金融英語相關閱讀指導六篇
金融英語相關閱讀指導一
New Insurance Chief at Union Bank
Union Bank of California, N.A. (San Francisco) has named Michael A. Janes as chief executive officer of its insurance subsidiary, UnionBanc Insurance Services Inc., one of the 30 largest insurance agencies in the United States. Janes joins the agency from Hilb, Rogal & Hobbs Co. where he was regional director of its West Coast operations.
UnionBanc Insurance Services Inc. recently announced the consolidation of its insurance operation under the UnionBanc Insurance Services umbrella. The new agency will be co-branded with the three original agencies of Armstong/Robitaille Business and Insurance Services, John Burnham Insurance, and Tanner Insurance Brokers.
The insurance operation currently has nine offices located in San Diego, Irvine, Fullerton, Glendale, Pleasanton, San Rafael, Stockton, Sacramento—all in California——and in Portland, Oregon. Annual revenue exceeds $80 million and the company employs 415 insurance professionals. The agency has focused on selling commercial property and casualty insurance but recently announced that it plans to expand its personal insurance offerings. The bank also intends to begin distributing life insurance in-house soon (rather than through external wholesalers).
Union Bank of California is a subsidiary of UnionBanCal Corporation. UnionBanCal (assets $49.4 billion) was cited as a 'Top 10' institution in the 2005 Edition of Who's Who in Bank Insurance.
金融英語相關閱讀指導二
Citizens Financial Sells Three Insurance Agencies
Citizens Financial Group (Providence, RI) was a 'Top 25' bank insurance operation last year. That is not likely to be the case in the future.
With its announcement yesterday (March 1) that it was selling three insurance agencies to Hub International Ltd., a Chicago-based insurance brokerage, Citizens (assets: $155 billion) made clear that it sees little future in the full-line insurance brokerage business.
The agencies are Citizens Clair Insurance Group (Norristown, PA); Brewer & Lord (Norwell, MA); and Feitelberg Insurance (Fall River, MA). Collectively they have 19 offices in Pennsylvania, Massachusetts, and Rhode Island. Combined revenues were about $45 million last year.
The purchase price for the brokerages was $80 million (inclusive of tangible net worth), payable in cash on closing, as well as an earn-out based on future performance. The insurance agencies will continue to operate independently within the Hub International system.
The transaction was presented by the two companies more as a “strategic alliance” than an outright sale, promising “joint marketing efforts” that would bring a broader array of insurance products and services to Citizen's retail and commercial customers. Citizens Bank will continue to refer clients with insurance needs to the brokerages, presumably, even though they will now be owned by Hub and not Citizens.
“While we achieved both revenue growth and profitability in line with our strategies for the insurance brokerage business, we see a new opportunity to serve our customers by partnering with Hub International as our insurance broker of choice,” said Robert M. Mahoney, vice chairman of Citizens Financial Group. “Our strategic alliance with Hub International will expand our product offerings, locations and expertise, enhancing our competitive position.… We will be able to offer insurance products to corporate customers throughout our 13-state footprint, not just to customers in three local markets.”
In 2003, Citizens Financial, a wholly owned subsidiary of The Royal Bank of Scotland Group, purchased The Feitelberg Company, one of the largest insurance agencies in southeastern New England. With combined annual premiums of $325 million, the transaction made Citizens Bank, its operating bank, one of the largest bank/insurance brokerage operations in the United States. Citizens Clair and Brewer & Lord were acquired earlier, coming to Citizens as part of (larger) bank acquisitions.
Citizens, the eighth-largest commercial banking company in the United States ranked by deposits, was a 'Top 25' institution in Who's Who in Bank Insurance (2005 Edition).
The earn-out payments associated with the transaction will in the aggregate be at least $3 million. This will be payable over three years and, at Hub's option, in cash or a combination of cash and Hub common shares. Martin P. Hughes, HUB CEO, indicated that he expects total consideration for the transaction will be within Hub's target multiple of 5-7 times EBITDA (earnings before interest, taxes, depreciation and amortization). Closing of the acquisitions is expected to occur in April 2006 and is subject to the satisfaction of regulatory and other customary conditions.
金融英語相關閱讀指導三
"Growing dominance of banks" in commercial insurance
One can see the “growing dominance of banks” when it comes to the distribution of property and casualty (P&C) commercial insurance, observes John Wepler, president of MarshBerry (Concord, OH). Twenty-five of the top 100 U.S. insurance brokers (excluding Aon and Marsh McClennan) are now bank owned. And while this movement is likely to continue, bank executives have to be mindful of overall industry trends, he noted at the annual convention of the Bank Insurance & Securities Association (BISA) this week in Florida.
This is a soft P&C insurance market. Premium growth rates have been lagging since 2002, with the notable exception of storm-ravaged coastal areas. Industry-wide, P&C premium growth has fallen in the last year from 3.6 percent to about 2 percent.
“The premium tide is no longer rising,” says Wepler, and bank agencies are no longer looking at double-digit annual revenue growth, but more on the order of 6, 7, or 8 percent.
Recently, public brokers replaced banks as the top acquirers of agencies. This is more from lack of supply than from lack of demand, notes Wepler. Brokers have raised their offers compared with past years (unlike back in 1999, say, when they figured banks were over-paying and would fail in the insurance area) and have been “lightning quick” in getting deals done, often in 20-30 days, a time frame that most banks—which tend to be more deliberative——have difficulty matching. The public brokers have “outrun banks,” says Wepler.
