dont know
Australia companies dont have a good history in UK facing massive lost.. Until IAG shows it can make decent ROE on UK operations it could comes home with a sorry story like NAB,AMP and Multiplex 
IAG - Insurance Australia Group
- Thread starter slimtrader
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dont know
Australia companies dont have a good history in UK facing massive lost.. Until IAG shows it can make decent ROE on UK operations it could comes home with a sorry story like NAB,AMP and Multiplex 
bigdog
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SP is looking better today
IAG $4.55 +$0.13 +2.94% 4,311,526 shares $19,509,826 @ 14-Nov 12:33:52
Joy At IAG AGM
November 14 2007 - Australasian Investment Review – (AIR)
http://www.aireview.com.au/index.php?act=view&catid=8&id=7263&setSub=1
Shareholders in the country's biggest general insurer, Insurance Australia Group, who might have been looking for more positive news from the lumbering giant at yesterday's AGM would have been disappointed.
All they got about the 2008 outlook was a re-statement, unchanged from the outlook published last month.
IAG’s guidance for FY08 (which was revised in October 2007) is to:
• Deliver gross written premium growth of 7 – 9%
• Achieve an insurance margin of 11 – 13%
• Retain our strong capital position and very strong ‘AA’ ratings for key wholly-owned insurers
• Deliver a dividend of 29.5 cents per share
(This was subject to no catastrophes or large losses outside IAG's allowance nor any material movements in currency or credit spreads).
So in yesterday's market when banks and financial stocks rallied strong on bargain hunting (especially among the banks), IAG shares went backwards, drifting a couple of cents lower to $4.32.
Small shareholders though had some justifiable moans about the company's poor recent performance and falling earnings.
The outlook in yesterday's speech by CEO Michael Hawker didn't attempt to flesh out or provide any further detail of last month' downgrade of its revenue growth forecast from between 10% and 12% because of tougher competition in the Australian and British markets.
"With regard to our forecast for the rest of this financial year, we expect gross written premium income will grow in the range of seven to nine per cent for the year, the insurance margin between 11 to 13 per cent, that we will retain our strong capital discipline, and maintain our dividend at 29.5 cents per share fully franked," Mr Hawker told the AGM.
He said the company would also hold back on acquisitions "until the benefits of expanding into the UK are realised".
IAG's 2007 earnings fell 27% to $552 million (from 2006's $759 million) on the back of higher storm claims in Britain and Australia (mainly NSW in June), lower investment earnings and soft markets.
Mr Hawker told shareholders the company was facing problems in the UK market after it spent almost $2 billion there on acquisitions in fiscal 2007.
Mr Hawker said the acquisitions had "some operational issues" which had prevented them meeting the expected hurdle rate of returns.
Shareholders were told IAG was dealing with two negative cycles - one in the Australian commercial insurance and the other in the UK private motor insurance market.
"However, we have taken decisive action to manage the short term issues and position ourselves for the return to more favourable conditions as the cycles turn, as they inevitably do," Mr Hawker said.
"We are also dealing with increased frequency of weather events above our expected norms over the past two years."
IAG incurred more than $500 million in gross claims costs from storm damage in Australia and the UK in 2007.
The impact, net of reinsurance, was $200 million.
IAG $4.55 +$0.13 +2.94% 4,311,526 shares $19,509,826 @ 14-Nov 12:33:52
Joy At IAG AGM
November 14 2007 - Australasian Investment Review – (AIR)
http://www.aireview.com.au/index.php?act=view&catid=8&id=7263&setSub=1
Shareholders in the country's biggest general insurer, Insurance Australia Group, who might have been looking for more positive news from the lumbering giant at yesterday's AGM would have been disappointed.
All they got about the 2008 outlook was a re-statement, unchanged from the outlook published last month.
IAG’s guidance for FY08 (which was revised in October 2007) is to:
• Deliver gross written premium growth of 7 – 9%
• Achieve an insurance margin of 11 – 13%
• Retain our strong capital position and very strong ‘AA’ ratings for key wholly-owned insurers
• Deliver a dividend of 29.5 cents per share
(This was subject to no catastrophes or large losses outside IAG's allowance nor any material movements in currency or credit spreads).
