AMP Limited (AMP):
AMP has been forced to defend the sale of its life insurance and mature products businesses to London-based Resolution Life amid reports of a shareholder backlash against the deal. Figures released this morning highlighted declining returns from the wealth protection business in Australia and New Zealand as well as the significant capital investment required to fund alternatives to the sale. AMP said that the other options - including continuing the business, closing it to new business or demerging the business would not release capital to AMP shareholders and could require significant further injections of capital. AMP’s board is facing a backlash from shareholders after it sold the life insurance and mature business for a headline $3.3 billion or 82 per cent of the embedded value.
Australia and New Zealand Banking Group (ANZ):
ANZ Banking Group has reported a slide in full year net profit to $6.49 billion, setting the scene for a challenging reporting season in the sector. ANZ’s (ANZ) cash net profit from continuing operations fell 5 per cent in the 12 months ended September 30, compared to the prior corresponding period, according to an ASX statement on Wednesday. That figure excludes a string of divestments already announced by the Melbourne-based lender, including its life insurance arm. Annual net profit including discontinued operations tumbled 16 per cent to $5.8bn, the statement said. Statutory net profit was flat at $6.4bn.
Coca-Cola Amatil Ltd (CCL):
Beverage bottler Coca-Cola Amatil could be forced to book a profit crushing multimillion-dollar impairment against the value of its stake in its Coca-Cola operations in Indonesia after joint equity owner The Coca Cola Company booked impairment charges of $US205 million due to tough trading conditions. In a statement to the ASX this morning, CC Amatil noted the impairment made by TCCC against its 29.4 per cent stake in Coca-Cola Bottling Indonesia at a time when domestic economic conditions are challenging with the Indonesian Rupiah falling to its weakest level against the US dollar in 20 years. However, CC Amatil also said that just because its US Coke co-investor had impaired its stake doesn’t mean the Sydney-based Coke group was forced to book impairments against its own controlling 70.6 per cent stake in the Indonesian Coca Cola business. CC Amatil has a different carrying value to TCCC for the Indonesian business, with CC Amatil’s investment in the region stretching back to 1992.
Corporate Travel Management Ltd (CTD):
Shares in Corporate Travel have dropped 27 per cent on its return to trade after a scathing short report from VGI partners last week. At its AGM this morning, the company rejected most of the short-sellers claims - defending its profits saying it had far lower costs than rivals who have more extensive bricks and mortar office networks. Shares in the company dropped to lows of $20 at the open, their lowest since March, but bounced to trade down 21.73pc tat $21.635 in the first ten minutes of trade.
Genworth Mortgage Insurance Australia (GMA):
Softening in the housing market has subdued Genworth’s seasonal uplift - pushing its loss ratio guidance to between 50 per cent to 55pc but it says its gross written premiums are expected to increase. At its third quarter results released today, the mortgage insurance broker posted underlying net profit of $20.4 million for the quarter but said the quarter hadn’t had the same uplift as has historically been expected. Despite that, shares have pushed up by 2.06 per cent to $2.22 - from 12-month lows of $2.16 hit on Tuesday. “We also continued to see the impact of our 2017 annual premium earnings pattern review on our results and to make progress in implementing strategic initiatives designed to redefine our core business model,” chief Georgette Nicholas said.
Healthscope Ltd (HSO):
Members of the BGH Consortium, bidding for the takeover of Healthscope have upped their stake as pressure on the target intensifies. Australian Super has lifted its stake in Healthscope by 14.3 million shares - taking the overall consortium interest to 19.13 per cent. The Paula Dwyer-led Healthscope board is expected to come under shareholder pressure at its annual meeting today, with investors increasingly pushing for directors to open the data room to suitor BGH Capital.
Myer Holdings Ltd (MYR):
New Myer chief executive John King has continued his revamp of the department store’s executive ranks that includes recently stripping out 30 senior managers from the business, with the hiring of a former Westpac and David Jones executive in the key role of customer service. Myer announced this morning the appointment of Geoff Ikin as the retailer’s new Chief Customer Officer. The new role will bring together key customer facing functions including online, marketing, and advertising. Mr Ikin comes to Myer from Tourism Australia and prior to that was at Westpac and David Jones. Myer said his commencement date is to be confirmed.
Origin Energy Ltd (ORG):
Origin Energy has posted a 12 per cent quarterly lift in oil and gas revenue despite production remaining steady, with the company attributing the rise to higher commodity prices. In an announcement to the ASX, Origin (ORG) said its share of Australia Pacific LNG revenue increased to $640 million for the September quarter, up from $570 million in June and 35 per cent higher on the same time last year. Origin’s electricity sales increased four per cent from June in line with seasonal demand, while gas sales increased by six per cent, reflecting new short-term contracts in Queensland and higher seasonal demand in Victoria, partially offset by lower sales to generation. “Australia Pacific LNG continues to produce at steady rates, allowing it to meet its LNG contract commitments and deliver large volumes of gas into the east coast domestic market, while higher realised prices delivered a strong uplift in revenue for the quarter,” Origin chief executive Frank Calabria said.
QBE Insurance Group Ltd (QBE):
Insurance company QBE will merge its Asia and European operations as it moves to build a more streamlined business. It comes after the company (QBE) announced in May it would cut back its offshore operations in Asia and the Americas as it looked to simplify the group, following a statutory net loss of more than $US1.2 billion the prior year. “Today’s announcement represents the next step in creating a stronger, simpler QBE,” chief executive Pat Regan said. “These changes enable QBE to enhance our customer proposition and build a stronger platform for long term, sustainable and profitable growth.” The company’s operations will now be comprised of three divisions, including an international division comprised of European and Asia businesses, headed up by Richard Pryce, who is currently the chief executive of the company’s European division.