There is more interest among banks in acquiring 'benefits' firms, which have generally higher profits margins than commercial lines insurance firms—31 percent versus 22 percent. And products like group health are generally less cyclical and often have good cross-selling potential compared with other insurance products. But, again, these firms are not always easy to find in the current market.
Therefore banks will need to concentrate more on organic growth, in particular integrating insurance with other parts of the institution, suggests Wepler.
The integration process will be long-term, requiring some five to ten years. Banks will need to be patient, much as they were with annuities. But insurance is a product that every commercial client has to have, and eventually “banks will dominate the commercial insurance distribution system,” says Wepler.
金融英語相關閱讀指導四
Missouri's First Bank Acquires Insurance Brokerage
First Bank, a wholly owned subsidiary of First Banks, Inc. (St. Louis), has acquired Adrian N. Baker & Company, a large, privately owned independent insurance brokerage company based in Clayton, Missouri that provides a range of employee benefits, and commercial and personal insurance services.
First Banks, with assets of $9.17 billion, operates 178 branch banking offices in California, Illinois, Missouri and Texas.
First Banks is basically new to the insurance brokerage area. It had only $23,000 in insurance revenues in 2005, according to the Bank Insurance Market Research Group.
"First Banks' affiliation with Adrian Baker provides a significant opportunity to enter this highly-specialized financial services arena with a partner that has established a long and proven history within the insurance industry,“ said Terrance M. McCarthy, Chief Operating Officer of First Banks. Adrian Baker has been in business for over 65 years.
Under the terms of the agreement, First Bank will acquire all of the outstanding shares of common stock of Adrian Baker. The transaction was scheduled to close on March 31, 2006.
金融英語相關閱讀指導五
Foreign investors' bank bid left hanging
China is unlikely to allow foreign investors to purchase controlling stakes in its small and medium-sized banks, leaving Citigroup's bid to buy stakes in China’s Guangdong Development Bank hanging.
A source close to the banking regulator said that China was not likely to loosen its control of the banking sector, which currently restricts foreigners to a maximum of 25 per cent equity, with individual investors capped at 20 per cent.
"The case of Guangdong Development Bank has been looked into many times by the China Banking Regulatory Commission (CBRC) and other related administrations, and it is hard to break the present restrictions on foreign strategic investor issues," CBRC said in a letter to the Guangdong Municipal Government.
The Guangdong Development Bank has 26 branches in South China's Guangdong Province and is heavily in debt.
The bank's situation is believed to have prompted its owner, the provincial government, to support the foreign investment limit being waived for this deal, but top-level approval is also needed and it seems the central government is not willing to break the current restrictions . Citigroup’s spokeswoman in Shanghai, Marine Mao, said the bank would not comment. The world's leading bank and its local partners bid US$3 billion for an 85 per cent stake in the Guangdong Development Bank in December.
Its competitors, France's Societe Generale and China’s Ping An Insurance (Group) Co, offered less for the bank.
Earlier the Shanghai based China Securities News reported that Jiang Dingzhi, vice-president of CBRC said on the Boao Forum that CBRC had no plans to adjust the restrictions on foreigners' equity holding in the bank sector and would not change the policy in the near future.
"The Guangdong Development Bank restructure solution is still under study," the paper quoted Jiang as saying.
China has introduced foreign strategic investors to its banking sector, as it believes foreigners' technological expertise and corporate governance standards are as important as the cash they bring to its local banks.
China Construction Bank launched a US $9.2 billion IPO in Hong Kong last October and the Bank of China is believed to be planning to raise about US$8 billion in a Hong Kong IPO in May.
The Industrial and Commercial Bank of China, the country's largest lender, hopes to follow by the end of the year with an IPO that bankers say could raise US$10 billion or more.
All three lenders have sold shares prior to their listings to foreign strategic investors to draw on their expertise.
However, criticism has mounted since then, with some saying China is selling stakes in the country's banks too cheaply and counting too much on foreigners.
Following the criticism, Premier Wen Jiabao said on March 14 the Chinese Government must keep control over its State-owned banks to minimise the risk of losses while the financial system was being reformed.
If Citigroup wins the bid, it would become the first overseas investor to buy control of a State-owned bank in China.
金融英語相關閱讀指導六
ICBC increases loans to small firms
The Industrial and Commercial Bank of China (ICBC), the nation's biggest commercial bank, said Tuesday it had granted 46.3 billion yuan (5.8 billion U.S. dollars) in loans to small firms in the first quarter this year.
The ICBC said the non-performing rate of loans to small businesses was below the average of all lending.
Some Chinese banks balk at extending loans to small businesses as they are commonly seen as credit risks, but the government is encouraging loans as small firms are contributing to economic growth.
The ICBC's outstanding loans to small firms stood at 102.3 billion yuan at the end of last month. These loans surged 70 percent in 2005.
The bank said in a statement its "key support" would be given for enterprises that boast quality products, advanced technologies, strong competitiveness in the market and sound prospects.
It would "strictly curb" projects not in line with government policies and industrial development.
China categorizes companies with annual sales of less than five million yuan as small enterprises.