Deloitte Expects Robust 2019 Insurance M&A Activity

The appetite for insurtech capability is one of the “five buckets” that Deloitte authors separate potential 2019 M&A drivers. The continued creation of …

Several factors are pointing to 2019 being another solid year for mergers and acquisitions across the insurance industry, a Deloitte report concluded.

Deloitte’s annual M&A Outlook recorded 681 transactions in 2018 across the insurance sector, up from 621 deals in 2017. This surge include an 11 percent jump in insurance broker transactions (537 to 594) and a 15 percent increase in property/casualty deals (53 to 61).

The immediate outlook is for more of the same, Mark Purowitz, principal and M&A leader with Deloitte, told InsuranceNewsNet.

“Insurance companies are finally starting to figure out that they don’t have to build everything themselves, so they’re going to buy capability,” he explained. “We’ve already seen a handful of those acquisitions over the last few years by insurance companies who have invested in insurtechs.”

The appetite for insurtech capability is one of the “five buckets” that Deloitte authors separate potential 2019 M&A drivers. The continued creation of venture capital funds, some within insurance companies, along with the healthy number of viable insurtech targets makes this a ripe area for M&A activity, the report stated.

The other four buckets are:

  1. Cross-border deals. There is plenty of interest in cross-ownership from major insurers, Purowitz said, as well those who want to be major insurers.

“I think we’ll see more from the Japanese into the U.S. as they look for more strategic buys and platform plays,” he said. “They buy an asset here to get into the market and learn, and then they use that asset to expand. … I think there’s going to be more interest from the European players who need to be in the U.S. to be considered a global player.”

2. Middle market match-ups. Middle-market insurers, those Deloitte identifies as between $500 million and $2 billion in size, are being squeezed as InsurTechs change the customer relationship dynamic.

Many of these companies are looking around for partnership possibilities, Deloitte said. Many of them are mutual insurance companies seeking new structures to give them more flexibility.

“The mutuals are starting to feel a tremendous amount of pressure for the first time,” Purowitz said. “And they’re struggling to keep up with the technological advances, their balance sheets and their ability to spend. And they’re struggling for relevance because they were founded on this concept of community trust and the younger generation’s definition of trust is very different.”

3. Portfolio optimization. “Small-to-medium companies operating in the fragmented personal lines insurance market may pursue acquisitions to diversify into the small commercial insurance space,” the Deloitte report reads.

The Chicago-based Kemper Corp.’s $1.6 billion purchase of Infinity Property & Casualty Corp. in July 2018 is a perfect example, the report said. Kemper companies offer insurance for home, auto, life, health and valuables, while Infinity sells auto insurance in the specialty, nonstandard automotive segment.

“The combined company will have a more diversified portfolio across auto, home, life and health insurance,” the report concluded.

4. Private equity participation. With plenty of money in play, private equity firms such as Apollo Global are in the market, and insurance entities are always attractive buys, Deloitte said.

“In doing so they gain access to a stable business model, premium income, investable assets and capital, and a good source of short-term earnings, especially for asset-intensive lines like run-off insurance,” the report said.

‘Top Of Mind’

While regulatory barriers to M&A continue to fall, insurers would do well to keep regulatory concerns “top of mind” in 2019, the Deloitte report indicated. It’s no surprise that annuity and life insurance sales standards are regulatory issue No. 1.

“Perhaps the single biggest discussion item related to market conduct thus far has been the possible creation of new, higher sales standards for annuity and life insurance,” the report stated. “Regulators have been moving toward consensus that a ‘best interest’ standard might be appropriate for annuity sales, and the state of New York has already issued regulations.”

Likewise, cybersecurity and data privacy concerns continue to dominate regulatory discussions all the way to the international stage.

In the grand scheme, however, 2019 is expected to provide a continued opening for strong M&A activity between regulatory campaigns.

“The current regulatory environment appears more settled compared to the recent past and, absent a significant unexpected event, we see little prospect of major new regulation in 2019, especially in relation to bank and insurance capital,” Deloitte concluded.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

© Entire contents copyright 2019 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

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Why Winklevoss Twins Are Not Feeling The Bitcoin Twinkle Anymore

The Gemini crypto exchange founders, commonly known as Winklevoss Twins, said that people are losing confidence in crypto and investors no …

The long standing bear market has made people skeptical about crypto. They are losing confidence and we have to do something… FAST. And, we are not the ones saying this but you heard it from the Winklevoss twins.

The Gemini crypto exchange founders, commonly known as Winklevoss Twins, said that people are losing confidence in crypto and investors no longer want to invest in it especially after the shut down of QuadrigaCX. They are now demanding US regulators to make cryptocurrency a safe place for investors. They said:

“There are a lot of carcasses on the road of crypto that we’ve seen and learned from. At the end of the day, it’s really a trust problem. You need some kind of regulation to promote positive outcomes.”

