UK personal lines insurers will need to adjust their pricing models in response to the Financial Conduct Authority’s proposed remedies surrounding the pricing of policies for renewing customers, according to a new AM Best commentary.

The Best’s Commentary, “Strong Brands the Likely Winners of UK Insurance Pricing Review,” states that as insurers will need to increase the prices applied to new business to offset the impact of lower renewal premium on earnings, other aspects of their business profile will likely play an increasing role in the decision-making process of potential and established customers.

This suggests that brands currently enjoying high levels of recognition and customer satisfaction will be best positioned to take advantage as policyholders begin to take more notice of a company’s customer service levels, the experiences of other policyholders (expressed via online channels), and metrics such as claims approval ratios.

To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=302026.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201014005665/en/

Contacts

William Keen-Tomlinson
Senior Financial Analyst
+44 20 7397 4395
will.keen-tomlinson@ambest.com

Catherine Thomas
Senior Director, Analytics
+44 20 7397 0281
catherine.thomas@ambest.com

Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Source Article

Happy Tuesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.



a man and a woman wearing a suit and tie: On The Money: Pelosi, citing 'leverage' over Trump, holds strong to $2.2T in COVID-19 aid | McConnell to force vote on 'targeted' relief bill next week | Trump again asks court to shield tax records


© Greg Nash
On The Money: Pelosi, citing ‘leverage’ over Trump, holds strong to $2.2T in COVID-19 aid | McConnell to force vote on ‘targeted’ relief bill next week | Trump again asks court to shield tax records

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THE BIG DEAL-Pelosi, citing ‘leverage’ over Trump, holds strong to $2.2T in COVID-19 aid: Speaker Nancy Pelosi (D-Calif.) on Tuesday shot down entreaties from some Democrats to cut a $1.8 trillion deal with the White House on coronavirus relief, arguing that President Trump’s pleas for Congress to “go big” have given her leverage to hold out for more aid.

“I appreciate the, shall we say, a couple people saying, ‘Take it, take it, take it,'” Pelosi said in a phone conference with Democrats, according to source on the call. “Take it? Take it? Even the president is saying, ‘Go big or go home.'”

  • Pelosi and Treasury Secretary Steven Mnuchin have been in near-daily talks in search of an elusive stimulus agreement, even as the prospect of a deal before the Nov. 3 elections has faded.
  • Mnuchin last week had offered a $1.8 trillion package, up from an earlier proposal of $1.6 trillion, prompting a growing number of House Democrats to urge the Speaker to come down from her $2.2 trillion proposal.
  • That figure was already a reduction from the Democrats’ $3.4

M.D.C. Holdings (MDC) is a buy for the total return and dividend income investor. M.D.C. Holdings is among the largest homebuilders in the United States and has an increasing owned backlog of over 17,000 lots to develop and options on another 7,000.

The company has steady growth and has the cash it uses to develop new properties and homes for the average home buyer. The lower interest rates give a tailwind to the company business. The Fed has indicated that they intend to keep interest rates low for at least a year or maybe two.

As I have said before in previous articles.

I use a set of guidelines that I codified over the last few years to review the companies in The Good Business Portfolio (my portfolio) and other companies that I am reviewing. For a complete set of guidelines, please see my article “The Good Business Portfolio: Update to Guidelines, March 2020”. These guidelines provide me with a balanced portfolio of income, defensive, total return, and growing companies that hopefully keeps me ahead of the Dow average.

When I scanned the five-year chart, M.D.C Holdings has a good chart going up and to the right for 2016, 2017, and 2019 in a strong solid pattern. It is a cyclic company and was down in 2015 and has recovered well in 2019 from the flat year of 2018. 2020 was doing good until the pandemic hit, then it went down like a rock in water but has recovered nicely in the past six months. The PE is low at 11, and the earnings growth looks good at 10%, making MDC a strong buy.

ChartData by YCharts

Fundamentals and company business review

The method I use to compare companies is to look at the total return, as shown from my

(RTTNews) – Stocks are likely to move to the upside in early trading on Monday, adding to the strong gains posted last week. The major index futures are pointing to a higher open for the markets, although the Dow futures are up a relatively modest 71 points compared to more than 220-point jump by the Nasdaq futures.

The markets may continue to benefit from optimism about a new stimulus bill even though House Speaker Nancy Pelosi said talks will “remain at an impasse” until “serious issues” with the Trump administration’s latest proposal are resolved.

The White House has increased its offer to $1.8 billion in its latest proposal, but Pelosi still called the administration’s proposed bill “grossly inadequate.”

“The news is filled with the numbers in terms of dollars. The heart of the matter is: can we allow the virus to rage on and ignore science as the Administration proposes, or will they accept the scientific strategic plan in the Heroes Act to crush the virus,” Pelosi said in a letter to her Democratic colleagues.

“We have other differences in terms of who benefits from the spending,” she added. “But in terms of addressing testing, tracing and treatment, what the Trump Administration has offered is wholly insufficient.”

Meanwhile, Treasury Secretary Steven Mnuchin and White House Chief of Staff Mark Meadows sent a letter to members of the House and Senate accusing Democrats of refusing to compromise on bipartisan legislation.

“It is not just about the top-line number but also about legislation that can be passed by both the House and the Senate and signed into law by President Trump to help the American people,” Mnuchin and Meadows wrote.

Mnuchin and Meadows urged Congress to vote on a bill allowing the administration to spend unused Paycheck Protection Program funds while negotiations

There has been much prognostication on the Exxon Mobil (XOM) dividend both here at Seeking Alpha and within the financial press. All that spilled ink is no surprise given the dividend yield has crossed into double digits, long heralded as a sign that at the payout as unsustainable – or at least according to market consensus. Why so much interest? Correctly calling a dividend cut on what still is a cornerstone income position for many retirees would certainly win any analyst or financial blogger some internet brownie points. Nearly all do not have the conviction to put capital at risk on that call by being short.

As something of a dividend cut soothsayer myself – Vermilion Energy (VET) and Occidental Petroleum (OXY) were two public energy bearish calls this year from me that explicitly called prior fat payouts unsustainable – I’d relish in the opportunity to make that call here. Problem is, I don’t think you can. While bulls certainly have had blinders on when it comes to both operational problems at Exxon Mobil as well as the relative valuation compared to direct comps, to me it seems like the bears are well ahead of themselves in forecasting a cut.

Why Dividends Get Cut

For any analyst or independent investor to make accurate (and timely) dividend cut calls, there are two (very) simple catalysts that have to be watched out for. This is quite broad brush, but readers will find that Exxon Mobil does not really check any of these boxes.

Before we get started here, yes Exxon Mobil has burned through quite a bit of cash this year. My working model for the supermajor calls for about $17.0B in operational cash flow (inclusive of a working capital hit) in 2020 against $19.2B in capital expenditures and $14.8B in dividends.