(Source: AIMS)
AMP has been forced to defend the sale of its life insurance and mature products businesses to London-based Resolution Life amid reports of a shareholder backlash against the deal. Figures released this morning highlighted declining returns from the wealth protection business in Australia and New Zealand as well as the significant capital investment required to fund alternatives to the sale. AMP said that the other options - including continuing the business, closing it to new business or demerging the business would not release capital to AMP shareholders and could require significant further injections of capital. AMP’s board is facing a backlash from shareholders after it sold the life insurance and mature business for a headline $3.3 billion or 82 per cent of the embedded value.
Australia and New Zealand Banking Group (ANZ):
ANZ Banking Group has reported a slide in full year net profit to $6.49 billion, setting the scene for a challenging reporting season in the sector. ANZ’s (ANZ) cash net profit from continuing operations fell 5 per cent in the 12 months ended September 30, compared to the prior corresponding period, according to an ASX statement on Wednesday. That figure excludes a string of divestments already announced by the Melbourne-based lender, including its life insurance arm. Annual net profit including discontinued operations tumbled 16 per cent to $5.8bn, the statement said. Statutory net profit was flat at $6.4bn.
Coca-Cola Amatil Ltd (CCL):
Beverage bottler Coca-Cola Amatil could be forced to book a profit crushing multimillion-dollar impairment against the value of its stake in its Coca-Cola operations in Indonesia after joint equity owner The Coca Cola Company booked impairment charges of $US205 million due to tough trading conditions. In a statement to the ASX this morning, CC Amatil noted the impairment made by TCCC against its 29.4 per cent stake in Coca-Cola Bottling Indonesia at a time when domestic economic conditions are challenging with the Indonesian Rupiah falling to its weakest level against the US dollar in 20 years. However, CC Amatil also said that just because its US Coke co-investor had impaired its stake doesn’t mean the Sydney-based Coke group was forced to book impairments against its own controlling 70.6 per cent stake in the Indonesian Coca Cola business. CC Amatil has a different carrying value to TCCC for the Indonesian business, with CC Amatil’s investment in the region stretching back to 1992.
Corporate Travel Management Ltd (CTD):
Shares in Corporate Travel have dropped 27 per cent on its return to trade after a scathing short report from VGI partners last week. At its AGM this morning, the company rejected most of the short-sellers claims - defending its profits saying it had far lower costs than rivals who have more extensive bricks and mortar office networks. Shares in the company dropped to lows of $20 at the open, their lowest since March, but bounced to trade down 21.73pc tat $21.635 in the first ten minutes of trade.
Genworth Mortgage Insurance Australia (GMA):
Softening in the housing market has subdued Genworth’s seasonal uplift - pushing its loss ratio guidance to between 50 per cent to 55pc but it says its gross written premiums are expected to increase. At its third quarter results released today, the mortgage insurance broker posted underlying net profit of $20.4 million for the quarter but said the quarter hadn’t had the same uplift as has historically been expected. Despite that, shares have pushed up by 2.06 per cent to $2.22 - from 12-month lows of $2.16 hit on Tuesday. “We also continued to see the impact of our 2017 annual premium earnings pattern review on our results and to make progress in implementing strategic initiatives designed to redefine our core business model,” chief Georgette Nicholas said.
Healthscope Ltd (HSO):
Members of the BGH Consortium, bidding for the takeover of Healthscope have upped their stake as pressure on the target intensifies. Australian Super has lifted its stake in Healthscope by 14.3 million shares - taking the overall consortium interest to 19.13 per cent. The Paula Dwyer-led Healthscope board is expected to come under shareholder pressure at its annual meeting today, with investors increasingly pushing for directors to open the data room to suitor BGH Capital.
Myer Holdings Ltd (MYR):
New Myer chief executive John King has continued his revamp of the department store’s executive ranks that includes recently stripping out 30 senior managers from the business, with the hiring of a former Westpac and David Jones executive in the key role of customer service. Myer announced this morning the appointment of Geoff Ikin as the retailer’s new Chief Customer Officer. The new role will bring together key customer facing functions including online, marketing, and advertising. Mr Ikin comes to Myer from Tourism Australia and prior to that was at Westpac and David Jones. Myer said his commencement date is to be confirmed.
Origin Energy Ltd (ORG):
Origin Energy has posted a 12 per cent quarterly lift in oil and gas revenue despite production remaining steady, with the company attributing the rise to higher commodity prices. In an announcement to the ASX, Origin (ORG) said its share of Australia Pacific LNG revenue increased to $640 million for the September quarter, up from $570 million in June and 35 per cent higher on the same time last year. Origin’s electricity sales increased four per cent from June in line with seasonal demand, while gas sales increased by six per cent, reflecting new short-term contracts in Queensland and higher seasonal demand in Victoria, partially offset by lower sales to generation. “Australia Pacific LNG continues to produce at steady rates, allowing it to meet its LNG contract commitments and deliver large volumes of gas into the east coast domestic market, while higher realised prices delivered a strong uplift in revenue for the quarter,” Origin chief executive Frank Calabria said.
QBE Insurance Group Ltd (QBE):
Insurance company QBE will merge its Asia and European operations as it moves to build a more streamlined business. It comes after the company (QBE) announced in May it would cut back its offshore operations in Asia and the Americas as it looked to simplify the group, following a statutory net loss of more than $US1.2 billion the prior year. “Today’s announcement represents the next step in creating a stronger, simpler QBE,” chief executive Pat Regan said. “These changes enable QBE to enhance our customer proposition and build a stronger platform for long term, sustainable and profitable growth.” The company’s operations will now be comprised of three divisions, including an international division comprised of European and Asia businesses, headed up by Richard Pryce, who is currently the chief executive of the company’s European division.
(Source: AIMS)
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