IAG - Insurance Australia Group

[peter2]

Winner, winner, pheasant dinner. You lucky B. Hope you've bought that EWave software.

 

[Trav.]

Yes mate, it has paid for itself.

 

[Dona Ferentes]

and then, some other factoring in needed

Last year, the newly collapsed Greensill engaged in $143 billion of financing for 10 million customers in 175 countries. It had been making a tiding off a complex business model that provided debt coverage to companies who were awaiting payment from their customers, and then sold off this debt in bundles to other investors.

These debt bundles were insured but this safety net started to unwind when insurance giants began to get nervous about their potential exposure to risk.

Court documents from early March showed that Greensill unsuccessfully tried to get IAG to renew its policies in an urgent after-hours hearing in the NSW Supreme Court.

On Tuesday morning, amid ongoing speculation that IAG was exposed to risk from Greensill's collapse, the insurance giant's shareprice dived as much as 10.2 per cent to $4.30. IAG went into a trading halt and then informed the market that it did not have exposure to Greensill.

IAG said it had previously owned a trade credit specialist called BCC that had written contracts to cover Greensill bonds, however IAG clarified that it no longer owned that entity.

"In response to market enquiries relating to Greensill exposure, IAG clarifies it has no net insurance exposure to trade credit policies including those sold through BCC to Greensill entities," it said.

"IAG sold its 50 per cent interest in BCC on 9 April 2019 to Tokio Marine Management with the result of eliminating net exposure to trade credit insurance."

 

[Garpal Gumnut]

and then, some other factoring in needed

Last year, the newly collapsed Greensill engaged in $143 billion of financing for 10 million customers in 175 countries. It had been making a tiding off a complex business model that provided debt coverage to companies who were awaiting payment from their customers, and then sold off this debt in bundles to other investors.

These debt bundles were insured but this safety net started to unwind when insurance giants began to get nervous about their potential exposure to risk.

Court documents from early March showed that Greensill unsuccessfully tried to get IAG to renew its policies in an urgent after-hours hearing in the NSW Supreme Court.

On Tuesday morning, amid ongoing speculation that IAG was exposed to risk from Greensill's collapse, the insurance giant's shareprice dived as much as 10.2 per cent to $4.30. IAG went into a trading halt and then informed the market that it did not have exposure to Greensill.

IAG said it had previously owned a trade credit specialist called BCC that had written contracts to cover Greensill bonds, however IAG clarified that it no longer owned that entity.

Yeh.

Right.

Always sue the entity with the most money.



gg

 

[basilio]

The lending program of Greensill to it's clients looks like Madoff gone mad.
Forget loaning against invoices . Consider this.

A much greater sum, $780m, was borrowed under a more unusual scheme described as “prospective receivables”.

Greensill, it is alleged, presented firm with a list of potential buyers of its coal, asking it to “identify those buyers Plaintiff believed could potentially be buyers of Bluestone’s … coal in the future”. The list included “both existing customers of Bluestone and other entities that were not and might not ever become customers of Bluestone”. The money loaned was against sales that had not yet happened, and might never happen.

Bluestone claims this unusual form of financing was based on its “long-term business prospects”. It says it was led to believe that the loans would be rolled over when they fell due, and that Greensill would not begin calling in the debts until 2023 “at the earliest”.

Greensill made scramble for cash months before collapse, US court filings claim

Moves came as lender was trying to convince investors it was worthy of multibillion-dollar stock market debut, documents allege

www.theguardian.com

 

[Garpal Gumnut]

IAG is a bit of a worry.

Unauthorised employees signing off on agreements with Tokio Re and Greensill.

Lawyers worldwide getting picnic tables set up.

So far IAG seems to have a lid on the can.

But what is in the can?

gg

 

[basilio]

4 Corners is doing a story on the whole Greensill scam. Pure Madoff type stuff that went to the top of the political tree. The consequences on many international businesses is still unraveling.

