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  #41  
Old 08-03-2015, 09:15 AM
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Arthur Itas Arthur Itas is offline
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The PartnerRe deal was definitely more high drama than most with the bids and counter bids.
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  #42  
Old 08-03-2015, 10:10 AM
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Yeah something turned a few weeks ago when a top former CEO and current shareholder swayed into Exor's court. He previously backed the AXIS deal. Soon after that AXIS announced they were terminating all merger projects until a deal was finalized.

So Partner Re's new name is Fix It Again Tony. haha.
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  #43  
Old 08-03-2015, 11:21 AM
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http://www.insurancejournal.com/news.../30/376975.htm

Quote:
Berkley Sees ‘Management Egos, Rewards’ Behind M&A Activity

W.R. Berkley Corp.’s chairman and CEO slammed the surge of merger and acquisition activity hitting the property/casualty industry in recent months as something driven more by “management ego” than true business needs.

“Consolidation that is happening now is frequently about management ego or management rewards and less than it is about what you need to run your business,” William R. Berkley said during the company’s July 27 second-quarter earnings call.

Berkley said there are exceptions to the rule, especially when the M&As involve global companies. He did not cite any company names.

“To be a global company of scale is certainly of value, but that is a small part of dollars in the marketplace,” Berkley said. “There are a few companies that need to be global to serve customers. Our global ambitions have to do with serving great customers wherever they are located.”

Creates Opportunities

Berkley’s son, President and Chief Operating Officer W. Robert Berkley, Jr., said the consolidation going on in the marketplace right now creates opportunity for W.R. Berkley and other carriers “on multiple levels.”

He said that carriers involved in the mergers end up being distracted, dealing with challenges their distribution system. Large mergers also leave uncertainty about how much distribution channels the combined company wants to handle, Robert Berkley added. He also said that customers with companies pursuing mergers can end up “disenchanted with their future and looking for an alternative.”

As for W.R. Berkley Corp. becoming a buyer or seller in the current wave of M&A activity, William R. Berkley said the company remains big enough to deal with today’s regulatory pressures. At the same time, he said he is not ruling out anything if shareholders want it.

“If it is good for our shareholders it is good for us,” the elder Berkley said during the call. “In the meantime, we are big enough that we think there is not much we cannot do.”

Succession Plan

On Oct. 31, as part of a succession plan, the elder Berkley will retire as chairman and his son will replace him as chairman.

“On Oct. 31 I step down as CEO and Rob is going to take over, then I will be chairman and then I get to harass everybody else,” William Berkley said.

W. Robert Berkley, Jr. has been president and chief operating officer since 2009. He has been with the company his father helped found in 1967 for 17 years, according to the Berkley website.

Financial Results

Breaking down the 2015 second quarter numbers, W.R. Berkley Corp. saw real gains in premiums written. But declines in investment income led to a drop in net income.

William R. Berkley said that the insurer held its own even as competition and investment challenges continued to increase.

“It was an interesting quarter, exciting in many ways, and challenging in many ways,” Berkley said. He added in prepared remarks that Berkley continues to target a return of 15 percent or better over the long-term.

Net income during the 2015 second quarter landed at $123 million, or $0.95 per diluted share. That’s down from more than $179.9 million, or $1.35 per diluted share over the same period in 2014. Investment income came in at $127.58 million during the quarter, versus $138.7 million in the 2014 second quarter. Net investment gains are down drastically, at more than $27.5 million, compared to $109.16 million last year.

Consolidated gross written premiums are booked at $1.8 billion in Q2, up from $1.77 billion in the 2014 second quarter. Net written premiums are at $1.54 billion for Q2, an increase over nearly $1.49 billion in the same-year-ago period. Net premiums earned are at $1.49 billion, compared to $1.4 billion in the 2014 second quarter.

Berkley’s combined ratio for the quarter was 94.2, essentially flat over the same period in 2014. Its return on equity was 10.7 percent, however, down from 16.6 percent last year. During the conference call, Berkley said he expects the company can keep its return on equity at the mid-teens in the long run.

Broken down, Berkley experienced big gains in its domestic insurance business, though execs during the company’s investor call on July 27 said commercial auto, aviation and marine remain challenging.

At the same time, Berkley experienced declines in both its international insurance and global reinsurance arms. Berkley’s international insurance combined ratio hit 101.1 during Q2, compared to 99.5 over the same period last year.

During Q2, Berkley bought back 2.6 million shares of common stock, for $127 million.