The jolt was faced after Canada-based crypto exchange announced its shutdown this December. The unexpected death of it’s chief executive Gerald Cotten died unexpectedly with the keys of $194 million crypto wallets. As a result company lost it’s clients and that has shaken many of its investors beliefs.

The Double Trouble can spot only trouble

The Twinklevoss twins could be right about this but one incident cannot spark a negative trend. Crypto has been out there for a considerable amount of time and one event will not manifest into the decline of it. There is no proof. The twins seem to implying that the QuadrigaCX would undo the crypto adoption. When they should really be educating people to work smart and not hard.

Safeguarding your assets should be any investors utmost priority especially if you are in the crypto business. Hacks are lethal and they cannot differentiate if you are regulated or unregulated exchanges.

The reason why QuadrigaCX users had to face such a fate was because they placed their trust in the exchanges. The main reason why bitcoin was made was because Satoshi Nakamoto did not want people to place their trust in a centralized entity. The likes of QuadrigaCX such as BitStamp ($1.43 billion), BitFinex ($900 million), BitGrail ($170 million), CoinRail ($40 million) have all suffered due to this reason.

Most of the investors trusted the exchanges and here we are we so much money lost all for nothing. These exchanges continue to control users’ assets, and that is where the core problem lies.

The reason why people go to centralized exchanges is because they have no other option. And, till the time decentralized exchange projects (DEX) are able to catch up and handle large number of volumes as well as get supporting features like margin trading, investors will have to restrict the use of centralized exchanges and try not to put a lot of money on public wallets.

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Anaplan, Inc. (PLAN) Hit Record High

The stock of Anaplan, Inc. (NYSE:PLAN) reached all time high today, Mar, 14 and still has $43.89 target or 8.00 % above today’s $40.64 share price.

The stock of Anaplan, Inc. (NYSE:PLAN) reached all time high today, Mar, 14 and still has $43.89 target or 8.00 % above today’s $40.64 share price. This indicates more upside for the $5.08B company. This technical setup was reported by Barchart.com. If the $43.89 PT is reached, the company will be worth $406.32M more.

Trading stocks at an all time highs is usually a winning strategy. An all time high points to a stock which has the most positive fundamentals ever. Even thought the pullback rate is high, if correct risk management is utilized, investors can trade very well such events.

The stock increased 4.53% or $1.76 during the last trading session, reaching $40.64. About 536,352 shares traded or 1.15% up from the average. Anaplan, Inc. (NYSE:PLAN) has 0.00% since March 14, 2018 and is . It has underperformed by 4.37% the S&P500.

Analysts await Anaplan, Inc. (NYSE:PLAN) to report earnings on May, 27. After $-0.26 actual earnings per share reported by Anaplan, Inc. for the previous quarter, Wall Street now forecasts 30.77 % negative EPS growth.

More notable recent Anaplan, Inc. (NYSE:PLAN) news were published by: Investorplace.com which released: “Is Larry Culp Leading General Electric In the Right Direction? – Investorplace.com” on February 28, 2019, also Fool.com with their article: “Here’s Why the Initial 2020 Pentagon Funding Plan Is DOA – Motley Fool” published on March 04, 2019, Ft.com published: “NYSE plan to expand floor-traded stocks hits snag – Financial Times” on April 25, 2018. More interesting news about Anaplan, Inc. (NYSE:PLAN) were released by: Seekingalpha.com and their article: “GE downsizes plan for Boston headquarters – Seeking Alpha” published on February 14, 2019 as well as Seekingalpha.com‘s news article titled: “Wall Street Breakfast: Another Day, Another Brexit Vote – Seeking Alpha” with publication date: March 13, 2019.

Anaplan, Inc. provides a cloud-based connected planning platform Its platform unites traditionally distinct or disconnected database structures, including relational, columnar, and online analytical processing with in-memory data storage and calculation that is used in various lines of business, such as finance, sales, supply chain, marketing, human resources, and operations. The company has market cap of $5.08 billion. The firm delivers its application over the Internet as a subscription service using a software-as-a-service model. It currently has negative earnings. It operates in the United States, the United Kingdom, France, Belgium, Sweden, the Netherlands, Russia, Austria, Switzerland, Germany, Australia, Singapore, Japan, and India.

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Anaplan (PLAN) Hits New 12-Month High at $40.81

Anaplan Inc (NYSE:PLAN)’s share price reached a new 52-week high on Thursday . The stock traded as high as $40.81 and last traded at $40.25, …

Anaplan logoAnaplan Inc (NYSE:PLAN)’s share price reached a new 52-week high on Thursday . The stock traded as high as $40.81 and last traded at $40.25, with a volume of 347126 shares changing hands. The stock had previously closed at $38.88.

