Clare's Feed
Jun 4, 2012

Analysis: Chinese drivers pose fresh risks for foreign insurers

HONG KONG (Reuters) – “People like us who buy Ferraris don’t care too much about insurance because we buy cars for speeding,” said Li, in his twenties and the son of a Pearl River Delta factory owner, as he took delivery of a new 5 million yuan ($787,500) 458 Spider, his fourth red Ferrari. “If we crash, we just throw them away.”

Drivers like Li, who gave only his family name, illustrate the challenges that big global insurers such as Allianz (ALVG.DE: Quote, Profile, Research, Stock Buzz), AXA (AXAF.PA: Quote, Profile, Research, Stock Buzz) and Chartis face as they move further into China under new rules allowing foreign firms to offer a full range of insurance products in the world’s largest car market.

Jun 4, 2012

Chinese drivers pose fresh risks for foreign insurers

HONG KONG, June 5 (Reuters) – “People like us who buy
Ferraris don’t care too much about insurance because we buy cars
for speeding,” said Li, in his twenties and the son of a Pearl
River Delta factory owner, as he took delivery of a new 5
million yuan ($787,500) 458 Spider, his fourth red Ferrari. “If
we crash, we just throw them away.”

Drivers like Li, who gave only his family name, illustrate
the challenges that big global insurers such as Allianz
(ALVG.DE: Quote, Profile, Research), AXA (AXAF.PA: Quote, Profile, Research) and Chartis face as they move further
into China under new rules allowing foreign firms to offer a
full range of insurance products in the world’s largest car
market.

May 24, 2012

Aviva adds S.Korea, Sri Lanka to Asia exit list: sources

HONG KONG (Reuters) – British insurer Aviva plc (AV.L: Quote, Profile, Research, Stock Buzz) is putting its South Korean and Sri Lankan businesses on the auction block, sources with knowledge of the matter said, adding to its list of Asia divisions it is selling to help raise money to protect against its euro zone exposure.

Britain’s second-biggest insurer laid out plans last week to sell underperforming businesses around the world, a move meant to address the company’s greater exposure to the troubled euro zone compared with rivals, and to boost a share price that is down more than 36 percent in the past year.

May 24, 2012

Aviva adds South Korea, Sri Lanka to Asia exit list – sources

HONG KONG (Reuters) – British insurer Aviva plc (AV.L: Quote, Profile, Research) is putting its South Korean and Sri Lankan businesses on the auction block, sources with knowledge of the matter said, adding to its list of Asia divisions it is selling to help raise money to protect against its euro zone exposure.

Britain’s second-biggest insurer laid out plans last week to sell underperforming businesses around the world, a move meant to address the company’s greater exposure to the troubled euro zone compared with rivals, and to boost a share price that is down more than 36 percent in the past year.

May 9, 2012

Aviva puts Malaysian business on block – sources

HONG KONG, May 9 (Reuters) – Aviva has put its
Malaysian operations on the block and is close to hiring a bank
to help with the sale process, sources said on Wednesday, as the
British insurer moves ahead with a plan to exit non-core
markets.

The deal, which is in its early stages, could fetch about
$200 million and comes at the same time that Dutch financial
company is exiting its Asian insurance and investment
management operations.

May 3, 2012

HSBC sells general insurance biz for $914 million

HONG KONG (Reuters) – HSBC (HSBA.L: Quote, Profile, Research) has agreed to sell its general insurance businesses to AXA Group and QBE Insurance Group for a cash consideration of $914 million, as Europe’s biggest bank moves ahead with its plan to divest non-core assets.

The deal, the latest in a series of cost cut initiatives under the new HSBC CEO Stuart Gulliver, includes a 10-year bancassurance agreements with AXA and QBE.

Apr 20, 2012

Prudential UK eyes Thai bank’s insurance assets: sources

HONG KONG (Reuters) – British insurer Prudential Plc (PRU.L: Quote, Profile, Research, Stock Buzz) is considering bidding for the insurance business of Thailand’s Thanachart Bank, sources said, in an around $500 million deal that would help it better tackle arch rival AIA in the Southeast Asian nation.

The Thanachart Bank unit, which is set to be auctioned, is expected to include life and non-life assets as well as a bancassurance arrangement. Some Japanese and European insurers are also expected to participate in the process, the sources who had direct knowledge of the matter said.

Apr 20, 2012

Pru UK eyes Thai bank’s insurance assets-sources

HONG KONG, April 20 (Reuters) – British insurer Prudential
Plc is considering bidding for the insurance business of
Thailand’s Thanachart Bank, sources said, in an around $500
million deal that would help it better tackle arch rival AIA in
the Southeast Asian nation.

The Thanachart Bank unit, which is set to be auctioned, is
expected to include life and non-life assets as well as a
bancassurance arrangement. Some Japanese and European insurers
are also expected to participate in the process, the sources who
had direct knowledge of the matter said.

Apr 17, 2012

Marine insurance: the stranglehold on Iran?

HONG KONG/TOKYO (Reuters) – Marine insurance, or lack of it, may yet turn out to be the most effective sanction used by Western nations in 17 years of tightening the screws on Iran’s nuclear programme.

A European Union oil embargo on Iran, set to take effect in July, prohibits EU insurers from covering Iranian oil exports anywhere in the world. With around 90 percent of the world’s tanker insurance based in the West, the arcane world of reinsurance and liability coverage has become a powerful weapon.

Apr 17, 2012

Analysis: Marine insurance: the stranglehold on Iran?

HONG KONG/TOKYO (Reuters) – Marine insurance, or lack of it, may yet turn out to be the most effective sanction used by Western nations in 17 years of tightening the screws on Iran’s nuclear program.

A European Union oil embargo on Iran, set to take effect in July, prohibits EU insurers from covering Iranian oil exports anywhere in the world. With around 90 percent of the world’s tanker insurance based in the West, the arcane world of reinsurance and liability coverage has become a powerful weapon.

    • About Clare

      "I am based in New York and write about IPOs and wealth management. I was formerly based in San Francisco, where I wrote about tech companies."
    • Follow Clare