In today’s briefing:
- Hyundai Motor Securities Announces a Rights Offering Involving a 49% Shares Dilution
- DigiCo REIT (DGT AU) IPO: Offering Details & Index Implications
- Crypto Crisp: More Friendly, Still Overbought
- EQD | Nikkei 225 : State Of The Odds (WEEKLY)
- Old Republic International Corporation: Will Its Expansion of Specialty Underwriting Bring A Shift In The Competitive Dynamics? – Major Drivers
- The Hanover Insurance Group: How Is The Management Tackling The Financial Strain from Expense Management
- Lincoln National Corporation: Dealing With Strategic Capital Deployment & 4 Other Critical Challenges! – Major Drivers
- CNA Financial Corporation: An Analysis Into Its Growth in Gross Written Premiums & Profitable Segments & Other Major Drivers
- Chubb Limited: Geographic Diversification As A Vital Tool For Growth! – Major Drivers
- Lucror Analytics – Morning Views Asia – November 26, 2024
Hyundai Motor Securities Announces a Rights Offering Involving a 49% Shares Dilution
- Hyundai Motors Securities announced a rights offering worth nearly 200 billion won involving a 49% shares dilution.
- The amount of shares dilution is excessive which is likely to result in a share price weakness in Hyundai Motor Securities in the coming weeks.
- The expected rights offering price for now is 6,640 won per share which is 24.5% discount to the closing price on 26 November.
DigiCo REIT (DGT AU) IPO: Offering Details & Index Implications
- DigiCo REIT (DIGICO AU) is looking to raise nearly A$2bn in its IPO by selling 399.1m shares at A$5/share. Stock is expected to list on the ASX on 12 December.
- HMC Capital (HMC AU) will own 18.2% of DigiCo REIT (DIGICO AU) after the IPO while IPO investors will own 72.5% of the company.
- Subject to DigiCo REIT being an eligible stapled security, we expect the stock to be included in global and local indices between March and June mopping up 11.7% of float.
Crypto Crisp: More Friendly, Still Overbought
- Last Thursday, I shared my conviction in our Telegram crypto chat:
- My two cents: We touch $100,000 (or very close) but we do not comfortably get on the other side.
- This makes all the leverage and open interest (and retail euphoria) turn against us.
- After witnessing the Bitcoin price face repeated rejections since then, I am even more confident in this view.
EQD | Nikkei 225 : State Of The Odds (WEEKLY)
- The Nikkei 225‘s trend is uncertain at the moment: the new N225 WEEKLY QUANTCHART presented here (freely accessible 24/7 clicking here) shows us the current MRM models’ support and resistance.
- In the last few months the index stalled, currently it is stuck in a range roughly between 37650 and 40250, and it has closed down for 2 consecutive weeks (CC=-2).
- At the moment we expect the index to fall maybe another week (closing this week down) and then a LONG reversal the following week.
Old Republic International Corporation: Will Its Expansion of Specialty Underwriting Bring A Shift In The Competitive Dynamics? – Major Drivers
- Old Republic International Corporation reported its third-quarter 2024 earnings, revealing mixed results influenced by a range of market factors.
- The company’s consolidated pretax operating income declined to $229 million, down from $251 million in the prior year.
- Similarly, the consolidated combined ratio rose to 95% from last year’s 92%, indicating a deterioration in underwriting performance.
The Hanover Insurance Group: How Is The Management Tackling The Financial Strain from Expense Management
- The Hanover Insurance Group’s recent financial results for the third quarter show a complex but generally positive picture of the company’s performance.
- The firm reported an operating income of $3.05 per diluted share, with an operating return on equity of 14.4%.
- This performance reflects improvements driven by strategic initiatives such as enhanced pricing, adjustments in insurance value, and targeted underwriting actions.
Lincoln National Corporation: Dealing With Strategic Capital Deployment & 4 Other Critical Challenges! – Major Drivers
- Lincoln National Corporation delivered a strong performance in the third quarter of 2024, showcasing its highest quarterly adjusted operating income in over two years.
- This reflects positive momentum across all its business lines, driven by strategic initiatives focused on capital foundation, operating model optimization, and profitable growth.
- The company has made considerable progress in aligning its operations with these strategic goals, although it acknowledges that the transformations required are part of a multiyear journey.
CNA Financial Corporation: An Analysis Into Its Growth in Gross Written Premiums & Profitable Segments & Other Major Drivers
- CNA Financial Corporation reported strong financial performance in the third quarter, reflecting robust growth in core income and investment results, as well as strong underwriting performance.
- The core income for the quarter was $293 million, driven by a $73 million increase in net investment income to $626 million pre-tax.
- This surge in investment income was propelled by the positive performance of CNA’s alternatives portfolio and the growth of its fixed-income investments, which benefitted from higher book yields and a larger asset base.
Chubb Limited: Geographic Diversification As A Vital Tool For Growth! – Major Drivers
- Chubb Limited delivered a robust third quarter of 2024, posting significant growth in its Property and Casualty (P&C) underwriting, investment income, and life insurance segments.
- Core operating income increased by 14.3% year-over-year to $2.3 billion, contributing to a 16.9% rise in net income.
- The global P&C premium revenue grew by 7.6%, translating to an 8.5% increase in constant currency, reflecting strong performance across its diversified international markets and business segments.
Lucror Analytics – Morning Views Asia – November 26, 2024
- Treasuries surged yesterday, with yields falling 10-13 bps across the curve after a strong auction of 2Y notes and in the wake of US President-elect Donald Trump’s nomination of Scott Bessent as the next Treasury Secretary.
- Mr Bessent is expected to implement Mr Trump’s tax cuts, while reducing the budget deficit and boosting GDP growth through deregulation and other pro-growth policies.
- The yield on the 2Y UST fell 10 bps to 4.27%, while that on the 10Y UST declined 13 bps to 4.28%.
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