Metcalfe Insurance

Archive for the ‘Lloyds phone Insurance’ Category

With the Royal Bank of Scotland deciding to sell its insurance business, experts are predicting this move to trigger other banks into reconsidering whether owning an insurer is a worthwhile strategic policy.

Bankers expect that lenders will decide the providing of a vast array of insurance and banking products, is less important than freeing up money tied up in non-core units. This will help to shore up hard pressed banking arms in the face of billions of pounds of write-downs.   

Head of European insurance in the investment banking department at Credit Suisse, Mark Oldcorn said, “Banks are now acknowledging that the value they offer in the insurance chain is through their distribution power rather than producing the insurance products themselves. But the backdrop to the realisation is of course the current crisis, which has forced many of them to face up to the fact they are light capital.”

Some struggling banks may find that selling their insurer may mean them not having to approach their shareholders for more money, or reduce the amount of cash they need from investors.

Other better off banks may see selling their insurers as a move to further their strategic goals. Oldcorn said, “Stronger banks could sell their insurance units and use the proceeds to roll up weaker rivals.”

Banks across Europe are in line to sell their insurance businesses outright or sell stakes in them to help to free up cash so they are able to focus on selling other products through their banks.    

Group strategy and development director at Aviva, Anupam Sahay said, “It’s a real trend, accelerated heavily by the credit crunch, and is likely to be played out through quite a significant reconfiguration over the next couple of years. That will happen across Europe, but we’re also seeing the same in Asia.”

Many banks had begun to turn their backs on owning insurance units due to the rule changes in accounting which prevented them from double counting the capital they hold in their insurance operations as regulatory capital in their banking business.  

These businesses have been sitting awkwardly amongst banks due to their focus on long term value as opposed to the banks focus on current cash-flow. These differing factors have only been heightened by the credit crunch as banks need both capital and cash-flow.

HBOS could sell its Clerical Medical unit and its stake in wealth manager St James Palace say investment bankers, “I think it is a sellers market given that in most cases there are good quality assets with strong demand for them from insurers.”  

But HBOS, who has set a £4 billion rights issue to help it weather its financial downturn, said it had looked at, and ruled out disposing of quality businesses at distressed prices.   

For the appealing assets on the market, there is likely to be no shortage of takers from the insurance industry, with Aviva, AXA, Sampo and Zurich Financial Services looking to boost their growth. 

Investment bankers predict that Lloyds TSB may choose to sell Scottish Widows in order to raise £8 billion so they can launch a bid for a weaker Market rival such as Alliance and Leicester.

With deal making only likely to intensify, Mark Oldcorn said, “Our view is that this is a significant trend that could have legs for the foreseeable future.”

Britain struggles under the weight of historic debt caused in part by the banks irresponsible lending policies and the public’s belief that they could control their high mortgage costs, credit card debts and loan repayments. Credit card providers in the past have issued new credit card agreements to anyone and everyone without conducting proper financial checks to see that they could afford a new credit card. It’s little wonder that as a nation we are burdened with credit card debt.

Debt experts like the new prepaid cards as they offer the convenience of a credit card without the borrowing and you can only spend the money that you have transferred to the prepaid account. This is great for controlling your spending.

They can be used in the same way as a mobile phone top-up card. You cannot borrow any more money then you have transferred into your account. It’s impossible to go overdrawn which means you should never find yourself in a financial mess. MasterCard, Visa and Maestro all offer prepaid cards which are accepted by retailers and banks around the world. You can use prepaid cards online to buy goods and services.

The main benefits of using a prepaid card is the convenience of use, they are safe and secure and they offer you control over your spending. You can use a prepaid card at most cash machine but some cash machines will charge a handling fee up to £2.50. It is possible for anyone to have a card from a child to a pensioner. They are available for anyone with a bad credit rating who is unable to have a normal credit card or a bank account.

Prepaid credit cards can be cancelled or blocked if stolen or lost by simply notifying the provider immediately. It cannot be used with out a PIN number and signature. If stolen the most that could be stolen from your account is the amount remaining on the account at the time of theft. The thief cannot run up a huge debt on your account. Unlike credit and debit cards you don’t have the same protection provided against fraud.

Be aware that some prepaid cards are free whilst others can cost £5 to £10 to purchase and the provider will charge a fee of 2% to 3% each time you transfer money to your account. Beware some providers charge a monthly fee for having a card and phone calls to their customer services may be expensive. They do not pay interest for money that is on the cards.

Whilst these cards can be expensive they can provide you the convenience of knowing that you have access to some funds for an emergency and for backup.

Retirees suffering from ill health may be entitled to enhanced terms available from some specialist equity release providers, according to Key Retirement Solutions.

For those who are suffering from ill-health that may impact their life expectancy, some specialist equity release providers will allow them to release greater sums from their homes compared to traditional lenders.

In addition more favourable terms may be available from some providers. The nature of the health condition, including severity, length of condition and the treatment being received, are all factors that may affect the amount that can be released.

Conditions that will be considered include heart attack, diabetes, cancer, stroke, chronic respiratory disease, kidney or liver disease, multiple sclerosis, Alzheimer’s and high blood pressure or cholesterol.

Some retirees are understandably uneasy about investigations into their health, so it is important to note that when applying for an enhanced terms equity release product, it is not necessary to have a medical, the provider will simply obtain confirmation of their condition from their GP.

Only approach a proven specialist equity release adviser to make sure you can be safe in the knowledge they will be suitable trained to ask the correct questions in a sensitive manner to assess your eligibility.

Dean Mirfin, business development director at Key Retirement Solutions, said: “Health is a sensitive issue for many, but when considering equity release it is vital that retirees are open and honest about any condition or medication they are taking, as this will ensure their financial adviser is adequately informed to give the best possible advice.

“The possibility of receiving a better deal by taking out an enhanced product highlights the need for retirees to make sure they seek specialist independent financial advice before making any decisions. Not only is it important to make sure equity release is right for you, but also that you are raising the money effectively and taking out a plan that is suited to your individual needs and circumstances.”