China Life Insurance Co., the nation's biggest insurer, will get around the restrictions barring Chinese insurers from investing in property by a partnership between its China Life Asset Management Co. and U.S. private equity firm Aetos Capital LLC to invest in the Chinese property market.
Where there is a law there may be a loophole for revenue.
[Click here for full story at: BLOOMBERG.COM]
Showing posts with label INSURANCE. Show all posts
Showing posts with label INSURANCE. Show all posts
Thursday, June 21, 2007
Saturday, May 26, 2007
EXPENDITURE STRATEGY - MUNICH RE
1. Munich Re, the world's second-biggest reinsurer, plans to sell about 1 billion euros ($1.3 billion) of subordinated bonds to reduce its cost of capital taking advantage of the favorable capital-market environment. The perpetual bonds will be marketed to investors during the week ending June 1 and will be callable by Munich Re from 10 years after the date of issue. The bond will have a fixed coupon and thereafter a floating rate
2. It also announced plans to pay out at least 8 billion euros to shareholders by the end of 2010.
[Raising subordinated capital is one way of optimizing capital structure and hence cost of capital. Subordinated bonds rank below senior debt in the event of a default. They will be treated as equity by regulators and rating firms under certain conditions, which Munich Re plans to fulfill.]
The opportunity cost of money keeps changing with business performance and the economic environment and often amenable for favorable tweaking.
And lean and mean almost always works well.
[Click here for full story at: BLOOMBERG.COM]
2. It also announced plans to pay out at least 8 billion euros to shareholders by the end of 2010.
[Raising subordinated capital is one way of optimizing capital structure and hence cost of capital. Subordinated bonds rank below senior debt in the event of a default. They will be treated as equity by regulators and rating firms under certain conditions, which Munich Re plans to fulfill.]
The opportunity cost of money keeps changing with business performance and the economic environment and often amenable for favorable tweaking.
And lean and mean almost always works well.
[Click here for full story at: BLOOMBERG.COM]
Friday, May 4, 2007
REVENUE STRATEGY – BERKSHIRE HATHAWAY
Berkshire Hathaway Inc. is investing in Wal-Mart Stores Inc. more than rival discounter Target Corp. Berkshire owns some 19.9 million shares, roughly worth $960 million.
Because:
1. The price of the Wal-Mart stock is attractive because it has fallen 17%, to 48, over the past five years as sales have slipped and operating costs have ballooned.
2. Wal-Mart’s management is making moves to get shoppers back - aggressively remodeling stores, changing its selection in high-margin categories such as consumer electronics, and tweaking the direction of women's apparel. 3. Wal-Mart is also trying to keep a lid on costs by pushing more of its manufacturing offshore, reducing inventory, and reining in store openings.
4. Wal-Mart’s international business, making a significant portion of money overseas, is appealing because of the gathering weakness of the U.S. dollar from the ballooning current-account deficit.
Perhaps the giant is coming back to life.
[Click here for full story at: BUSINESSWEEK.COM]
Because:
1. The price of the Wal-Mart stock is attractive because it has fallen 17%, to 48, over the past five years as sales have slipped and operating costs have ballooned.
2. Wal-Mart’s management is making moves to get shoppers back - aggressively remodeling stores, changing its selection in high-margin categories such as consumer electronics, and tweaking the direction of women's apparel. 3. Wal-Mart is also trying to keep a lid on costs by pushing more of its manufacturing offshore, reducing inventory, and reining in store openings.
4. Wal-Mart’s international business, making a significant portion of money overseas, is appealing because of the gathering weakness of the U.S. dollar from the ballooning current-account deficit.
Perhaps the giant is coming back to life.
[Click here for full story at: BUSINESSWEEK.COM]
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