Mario Draghi calling: Why the ECB’s QE may struggle to reach €1 trillion March 3, 2015 The European Central Bank’s (ECB) version of quantitative easing (QE), which was announced to much fanfare in January, involves the purchase of bonds from both institutions and individuals. ECB president Mario Draghi hopes that the proceeds of these sales will be used to buy other assets or to lend, thereby oiling the wheels of the [...]
Ryanair charm offensive continues with launch of eight-point “customer charter” March 3, 2015 Ryanair – the airline that once considered charging extra for people to use the toilet – has issued an eight-point “customer charter”. Among the points are the promise of “the lowest fares”, to make sure travelling is “an enjoyable experience”, to be “Europe's most reliable airline” and alarmingly for an airline “to make your travel [...]
Direct Line boosts dividend as it meets all IPO targets – but warns of “competitive” market March 3, 2015 Direct Line has increased its dividend despite operating profits falling for the last calendar year. The figures It was broadly positive for the insurance group. Operating profits fell from £509m to £506m in 2014, but everything else was on the up: Group statutory pre-tax profit rose 12.2 per cent to £456.8m and final [...]
Insurers win reprieve over rule changes after Bank of England ERM warning March 2, 2015 Insurers such as Just Retirement have escaped a potentially devastating blow to their earning power thanks to a regulatory re-think over new capital requirements. The Bank of England’s prudential regulation authority (PRA) had been considering rules that may have forced them to abandon the highly lucrative equity release mortgage (ERM) market. Industry sources last [...]
Poor reinsurance performance drags down Hiscox 2014 results March 2, 2015 BRITISH insurer Hiscox said reduced premiums in its reinsurance business were behind an overall drop in profit during 2014, which saw a record performance in the company’s UK and Europe operations. The high net worth specialist posted profit before tax of £231m, down from £245m the previous year, despite total gross written premiums increasing from [...]
Amlin share price dip as profits drop due to challenging marketplace March 2, 2015 Lloyd’s insurer Amlin saw shares fall by 4.63 per cent yesterday, after reporting declining profits for 2014. Profit before tax fell from £325.7m in 2013 to £258.7m, despite gross written premiums increasing from £2.47bn to £2.56bn. Combined operating ratio worsened, from 86 per cent to 89 per cent. The provider increased its dividend to 27p [...]
ECB meeting preview: What traders should expect from it March 2, 2015 Despite a range of economic indicators suggesting that the Eurozone economy has finally begun to turn a corner, markets had an uncertain start to the week. Although the currency bloc’s unemployment rate slipped to 11.2 per cent in January and a flash estimate of inflation came in at a better-than-expected -0.3 per cent in February, [...]
Wasps: from the brink of extinction to biggest in Europe March 2, 2015 Exclusive: rugby’s sleeping giants may have struck gold but want to keep the salary cap, their new chief excutive ANYONE in rugby who predicted, during the bleakest moments of Wasps’ flirtation with insolvency in 2012, that the club were set to be transformed into the biggest earners in the European game would have been suspected [...]
What’s in store for London’s financial services sector? March 2, 2015 Going into this year, a general election in May, as well as the possibility of a "Brexit" all loom over the City's future. So what are some of the biggest risks facing London's financial services industry? It's an important question. Financial and related professional services contributed £174bn to the UK economy in 2012, or 12.6% of the total. [...]
Aviva takes its client to court over an insurance contract capable of making him wealthier than the company itself March 2, 2015 Aviva France is fighting one of its clients in court over a life insurance contract that could make him a billionaire by the end of the decade. Called a Fixed Price Abitrage Life Insurance Contract, it was given to the now 25-year-old Max-Hervé George by his father when he was seven. It was the brainchild [...]