Mon, Sep. 26, 3:13 PM
- In what doesn't sound like great news for the already-yield-starved insurance industry, cash balances are "ticking upward," says Zach Buchwald, head of BlackRock's insurance asset-management operation.
- Buchwald: “In today’s environment, where every basis point is so precious, within your core fixed income, we want to be investing wisely and generating the best risk-adjusted returns we can, and a large cash balance doesn’t help.”
- Nearly half of 315 insurers surveyed globally expect to boost cash holdings in coming months - that's up from 36% a year ago, says BlackRock. At issue are poor performance in alternative investments and credit concerns following a sizable narrowing in spreads this year.
- Struggling insurers are past the point of expecting rising interest rates, says Buchwald. So - other than cash - where else will the money go? Allocations to private-equity appear to be set to rise, and outfits like AIG are turning to direct lending. At MetLife (NYSE:MET), commercial real estate loans hit a record last year.
- Other interested parties: PRU, LNC, MFC, SLF, PRI, VOYA
Thu, Sep. 8, 12:20 PM
Thu, Aug. 4, 12:36 PM
- It was a meaningful miss, says CIBC, noting core EPS of $0.40 stood against consensus and the team's forecast of $0.46. "Though we do not expect straight-line earnings progress, this quarter is a bigger step down than we would like to see."
- A compelling long-term valuation means little in the near-term, says CIBC, downgrading to Sector Performer.
- via Amber Kanwar
- MFC -5.1%
Thu, Aug. 4, 6:14 AM
Thu, Aug. 4, 6:01 AM
Wed, Aug. 3, 5:30 PM
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Thu, Jun. 9, 9:22 AM
- Former Ignis Asset Management CIO Chris Fellingham has been hired to fill the newly-created role of head of liquid alternative strategies at Manulife (NYSE:MFC). Prior to working at Ignis, Fellingham was a partner at Soros Fund Management.
- At Manulife, he'll be in charge of driving expansion of the insurer's absolute return and outcome oriented products.
Wed, May 11, 6:36 PM
- Husky Energy (OTCPK:HUSKF), fresh off a C$595M sale of Saskatchewan oil and gas assets, is working on some smaller deals that would raise the proceeds from western Canadian oil and gas asset sales to ~C$1B, Bloomberg reports.
- In addition to this week's deal, five E&P packages are close to being sold that could fetch ~C$400M, according to the report, which lists Crescent Point Energy (NYSE:CPG), Canadian Natural Resources (NYSE:CNQ) and Manulife Financial’s (NYSE:MFC) NAL Resources Management as possible buyers.
- The latest round of disposals would bring Husky’s total gain from midstream assets, E&P assets and royalty interests to ~C$2.86B.
Wed, May 11, 7:25 AM
- In its second attempt at a Singapore IPO of its U.S. office property portfolio, Manulife (NYSE:MFC) plans to price the sale of 566M units of the REIT at S$0.83 each - the top of the expected range, reports Bloomberg.
- The REIT is backed by three office buildings in L.A. and Atlanta.
- The IPO is a sizable one for Singapore, which hasn't seen one for more than $100M since November.
Fri, May 6, 12:58 AM
Thu, May 5, 10:42 AM
- Q1 core earnings of $905M or $0.44 per share vs. $797M and $0.39 one year ago. Core ROE is flat at 9.3%.
- CEO Donald Guloien notes core earnings grew 14% Y/Y despite zero contributions from investment gains this year.
- Insurance sales of $954M up 14% Y/Y, with Asia sales up 36%. Canadian sales down 28%. U.S. sales up 4%.
- Net flows of $1.7B into wealth and asset management vs. $6.6B a year ago. Other wealth sales of $2.4B up 29%, led by 76% growth in Asia.
- Previously: Manulife Financial EPS in-line (May 5)
- MFC's 2.8% gain today makes up for much of the big drop earlier this week as investors extrapolated weak results at other insurers onto Manulife.
Thu, May 5, 6:09 AM
Wed, May 4, 5:30 PM
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Thu, Apr. 7, 3:09 PM
- The 10-year Treasury yield at 1.69% has returned back to levels not seen since the panicky action in mid-February. And while the Fed has marked down its expectation of rate hikes this year to just two, short-term interest rate markets haven't even priced in one.
- This leaves those whose business model depends on riding the yield curve having to contend with not only a middling macro picture, but - once again - a rates lower for longer picture (although Jamie Dimon says his big fear is that markets aren't pricing in nearly enough in the way of higher rates).
- Citigroup (C -4.1%), Bank of America (BAC -3.3%), U.S. Bancorp (USB -2.8%), KeyCorp (KEY -3.4%), Regions Financial (RF -3.4%), BNY Mellon (BK -3.6%), E*Trade (ETFC -4.7%), Manulife (MFC -5.2%), Lincoln National (LNC -3.6%)
Thu, Feb. 11, 12:51 PM
- At the moment it's yet again looking like "wait till next year," for the sustained rise in interest rates the life insurers need to be able to earn some real money.
- Last night it was Prudential Financial (PRU -10.1%) joining MetLife (MET -4.7%) and Lincoln Financial (LNC -9.2%) in reporting a disappointing Q4, with investment results contributing $105M less this year that they did in Q4 of 2014.
- While still upbeat on the economic outlook, Janet Yellen is spending an uncomfortable amount of time in her Congressional testimony talking about negative interest rates, and a chart of Google searches for "negative interest rates" is through the roof.
- Manulife (MFC -10.3%), Sun Life (SLF -3%), Primerica (PRI -3.7%), Voya Financial (VOYA -4.6%)
- The 10-year Treasury yield is lower by 10 basis points to 1.6%, and short-term rate futures have begun pricing in a rate cut by the Fed.
Thu, Feb. 11, 6:26 AM
- Manulife Financial (NYSE:MFC) declares C$0.185/share quarterly dividend, 8.8% increase from prior dividend of $0.17.
- Forward yield 4.25%
- Payable March 21; for shareholders of record Feb. 24; ex-div Feb. 22.