Latest news with #financialsystem
Yahoo
a day ago
- Business
- Yahoo
3 Insurance Stocks We Steer Clear Of
Insurance firms play a critical role in the financial system, offering everything from property coverage to life insurance and specialized risk solutions. Market leaders have certainly capitalized on strong underwriting results and rising investment income to boost profitability, helping fuel a 2.6% gain for the industry over the past six months. This performance has closely followed the S&P 500. Regardless of these results, investors must exercise caution as many insurers are sensitive to catastrophic events and economic cycles. On that note, here are three insurance stocks we're swiping left on. Lincoln Financial Group (LNC) Market Cap: $5.90 billion Founded in 1905 by a group of Fort Wayne, Indiana businessmen who named the company after Abraham Lincoln, Lincoln National Corporation (NYSE:LNC) provides insurance, retirement plans, and wealth management products through its subsidiaries, operating under four main segments: Annuities, Life Insurance, Group Protection, and Retirement Plan Services. Why Do We Avoid LNC? Insurance products are facing market challenges during this cycle, as seen in its flat net premiums earned over the last four years Book value per share tumbled by 13.2% annually over the last five years, showing insurance sector trends are working against its favor during this cycle Underwhelming 7.6% return on equity reflects management's difficulties in finding profitable growth opportunities Lincoln Financial Group's stock price of $34.55 implies a valuation ratio of 0.7x forward P/B. If you're considering LNC for your portfolio, see our FREE research report to learn more. Lemonade (LMND) Market Cap: $3.09 billion Built on the principle of giving back unused premiums to charitable causes selected by policyholders, Lemonade (NYSE:LMND) is a technology-driven insurance company that offers homeowners, renters, pet, car, and life insurance through an AI-powered digital platform. Why Do We Think Twice About LMND? Earnings growth underperformed the sector average over the last four years as its EPS grew by just 6.3% annually Annual book value per share declines for the past five years show its capital management struggled during this cycle Negative return on equity shows management lost money while trying to expand the business At $42.25 per share, Lemonade trades at 6.9x forward P/B. Check out our free in-depth research report to learn more about why LMND doesn't pass our bar. AXIS Capital (AXS) Market Cap: $7.64 billion Founded in the aftermath of the 9/11 attacks when insurance capacity was scarce, AXIS Capital Holdings Limited (NYSE:AXS) is a global specialty insurer and reinsurer that provides coverage for complex risks across property, liability, professional lines, cyber, and other specialty markets. Why Does AXS Fall Short? 3.8% annual revenue growth over the last five years was slower than its insurance peers Annual net premiums earned growth of 2.5% over the last two years was below our standards for the insurance sector Low return on equity reflects management's struggle to allocate funds effectively AXIS Capital is trading at $97.11 per share, or 1.3x forward P/B. To fully understand why you should be careful with AXS, check out our full research report (it's free). Stocks We Like More Trump's April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines. Take advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Predatory Sparrow Hacks Iran's Financial System
The 12-day war between Israel and Iran featured an unprecedented cyber campaign against the Islamic Republic's financial system. Previous state-sponsored hacks aimed to steal data, ransom assets or disrupt operations. Israel did something far more radical: It destroyed digital assets and banking records to undermine the regime. Israel's success offers the Trump administration new tools for confronting the Iranian threat. Israel first struck Bank Sepah, Iran's oldest and largest state-owned bank. The central financial institution of the Islamic Revolutionary Guard Corps, Bank Sepah serves Iran's military and security forces, processing everything from salaries and pensions to sanctions-evading missile funds. Predatory Sparrow, a hacker group linked to the Israeli government, claimed credit for erasing Bank Sepah's banking data and rendering its systems inoperable. Automated teller machines went dark, and online and in-branch services shut down. Salary and pension payments halted.