So in yesterday's market when banks and financial stocks rallied strong on bargain hunting (especially among the banks), IAG shares went backwards, drifting a couple of cents lower to $4.32.
Small shareholders though had some justifiable moans about the company's poor recent performance and falling earnings.
The outlook in yesterday's speech by CEO Michael Hawker didn't attempt to flesh out or provide any further detail of last month' downgrade of its revenue growth forecast from between 10% and 12% because of tougher competition in the Australian and British markets.
"With regard to our forecast for the rest of this financial year, we expect gross written premium income will grow in the range of seven to nine per cent for the year, the insurance margin between 11 to 13 per cent, that we will retain our strong capital discipline, and maintain our dividend at 29.5 cents per share fully franked," Mr Hawker told the AGM.
He said the company would also hold back on acquisitions "until the benefits of expanding into the UK are realised".
IAG's 2007 earnings fell 27% to $552 million (from 2006's $759 million) on the back of higher storm claims in Britain and Australia (mainly NSW in June), lower investment earnings and soft markets.
Mr Hawker told shareholders the company was facing problems in the UK market after it spent almost $2 billion there on acquisitions in fiscal 2007.
Mr Hawker said the acquisitions had "some operational issues" which had prevented them meeting the expected hurdle rate of returns.
Shareholders were told IAG was dealing with two negative cycles - one in the Australian commercial insurance and the other in the UK private motor insurance market.
"However, we have taken decisive action to manage the short term issues and position ourselves for the return to more favourable conditions as the cycles turn, as they inevitably do," Mr Hawker said.
"We are also dealing with increased frequency of weather events above our expected norms over the past two years."
IAG incurred more than $500 million in gross claims costs from storm damage in Australia and the UK in 2007.
The impact, net of reinsurance, was $200 million.
bigdog
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http://www.news.com.au/heraldsun/story/0,21985,22837008-664,00.html
IAG boss defends share slump
November 28, 2007 05:30pm
INSURANCE Australia Group boss Michael Hawker today defended his company, which has lost more than 30 per cent from its market value this year.
Shares in the biggest insurer of Australian homes and cars have slipped steadily from a high in January of $6.59 to close today at $4.35.
"The reason why the share price is where it is, is for a couple of reasons," Mr Hawker told a business lunch today.
"It's hard for, I think, investors to really get a sense of the profitability of insurance companies.
"So commercial insurance for instance in this country at the moment ... in this financial year is pretty near break-even for the industry."
Mr Hawker pointed out the IAG share price had jumped up and down in recent years as the market tried to assess its business.
"It's really because there's not enough understanding yet of the core fundamentals of the business.
"We're assessing future risk so it is a challenging business to manage."
IAG delivered a 27 per cent dip in 2006/07 profit to $552 million due to higher storm claims, lower investment earnings and soft markets.
The Hunter Valley storms in NSW and Cyclone Larry had both been 1-in-100 year events, Mr Hawker said, while rain in Britain had been the heaviest since records began in 1766.
Last month the insurer downgraded its forecasts for fiscal 2008 after its plans to ride out intense competition in British motor and Australian commercial markets, by hiking prices, proved less successful than hoped.
It has forecast gross written premium (GWP) growth this financial year of between seven and nine per cent, down from its previous guidance of growth between 10 and 12 per cent.
IAG spent almost $2 billion on UK acquisitions in fiscal 2007 but told shareholders this month it was now facing negative cycles in both the UK and local markets.
Today, Mr Hawker said the insurer's books would look more profitable if the European business was factored out.
He also defended IAG's decision to raise prices while other insurers had not, in a bid a to gain market share, even if they were writing business at a loss.
"Good luck to them in terms of they're doing. We're just not willing to do that."
The IAG boss compared his business with rivals QBE Insurance Group, which has a greater proportion of business offshore, and Suncorp-Metway which would be looking to gain synergies through its acquisition of Promina.
Mr Hawker later told reporters it was hard for market watchers to get "a real sense of the underlying value in insurance companies" using current accounting methods.
