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Typhoon Hagibis claims to hit insurers; IAG to sell stake in Indian insurer

S&P Global Market Intelligence offers our top picks of insurance news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.

Typhoon Hagibis affects Japan

* Typhoon Hagibis, which hit Japan on Oct. 12, "is expected to produce a large volume of commercial insurance claims" stemming from wind, rain, flooding and storm surge, according to global loss adjuster Sedgwick. Hagibis made landfall as a Category 2 storm near the Izu peninsula to the south of Tokyo, causing heavy flooding. The storm has killed more than 30 people and left 15 missing.

* The main source of claims is expected to be flooding. James Cosgrove, modeler, event response at RMS, said there had been 51 levee failures as rain both before and during the storm swelled rivers, resulting in small towns being inundated.

Deals and stake sales

* Insurance Australia Group Ltd. agreed to sell its 26% interest in SBI General Insurance Co. Ltd. through two transactions. Total consideration amounts to more than A$640 million based on the current exchange rate, according to IAG.

* Marsh India Insurance Brokers Pvt. Ltd. agreed to acquire JLT Independent Insurance Brokers Pvt. Ltd., with the deal expected close by the first quarter of 2020, The Hindu Business Line reported.

* China Cinda Asset Management Co. Ltd. is seeking at least 7.5 billion yuan for its entire 50.995% stake in life and health insurance subsidiary Happy Life Insurance Co. Ltd., the Securities Times reported.

* Japan's Mitsubishi UFJ Financial Group Inc. raised its holding in Australian insurance broker AUB Group Ltd. to 6.73% from 5.72%.

Operations, regulations and more

* The Australian government announced plans to set up a new disciplinary system and a disciplinary watchdog for financial advisers by 2021. The new disciplinary system will replace the role of code monitoring bodies that were due to be established by industry associations under professional standards reforms.

* China removed some entry barriers for foreign insurers and banks, as the world's second-largest economy continues to open its financial sector to foreign investors. Foreign insurers now no longer need 30 years of operating experience before applying to operate in China, and their operations in the country are allowed to sell stakes to foreign financial institutions.

* South Korea's Securities and Futures Commission under the Financial Services Commission approved sanctions on Mirae Asset Life Insurance Co. Ltd. for an insurance accounting rules violation, The Chosun Ilbo reported.

In other news

* The board of South Korea's Lotte Insurance Co. Ltd. approved a plan to issue 176,056,320 shares to a JKL Partners Inc. special purpose corporation and Hotel Lotte Co., Ltd. at 2,130 won per share, for a total of 375 billion won. The special purpose corporation became the insurer's controlling shareholder after taking over a 53.49% stake from five existing shareholders.