Daily Mail
3 days ago
- Business
- Daily Mail
Time is money when it comes to pensions, says L&G boss António Simões
Albert Einstein may not have said it but, as Warren Buffett has often repeated and proven, compounding interest is the eighth wonder of the world. It's why it's so important that pensions reform has been plucked from the too difficult box and placed firmly on the agenda. To get Britain growing, we need to rewire the financial system to boost investment while making people's hard-earned savings work harder. 'Patient' pensions capital is central to this ambition - increasingly well understood as a national economic lever that can catalyse growth, deepen capital markets, and support financial stability. Australia's £2trillion pension pool has helped power domestic investment, and shield its economy from global shocks. But when it comes to building our personal pension pots, patience is a misnomer. The challenge of pensions adequacy – making sure all of us have enough to live on in later life - is urgent and pressing. Adequacy depends on three things: 1. when people start saving; 2. how much is being put into the pot, and 3. what returns they get. We have heard a lot about the last one and, at L&G, our Private Markets Access Fund is helping more people access the potential high returns available through investments in private markets. In addition, our default Lifetime Advantage Fund already has up to 15 per cent invested in these assets. But the other two are critical. Starting early makes all the difference and whilst time is a simple, potent lever, it is often the most neglected. Under the current system, the average person would be 15 per cent better off when they retire if they started saving at 18 instead of 22. The problem is that advice to save early rarely lands. It's hard to imagine yourself as a retiree when you're only just starting out in working life. But if you create the habit - it sticks. This is where Government can help by lowering the auto-enrolment age from 22 to 18. The powers already exist and countries like Australia and Canada have shown it's possible. How much goes into your pot is also crucial. Automatic enrolment brought millions into the system, but minimum contribution levels are still set too low and need to be gradually increased. The second phase of the Government's pensions review is the right moment to act on these two areas. It would be a win-win. Those at retirement would be in a stronger financial position, less reliant on the state. And when more people save, more capital is available for the UK economy, supporting jobs, infrastructure, and national resilience. Bigger pension pots could be channelled into productive investment, helping to fund growth and regeneration. And retirees would have more to spend. This matters, given that consumer spending drives 60 to 63 per cent of UK GDP and retirees already account for a quarter of that total. The best financial gift we can give young people is time. A pension opened at 18 may not seem much now, but in 30 or 40 years, it could mean everything. So, let's stop wasting time. Let's start saving it.
South China Morning Post
4 days ago
- Business
- South China Morning Post
Global financial system must rewrite its rules for the tokenised future, says BIS adviser
The worldwide financial system needs to rewrite its rules for a future of tokens, as the rise of stablecoins poses new challenges to the global infrastructure for instant payment, clearing and settlement, according to the gatekeeper of the world's central banks Stablecoins, which are digital tokens backed by fiat currencies or other reserve assets, could make anti-money-laundering (AML) work and banks' task of knowing their customers more difficult because of their cross-border, pseudonymous transactions, said the Bank for International Settlements (BIS), the organisation that is often dubbed the 'central bank of central banks.' 'The rules of the monetary system are changing and stablecoins are right at the front line of the policy debate,' said Shin Hyun-Song, BIS' economic adviser and the head of its monetary and economic department, during an interview with the Post on Monday in Hong Kong. '[Stablecoin] is a borderless instrument used mainly as the gateway to the crypto ecosystem and other decentralised finance platforms, but it also generates many new types of challenges.' The challenges have been exacerbated by the buzz around the stablecoin issuer Circle Internet Group, whose stock price has soared sevenfold within a month of its June 5 initial public offering in New York. The Trump administration's embrace of private digital currencies has sent bitcoin 's value past US$120,000 for the first time, luring more believers to join the fray.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Block Set to Join the S&P 500
Block has been added to the S&P 500, effective July 23, 2025. It's a milestone that reflects the strength of our business and the work of thousands of people building tools to increase access to the economy, across our brands including Square, Cash App, Afterpay, TIDAL, Proto, and Bitkey. Thanks to our customers, teams, and shareholders who've been with us on the journey. We're just getting started. About Block, Inc. Block, Inc. (NYSE: XYZ) builds technology to increase access to the global economy. Each of our brands unlocks different aspects of the economy for more people. Square makes commerce and financial services accessible to sellers. Cash App is the easy way to spend, send, and store money. Afterpay is transforming the way customers manage their spending over time. TIDAL is a music platform that empowers artists to thrive as entrepreneurs. Bitkey is a simple self-custody wallet built for bitcoin. Proto is a suite of bitcoin mining products and services. Together, we're helping build a financial system that is open to everyone.
