|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||21.54 - 21.71|
|52 Week Range||18.40 - 23.99|
|Beta (3Y Monthly)||1.20|
|PE Ratio (TTM)||37.09|
|Earnings Date||Aug 1, 2019 - Aug 1, 2019|
|Forward Dividend & Yield||1.34 (6.17%)|
|1y Target Est||27.16|
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of XL Group Ltd. and other ratings that are associated with the same analytical unit. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Mario Draghi’s plans for a parting stimulus shot before he retires as European Central Bank president are laced with even more suspense than usual.While the ECB is widely expected to cut interest rates next month, the prospect of a renewed round of asset purchases is shrouded in uncertainty. Investors must judge how much quantitative easing the euro-zone economy needs, how much buying space the central bank has before it hits self-imposed limits -- and whether policy makers will dare test Draghi’s claim that he can bust through those restrictions if needed.That ambiguity means markets are in the dark about one of the key monetary tools available to support the 19-nation economy as it battles a slowdown wrought largely by external factors such as trade tensions and Brexit. Much depends on whether Draghi wants to go out with a bang before Christine Lagarde takes over on Nov. 1.Most analysts predict the ECB will lower its deposit rate by 10 basis points to minus 0.5% at its Sept. 12 meeting, joining the current wave of global easing. In the past several weeks alone, the U.S. Federal Reserve and its peers in major economies including Russia, Australia, South Korea, Brazil, India, Indonesia and South Africa have cut rates.Wide RangeExpectations for QE in the euro area, however, diverge wildly. The market is currently pricing in around 100 billion euros ($112 billion) to 200 billion euros of fresh stimulus, according to Alessandro Tentori, chief investment officer at Axa Investment Managers.ABN Amro expects purchases of 70 billion euros a month over nine months. Morgan Stanley predicts QE at either 45 billion euros or 60 billion euros a month for at least a year. Goldman Sachs estimates that the ECB will spend a total of as much as 300 billion euros.Some analysts see bond-buying announced alongside a rate cut, while others believe there will be a delay. UBS says it doesn’t consider fresh purchases a done deal.What Bloomberg’s Economists Say“We expect the ECB to cut the deposit rate by 10 basis points and relaunch its asset purchase program in September.\--Maeva Cousin. Read the complete ECB INSIGHTOne factor is the ECB’s attempt to keep on the right side of European Union law that forbids it from directly financing governments. By restricting itself to holding no more than 33% of any nation’s sovereign bonds, the institution aims to avoid becoming a dominant creditor.The problem is that it’s already at or close to that limit in some countries -- including Germany, the bloc’s biggest economy. In June, Draghi said there’s still “considerable headroom” and that a weaker economy could warrant breaching the limits, though he’s done little to clarify that view since.Legal JeopardyBayernLB reckons a pending ruling by Germany’s constitutional court on a challenge to the legality of the program could delay action.“I don’t believe that a new QE program is just around the corner,” said Stefan Kipar, the bank’s euro-area economist. “You have to imagine the communications disaster if they say they are doing a new round of QE, and two weeks later the Federal Constitutional Court says the Bundesbank can’t participate.”QE might not even be the most useful tool for the current environment. The chief benefit of buying bonds is that it can depress longer-term borrowing costs, but investor demand for safer assets is already pushing down yields. The gap between rates on Germany’s two-year and 30-year bonds is near the narrowest since the financial crisis.“They’ll change the rules if they need to,” said Oliver Rakau, an economist at Oxford Economics, who predicts monthly purchases of 20 billion euros to be announced in September. “The question is how big of a package do you even need, and do you really need to have 60 billion that we had at times when we were still worrying about deflation? From that perspective, I think QE will be smaller, and that should also give the ECB more time to reach the boundaries.”For Axa’s Tentori, a small program would only be equivalent to a “negligible” cut in the deposit rate. Still, that doesn’t mean the ECB won’t act. For all the uncertainty surrounding Draghi’s intentions, investors are primed for at least some kind of action.“The markets now expect something, independent of the economic purpose,” Tentori said.To contact the reporters on this story: Carolynn Look in Frankfurt at email@example.com;John Ainger in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Paul Gordon at email@example.com, Jana RandowFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- The central banks of small open economies from Sweden to Israel that barely tinkered with interest rates as the Federal Reserve tightened monetary policy now find themselves even more out of step with the U.S.Pressure is growing on them to abandon plans to raise domestic borrowing costs and swim with the dovish tide, threatening to leave little policy room in case of a future downturn. Israel already took a step on Wednesday by backing off an imminent hike.The alternative is to accept a wider rate differential with major developed economies that could touch off more gains in their currencies and hurt exports.“It is a challenge for the central banks of these economies, there’s no doubt,” said Kevin Daly, an economist in London at Goldman Sachs Group Inc. “For them to focus exclusively on domestic considerations would result in the inappropriate setting of monetary policy at too tight a level.”U.S. central bankers lowered rates for the first time in more than a decade after a meeting on Tuesday and Wednesday in Washington. The quarter-percentage point reduction will likely boost appetite for riskier assets following a series of Fed increases to lift its target range from a record low. The European Central Bank is also poised to add more stimulus as soon as September.“We’re in slightly unusual times where usually, or historically, a global easing like this is a boon to economies,” said David Page, head of macro research for AXA Investment Managers. Now, however, “it’s not seen as so much of a boon; it’s seen as something that increases disinflation risks.”In Israel, the dovish turn has boosted the shekel and choked off inflation, forcing the central bank to back down from its plan to raise rates again after a surprise hike in November. Bank of America Corp. said this month that in case the global downturn worsens, Israel could even be forced to reverse its first increase in borrowing costs since 2011.