Tax Reform in This Election Year: It's Not Likely
Which Credit Card Rewards Does the IRS Care About?
Twitter's a pretty lucky company. Few get two bytes at the hype apple in rapid succession, but this social media platform has found a way to make up for its disappointing announcement about its advertising model. According to VentureBeat, Twitter might unveil its long-awaited, heavily-hyped and possibly investor-satisfying corporate accounts. Next month, at its inaugural Chirp developer conference, we could finally see what might just be the foundation of Twitter's business model.
Munich Re posts
FeedTwitter May Chirp Its Commercial Accounts Next Month
Continue reading Twitter May Chirp Its Commercial Accounts Next Month
Assessing the Tab for Q1 Catastrophes
Catastrophe modelers, insurers and reinsurers are still sorting out the damage from Windstorm Xynthia in Europe and the earthquake in Chile. Taking only the highest of high-end estimates, the damage from these two catastrophes could exceed $12 billion, resulting in fairly steep property-catastrophe losses long before hurricane season begins. With three more major property reinsurance renewals remaining for the year -- at April 1, June 1 (Florida) and July 1 -- there is plenty of time for the impact of these events to be absorbed into reinsurance pricing.
Earnings Highlights: Aeropostale, H&R Block, IMAX, J. Crew, Kroger ...
Here are some highlights from this past week's earnings coverage on BloggingStocks:
- Aeropostale Inc. (ARO) reported better-than-expected Q4 earnings and revenue and offered rosy guidance.
- American Eagle Outfitters Inc. (AEO) higher Q4 earnings matched analysts' estimates, but shares rose afterward.
- AnnTaylor Stores Corp. (ANN) swung to a profit in Q4 even though same-store sales dropped; shares fell.
- Cbeyond Inc. (CBEY) received an analyst's upgrade following its Q4 results and guidance for the full year.
- Children's Place Retail Stores Inc. (PLCE) posted strong Q4 earnings even though same-store sales were flat.
Continue reading Earnings Highlights: Aeropostale, H&R Block, IMAX, J. Crew, Kroger ...
Munich Re Profit Surges by More Than 60%
When 2008 ended on a sour note, the reinsurance industry looked to 2009 with trepidation. Since the financial crisis struck late in the third quarter of 2008, it was clear at the time that the effects would spill over into the following year, though signs of stability in the reinsurance market left reason for hope. Now, we're looking back on the year that was, for 2009, rather than the one to come, and Munich Re (0KFE) is putting it in the "win" column. The reinsurer logged a bottom-line result of €2.56 billion, up profoundly from €1.58 billion the year before. Munich Re has already announced that it's raising its dividend to €5.75 per share.According to Nikolaus von Bomhard, Chairman of the Board of Management of Munich Re, "We have brought the financial year 2009 to a successful close: with a profit of over €2.5 billion, we were even able to surpass expectations and achieve our long-term return target despite the difficult environment."
Insurance Industry Faces More Pressure on Iran
If you do business with Iran, it's probably going to be harder to get insurance coverage. Regulators and lawmakers in the U.S. are looking for stiffer penalties to thrust upon companies that do business with Iran. And insurers, likely acutely aware of how risk can spread, are starting to pull back.
Munich Re (0KFE) and Allianz (AZSEY) announced that they are suspending business in Iran, according to a report by Business Insurance. Neither company, however, stands to lose much. For Allianz, the lost premium is "negligible," and for Munich Re, it's only around $13.6 million.
Continue reading Insurance Industry Faces More Pressure on Iran
Fortune 500 Loves Twitter, Especially the Insurance Business
The nagging notion that Twitter is nothing more than a way for a kids to piss away their time was put to bed in 2009. It came together, especially, for Black Friday and the holiday shopping season that followed, but even when you look at the year as a whole, it's clear that major businesses jumped on the microblogging bandwagon readily. A new study by the Society for New Communications Research shows that Fortune 500 companies became addicted to communicating in 140-character blurbs last year.Among the Fortune 500, 35% of companies had active Twitter accounts last year, which means that at least one tweet had been unleashed in the past 30 days. And, the use of Twitter is concentrated at the top: 47% of the Fortune 100 had active accounts last year. Only 22% of Fortune 500 companies had public-facing corporate blogs as of last year, but those that do see the value of integrated communications: more than 80% of these blogs were linked to a corporate Twitter account.
