Allianz and Swiss Re Results Diverge; Paysafe Agrees to $3.9 B Offer

Sarla Buch
04 Aug, 2017
New York City

Andritz plunged on lowered sales estimate. Aon profit surged. Allianz acquired 49% stake in general insurance unit of Liverpool Victoria. Deutsche Telekom net tumbled 57%. Paysafe agreed to go private for $3.9 billion. RBS net swung to profit. Swiss Re profit declined 37%.

[R]4:00 PM Frankfurt – Andritz plunged on lowered sales estimate. Aon profit surged. Allianz acquired 49% stake in general insurance unit of Liverpool Victoria. Deutsche Telekom net tumbled 57%. Paysafe agreed to go private for $3.9 billion. RBS net swung to profit. Swiss Re profit declined 37%.[/R]

In London trading, FTSE 100 index increased 29.09 or 0.4% to 7,503.98 and in Frankfurt the DAX index gained 112.79 or 0.9% to 12,265.71.

In Paris, CAC 40 index jumped 52.61 or 1% to 5,183.09.

For the week, FTSE 100 index increased 1.9%, the DAX index gained 0.6% and the CAC 40 index advanced 0.9%.

Andritz AG plunged 8.3% to €46 after Austrian-based electro-mechanical equipment maker said sales in the first-half ending in June edged up 0.6% from a year ago to €2.8 billion.

Net income in the period jumped 8.8% to €130.8 million from €120.2 million in a year ago six-month period and diluted earnings per share rose to €1.28 from €1.18.

As of June 30, net debt in the period dropped 3.1% to €427.2 million from €441 million in a year ago period.

The engineering services provider lowered fiscal 2017 sales estimate compared to a year ago period.

Aon Plc, the U.K.-based privately held professional services provider reported revenues in the first-half ending in June jumped 4% from a year ago to $4.7 billion.

Net income in the period surged 70% to $1.1 billion from $625 million in a year ago six-month period and diluted earnings per share rose to $3.99 from $2.30.

Allianz SE rose 0.3% to €184 after Germany-based insurer reported revenues in the first-half ending in June advanced 2.3% from a year ago to €66.2 billion.

Net income in the period soared 17.9% to €3.8 billion from €3.2 billion in a year ago six-month period and diluted earnings per share jumped to €8.44 from €6.92.

Separately today the insurer agreed to acquire 49% stake in the general insurance business of the U.K. based Liverpool Victoria Friendly Society for £500 million to form a new £1.02 billion joint venture to serve personal insurance market.

Deutsche Telekom AG slid 0.3% to €15.55 after Germany-based communications services provider reported revenues in the first-half ending in June jumped 5.9% from a year ago to €37.5 billion.

Net income in the period tumbled 56.7% to €1.6 billion from €3.7 billion in a year ago six-month period and diluted earnings per share jumped to €8.44 from €6.92.

The telecom services provider said as of June 30, net debt soared 13% to €55.2 billion from €48.7 billion in a year ago period.

In fiscal 2017, the communication services provider forecasted operating profit of about €22.3 billion on strong growth in its T-Mobile U.S. unit again on top and free cash flow forecast was left unchanged at €5.5 billion.

Paysafe Group Plc gained 0.6% to 596 pence after the U.K.-based digital payment solution provider agreed to be acquired by the private-equity groups Blackstone Group LP and CVC Capital Partners for 590 pence per share or about £2.96 billion $3.89 billion in cash.

The transaction is expected to close in the fourth-quarter of this year.

Royal Bank of Scotland Group Plc jumped 2.3% to 262.10 pence after the U.K.-based banking and financial services provider reported total revenues in the first-half ending in June soared 13.1% from a year ago to £6.9 billion.

Net in the period swung to profit £939 million from a loss of £2 billion in a year ago six-month period and diluted earnings per share swung to 7.9 pence from diluted loss per share of 17.6 pence.

Swiss Re AG slumped 3.3% to 91.85 Swiss francs after Switzerland-based insurance services provider said total revenues in the first-half ending in June declined 8.6% from a year ago to $18.1 billion.

Net income in the period tumbled 37% to $1.2 billion from $1.9 billion in a year ago six-month period and diluted earnings per share dropped to $3.76 from $5.61.

The reinsurer said weak performance in the period was driven by lower premiums and higher claims in the wake of Cyclone Debbie in Australia in late March.