Aon, Willis to merge, forming biggest broker globally

Aon this week revisited last year’s plans to buy out Willis Towers Watson Plc in what is the world’s biggest insurance merger. The number two and number three market leading global insurance brokers have agreed to join forces in an all-stock deal with an implied combined equity value of about $US80bn ($A121.6bn).

‘Have a think’ if PHI is worth it: Choice

Consumer advocate Choice has released a five-step plan for private health insurance (PHI) members, urging them to “have a think” about whether they actually need either hospital insurance or extras.

Several years to restore public confidence in finance industry: APRA

It will take several years to restore public confidence in the financial industry and its willingness to put people ahead of profits after revelations by the financial services royal commission (FSRC), APRA Deputy chair John Londsdale says. In the first APRA Insight for 2020, Londsdale said, in response to “commentary on whether the (FSRC) fixed…

Australian life industry performance in downward spiral

The Australian life insurance industry‚Äôs performance is in a downward spiral, regulator APRA’S latest data show. A $19bn increase in overall CY19 revenue on CY18, mainly driven by a favourable investment market, was offset by a $17.8bn rise in total expenses and $1.8bn increase in tax expense.

ASIC reports 52% jump in FSRC actions

ASIC has reported a 52% increase in enforcement investigations, triggered by the financial services royal commission (FSRC), involving CBA, NAB, Westpac, ANZ and AMP, or their officers or subsidiary companies.

AUB group upgrades guidance to 16-18% growth

AUB Group Ltd has upgraded its guidance to 16-18% FY20 growth from 8-9% after recording strong 1H20 results, including a 25.3% rise in adjusted net profit after tax (NPAT) on 1H19, to $21.3m. NPAT was adjusted for increased share capital on issue after the 1-for-7 equity capital raising in November 2018, offsetting costs of $1.6m…

Employers get SG amnesty for another six months

Under amending legislation passed in Parliament this week, employers who have failed to comply with their super guarantee (SG) obligations will have an amnesty for another six months to come forward and pay their workers’ SG shortfall without ATO penalties.

IOOF faces second class action

IOOF Holdings Ltd is facing a second class action from shareholders who want to recover losses from alleged non-disclosures and potentially misleading and deceptive conduct affecting IOOF share purchases from March 1, 2014, to July 7, 2015, inclusive. Shine Lawyers launched the class action on behalf of the shareholders after LS Fund Services, a part…

Medibank urges medical cost reduction

Further government reforms enabling the the private health insurance system, including third-party payors and providers, were needed “to remove unnecessary costs” and ensure the future sustainability of Australia’s health system, Medibank CEO Craig Drummond said on the release of the company’s 1H20 results, dented by rising claims costs.

Nib posts ‘disappointing’ result

Nib’s 1H20 results were “disappointing” and indicative of prevailing industry pressures and escalating competition, Nib CEO Mark Fitzgibbon said today. In an investor presentation, the private health insurer reported a 27.2% drop in underlying operating profit (UOP) on 1H19, to $83.2m, while group revenue was up 6.4% to $1.3bn.

Freedom remains in ‘holding pattern’

Freedom Insurance Group Ltd is in a “holding pattern” Freedom Insurance Group Ltd chair Pauline Vamos told shareholders today at an extraordinary general meeting (Insurance News, February 18).