Insurance & Reinsurance

Insurance & Reinsurance equity research

Explore the most viewed and latest equity research and media content for companies within the Insurance & Reinsurance sector. Stocks in this sector provide insurance and broker services within life insurance, full line, and reinsurance.

Insurance & Reinsurance equity research

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Talanx

Humble profit for Q3 as warned but a profit

Net attributable result was a profit of €51m for Q3 18 compared to a loss of €19m for Q3 17 and a profit of €219m for Q2 18. Net premiums earned rose by 8% to €7.4bn for Q3 18 compared to the same period last year. The net investment result was down by 27% to €893m for Q3 18. RoI was 3.3% for 9M 18 compared to 3.9% for 9M 17. Insurance claims decreased by 2% to €6.2bn in Q3 18 compared to Q3 17 which was burdened by large losses of €1.05bn mainly due to the hurricanes “Harvey”, “Irma” and “Maria” and the earthquakes in Mexico. The group’s net combined ratio of the non-life business was 102.1% for Q3 18 compared to 114.4% for Q3 17. Pre-tax result was a profit of €215m for Q3 18 compared to a loss of €58m for Q3 17. Equity capital attributable to common shares decreased by 3% to €8.5bn at the end of September 2018 compared to the end of 2017. RoE was 2.4% for Q3 18 versus -0.9% for Q3 17 and 10.1% for Q2 18. Talanx confirmed its net attributable profit target for FY2018 of around €700m (reduced in October from €850m) and €900m for FY2019.

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12 Nov 18
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Allianz

Good Q3 18 figures

Net profit attributable to shareholders increased by 24% to €1.94bn for Q3 18 versus the same period last year. Premiums earned rose by 1% to €17.6bn for Q3 18. Operating investment result declined by 5.5% to €5.1bn for Q3 18 compared to Q3 17. Fee and commission income was up by 19% to €3.0bn in Q3 18. Insurance claims increased by 1.9% to €12.7bn in Q3 18. Changes in insurance reserves declined by 18% to €2.7bn for Q3 18. Operating profit increased by 21% to €3.0bn for Q3 18 compared to Q3 17. Non-operating items were a loss of €329m for Q3 18 compared to a loss of €142m for Q3 17. Pre-tax profit increased by 14% to €2.66n for Q3 18. The tax ratio declined slightly from 28.5% for Q3 17 to 27.8% for Q3 18. Third-party assets under management were up by 2% to €1,487bn at end September 2018 compared to the end of 2017. Net money inflow was €15bn in Q3 18 compared to an inflow of €31.7bn in Q3 17 and an outflow of €9bn in Q2 18. The Solvency II ratio was unchanged at 229% at end September 2018. Shareholders’ equity declined by 8% to €60.1bn at the end of September 2018 compared to the end of 2017. RoE was 14.2% for Q3 18 compared to 11.8% for Q3 17. Allianz confirmed the operating profit outlook for FY2018 of €11.1bn, +/- €500m.

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09 Nov 18
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Assicurazioni Generali

Above forecasts

Generali posted a 3.9% increase in the 9M 18 operating result to €3,607m. The Life segment was the main contributor to this improvement, increasing by 3.3% to €2,241m. The P&C business posted operating earnings at €1,500m, up 2.1% yoy. Net profit increased by 26.8% to €1,855m, better than our expectations (+17.8% for FY 18), mainly thanks to the non-operating performance and the result from disposals. The result before discontinued operations was up 4.8% yoy to €1,849m. The Solvency II ratio was 200%.

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08 Nov 18
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Hannover Rueck

Good Q3 figures and new 2019 targets

Net income attributable to shareholders increased from €14m for Q3 17 to €170m for Q3 18. Gross written premiums rose by 11.6% to €5.0bn for Q3 18 versus the same period last year. Net premiums were up by 10% to €4.4bn for Q3 18. Net investment income declined by 32% to €412m for Q3 18 compared to Q3 17 which benefited from high investment gains. Total revenues increased by 5% to €4.84bn in Q3 18. Insurance claims were down by 8% to €3.35bn for Q3 18 versus Q3 17. Total expenses increased by 0.5% to €4.6bn for Q3 18. The pre-tax loss contribution from the US mortality recaptures (one-off) were €218m in Q3 18. The pre-tax result rose from a loss of €11m for Q3 17 to a profit of €230m for Q3 18. The tax ratio was 16% in Q3 18 compared to a tax income of €47m in Q3 17. Shareholders’ equity was down by 2% to €8.35bn at end September 2018 versus the end of 2017. The return on equity was 8.2% for Q3 18 compared to 0.7% for Q3 17. Net income attributable to shareholders increased by 32% to €725m for 9M 18 versus 9M 17. The return on equity was 11.5% for 9M 18 compared to 8.5% for 9M 17. Hannover Re confirmed its profit guidance of more than €1bn for 2018. Additionally, it released its outlook for FY2019, targeting a RoI of 2.8% and to post group net income of more than €1.1bn. Hannover Re confirmed a payout ratio for the ordinary dividend in the range of 35% to 45% of its IFRS group net income. The ordinary dividend will be supplemented by payment of a special dividend in light of capital management considerations if the comfortable level of capitalisation remains unchanged.

