There have been so many results which have provoked share price volatility, with the usual mix of outstanding results such as CSL balanced by disappointing results like Vocus. Or ones like Boral, where management convinced the market the outlook is bright despite a weak performance in key parts of the... Show More
We use derivatives across the majority of our portfolios to improve performance and / or to reduce portfolio volatility. They help us consistently beat the market over time and improve the overall flexibility within our portfolios. We are almost entirely ‘sellers’ of options, and the bulk of our transactions are... Show More
QBE Insurance Group Limited (QBE) is a large and complicated entity. In fact, the scope of the business and the nature of insurance make it quite hard to understand the business completely. This uncertainty creates buying opportunities, and as Graph 1 shows, the stock has been a large beneficiary of... Show More
Having just consumed Buffett’s most recent letter to Berkshire Hathaway investors, I thought I’d share some of the most interesting parts with Livewire readers. Buffett is clearly not familiar with the concept of ‘talking your own book’ (an industry term for unabashedly talking up one’s own investments), happily taking swipes... Show More
Queensland based financial services group Suncorp (SUN) has posted a softer than hoped 1.3% lift in net profit to $537m for the six months ended 31 Dec 16 For more Reporting Season coverage, please visit https://www.commsec.com.au/reportingseason Show More
In our view, investors should position themselves for a rising interest rate environment in 2017. Developed market (DM) economies will be leading growth in 2017, taking over from emerging markets (EM) which have previously supported global growth rates. The key to the DM’s recovery will be how the US markets... Show More
Regular readers will know I’m somewhat of a Buffett-watcher, not so much for stock picks, but for what we can learn about his approach to business and investing. Buffett is known for his love of insurance companies, with Berkshire owning a range of insurance companies, from GEICO to Berkshire Hathaway... Show More
Since the US election, the ASX has rallied +4%, but strong gains in financials, energy and materials have been offset by losses in the “bond proxy” sectors of listed property, utilities and telecoms. The biggest question facing equity investors now isn’t so much rising bond yields, but rather the trajectory... Show More
An insurance company is essentially two businesses – the underwriting business, and the funds management business, explains Charles Leyland, Managing Director of Leyland Asset Management. The underwriters make money by collecting more premiums than are paid out in claims, while the funds management business makes money by investing those funds... Show More
S&P's outlook negative on Australia's sovereign rating is of potential concern for insurance companies that are required to follow APRA's Life and General Insurance Capital (LAGIC) Standards. Any downgrade of the Australian major banks and state governments would have potentially significant consequences for Life and General Insurers under existing legislation.... Show More
The local share market had fallen in love with insurance stocks during 2016 prior to yesterday's plunge by serial market disappointed, QBE. The performance from our big insurance companies so far in 2016 has been stunning compared to the margin pressured banks. Noticeably the insurance stocks are now trading well... Show More
We are currently sitting on relatively high levels of cash, looking for opportunities as we are bullish stocks for the months ahead. Hence with insurance stocks being hit this week, due to the awful east coast storms, subscribers have understandably been asking why we have not taken the plunge into... Show More
Banks: The substantial weight in the index and the high yield premium has made the bank sector to trade in line with the currency and the economy. Central banks globally continue to maintain an easing bias through currency war. US Fed decision next week will be the dominant factor in... Show More
Medibank Private (MPL) reported a net profit after tax (NPAT) of $227.6 million, a 58% increase from $143.8 million in the previous corresponding period For more Reporting Season coverage, please visit https://www.commsec.com.au/reportingseason Show More
Bank sector: Global macro and central bank risks remain, but the downgrade cycle is mainly in the price. The yield premium and central bank easing bias suggests that banks should see support despite weakening outlook. Show More
Insurance stocks have provided Australian investors with plenty of joy and frustration over the years. From the devastation after 9/11, the likes of QBE Insurance and IAG eventually recovered and went on to post remarkable share price gains. Show More
National Australia Bank has been placed in a trading halt amid reports that Nippon Life will buy about 80 % of the bank's life insurance business. Japanese news outlet Yomiuri reported Nippon would own about 80 per cent of the unit, according to Bloomberg. In its request for a trading... Show More
IAG has announced the retirement of Mike Wilkins as MD/CEO from 16 November 2015, with Peter Harmer, the current CEO of IAG Labs to take over as MD/CEO from that date. I've previously noted the advantages of an internal hire in terms of the network of relationships both within and... Show More
In the next few weeks a small New Zealand based insurer – CBL Corp Limited – lists on ASX and NZX. CBL is a slightly odd beast in the insurance world: it focuses on small but profitable specialist niches, where it is able to earn significant underwriting profits. In contrast,... Show More
Livewire recently featured a report from Watermark Funds discussing 5 industries at risk of disruption https://www.livewiremarkets.com/wires/27386 - the report generated lots of interest. Livewire spoke with Justin Braitling, CIO of Watermark Funds, to discuss some of the themes the report raised and how they are translating to his views on... Show More