This article is an edited version of the original published on CarrierManagement.com
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  #44  
Old 08-12-2015, 01:02 PM
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not P&C, but another one:

http://www.nytimes.com/2015/08/12/bu...cial-deal.html

Quote:
Sumitomo Life of Japan to Buy Symetra Financial for $3.8 Billion

The Sumitomo Life Insurance Company of Japan said on Tuesday that it had agreed to acquire Symetra Financial Corporation, an American provider of insurance and financial products, for about $3.8 billion.

The deal is the latest by a Japanese insurer seeking to expand its operations into the United States, the world’s largest insurance market, as an aging Japanese population is expected to cut into results.

Symetra would give Sumitomo Life its first real foothold in the United States.

Under the terms of the deal, Symetra shareholders will receive $32 a share in cash, and a special dividend of 50 cents a share. The deal represents a 32 percent premium to the company’s average share price over the 30 days that ended Aug. 5.

“We are enthusiastic about the opportunity to acquire Symetra’s dynamic business and believe that a transaction will be mutually beneficial and will create significant value for both Symetra and Sumitomo Life,” Masahiro Hashimoto, the president and chief executive of Sumitomo Life, said in a news release.

Mr. Hashimoto added that the acquisition would lift and diversify the company’s operations overseas, and would “enhance our financial and earnings foundation.”

Founded in 1957, Symetra, based in Bellevue, Wash., provides annuities, life insurance and employee benefits. It posted revenue of $2.18 billion in 2014 and has about 1,400 employees.

“This transaction will bring compelling strategic and financial benefits for Symetra, including providing a substantial cash premium to our shareholders,” Thomas M. Marra, president and chief executive of Symetra, said in a news release.

Symetra’s largest shareholders, White Mountains Insurance Group and Berkshire Hathaway, have agreed to vote in favor of the transaction. They collectively own about 35 percent of the company’s shares.

“Tom and his management team have done a good job running the company and have executed a great deal for shareholders,” Warren E. Buffett, the Berkshire Hathaway chairman and chief executive, said in a news release, referring to Mr. Marra.

The transaction is subject to shareholder and regulatory approval. It is expected to close in the second quarter of 2016.

Japanese life insurers have been seeking to acquire companies overseas, in recent years, particularly in other parts of Asia and in the United States, as they look to diversify their revenue streams outside their home country.

In July, the Meiji Yasuda Life Insurance Company agreed to acquire the StanCorp Financial Group for $5 billion in cash. In June, Tokio Marine Holdings announced that it would acquire HCC Insurance Holdings for $7.5 billion in cash, one of a series of deals it has undertaken in the United States since 2008.

Other Japanese companies seeking growth overseas include Dai-ichi Life Insurance, which announced an agreement to buy the American company Protective Life Corporation in 2014 for about $5.7 billion.

If the deal announced on Tuesday is completed, Symetra would serve as Sumitomo Life’s platform in the United States and would continue to operate under its current brand.

The company would be led by Mr. Marra, the Symetra chief executive, and the current management team would continue to be based in Bellevue.

Founded in 1907, Sumitomo Life is one of Japan’s largest insurers, selling life insurance, annuities and group products. It had total premiums of 2.18 trillion yen, or about $17.5 billion, in 2014 and has more than 42,000 employees.

Morgan Stanley and the law firm Cravath, Swaine & Moore advised Symetra.
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  #45  
Old 08-12-2015, 01:31 PM
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In the UK,

Partnership and Just Retirement (both in the enhanced annuties market) are merging.
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  #46  
Old 08-13-2015, 07:13 AM
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I don't know where the article is but Amlin announced that it would sell itself for a bid of >= $5b.
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  #47  
Old 08-14-2015, 02:54 PM
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Can someone explain to me how manager egos play a role in m&a? Is this like a competition to see who has the biggest company?
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  #48  
Old 08-15-2015, 11:24 PM
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Originally Posted by Colonel Smoothie View Post
Can someone explain to me how manager egos play a role in m&a? Is this like a competition to see who has the biggest company?
Yes. Either biggest company or biggest wiener.
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  #49  
Old 08-16-2015, 08:34 AM
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Originally Posted by Colonel Smoothie View Post
Can someone explain to me how manager egos play a role in m&a? Is this like a competition to see who has the biggest company?
Try who gets the biggest bonus.
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  #50  
Old 09-09-2015, 09:52 AM
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Another Japanese one...

Japan’s Mitsui Sumitomo Insurance to Buy Amlin for $5.3 Billion
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