Latest ACE Ltd News and Updates
KIE Crossed over Its Moving Averages on November 16, Trending Up
On November 23, shares of KIE closed at $72.38, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.
Underwriting profit: First leg of the profit machine
An underwriting loss is not unusual for an insurance company. In a soft pricing environment, pricing of P&C products is low due to intense competition.
How cost structures and distribution channels impact profit
As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.
How investment income drives profit
The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.
How key drivers impact insurance sales
For P&C insurers such as AIG and ACE, various mandatory requirements may drive sales of vehicle, workers’ compensation, and homeowners insurance.
Life insurance, P&C insurance, and reinsurance
P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.
Making sense of an insurer’s liabilities
Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.
How valuation of insurance companies works
Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.
Why should you invest in insurance ETFs?
Insurance ETFs are poised to gain from industry growth. As interest rates improve, insurers should see better earnings due to higher investment returns.
Prudential Rewarded Shareholders with $930 Million in 3Q16
In 3Q16, the company returned $930.0 million to shareholders in the form of dividends and buybacks.
Prudential’s Valuations Are Weak on 2Q16 Operating Performance
Prudential’s stock has risen by 16% in the past six months, mainly due to expectations of improved fundamentals and higher investment and underwriting income.
Prudential Returns $700 Million in Payouts to Shareholders
Prudential Financial has been very consistent with dividend payouts to shareholders, which makes it a very strong prospect for long-term value investors.
Prudential Saw a Fall in 2Q16 on Lower US Sales
Prudential Financial (PRU) reported its 2Q16 earnings results on August 3, 2016. It reported adjusted operating income per share of $1.84 in the quarter.
Prudential Remains Prudent on Returning Capital to Shareholders
Prudential Financial (PRU) has been very consistent with dividend payouts to shareholders, which makes the stock a very strong prospect for long-term value investors.
Is Prudential Financial on the Road to Recovery in 2016?
In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.
How Prudential Has Boosted Shareholder Payout
Since 2010, Prudential Financial (PRU) has returned approximately $10 billion to shareholders in the form of dividends and buybacks.
Prudential’s US Individual Division to Benefit from Lower Charges
Prudential Financial’s (PRU) US Individual Life and Group Insurance division saw a fall in operating income on lower group insurance revenues.
How’s AIG Doing in Its Simplification Process?
In 2015, AIG continued its simplification process for its balance sheet. In 2016, AIG is expected to strengthen its balance sheet with higher operating cash flows.
AIG’s Commercial Insurance: Will It Post a Profit in 1Q16?
AIG reported a pre-tax operating loss of $2.1 billion for its commercial insurance business in 4Q15 compared to a pre-tax operating income of $1.2 billion in 4Q14.
Strong Dollar Continues to Impact Prudential Internationally
On a constant dollar basis, Prudential Financial’s (PRU) International Insurance segment reported a 7% rise in revenues in 4Q15.
Could Icahn and Citi Be Suggesting an AIG Sale?
As AIG continues to decline, there are suggestions as well as speculation of an AIG sale. These speculations, although they seem unlikely to happen, can push AIG’s stock prices.
The Rationale behind AIG’s Heavy Repurchases
In 4Q15, AIG repurchased 53 million shares for an aggregate purchase price of $3.2 billion. It made additional repurchases of $2.5 billion through the end of February 11, 2016.
KIE Trades above Its Moving Averages: How Does SPY Compare?
KIE is the most liquid insurance ETF available in the country and is also among the cheapest, with an expense ratio of 0.35%.
Prudential Financial Expected to See Higher Profits in 1Q16
Prudential Financial’s (PRU) stock has risen by 7% in the past month and has fallen by 13% in the past quarter.
The Effect of an Interest Rate Reversal on Insurance Companies
Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.
What AIG Is Suggesting as an Alternative to Icahn’s Proposal
American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.
Rising Interest Rates, Banks, and Insurance Companies
Banking stocks are expected to benefit from higher interest rates, but not immediately. Also, rising interest rates would be countered by higher existing liquidity.
KIE Is Trending Upward after Crossing Its Moving Averages
On November 25, 2015, KIE closed at $72.23, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.
The Hartford Capital Appreciation Fund: What You Need to know
The top invested sectors of the Hartford Capital Appreciation – Class A fund are information technology, healthcare, and consumer discretionary.
How Progressive Commands Premium Valuations on Higher Margins
Progressive (PGR) reported 3Q15 earnings per share of $0.47, a 6% decrease over the third quarter of 2015.
Why Progressive’s Stock Price Rose on 3Q15 Earnings
Progressive (PGR) reported its third-quarter earnings on October 16. It reported net income of $278 million for the quarter, down 6%.
Prudential Financial’s 2Q15 Earnings Beat Estimates
Prudential Financial’s 2Q15 revenue rose by 12% year-over-year to $12.5 billion, exceeding consensus estimates of $11.2 billion. Its net income was $1.4 billion, up by 29% compared with 2Q14.
What Is the Rationale for the ACE–Chubb Merger?
The biggest rationale for the ACE–Chubb merger is the potential for cost-cutting. By combining with Chubb, ACE Limited is creating a leading player in property and casualty insurance.
ACE–Chubb: The US Insurance Industry’s Biggest-Ever Acquisition
The ACE–Chubb deal will create the second-largest listed property and casualty insurer, by market capitalization, in the US.
ACE to Acquire Chubb: The Strength of a Healthy Balance Sheet
With the acquisition of Chubb, ACE will be better positioned to compete with rivals including Warren Buffett’s Berkshire Hathaway and Allstate, among others.
Ace Merges with Chubb to Create Insurance Giant
Shares of Chubb Group (CB) surged by 26.12% on July 1 on news of an acquisition by global property giant Ace (ACE).
AIG Advances on Risk Reduction and Balance Sheet Simplification
As of June 2015, AIG’s stock has appreciated by about 12% over the past six months and by 11% over the last year.
A Closer Look at the Costliest Catastrophes
Hurricanes Sandy, Ike, and Andrew remain near the top of the list of the costliest catastrophes in terms of insured losses.
Making Sense of Economic and Insured Losses
Insured losses are the ones that impact the profitability of insurance companies.
How Catastrophes Impact a P&C Insurer’s Combined Ratio
The percentage points for catastrophe losses in the combined ratio have increased in recent years.
Personal Lines Rates Were Up 2% in February
The US personal lines businesses have seen improved profitability from the 2011 levels.
How Underwriting Cycles Impact the Top Line and the Bottom Line
The underwriting cycle moves between hard and soft market conditions, which have different sets of characteristics that determine the profitability of the insurance industry.
The Underwriting Profits of a Property and Casualty Insurer
The property and casualty insurance business is cyclical in nature. The underwriting cycle alternates between two phases: the hard market and the soft market.
AIG delivers on its financial objectives
AIG’s financial objectives focus on profitability improvement, expense management, and balance sheet growth, achieving a sustainable ROE.
MetLife is the largest player in Latin America
MetLife plans to grow its retail and group business in Latin America, capitalizing on the growing middle class, affluent class, and corporate needs.