Australian billionaire Lex Greensill beguiled the world's rich and powerful. Until it came crashing down​

Four Corners
/
By Stephen Long, Lesley Robinson, Lucy Carter and Elias Clure
Posted 5h ago5 hours ago, updated 54m ago54 minutes ago

Despite climbing to the top of the British establishment, Lex Greensill would say he was a "farmer".(
Supplied/Newspix
)

A fleet of private jets, unparalleled access to the corridors of power, an honour bestowed by royalty, and stratospheric wealth — Australian Lex Greensill was every inch the corporate titan.

With a company valued in the billions of dollars, Mr Greensill mixed with the rich and powerful on a grand scale, even calling one of the world's richest men his mentor, and a former British prime minister his employee.

It was a lifestyle that a boy from Bundaberg could normally only dream of living.

Yet many Australians had never heard of Lex Greensill until the company he founded came crashing down, sparking one of the biggest international financial scandals since the global financial crisis.

The collapse of his firm, Greensill Capital, has become a scandal in the United Kingdom, where it has prompted multiple parliamentary inquiries and fraud investigations.

Its downfall is threatening the business empire of another billionaire, steel baron Sanjeev Gupta — putting tens of thousands of jobs at risk across the globe, including in Australia.

Four Corners has investigated how companies owned by Mr Greensill and Mr Gupta, both politically connected men of soaring ambition, used financial dark arts to conjure extraordinary amounts of money, seemingly out of nothing.

How the son of Bundaberg farmer became a billionaire and lost his fortune in scandal

A billionaire from Bundaberg mixed with the world's richest and most powerful before losing a fortune. Some say they never bought his story.

www.abc.net.au

 

[divs4ever]

would anyone like to voice their personal opinions on IAG ?? ( pros and cons welcome )

in the past i have preferred SUN and QBE ( and still hold both ) so i know the volatility and risks involved on holding insurer stocks ( but am not game to consider GMA in the current climate )

one downside i noted is no recent franking

cheers

 

[divs4ever]

my pick for the April Comp. is IAG

would anyone like to voice their personal opinions on IAG ?? ( pros and cons welcome )

in the past i have preferred SUN and QBE ( and still hold both ) so i know the volatility and risks involved on holding insurer stocks ( but am not game to consider GMA in the current climate )

one downside i noted is no recent franking

cheers

since nobody has lobbed in a comment in the last two months , i will guess this doesn't have many current fans

i am probably dreaming hoping for a $4 entry-point ( and MIGHT be flexible on that in the coming month )

will aspire to play this in a similar way to my strategy on QBE , and accumulate in the dips

i do not currently hold IAG ( but would rather dabble here than in health or mortgage insurers )

this has been a trail of years ( according to the charts ) in the last 5 years but not so bad compared to the 10 year snap-shot

HOWEVER interest rates seem to be on the rise , and that might be the tailwind needed for a longer term play ( insurance is about successfully gambling with the premiums )

 

[divs4ever]

IAG responds to Tokio Marine trade credit update​

IAG acknowledges the announcement by Tokio Marine Holdings, Inc. (“Tokio Marine”) today on its
subsidiary BCC Trade Credit Pty Ltd (“BCC”), the Greensill group of companies and its trade credit
policies.
IAG anticipated the claims and potential litigation by the administrators of Greensill or other
claimants seeking confirmation of policy coverage and/or validity of claims in relation to trade credit
policies. IAG and Tokio Marine, through its BCC subsidiary, continue to work together and are
defending these claims and litigation.
In regard to potential exposure to Greensill-related claims and litigation, IAG maintains its position
that it has no net insurance exposure to trade credit policies sold through BCC.
This release has been authorised by the IAG Continuous Disclosure

=====================================================================

DYOR

i do not hold IAG , but do currently have a buy order in the market ( just not that close to the buying action )

 

[peter2]

You're not worried by the increasing number and severity of natural disasters making insurance companies pay out more than planned.
OR
Are you in the group that think insurance rates are going to go up so extravagantly that the companies will be swimming in it if there's less payouts than planned.

