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Breakingviews: Insurer dividend angst overdone

Thursday, 21 Feb, 2013 - 04:11

Feb. 21 - All insurers are battling low interest yields, but larger player like Allianz, Axa and Aviva have room for manoeuvre when it comes to dividends, says Reuters Breakingviews.

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On today's breaking news like iced over European insurers dividends until we're done. I'm joined by a lot of breaking news columnist George -- Georgia I say expect the market yesterday when these last big dividends but today the big boys -- and Ali ads that come out and that slightly better news from them. Yet acceptances. And held its dividend. And -- access as -- increase that it isn't. Audiences held it and -- that's very important because what happened yesterday is pretty caught so to the market and those -- things investors really hates them and that's unpleasant surprises anyone messing limit dividends and they our statements to -- Head didn't both -- -- -- what 50% exactly say it say do what I've always looking cool is. Is -- end of a vote is not as close as I was gonna happen to the other and speak European insurers. As it happens it's come right both in the come right and as I said -- -- pretty been steady even as he slowly increase. So what does this mean count me in fat and I think from what aunts and Alan Simpson today. We've got a Veba reporting a couple weeks what what can be read into India -- what they're going to do on could have been from. Well the fact that they've -- someone they've done. Shooting -- the visa will be something similar. -- -- that is slightly. Slightly more under stress situation and acts in an ambulance missile to deal with the relationship to -- editing. And the race says that sees the dividends they pay act now -- artists say it was very very caught it was like 80%. With the team we -- today is more like 40%. And -- people might be somewhere in between that if they've got any ability team to hold it he probably infer that they will. So why -- detail why not sub. While we're able to raise a dividend valiants felt he could. I think that's possibly been wolf -- could've should've been conservatism. Ovitz to actually meals will be didn't FactSet but it could have afforded to raise it and you've seen if he then. And grumbling in the market that that it happened that. I mean it you votes that I against the -- that we are still in a very. -- recovery phase and I think it conservatism is he is following his home today it doesn't mean 53% to Bangkok which has always stated 61. I'm not quite sure it is but the reinsurance market Swiss meet today. Did they find they somehow managed to find the billion francs from the -- the sofa and they're getting a chunk about but investors and that's. And there's always us that he can be but -- I think it's a slightly different situation since the new event -- BC the storm Sunday I think this is basically. With basically rainy day money. Consists of petrol honest and have a club very -- good. That's it surpass it and if it was needed as this happened hasn't been needed so they can pad -- special dividend woods and bit. To be necessary and able to increase their annual dividend anyway right. And that's they're shifting about today you know -- high that it just to finish up evidence before I was saying is insurers that you seem to do okay. Yet as a fundamental problem. Lying here are not small bond yields -- that recession as a kid my issue today is gonna continue to ball news will remain depressed and that's not good news for ensures. Yes it is is clearly no -- and been easy view them but the basic problem with -- insurance. Especially appropriate for some small -- insurance is that it guarantees. And certain patents team that policyholders faithful to send. -- -- getting beat anyone wanna office and that's clearly not enough. So that's could continue to be a problem. -- -- it -- as -- source today. It's less a problem for the big guys. Okay George thank you very much that's often out. And that was that they can use John -- -- mortar Comodo and the stream on insurance theme we have a live interview later today with -- at -- -- -- of them that's at 1145. TNT I'm -- gave up. This of Reuters.

Breakingviews: Insurer dividend angst overdone

Thursday, 21 Feb, 2013 - 04:11

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