Daily Archives: September 25, 2014

Insurance branch: a need of innovation

Insurance companies have been one of the main players hit by the current financial crisis. The AIG bailout was not very good news for a branch that has shown a little ability to develop new solutions and evolve.

As the OECD reports, the industry is pressured by price competition in premiums and by low interest rates, which reduce the chances to offer attractive savings products. Moreover, experts also said that insurance products are now more complex and this has had negative effects amongst customers. However, chances are growing in emerging countries, where the improvement of standard of living awake the people’s attention for these products.

What is the evolution of some of the main insurance companies? Let’s see the T-Advisor figures:

Insurance: Berkshire Hathaway figures in T-Advisor

Omaha’s Oracle conglomerate, the biggest American insurance, obtained US$ 140,310 million in 2013, a 13.7% more compared with the former year. The net income increased also a 31.4%, until US$ 19,845 million.

AXA insurance figures in T-Advisor

French biggest insurance company revenues increased slightly a 1.2% in 2013, till €91,249 million. The net profit reached €4,482 million, a 10.2% more.

Allianz insurance figures in T-Advisor

The German insurance group decreased the revenues a slight 0.3%, till €101,416 million. However, the net profit jumped a 14.1%, till €6,344 million.

Generali insurance figures in T-Advisor

The Italian insurance company, as the German competitor, decreased its revenues a 1.1%, till €85,043 million. However, the net income multiplied almost 6 times, a 582%, till €2,142 million.

The comparison in the main data made by T-Advisor has the following results:

 

Performance

YTD

Volatility

YTD

Score

Liquidity

VaR

1 week

Berkshire Hathaway

18.56 %

12.84%

8.67

10

-2.24%

AXA

-9.39%

21.14 %

7.06

7

-5.39%

Allianz

5.33%

17.42%

7.15

10

-4.56%

Generali

-5.67%

17.64%

5.87

10

-4.32%

AXA and Generali, the French and Italian players, show the worst results compared with Allianz and Berkshire. They are still suffering the crisis effects. The American company is the most profitable and also has the lowest volatility and VaR. Its trend is a steady and progressive upward line. Allianz shows the second best figures amongst this group. The German company is still considered a safe harbour by investors.