As well, the insurer had faced two tough issues in the short-term - larger than usual storm damage claims and negative cycles in both its UK and Australian markets.
"The company in the medium term is in a very strong position," he said.
"I'm managing the medium term. I can't deal with those short-term issues because they're outside of my control.
"All I can do is try to manage the company to out-perform over the medium term."
IAG boss defends share slump
November 28, 2007 05:30pm
INSURANCE Australia Group boss Michael Hawker today defended his company, which has lost more than 30 per cent from its market value this year.
Shares in the biggest insurer of Australian homes and cars have slipped steadily from a high in January of $6.59 to close today at $4.35.
"The reason why the share price is where it is, is for a couple of reasons," Mr Hawker told a business lunch today.
"It's hard for, I think, investors to really get a sense of the profitability of insurance companies.
"So commercial insurance for instance in this country at the moment ... in this financial year is pretty near break-even for the industry."
Mr Hawker pointed out the IAG share price had jumped up and down in recent years as the market tried to assess its business.
"It's really because there's not enough understanding yet of the core fundamentals of the business.
"We're assessing future risk so it is a challenging business to manage."
IAG delivered a 27 per cent dip in 2006/07 profit to $552 million due to higher storm claims, lower investment earnings and soft markets.
The Hunter Valley storms in NSW and Cyclone Larry had both been 1-in-100 year events, Mr Hawker said, while rain in Britain had been the heaviest since records began in 1766.
Last month the insurer downgraded its forecasts for fiscal 2008 after its plans to ride out intense competition in British motor and Australian commercial markets, by hiking prices, proved less successful than hoped.
It has forecast gross written premium (GWP) growth this financial year of between seven and nine per cent, down from its previous guidance of growth between 10 and 12 per cent.
IAG spent almost $2 billion on UK acquisitions in fiscal 2007 but told shareholders this month it was now facing negative cycles in both the UK and local markets.
Today, Mr Hawker said the insurer's books would look more profitable if the European business was factored out.
He also defended IAG's decision to raise prices while other insurers had not, in a bid a to gain market share, even if they were writing business at a loss.
"Good luck to them in terms of they're doing. We're just not willing to do that."
The IAG boss compared his business with rivals QBE Insurance Group, which has a greater proportion of business offshore, and Suncorp-Metway which would be looking to gain synergies through its acquisition of Promina.
Mr Hawker later told reporters it was hard for market watchers to get "a real sense of the underlying value in insurance companies" using current accounting methods.
As well, the insurer had faced two tough issues in the short-term - larger than usual storm damage claims and negative cycles in both its UK and Australian markets.
"The company in the medium term is in a very strong position," he said.
"I'm managing the medium term. I can't deal with those short-term issues because they're outside of my control.
"All I can do is try to manage the company to out-perform over the medium term."
bigdog
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http://news.smh.com.au/stocks-to-watch/20071205-1ezb.html
Stocks to watch
December 5, 2007 - 7:55AM
IAG - INSURANCE AUSTRALIA GROUP LTD - steady at $4.50
Insurance Australia Group Ltd has received a broker upgrade based on its weak share price, a positive outlook for the local personal lines insurance market, and the possibility of a recovery in the UK.
Credit Suisse analysts Arjan van Veen and Jumana Nahhas upgraded the stock to "Outperform" from "Neutral".
Dec 4 Last Price ($A) $4.5000
52-wk High 6.6300
52-wk Low 4.3500
Has been rumored as potential target in news articles in November 2007!
Stocks to watch
December 5, 2007 - 7:55AM
IAG - INSURANCE AUSTRALIA GROUP LTD - steady at $4.50
Insurance Australia Group Ltd has received a broker upgrade based on its weak share price, a positive outlook for the local personal lines insurance market, and the possibility of a recovery in the UK.
Credit Suisse analysts Arjan van Veen and Jumana Nahhas upgraded the stock to "Outperform" from "Neutral".
Dec 4 Last Price ($A) $4.5000
52-wk High 6.6300
52-wk Low 4.3500
Has been rumored as potential target in news articles in November 2007!
