In today’s briefing:
- CDL (CIT SP): Corporate Governance Casualty. Shareholder Pain Runs Deeper than Promoter Family Feud
- ECM Weekly (17th Mar 2025) -JPB, Recruit, Austal, BoB, Chifeng, Guarantee, Anjoy, Softcare, AvePoint
- SelfWealth (SWF AU): 22nd April Scheme Vote
- Nikkei Index Options Weekly (Mar 10–14): Assessing Long Vs. Short Vol Strategies & Returns Vs. SPX
- NSE NIFTY50/ Vol Update / IVs Subdued as Options Markets See Low Risk of U.S. Trade Tension Blowup.
- HSCEI Index Options Weekly (March 10-14): A Tactical Hedge as Relative Outperformance Continues
- The Hartford Financial Services Group: An Enhanced Pricing & Risk Management Strategy!
- Markel Corporation: Technology Investment & Modernization For Unmatched Impact!
- Globe Life Inc.: Share Repurchase & M&A Strategy to Effectively Navigate Competitive Market Dynamics!
- Kinsale Capital Group: Expansion Into Adjacent Markets To Capture A Larger Share Of The E&S Market!
CDL (CIT SP): Corporate Governance Casualty. Shareholder Pain Runs Deeper than Promoter Family Feud
- City Developments (CIT SP) aka CDL’s boardroom battle, framed as a family feud, grabbed media attention and overshadowed more serious, long-ignored corporate governance issues.
- Despite prolonged underperformance and founder-family control controversies, CDL’s board have failed to enact decisive reforms to restore shareholder value.
- The CDL saga exposes systemic risks in family-run, publicly listed firms where often corporate governance gets compromised and minority shareholder interests are undermined.
ECM Weekly (17th Mar 2025) -JPB, Recruit, Austal, BoB, Chifeng, Guarantee, Anjoy, Softcare, AvePoint
- Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
- On the IPO front, we had a look at a few of the upcoming listings in Hong Kong.
- On the placements front, Japan Post Bank (7182 JP) managed to do better than its last deal while Austal Ltd (ASB AU) didn’t do too well.
SelfWealth (SWF AU): 22nd April Scheme Vote
- On the 27th Feb 2025, online trading player SelfWealth Ltd (SWF AU entered into Scheme with Singaporean-based wealth manager Svava.
- Svava tabled a A$0.28/share Offer, in cash, by way of a Scheme, trumping Bell Financial (BFG AU)‘s A$0.25/share earlier bid. Svava also has a 18.83% stake.
- The Scheme Booklet is now out, with a Scheme Meeting on the 22nd April. Expected implementation on the 7th May. The IE (Grant Thorton) says fair & reasonable.
Nikkei Index Options Weekly (Mar 10–14): Assessing Long Vs. Short Vol Strategies & Returns Vs. SPX
- We assess the effectiveness of short volatility versus long volatility positioning.
- Nikkei’s performance relative to SPX is analyzed across three distinct time frames.
- Volatility remained muted ahead of next week’s Bank of Japan meeting, while option volumes increased week over week.
NSE NIFTY50/ Vol Update / IVs Subdued as Options Markets See Low Risk of U.S. Trade Tension Blowup.
- IVs remain subdued, trading sub-12% levels, as Option Markets expect low impact from U.S.-trade tensions. Risk premia compresses in spite of upcoming FOMC event risk.
- Vol term-structure has moved further into Contango. Realized Vol continues to underperform.
- Vol-Surface is exhibiting interesting behaviour as Skew has compressed while Smile has extended.
HSCEI Index Options Weekly (March 10-14): A Tactical Hedge as Relative Outperformance Continues
- We highlight HSCEI’s outperformance vs. SPX across both long- and short-term price histories.
- Mixed performance this week, with stimulus enthusiasm on Friday helping the market recover to a flat finish.
- Given recent outperformance, we outline a tactical hedge to manage risk.
The Hartford Financial Services Group: An Enhanced Pricing & Risk Management Strategy!
- The Hartford Financial Services Group’s recent earnings highlighted both commendable achievements and areas of concern for the company.
- The reported outcomes for the fourth quarter and the full year 2024 underscore the company’s solid financial performance, propelled by strategic initiatives and a disciplined approach to underwriting and pricing.
- Positive aspects include robust growth across different sectors, with Commercial Lines witnessing a 6% growth in the fourth quarter and 9% for the year.
Markel Corporation: Technology Investment & Modernization For Unmatched Impact!
- Markel Group’s recent financial performance reflects a mix of both progress and challenges across its various business units.
- The company achieved operating income of $3.7 billion in 2024, up from $2.9 billion in 2023, primarily driven by strong returns in its public equity portfolio, which returned 20.1%.
- Despite this growth, a key takeaway from the earnings call is the need for improvement in the company’s insurance segment.
Globe Life Inc.: Share Repurchase & M&A Strategy to Effectively Navigate Competitive Market Dynamics!
- Globe Life reported a fourth-quarter net income of $255 million, or $3.01 per share, compared to $275 million, or $2.88 per share, in the prior year.
- Net operating income increased 12% to $266 million, or $3.14 per share.
- Return on equity stood at 21.7%, while book value per share, excluding accumulated other comprehensive income, rose 13% to $86.40.
Kinsale Capital Group: Expansion Into Adjacent Markets To Capture A Larger Share Of The E&S Market!
- Kinsale Capital Group’s fourth-quarter 2024 performance highlights reveal a blend of solid financial outcomes and certain market-related challenges.
- Operating earnings per share saw a notable increase of 19.4% compared to the same period in the previous year, reflecting robust profitability.
- Furthermore, gross written premium also experienced a healthy growth of 12.2%, demonstrating continued expansion within the company’s risk appetite despite heightened market competition.
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