Continue reading Fortune 500 Loves Twitter, Especially the Insurance Business
Insurance Company Upgrades Beat Downgrades by 50% in 2009
Insurance company upgrades outpaced downgrades by 50% last year. In a report by insurance rating agency A.M. Best, Upgrades, Downgrades Moved at a Similar Pace in 2009, 36 commercial property/casualty insurers were upgraded, compared to 24 that saw their ratings head in the opposite direction. According to the report, "By demonstrating consistently strong operating results over several years and maintaining sound underwriting discipline, conservative reserving practices and leading business positions in certain segments of the commercial market, these insurers have been able to strengthen their risk-adjusted capitalization."
Continue reading Insurance Company Upgrades Beat Downgrades by 50% in 2009
Cat Bond Market Shift Favors Goldman Sachs
Nine catastrophe bonds have matured so far in the first quarter of 2010, removing $1.8 billion in risk-transfer capacity, according to data from Reuters. The insurance industry has compensated with $508 million in new cat bond risk capital, with the busy fourth quarter helping to absorb what is maturing now. Only one cat bond has closed so far this year, The Hartford's (HIG) $180 million Foundation Re III. But, the first quarter is usually a quiet one for the cat bond market.
It partly replaces the $105 million in protection that Foundation Re D afforded. Swiss Re (SWCEY) and SCOR (SCRYY) are also among the insurance companies with bonds maturing that have at least partial coverage from new cat bond issuances. Another four bonds have matured, however, with no new related issuance, affecting Munich Re (MURGY), AXA (AXA) and others.
Natural Catastrophe Losses Down, Sparing Insurers
Natural catastrophes weren't as expensive in 2009, as it seems the cost of everything imaginable also got smacked. Munich Re (0KFE), the world's largest reinsurer by revenues, pegs the total economic loss from natural catastrophes at $50 billion this year, only a quarter of the result for 2008. Of course, the benchmark year included Hurricanes Gustav and Ike. Natural catastrophe losses remained far below the 10-year average of $115 billion. Insured losses from natural catastrophes plunged, as well. In 2009, they reached only $22 billion worldwide, a decline of more than 50% from 2008. Winter storm Klaus, striking northern Spain and southwest France nearly a year ago, topped the list of costliest natural catastrophe events in 2009. It generated total losses of $5.1 billion and insured losses of $3 billion.
Continue reading Natural Catastrophe Losses Down, Sparing Insurers
Small is beautiful: Insurance companies turn to micro for growth
Long a topic of discussion, insurers and reinsurers are beginning to enter the microinsurance space. Scor (SCOR) firm invested in LeapFrog Investments, the first microinsurance fund, last month, and last week, the Microinsurance Network was launched in an effort to raise awareness of the sector.
In a mature industry, microinsurance is seen as having considerable growth potential, especially given the large numbers of people around the world who live without any form of coverage. Microinsurance protection ranges from property catastrophe to life and health. A recent study by Lloyd's of London found that 135 million people, 5% of the world's low-income people, are using microinsurance products, but that the total market size could range from 1.5 billion to 3 billion.
Continue reading Small is beautiful: Insurance companies turn to micro for growth
Losses from natural disasters double in 2007
According to a leading re-insurer, disaster losses for insurers nearly doubled in the past year to reach almost $30 billion globally. The main culprits for the massive increase were calamitous winter storms in Europe, flooding in Britain and wildfires in the U.S.Taking into account weather change, Munich Re anticipates an increased number of catastrophes in coming years and warns, "We should not be misled by the absence of mega-catastrophes in 2007," as "climate change is already taking effect" and "more such extremes are to be expected in the future."
The world's second-largest re-insurer estimates that losses to insurers from natural disasters jumped up to $75 billion this year. During 2006, losses from natural disasters totaled only $50 billion, while 2005 figures climbed up to $220 billion due primarily to Hurricane Katrina's ravaging of New Orleans.
Continue reading Losses from natural disasters double in 2007
Aon unloads underwriting units for $2.75 billion
Aon (NYSE: AOC) thinks that risk brokerage and consulting has the best future, in terms of margins and growth.
To that end, the company announced Monday that it is selling off its underwriting businesses. Combined Insurance Company was sold for $2.4 billion to ACE Limited (NYSE: ACE), while Munich Re bought Aon's Sterling Life segment for $352 million.
Yes, even in the massive insurance business, this is a good chunk of change for Aon.
Continue reading Aon unloads underwriting units for $2.75 billion
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
