Rejected the Queensland Insurance Group (QBE) 87 billion Australian dollars bid, Australia's largest auto and home insurers - Insurance Australia Group (IAG, the "O-Group") now the days seem not so easy.
July 9, O-Group, to be announced since 2003 Group of the greatest losses and poor performance of the business consolidation, including the sale of the group in the United Kingdom part of poor management of insurance business.
O-Group spokesman on the same day in a telephone interview that the consolidation of the group all projects in progress, in the short term will have a certain financial impact, but the main groups operating in good condition. When asked about the transferee and the British insurance business targets, he said the current temporary inappropriate to comment.
Refusal to buy, Stiffness
Over the past two years, swept across Australia's stock market crash has seriously affected the confidence of investors. February 2005, the O-group market prices continue to decline this year also dropped to 6.9 billion Australian dollars, the rate fell by nearly half.
According to O-groups issued a notice on the 9th, since June 30, 2006, its stock price dropped 5.35 U.S. dollars from 3.66 U.S. dollars.
Since the first half of this year alone, the Group profit fell to 110 million yuan less than the same period last year dropped by 235 million yuan, has to touch the Group of normal operations to the bottom line.
In addition, investors in the Group 2 billion Australian dollars heavily expansion of British business move heavy criticism that the UK high dividend distribution policy of the Australian-led group linked funds unprecedented tension. And the group insurance business in the United Kingdom such as Hastings Insurance, Advantage Insurance (2006 acquisition, the total value of 350 million Australian dollars), Equity Insurance Brokers (2007 acquisition, worth 570 million pounds) a very low rate of return, but the loss is expected to reach at least 2 Billion Australian dollars.
Group O-gloomy business conditions lead to the QBE attractive. 5 months of this year, QBE Group to the O-value of 8.3 billion Australian dollars to buy and prices on the 19th will be raised to 8.7 billion Australian dollars in an attempt to M & O-group at one stroke.
Although O-group prices are too low to the ground, in late May rejected the QBE 4.60 Australian dollars a share, the deal is still on how to shareholders of the Group of the correctness of their position that burn very anxious. Former CEO Michael Hawker also because of the enormous internal and external pressure to resign, Ping Fu investors in the poor performance of discontent.
New CEO to streamline relief strategy
The new CEO Mike Wilkins soon after, decided drastic layoffs the company's management of about 500 people, to rebuild the confidence of investors. He more recently said, will be sold by his predecessor, Michael Hawker bought part of the British insurance business, to counter the constantly shrinking corporate profits.
In addition, Mike Wilkins decided to focus on the implementation of the strategy to streamline the company, the Group will mainly concentrate on their own strength and New Zealand's traditional insurance business and to the further development of China, India dominated the Asian market.
In fact, the O-Group in February 2006 to 280 million U.S. dollars to buy Taibao 24.9 percent stake in General Insurance and General Insurance and Taibao in the same year in April to the China Insurance Regulatory Commission made a preliminary agreement for cooperation. However, since this Taibao in China (601601. SH) listed the overall difficulties encountered in Australia in the final Group-June 2007 to give up.
Britain, the group will be in addition to the sale of Equity Red Star, all insurance business. He believes that the scheme if successful, at least for the group to avoid the loss of 130 million Australian dollars.
"At present the company's poor financial situation, we will streamline company operations, will be to maximize the interests of investors." Mike Wilkins said.
Mike Wilkins also predicted that this reform will enable the group 2008,2009 earnings growth rate of 6 percent.
O-Chairman of the Group of James Strong on the 9th in a statement issued in support of Mike Wilkins said the improvement strategy, saying it will greatly strengthen the board's confidence in the company's development.
Industry analysis, the Australia Group-a trend to cut the Gordian knot, to reduce poor performance of British business, the Group is the sixth consecutive year of poor management turned opportunity.
July 9, O-Group, to be announced since 2003 Group of the greatest losses and poor performance of the business consolidation, including the sale of the group in the United Kingdom part of poor management of insurance business.
O-Group spokesman on the same day in a telephone interview that the consolidation of the group all projects in progress, in the short term will have a certain financial impact, but the main groups operating in good condition. When asked about the transferee and the British insurance business targets, he said the current temporary inappropriate to comment.
Refusal to buy, Stiffness
Over the past two years, swept across Australia's stock market crash has seriously affected the confidence of investors. February 2005, the O-group market prices continue to decline this year also dropped to 6.9 billion Australian dollars, the rate fell by nearly half.
According to O-groups issued a notice on the 9th, since June 30, 2006, its stock price dropped 5.35 U.S. dollars from 3.66 U.S. dollars.
Since the first half of this year alone, the Group profit fell to 110 million yuan less than the same period last year dropped by 235 million yuan, has to touch the Group of normal operations to the bottom line.
In addition, investors in the Group 2 billion Australian dollars heavily expansion of British business move heavy criticism that the UK high dividend distribution policy of the Australian-led group linked funds unprecedented tension. And the group insurance business in the United Kingdom such as Hastings Insurance, Advantage Insurance (2006 acquisition, the total value of 350 million Australian dollars), Equity Insurance Brokers (2007 acquisition, worth 570 million pounds) a very low rate of return, but the loss is expected to reach at least 2 Billion Australian dollars.
Group O-gloomy business conditions lead to the QBE attractive. 5 months of this year, QBE Group to the O-value of 8.3 billion Australian dollars to buy and prices on the 19th will be raised to 8.7 billion Australian dollars in an attempt to M & O-group at one stroke.
Although O-group prices are too low to the ground, in late May rejected the QBE 4.60 Australian dollars a share, the deal is still on how to shareholders of the Group of the correctness of their position that burn very anxious. Former CEO Michael Hawker also because of the enormous internal and external pressure to resign, Ping Fu investors in the poor performance of discontent.
New CEO to streamline relief strategy
The new CEO Mike Wilkins soon after, decided drastic layoffs the company's management of about 500 people, to rebuild the confidence of investors. He more recently said, will be sold by his predecessor, Michael Hawker bought part of the British insurance business, to counter the constantly shrinking corporate profits.
In addition, Mike Wilkins decided to focus on the implementation of the strategy to streamline the company, the Group will mainly concentrate on their own strength and New Zealand's traditional insurance business and to the further development of China, India dominated the Asian market.
In fact, the O-Group in February 2006 to 280 million U.S. dollars to buy Taibao 24.9 percent stake in General Insurance and General Insurance and Taibao in the same year in April to the China Insurance Regulatory Commission made a preliminary agreement for cooperation. However, since this Taibao in China (601601. SH) listed the overall difficulties encountered in Australia in the final Group-June 2007 to give up.
Britain, the group will be in addition to the sale of Equity Red Star, all insurance business. He believes that the scheme if successful, at least for the group to avoid the loss of 130 million Australian dollars.
"At present the company's poor financial situation, we will streamline company operations, will be to maximize the interests of investors." Mike Wilkins said.
Mike Wilkins also predicted that this reform will enable the group 2008,2009 earnings growth rate of 6 percent.
O-Chairman of the Group of James Strong on the 9th in a statement issued in support of Mike Wilkins said the improvement strategy, saying it will greatly strengthen the board's confidence in the company's development.
Industry analysis, the Australia Group-a trend to cut the Gordian knot, to reduce poor performance of British business, the Group is the sixth consecutive year of poor management turned opportunity.
No comments:
Post a Comment