Daily Brief Financials: Virgin Money UK Plc, Capitaland Integrated Commercial Trust, Erie Indemnity Company Cl A, HKEX, Ethereum, Travelers Cos, Wr Berkley Corp, Georgia Capital PLC, Metlife Inc, Old Republic Intl and more

• Back on the 21st March, Virgin Money UK (VUK AU/VMUK LN), UK’s sixth largest retail bank, entered into a Scheme with Nationwide Building Society, at 220 pence/share, in cash.
• The consideration is a solid 38% premium to undisturbed. And shareholders backed terms at the 22nd May Court Meeting. Plus UK’s CMA signed off on the 19th July. 
• What now? FCA/PRA approvals are the key remaining conditions. These regulatory approvals are imminent.

• Capitaland Integrated Commercial Trust (CICT SP) is looking to raise around S$350m (US$267m) in its primary placement. Included in the issuance is a preferential offering to raise an additional S$757m.
• The proceeds will be geared towards acquiring a 50% interest in the ION Orchard mall from its Sponsor.
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Dell Technologies (DELL US) is the main addition by transition candidate with a reduced probability due to no longer passing the S&P 500 transition threshold.
• Erie Indemnity (ERIE US) and Lennox International (LII US) are the main addition by migration candidates with an increased probability due to weak transition candidates.
• Addition by migration candidates have more inconsistent selection patterns. Other addition candidates include Texas Pacific Land (TPL US), Carlisle Cos (CSL US) and Dick’s Sporting Goods (DKS US) .

• Asia Ex-Japan fund managers continue to reduce their positions in Hong Kong Exchanges & Clearing.
• Percentage of funds invested and the average weight of the stock in portfolios have been on a downward trend since the recent peak in early 2023
• Wave of position closures in 2024 by Allianz, T Rowe Price, and Baillie Gifford has resulted in over half of the historical investor base exiting the stock

• As we enter a new month, it is a good time to reassess the market outlook.
• Throughout August, we held the belief that the crypto market would gradually recover from its early-month lows.
• While this expectation was partly fulfilled, we now recognize several indicators suggesting a downward trend or, at best, sideways movement throughout September.

• Travelers Companies Inc. has reported its second quarter 2024 earnings with quite robust financial outcomes, characterized by strength across most of its operational dimensions.
• The firm registered substantial top line growth, with net written premiums increasing by 8% to reach $11.1 billion compared to the previous periods.
• This positive trajectory was primarily fueled by effective field execution and strong retention rates across all business segments.

• W.R. Berkart Corporation began the year 2024 with exceptionally strong quarterly financial performance, marked by record levels of operating income, net investment income, and underwriting income.
• The positive outcomes from this first quarter reveal a company that is harnessing its capabilities effectively across various areas of its operations.
• During the quarter, W.R. Berkley Corporation manifested a commendable growth in net premiums written, which escalated to nearly $2.9 billion, marking an increase of 10.7% over the previous period.

Georgia Capital’s (GCAP’s) net asset value (NAV) per share decreased by 12.8% quarter-on-quarter in Q224 in Georgian lari (down 16.5% in sterling terms). This was mostly due to the widening of bond yields and credit spreads amid the latest political turmoil in Georgia. The de-rating of Bank of Georgia’s (BoG’s) shares had a 7.1pp impact on GCAP’s NAV, while higher discount rates applied to value the private portfolio companies contributed a further 7.5pp drag. Meanwhile, portfolio companies continue their expansion and dividend distributions, with GEL105m collected by GCAP to 12 August 2024, and management reiterated its dividend income outlook of GEL180–190m in FY24 (c 5% yield on the opening portfolio value). GCAP has recently increased its share buyback programme, with US$16.7m remaining to be repurchased as of 30 August 2024.

• MetLife demonstrated strong financial performance in its second quarter of 2024, reflecting robust underwriting results and solid variable investment income.
• Despite navigating economic fluctuations, MetLife’s diversified business operations played a key role.
• The company reported adjusted earnings of $1.6 billion or $2.28 per share, marking an 18% increase from the prior year.

• In the second quarter of 2024, Old Republic International Corporation showcased a mix of strong financial performance and ongoing challenges.
• The company reported a consolidated pretax operating income of $254 million, an improvement from $227 million in the same period of 2023, indicating a positive trend in profitability.
• The consolidated combined ratio was 93.5%, slightly higher than last year’s 92.6%, but still below 100%, which is a sign of continued underwriting profitability.