claim costs and maintain profitability. - Despite the increases, the rate of growth in premium prices is beginning to slow down. - The company's focus remains on optimising performance while addressing the needs of policy holders. This development highlights the challenges and strategies within the insurance sector to navigate economic pressures. Stay updated on how these changes might impact the market and your insurance needs. Read the full article by the Australian Financial Review for more insights: https://buff.ly/4bistJO #Insurance #QBE #PremiumIncrease #FinancialServices #MarketUpdate

📢 QBE Increases Australian Premiums, but Growth Slows QBE Insurance Group has raised premiums in Australia, though the pace of these increases is decelerating. This strategic adjustment aims to balance profitability with market dynamics. Key points: - QBE has implemented premium hikes to mitigate rising claim costs and maintain profitability. - Despite the increases, the rate of growth in premium prices is beginning to slow down. - The company's focus remains on optimising performance while addressing the needs of policy holders. This development highlights the challenges and strategies within the insurance sector to navigate economic pressures. Stay updated on how these changes might impact the market and your insurance needs. Read the full article by the Australian Financial Review for more insights: https://buff.ly/4bistJO #Insurance #QBE #PremiumIncrease #FinancialServices #MarketUpdate

European-focused life insurer Chesnara Plc (LSE:CSN) maintained its policy of raising dividends by 3% in its latest half-year, putting it on course for a 21st year of consecutive rises, something it says only seven companies across Europe can match. Profit before tax for the six months to end June 2024 fell to £13.4 million (£15.3 million), with the value of policies in force (EcV) also down at £508 million (£524.7 million). Margins were affected by acquisitions, said Chesnara, which affected the bottom line, with the IFRS capital base dropping to £458 million from £487 million. Funds under management across its business in the UK, Scandinavia and the Netherlands rose to £11.9 billion (£11.5 billion). Solvency was 201%, against a target of 140-160%, with cash balances at £137 million after £29.2 million was generated in the half year though unlike other life insurers, Chesnara says this is earmarked for more... More at #Proactive #ProactiveInvestors http://ow.ly/9Ec5105Ie2E

→ “There’s no insurance policy against #Brexit” said the insurer 𝗠𝗔𝗬 𝟮𝟬𝟭𝟲: 𝗜 𝗔𝗦𝗞𝗘𝗗 𝗔𝗩𝗜𝗩𝗔 𝗔𝗕𝗢𝗨𝗧 𝗕𝗥𝗘𝗫𝗜𝗧 – 𝗦𝗵𝗮𝗿𝗲 𝟯-𝗺𝗶𝗻𝘂𝘁𝗲 𝘃𝗶𝗱𝗲𝗼 At Aviva's AGM in May 2016, I asked for the company’s view on Brexit. Sir Adrian Montague, CBE, then the chairman of Britain’s biggest insurer said: “What pre-occupies the board is the uncertainty that we would face if there is a vote to leave the European Union. “We would see the risk of serious short term financial disruption… We like understanding the risks that we’re running, but we can’t measure the risks of a Brexit. “The company’s view is that we would prefer to avoid the uncertainty. “All we’re saying is that there’s no turning back if we get into the Brexit situation, and for us there’s no insurance policy against Brexit.” There was a loud applause from the shareholders in the audience. Earlier, a shareholder in the audience stood up to call for a ‘point of order’. “We are not interested in the political views of the board on this issue,” he said. It seems that even before the referendum, Brexiters didn’t want anyone – let alone businesses – to speak out against Brexit. Nothing much has changed, has it? © Report and video by Jon Danzig #insurance #business #EU #Aviva 

Discover why Direct Line Insurance Group, Currys, and Wincanton are in the spotlight amidst a flurry of bidding wars. Get insights into the factors making UK firms irresistible to investors. https://hubs.la/Q02mQQHk0 #UKMergersAndAcquisitions #StockMarketTrends #InvestmentOpportunities #LondonStockExchange #GlobalInvestors"

Mixed blessings! EY reports UK motor insurers paid out 93p in #claims and expenses for every £1 premium collected during 2024 compared with £1.13 in 2023. Motor insurers return to profitability this year. The medium-term outlook for motor insurers is less rosy with a slowdown in premium growth in the first six months of 2024 expected to push the sector back into a slight loss in 2025. The proposed takeover of Direct Line Group by Aviva seen in the light of this EY forecast allows both companies to tackle the challenges of balancing supporting customers, carefully managing costs, keeping pace with regulatory change, and pursuing sustainability and tech transformation. #ClaimsTech #AI #CoreTech and #ecosystem enabling #Insurtech have a big role to play in supporting those goals as part of enterprise-wide innovation and transformational vision and strategy. Julie R. Chris Payne Rory Yates Gee Pugsley Andrew Passfield Lisa Wardlaw David Clamp Mark Andrews Mark McDonald Waseem Malik Martin Milliner David Carter Paul Branch Paul Kneafsey

As an insurance customer myself, I really welcome & salute with this bold decision taken by SG regulators made to protect the public interests! SG government has decided not to approve NTUC Enterprise’s proposed sale of Income shares to Allianz! When most people would think that this deal would go through, regulator will have a different say if the conditions do not protect the public! It is an eye-opening sample for business practices in Singapore, not just insurance industry, but to all other sectors as well for getting deep review & well planning about any business acquisitions or expansions! #Singapore #Insurance #Business #SaleOfShares #Allianz #Income

Allianz seeks 51% Income Insurance Limited Insurance stake in 1.5 billion-euro deal https://lnkd.in/gPNssmSE Deal Overview: + Allianz plans to acquire a 51% stake in Singapore-based Income Insurance Limited + Offer price: S$40.58 per share + Total deal value: approximately 1.5 billion euros (S$2.2 billion) Current Ownership Structure: + NTUC Enterprise Co-operative Limited currently owns about 72.8% of Income Insurance + The remainder is mainly held by retail investors Acquisition Details: Allianz needs about 54.7 million shares to reach the 51% stake NTUC Enterprise has agreed to sell shares if minority shareholders' acceptances are insufficient Post-Deal Structure: + Allianz will own 51% of Income Insurance + The remaining 49% will be held by NTUC Enterprise and minority shareholders + NTUC Enterprise will retain a "substantial stake" Conditions and Approvals: + Subject to Income's shareholders' approval for constitutional amendments and name change + Regulatory approvals required Strategic Rationale: + Allianz aims to expand and strengthen its presence in Singapore + Focus on life and health, and property and casualty insurance + Partnership with NTUC Enterprise to leverage local expertise Regional Significance: + Part of Allianz's strategic focus on Asia + Aims to enhance the insurance landscape in Singapore and Southeast Asia This deal represents a significant move by Allianz to strengthen its position in the Singapore insurance market through a partnership with a well-established local institution. #Growth #Insurance #Acquisition #Business #Investment #Scale #Market #Asia #Singapore I The Business Times I SPH Media I Nai Lun Tan I Megan Cheah