 

[divs4ever]

You're not worried by the increasing number and severity of natural disasters making insurance companies pay out more than planned.
OR
Are you in the group that think insurance rates are going to go up so extravagantly that the companies will be swimming in it if there's less payouts than planned.

par for the course in insurers

accumulate in the dips , might also be called carefully buying in the downtrend ( which is where i think it will go for up to 5 years , because it will be really difficult to invest those premiums cleverly in that time period , in the current climate )

now i will be watching this ( after i buy in ) looking to take SOME cash off the table when it hits say , $5.50 ( or maybe $6 ) assuming i can buy sub $4.50 ( $4 would be lovely )

i think this will bounce and twist around like a bronco at the rodeo , i am hoping to 'channel trade ' this , like i am doing with QBE ( and less successfully with SUN )

my aim here is to slowly whittle away at the average cost price , until the div. yield is satisfactory ( but that might take 10 years or more of watching and trading

i am hoping for some opportunity amid the chaos

' set and forget ' not this baby ( imo ) it will be watching watching watching with the occasional moment of action

 

[divs4ever]

insurers are basically gamblers , they gamble they can invest the premiums profitably before there is a claim on the insured event ( although since they calculate the premiums charged they are more like the bookmaker than the punter , the insurer has the scale of bets on it's side )

 

[UMike]

Just when I am getting to my Sell price.

"a) The trading halt is requested to enable IAG to consider the impact of today’s determination by the High Court of Australia to dismiss the applications by IAG and the policyholders for special leave to appeal the judgment of the Full Federal Court of Australia in the second business interruption test case handed down on 21 February 2022, including to assess the financial impact.
b) IAG requests that the trading halt remains in place until the earlier of: (1) IAG making an announcement regarding the financial impact of the High Court of Australia determination; and (2) Tuesday 18 October 2022."

FYI

 

[basilio]

I wonder how the effects of the storms and flood damage across Eastern Australia are going to impact on IAG books ?

Can't be good news and it seems we will have floods for the next couple of months

 

[divs4ever]

well , we must be about due for another cyclone season that bashes Brisbane and areas further south

am not saying it will happen but these things are periodic

( i hold SUN and QBE )

 

[peter2]

I dislike insurance companies with a passion. However if they're going to gouge their customers with massive insurance costs (home insurance +20%, car insurance +14%, flood insurance prohibitive) perhaps it's time I bought some to offset the price increases.

IAG at new yearly highs. QBE, SDF near yearly highs.

 

[divs4ever]

Insurance Australia’s (ASX:IAG) Shares Leap on Reinsurance Protection​

Insurance Australia's (ASX:IAG) Shares Leap on Reinsurance Protection

Shares in Insurance Australia Group (IAG) soared by 9% on Friday. This uptick propelled IAG as the top performer in the S&P/ASX 200 index.

thebull.com.au

Insurance Australia Group (ASX: IAG)​

Insurance Australia Group (ASX: IAG)

Company Information About Insurance Australia Group (ASX: IAG) Insurance Australia Group Limited (IAG) is a major general insurance company operating primarily in Australia and New Zealand. The firm underwrites insurance risks and manages investments. IAG is structured into three key segments...

thebull.com.au

i hold IAG , and SOL

 

[IvoryWolf]

Decent share price performance has been observed in IAG of late, with particular interest from traders and investors noted on 28th June indicated by a bullish green candle noted on the daily chart as a gap-up on decent volume.

Following recent sidewards action ever since, a potential 'outside week' has formed over the past trading week (22nd-26th July) - a trade above the range of this potential outside week (i.e.: a trade above $7.20) activates the outside week to the upside and forms a 'swing low' at the base of the 'outside week' (i.e.: $6.93), which allows setting a 'stop loss' beneath this area for protection of a trade. This could potentially lead to a breakout to the upside.

 

[IvoryWolf]

No change in investment thesis for IAG since the last update, with decent performance in the share price after the general market flush at the beginning of August, as shown in the chart below. Higher highs and higher lows have been experienced ever since, including the payment of a dividend on 29th August which helped illustrate support from the open of 22nd August at $7.31, which allows investors to raise stop losses for their investments, should they be inclined to do so.