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08 Nov 18
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Mapfre

The samba & flamenco combination needs more time

9M 18 Mapfre’s revenues declined by 4.7% to €20,296m, driven by the Non-Life drop (-7.1% to €13,086m). The negative trend in emerging currencies was damaging for the insurer. The results of the Life and Non-Life business remained steady, at €640m and €566m, respectively. The net profit increased by 18.9% to €528m. Mapfre has received the regulatory authorisation to complete its Brazilian restructuring. No major changes are expected in our model. The ongoing restructuring process is making the FY 18 earnings structure fragile.

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08 Nov 18
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Swiss Life Holding

Limited 9M 18 information

Swiss Life released, as always, a Q3 statement with limited information (no income statement or balance sheet) and no Q3 report. Group premium income rose by 4% in local currency to CHF14.7bn in 9M 18 compared to the same period last year. Premium income rose by 3% to CHF7.8bn in the Swiss home market, the most important market (53% share) for the group in the same period. Premium income was up in local currency by 11% to CHF4.3bn in France and up by 2% to CHF986m in Germany. Premiums of the Insurance International segment declined by 9% in local currency to CHF1.55bn. Fee and commission income rose by 7% in local currency to CHF1.16bn for 9M 18. The group’s Swiss solvency ratio (SST) was around 175% at the end of September 2018 compared to 170% at the end of 2017. The non-annualised RoI was 2.2% for 9M 18, at the same level as for the same period last year. Profit figures were not released. Swiss Life has half-year reporting.

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07 Nov 18
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Axa

Good Q3 but a hefty claims bill for Q4

AXA’s 9M 18 total gross revenues increased by 4% to €75,827m. The NBV recorded growth in all geographies and across all business lines, reaching €2,021m. However, the margin reduced to 41.7%. The group’s figures did not included AXA XL’s ones. The costs associated with hurricane Michael (€200m before tax and net of reinsurance) will be integrated in the Q4 figures. The Solvency II ratio stood at 195%. We will revise down our estimates, but always with a positive opinion.

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07 Nov 18
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Muenchener Rckvrrgs Gsllcht Mhn AG in mu

Good Q3 results despite high claims

The net result attributable to shareholders was a profit of €505m for Q3 17 compared to a loss of €1.44bn for Q3 17. Gross premiums written were up by 4% to €12.8bn in Q3 18 compared to the same period last year. The technical result was a profit of €847m for Q3 18 compared to a loss of €2.06bn for Q3 17. The investment result declined by 19% to €1.3bn in Q3 18 compared to Q3 17. The RoI was 2.3% for Q3 18 compared to 2.7% for the same period last year. The other non-operating result was a loss of €272m for Q3 18 compared to a loss of €243m for Q3 17. The pre-tax result was a profit of €1.04bn for Q3 18 compared to a loss of €2.03bn for Q3 17. The tax expenses were €235m for Q3 18 compared to a tax credit (income) of €597m for Q3 17. Shareholders’ equity was down by 4% to €27.1bn at the end of September 2018 compared to the end of 2017. The net result attributable to shareholders was a profit of €2.05bn for 9M 18 compared to a loss of €155m for 9M 17. The company confirmed its group net profit guidance of €2.1bn to €2.5bn for FY2018. But it has upgraded some sub-targets for FY2018.

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07 Nov 18
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SAMPO OYJ-A SHS

Good technical performance, but the Nordic banks problem should be considered

Sampo posted a 9M adjusted profit before tax of €1,643m. All business lines posted growth. The profitability of the Life business remains extremely sensitive to interest rate movements, and lower additional technical reserves allowed the offsetting of the drop in investment income. The P&C operations remained resilient with an expected sustainable dividend stream to the group. The money-laundering affairs of Nordea and Danske Bank are not good news and should be a concern, but our positive opinion will be kept.

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07 Nov 18
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Swiss Re

Mixed figures

Swiss Re released again only key figures for the 9M. Gross premiums written rose by 7% to $28.4bn for 9M 18 compared to 9M 17. Net profit attributable to shareholders was $1.1bn for 9M 18 compared to a loss of $468m for 9M 17, which was burdened by claims of $3.6bn from the hurricanes and the earthquakes in Mexico in Q3 17. The estimated claims burden was $1.6bn from natural catastrophes and large man-made events for 9M 18. Swiss Re reported a return on investment of 2.8% for the group for 9M 18 compared to 3.5% for 9M 17. The group’s combined ratio in P&C reinsurance was 99.5% for 9M 18 compared to 114.1% for 9M 17. Shareholders’ equity was down by 12% to $29.0bn at the end of September 2018 compared to a year ago due to lower accumulated unrealised gains on fixed income securities from higher interest rates, and the ongoing share buy-back programme. The return on equity was 4.7% for the group for 9M 18 compared to a negative one for 9M 17, which is below the over-the-cycle target (700bp above the US risk-free average over five years). The SST (Swiss Solvency Test) ratio was 285% at 1 July 2018 compared to the 220% target.

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