Bank shareholder power to be boosted
by Gill Montia
Story link: Bank shareholder power to be boosted
Recent demands from the Association of British Insurers that companies in which its members hold a stake should curb excessive executive pay and bonuses may be helped along by government proposals to improve pay transparency at larger banks. Financial Secretary to the Treasury, Mark Hoban, wants 15 banks in the UK to reveal the remuneration [...]
FRC: annual reports more than marketing documents
by Gill Montia
Story link: FRC: annual reports more than marketing documents
The Financial Reporting Council (FRC) wants company reports to include clear explanations of how directors identify and manage risk, and of “what keeps them awake at night”. In a set of recommendations aimed at improving the “dialogue” between company boards and their shareholders, the body proposes that annual reports and accounts should be “balanced and [...]
Novae to return £32.9m to shareholders
by Gill Montia
Story link: Novae to return £32.9m to shareholders
Novae has announced that it intends to return approximately £32.9 million of capital to shareholders, equating to 45 pence per ordinary share. Following a series of actions to improve its return on equity, the group’s FSA registered Novae Insurance Company Limited (NICL) had surplus capital of over £60 million as at 31st December 2009. The [...]
AIG agrees $725m payout for miffed pension funds
by Gill Montia
Story link: AIG agrees $725m payout for miffed pension funds
American International Group (AIG) is to pay $725 million to settle accusations of fraud brought by three Ohio pension funds. In a class action law suit, the funds allege that between 1999 and 2005 AIG engaged in share price manipulation, anti-competitive behaviour and accounting fraud that resulted in millions in losses for shareholders. Ohio Attorney [...]
FRC publishes Stewardship Code for institutional investors
by Gill Montia
Story link: FRC publishes Stewardship Code for institutional investors
The Financial Reporting Council (FRC), which oversees issues of corporate governance, has published a Stewardship Code for institutional investors, following on from its recent publication of an updated corporate governance code. The new code includes principles on the monitoring of investee companies; the escalation of activities taken to protect or enhance shareholder value; collective engagement; [...]
PartnerRe shareholders approve Paris Re acquisition
by David Masters
Story link: PartnerRe shareholders approve Paris Re acquisition
Shareholders of US-based PartnerRe have approved the acquisition of French rival Paris Re. PartnerRe announced the approval to acquire the France-listed, Swiss-based firm at a Special General Meeting. Decisions approved by the shareholders included issuing PartnerRe common shares in connection with transactions to acquire Paris Re, increasing the size of the board of directors from [...]
FSA tightens usage of with-profits surpluses
by Gill Montia
Story link: FSA tightens usage of with-profits surpluses
The Financial Services Authority (FSA) has announced that life insurance companies will no longer be able to meet compensation and redress payments from their with-profits funds. From 31st July, liabilities arising from operational failures (including mis-selling) must be borne by shareholders, not policyholders. Last year, a report by the Treasury Select Committee accused the FSA [...]
Legal & General Investment champions shareholder power
by Gill Montia
Story link: Legal & General Investment champions shareholder power
Legal & General Investment Management (LGIM) is adding to the debate over regulation by defending shareholders. The Treasury Select Committee’s examination of the credit crisis earlier this year called institutional shareholders to account for not having done enough to challenge banks’ boards in the run-up to the credit crisis. LGIM is the biggest investor in [...]
FortisEffect threatens Amlin with lawsuit
by David Masters
Story link: FortisEffect threatens Amlin with lawsuit
Fortis shareholders have threatened legal action against the Dutch state’s sale of Fortis Corporate Insurance to UK-based Amlin. FortisEffect, the Fortis shareholders’ foundation, claims the sale is illegal. FortisEffect lawyer Adriaan de Gier has written to the Dutch state and to Amlin claiming the deal will hurt Fortis shareholders. Amlin said it is aware of [...]