Several equities analysts have recently weighed in on the company. Barclays reissued a “hold” rating on shares of Anaplan in a research report on Tuesday, February 26th. Zacks Investment Research downgraded Anaplan from a “hold” rating to a “sell” rating in a research report on Saturday, January 26th. Canaccord Genuity reaffirmed a “buy” rating and issued a $40.00 price objective on shares of Anaplan in a research report on Tuesday, February 26th. KeyCorp reaffirmed a “hold” rating on shares of Anaplan in a research report on Tuesday, February 26th. Finally, SunTrust Banks upped their price objective on Anaplan to $42.00 and gave the company a “buy” rating in a research report on Tuesday, February 26th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and five have issued a buy rating to the company’s stock. Anaplan currently has an average rating of “Hold” and an average target price of $31.44.

The stock has a market cap of $4.86 billion and a P/E ratio of -23.65.

Anaplan (NYSE:PLAN) last issued its earnings results on Monday, February 25th. The company reported ($0.13) earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.18) by $0.05. The firm had revenue of $69.30 million during the quarter, compared to analysts’ expectations of $63.71 million. The company’s revenue for the quarter was up 49.7% on a year-over-year basis. Research analysts forecast that Anaplan Inc will post -1.29 EPS for the current year.

Hedge funds have recently modified their holdings of the business. Neuburgh Advisers LLC purchased a new stake in shares of Anaplan in the 4th quarter worth $27,000. Advisor Group Inc. purchased a new stake in shares of Anaplan in the 4th quarter worth $41,000. Flinton Capital Management LLC purchased a new stake in shares of Anaplan in the 4th quarter worth $42,000. Legal & General Group Plc purchased a new stake in shares of Anaplan in the 4th quarter worth $74,000. Finally, Citigroup Inc. purchased a new stake in shares of Anaplan in the 4th quarter worth $126,000. Institutional investors and hedge funds own 35.66% of the company’s stock.

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Anaplan Company Profile (NYSE:PLAN)

Anaplan, Inc provides a cloud-based connected planning platform Its platform unites traditionally distinct or disconnected database structures, including relational, columnar, and online analytical processing with in-memory data storage and calculation that is used in various lines of business, such as finance, sales, supply chain, marketing, human resources, and operations.

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Baillie Gifford & Co. Takes Position in Anaplan Inc (PLAN)

Baillie Gifford & Co. acquired a new position in shares of Anaplan Inc (NYSE:PLAN) during the fourth quarter, according to the company in its most …

Anaplan logoBaillie Gifford & Co. acquired a new position in shares of Anaplan Inc (NYSE:PLAN) during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 1,871,644 shares of the company’s stock, valued at approximately $49,673,000.

Other hedge funds also recently added to or reduced their stakes in the company. Frontier Capital Management Co. LLC purchased a new position in shares of Anaplan in the 4th quarter worth $8,313,000. Emerald Advisers LLC purchased a new position in shares of Anaplan in the 4th quarter worth $422,000. Rhumbline Advisers purchased a new position in shares of Anaplan in the 4th quarter worth $643,000. TD Asset Management Inc. purchased a new position in shares of Anaplan in the 4th quarter worth $391,000. Finally, Breakline Capital LLC purchased a new position in shares of Anaplan in the 4th quarter worth $738,000. 35.66% of the stock is currently owned by hedge funds and other institutional investors.

Shares of Anaplan stock traded up $1.12 during trading hours on Thursday, hitting $40.00. The company’s stock had a trading volume of 73,108 shares, compared to its average volume of 583,321. Anaplan Inc has a 12-month low of $20.37 and a 12-month high of $40.75. The company has a market capitalization of $4.86 billion and a price-to-earnings ratio of -23.26.

Anaplan (NYSE:PLAN) last announced its quarterly earnings data on Monday, February 25th. The company reported ($0.13) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.18) by $0.05. The business had revenue of $69.30 million during the quarter, compared to analysts’ expectations of $63.71 million. The business’s revenue for the quarter was up 49.7% compared to the same quarter last year. Analysts forecast that Anaplan Inc will post -1.29 earnings per share for the current year.

Several equities analysts recently weighed in on the company. Zacks Investment Research downgraded Anaplan from a “hold” rating to a “sell” rating in a research report on Wednesday, February 27th. KeyCorp reiterated a “hold” rating on shares of Anaplan in a research report on Tuesday, February 26th. Canaccord Genuity reiterated a “buy” rating and set a $40.00 target price on shares of Anaplan in a research report on Tuesday, February 26th. SunTrust Banks lifted their target price on Anaplan to $42.00 and gave the company a “buy” rating in a research report on Tuesday, February 26th. Finally, Barclays reiterated a “hold” rating on shares of Anaplan in a research report on Tuesday, February 26th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and five have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $31.44.

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Anaplan Profile

Anaplan, Inc provides a cloud-based connected planning platform Its platform unites traditionally distinct or disconnected database structures, including relational, columnar, and online analytical processing with in-memory data storage and calculation that is used in various lines of business, such as finance, sales, supply chain, marketing, human resources, and operations.

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Institutional Ownership by Quarter for Anaplan (NYSE:PLAN)

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