I feel something goes wrong in IAG.
The performance of AIG is so weak that indicates something abnormal exists.
I am afraid IAG using its fund inappropriately to invest in some high risk area. if the bad news comes out or the earning forecast 08 comes out under expectation. It may have a fiasco like CCP.
According to the annual report 2007. it has 10884m investment. no further details about these investments. That is the only information we can get.
The market is bad. and the problem of bad investment only appears when market is bad.
The performance of AIG is so weak that indicates something abnormal exists.
I am afraid IAG using its fund inappropriately to invest in some high risk area. if the bad news comes out or the earning forecast 08 comes out under expectation. It may have a fiasco like CCP.
According to the annual report 2007. it has 10884m investment. no further details about these investments. That is the only information we can get.
The market is bad. and the problem of bad investment only appears when market is bad.
Hmmm..
Not sure about that, although trying to break into the UK market was not a good idea in my opinion, too many good Aussie companies have failed miserably in that part of the world in the recent past..
The start of the downward trend certainly appears to be around the UK investment, so market sentiment appears similar to my opinion, however as for the more recent SP softness, I'm leaning towards the market in general performing poorly and the behavior of mother nature of late, particularly in NSW and QLD..
I hold and watch with interest, don't have the fortitude to purchase anymore at the moment though..
Regards,
Buster
Not sure about that, although trying to break into the UK market was not a good idea in my opinion, too many good Aussie companies have failed miserably in that part of the world in the recent past..
The start of the downward trend certainly appears to be around the UK investment, so market sentiment appears similar to my opinion, however as for the more recent SP softness, I'm leaning towards the market in general performing poorly and the behavior of mother nature of late, particularly in NSW and QLD..
I hold and watch with interest, don't have the fortitude to purchase anymore at the moment though..
Regards,
Buster
Yes -- something else seems at play which is not obvious. Its been a long slide for IAG. Interim report tomorrow. Share price lower today -- may be related to SUN.
theasxgorilla
Problem solved... next bubble.
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From a technical stand-point, 50% of all-time-range. Said to be the strongest price level in classical technical analysis.
Would love to know if anyone has any good fundamental analysis insights into this one...at these prices the potential yield is off the planet
ASX.G
Would love to know if anyone has any good fundamental analysis insights into this one...at these prices the potential yield is off the planet
ASX.G
Attachments
yes but did you know the dividend is underwritten. What this means is that the company issues more shares for those people on DRP. It also means that those shareholders who elect to have the dividend in cash also dilute the shareholder base as the company 'sells' additional shares through a broker to finance the dividend.
So its a case of robbing peter to pay paul.
So its a case of robbing peter to pay paul.
Sold my IAG shares and bought QBE instead. With good stucks being thrown out with average stocks, i see no reason to hold IAG when QBE is at these discounted prices.
Both may go up once the market calms down but i think you will find in 10yrs time QBE will have gone up by a lot more.
Both may go up once the market calms down but i think you will find in 10yrs time QBE will have gone up by a lot more.
Bill M
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IAG seems to be bucking the trend today, up 2.6% right now. The announcement today wasn't that big a deal. Anyone have any other info?
bigdog
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IAG $4.26 +$0.40 +10.36% 6,664,629 shares $28,664,890 @ 15-Apr 10:17:02
IAG rejects QBE proposal - price inadequate
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00832393
IAG REJECTS QBE PROPOSAL – PRICE INADEQUATE
Insurance Australia Group Limited (IAG) today confirmed that it had been approached by QBE with an unsolicited and incomplete proposal to take over the company by way of a scheme of arrangement. The IAG Board carefully considered the proposal and concluded that the broad terms, in particular the price, were inadequate.
As a result, the Board rejected the proposal as it was clear it was not one which was in the best interests of shareholders, and therefore not one it could recommend.
IAG Chairman Mr James Strong said, “IAG is a unique asset with leading insurance franchises in Australia and New Zealand supported by a number of iconic brands. Whilst we recognise that the synergies available through a combination with QBE are considerable, the price needs to reflect the value that the IAG businesses would contribute to QBE, including the synergies to be generated.