Insurer shareholders nervous ahead of budget
by David Masters
Story link: Insurer shareholders nervous ahead of budget
Aviva shares tumbled 7.5% to 253.5p after HSBC analyst Kailesh Mistry warned that dividends could be slashed in half this year. Concerns that tax changes to pensions in today’s Budget announcement also helped to fuel the shareholder exodus from Britain’s largest insurer. Reports in the Times newspaper suggested that the 20.5p drop in share price [...]
Novae will not acquire Chaucer
by David Masters
Story link: Novae will not acquire Chaucer
Rival underwriters Novae and Chaucer will not merge after talks between the two companies fell through. Novae said it had not been possible to work out a deal that was in the interests of shareholders. Chaucer, which recently reported its first annual loss in seven years, said it is in continued discussions with other companies [...]
Fortis sale blocked by shareholders
by David Masters
Story link: Fortis sale blocked by shareholders
Fortis shareholders have voted against proposals to sell the bank’s Belgian assets to French bank BNP Paribas. The Belgian government said the decision puts Fortis in danger of total collapse. Shareholders ignored warnings from acting Fortis chairman Jan-Michiel Hessels that Fortis would face potential bankruptcy if the sale to BNP was blocked. Following the vote, [...]
Ping An plans to sabotage Fortis sale
by David Masters
Story link: Ping An plans to sabotage Fortis sale
Chinese insurance group Ping An, the biggest shareholder in Belgian-Dutch bancassurance group Fortis, said it plans to vote against the sale of Fortis assets to French bank BNP Paribas – despite Fortis’s efforts to revise the terms of the deal. “Since September 2008, the decisions to sell assets were driven by the Belgian government and [...]
Fortis shareholders take legal action against Dutch state
by Gill Montia
Story link: Fortis shareholders take legal action against Dutch state
Shareholders in Fortis, the Dutch insurer and one-time financial giant, are threatening legal action against the Dutch state. Last autumn, a collapse in confidence in the business necessitated an €11.2 billion bail-out of the group by the governments of the Netherlands, Belgium, and Luxembourg. Members of the FortisEffect shareholder action group, which comprises around 1,200 [...]
Chaucer admits plans to raise capital
by David Masters
Story link: Chaucer admits plans to raise capital
Lloyd’s insurer Chaucer Holdings has confirmed reports that it is exploring options to raise capital. A statement from Chaucer read: “The company confirms that it is currently exploring its options for raising capital in light of the improving underwriting outlook for the insurance sector and the company’s capital requirements.” The comments were made following a [...]
Fortis shareholders to sue Dutch state
by David Masters
Story link: Fortis shareholders to sue Dutch state
Shareholders in troubled Belgian-Dutch bank Fortis plan to take legal action against the Dutch state over its nationalisation of the bank in the Netherlands. Mischaël Modrikamen, the lawyer representing 2,300 Fortis shareholders, said a claim for damages against the Dutch government would be filed next week. Modrikamen last month won an appeal in Belgium’s high [...]
Aon declares dividend
by David Masters
Story link: Aon declares dividend
Global insurance provider Aon Corporation has announced a quarterly cash dividend of $0.15 per share on outstanding common stock. This is the same dividend as last year. The dividend will be paid on 16th February 2009 to shareholders of record on 2nd February 2009.
Shareholders suffer worst dividend cut for 50 years
by David Masters
Story link: Shareholders suffer worst dividend cut for 50 years
The fourth quarter of 2008 was the worst for shareholder payouts since 1956, Standard & Poor’s have revealed. The number of publicly listed companies reducing their dividend in the fourth quarter increased fivefold compared to the fourth quarter of 2007. Two hundred and eighty eight of 7,000 publicly listed companies reduced their dividend in the [...]
Chubb instigates share buyback programme
by David Masters
Story link: Chubb instigates share buyback programme
US-based business insurer Chubb has announced plans to buy back 20 million shares from common stock. Chubb’s board of directors approved the share repurchase programme in a meeting last week, during which they also declared a quarterly dividend of $0.33, in line with the two previous quarters. The share buyback has no deadline, with purchases [...]