“In real terms, it’s very difficult for a small open economy to control its interest rate,” said Giancarlo Corsetti, professor of macroeconomics at the University of Cambridge. “The real interest rate is going to be determined internationally.”Hours before the Fed’s decision on Wednesday, Bank of Israel Governor Amir Yaron said the country’s key rate won’t rise from 0.25% for a “long time,” changing tack weeks after saying there could be a hike soon. The verbal intervention ended three days of gains by the shekel after it strengthened beyond 3.5 per dollar for the first time since April 2018.‘Source of Worry’“The small and open economies are impacted by developments in the large blocs,” Yaron said after the July 8 rate decision. “In recent months, developments in the global economy have been the main source of worry for us.”A similar situation is playing out across Europe.In Hungary, real rates are among the lowest globally though the central bank modestly tightened twice this year. Some analysts now say the country will next cut rather than raise its rates.Nearby, the Czech Republic’s central bank took a step back in late June from a campaign to raise rates, as global risks overshadowed high domestic inflation. And in Sweden, although the Riksbank is for now sticking with its own plan to hike, it said “the risks surrounding developments abroad can have a bearing on the prospects for Sweden.”In fact, Norway appears alone among small open economies that are marching on with planned rate hikes unimpeded. The country’s dependence on oil has helped it stand out.“They are caught between a rock and a hard place,” said Nicolas Veron, senior fellow at the Peterson Institute for International Economics. “They have issues of currency appreciation and just the fact of not being coordinated in terms of cycle, which is not particularly easy to manage.”(Updates with economist comment in eighth paragraph, shekel in ninth.)To contact the reporter on this story: Ivan Levingston in Tel Aviv at firstname.lastname@example.orgTo contact the editors responsible for this story: Lin Noueihed at email@example.com, Paul AbelskyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Axa SA’s shift away from life insurance yielded growing volumes and improved profitability as a restructuring move hit the bottom line.The French financial giant’s first-half net income fell 19% to 2.33 billion euros ($2.5 billion) at constant currencies, missing analysts’ estimates of 2.86 billion euros. The partial spinoff of Axa’s U.S. unit knocked about 600 million euros off earnings. Still, underlying profit gained 7% to 3.62 billion euros, more than analysts had expected.Axa climbed as much as 0.8% in Paris trading. The shares have risen 22% this year. Chief Executive Officer Thomas Buberl is trying to remake Axa by pivoting to property and casualty insurance -- a strategy that’s failed to convince some shareholders. The overhaul included last year’s initial public offering of U.S.-based Axa Equitable Holdings Inc., which fell almost $1 billion shy of the targeted share sale.Buberl is shifting the focus of Europe’s second-largest insurer at a time when government-bond yields are falling, making it more expensive for life insurers to pay retirement income to their customers. While the CEO’s decision to partially sell off Axa Equitable reduced the company’s exposure to savings activities, it also hurt short-term earnings.Axa currently owns about 39% of the U.S. business and plans to gradually reduce the stake to zero. “We’re in no rush,” spokesman Julien Parot said before the earnings were released.The IPO helped Axa to finance its $15 billion acquisition of XL Group Ltd., a commercial-insurance company. The transaction made Axa the top provider of commercial casualty coverage, leaving it exposed to volatile natural-disaster claims.While XL was Axa’s biggest ever takeover, the bulk of the company’s revenue still comes from its core European insurance divisions, primarily in France, Germany and Switzerland. What’s changed is the focus on parts of the industry that are less sensitive to financial markets, a key target for insurers after investment income was hurt by a decade of low interest rates.Axa’s Solvency II ratio -- a measure of its ability to absorb losses -- dropped to 190%, from 193% at the end of last year. A ratio of 100 means a firm has sufficient capital to withstand the kind of shock that happens once in 200 years.(Adds underlying profit in second paragraph, shares in third.)To contact the reporters on this story: Will Hadfield in London at firstname.lastname@example.org;Andrew Blackman in Berlin at email@example.comTo contact the editors responsible for this story: Shelley Robinson at firstname.lastname@example.org, Chris ReiterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
French insurer AXA's net profit fell 17% in the first half of the year after booking charges related to the valuation of its remaining stake in Axa Equitable Holdings and the mark-to-market valuation of derivatives. AXA, the second-largest European insurer after Germany's Allianz, said its net profit fell to 2.33 billion euros ($2.6 billion) from 2.8 billion a year ago. The French insurer booked charges worth 1.4 billion euros, including 789 million euros, related to the mark-to-market valuation of derivatives and a 600 million euros write-down of its remaining 38.9% stake in Axa Equitable Holdings.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of AXA and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The Indian government on Friday said it will consider further liberalizing foreign direct investment (FDI) rules in certain sectors, part of its efforts to make Asia's third-largest economy a more attractive investment destination. Presenting the annual budget for 2019/20, Finance Minister Nirmala Sitharaman said the government would hold discussions with stakeholders to relax FDI rules in the aviation, media, animation and insurance sectors, and ease rules for single-brand retailers.
LONDON/NEW YORK, June 24 (Reuters) - Rivals to Lloyd's of London are riding a rising tide of marine insurance rates, leaving the 330-year-old market behind after it jettisoned sections of its oldest line of business last year. Premiums for marine insurance, which until 2018 had fallen for years due to rising competition and lower claims, are increasing after a surge in catastrophe losses in the past two years and growing geopolitical tensions.. For Lloyd's, still reeling from two years of losses due to the heavy claims from natural disasters, it will still take 12-24 months before the segment returns to profit, Chief Executive John Neal told Reuters in New York last week.
If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share...