“While QBE has claimed the proposal is a merger, the terms and the relative size of the businesses make it clear it is a takeover. In these circumstances, the price proposed, which represented only a 1% premium to the closing price on Friday, is totally inadequate.
“The QBE proposal seeks to take advantage of the current weakness in IAG’s share price and does not reflect the long term prospects and value inherent in IAG. IAG refutes QBE's suggestion that its share price currently includes an acquisition premium. The current IAG share price reflects a low point in insurance cycles in our core markets and higher than normal frequency of severe weather events in the past year. These issues have been exacerbated by volatile investment markets and expansion of credit spreads.”
Mr Strong said he was disappointed QBE had publicised a proposal which was incomplete and which QBE had requested IAG keep confidential. QBE first approached IAG late last week with a lower initial offer, which was also rejected.
The company has retained UBS AG and Mallesons to advise it in relation to this matter
IAG will keep shareholders informed of any further developments.
IAG rejects QBE proposal - price inadequate
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00832393
IAG REJECTS QBE PROPOSAL – PRICE INADEQUATE
Insurance Australia Group Limited (IAG) today confirmed that it had been approached by QBE with an unsolicited and incomplete proposal to take over the company by way of a scheme of arrangement. The IAG Board carefully considered the proposal and concluded that the broad terms, in particular the price, were inadequate.
As a result, the Board rejected the proposal as it was clear it was not one which was in the best interests of shareholders, and therefore not one it could recommend.
IAG Chairman Mr James Strong said, “IAG is a unique asset with leading insurance franchises in Australia and New Zealand supported by a number of iconic brands. Whilst we recognise that the synergies available through a combination with QBE are considerable, the price needs to reflect the value that the IAG businesses would contribute to QBE, including the synergies to be generated.
“While QBE has claimed the proposal is a merger, the terms and the relative size of the businesses make it clear it is a takeover. In these circumstances, the price proposed, which represented only a 1% premium to the closing price on Friday, is totally inadequate.
“The QBE proposal seeks to take advantage of the current weakness in IAG’s share price and does not reflect the long term prospects and value inherent in IAG. IAG refutes QBE's suggestion that its share price currently includes an acquisition premium. The current IAG share price reflects a low point in insurance cycles in our core markets and higher than normal frequency of severe weather events in the past year. These issues have been exacerbated by volatile investment markets and expansion of credit spreads.”
Mr Strong said he was disappointed QBE had publicised a proposal which was incomplete and which QBE had requested IAG keep confidential. QBE first approached IAG late last week with a lower initial offer, which was also rejected.
The company has retained UBS AG and Mallesons to advise it in relation to this matter
IAG will keep shareholders informed of any further developments.
There you go Bill. You have the answer. SP run very hard 8-9% a week before today announcement vs generally down market for Financial/Insurance sector. Proof that the big end of town will always be at advantage over us small guys.
bigdog
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ASX announcement today
19/05/2008 QBE announces increased merger proposal with IAG
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00843242
New offer is 0.145 QBE share + 90 cents (worth today $4.60)
Prior offer was 0.142 shares + 70 cents
If QBE were really interested the carrot would be bigger!!
IAG $4.23 -$0.20 -4.51% high of $4.43 low of $4.13 10,958,528 shares $46,444,408 @ 19-May 12:16:46
QBE $25.84 +$0.29 +1.14% high of $26.03 low of $25.30 1,050,108 shares $26,932,140 @ 19-May 12:16:24
19/05/2008 QBE announces increased merger proposal with IAG
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00843242
New offer is 0.145 QBE share + 90 cents (worth today $4.60)
Prior offer was 0.142 shares + 70 cents
If QBE were really interested the carrot would be bigger!!
IAG $4.23 -$0.20 -4.51% high of $4.43 low of $4.13 10,958,528 shares $46,444,408 @ 19-May 12:16:46
QBE $25.84 +$0.29 +1.14% high of $26.03 low of $25.30 1,050,108 shares $26,932,140 @ 19-May 12:16:24
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