Corporate Finance

Finance Roundup for Executives

Be informed, get involved, and shape the world through finance. Read CFO.com's most recent headlines and standout stories.
Kerry MarunaMarch 24, 2016

Standout Stories

Special report… The property-casualty insurance industry is sitting on a ton of surplus capital. From most perspectives, it’s hard to see that as a negative. For one thing, it is protection against the effects of a severe economic downturn on the industry; for another, a healthy industry can attract equity and bond investors, driving up share prices; for a third, surpluses enable insurers to offer cheap prices and innovative coverages to corporate America.

But there are downsides to an overabundance of capital. It can for example, lead to complacency and, in some cases, careless underwriting decisions. In this Special Report’s lead story, “Hot Topic: Climate Change and Insurance,” David McCann reports that the industry has piled up so much surplus that even dire forecasts about future climate-change-driven catastrophes don’t faze it. Read article.

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Earnings calls… For any CFO, the first earnings calls have the potential to be a daunting undertaking. It requires a distinct focus on every aspect. From facts and figures to word choice and pacing, the more attention and preparation you put in, the more likely it is to be a success.

But how do you make it a success? With so many components to factor into your call, it’s best to make this a team effort. That includes going beyond the scope of your fellow executives. I remember my first call, and here is how my team and I made it a success. Read article.

Headlines

 

Existing Home Sales Fall 7.1% in February

‘Finding the right property at an affordable price is burdening many potential buyers,’ the National Association of Realtors says.

 

How to Prepare for an Earnings Call

For those who aren’t well practiced in the art of conducting an earnings call, here’s what you need to know.

 

High Court Upholds ‘Trial by Formula’ Evidence

Tyson Foods workers relied on statistical evidence from an industrial relations expert to show they worked more than 40 hours a week.

 

Credit Suisse Fined $665K Over Futures Trading

The CFTC also said Credit Suisse submitted false or misleading information to show it was in compliance with position limit rules.

 

DraftKings and FanDuel to Stop Paid Contests in N.Y.

“Our key claims against the companies for false advertising and consumer fraud are not affected by the agreement and will continue,” said the N.Y. AG.

 

Equipment Financing Credit Quality Slips

Origination volume in February was nearly flat, and receivables over 30 days and charge-offs ‘inched upward,’ says ELFA.

 

Special Report: Insurance at Risk

Despite the obvious advantages of huge surpluses, they have a big downside for property-casualty insurers: complacency.

 

Predictive Modeling Can Make Insurers Better Risk Managers

P&C executives largely agree that predictive modeling can boost their companies’ profitability.

 

Property-Casualty Megatrends: An insurance Primer

What causes rate changes in the property-casualty insurance marketplace?

 

Lacking Investment Yields, AIG Zeroes in on Profits

AIG Commercial CEO Rob Schimek seeks a bigger bottom line in an era of low investment gains.

 

Hot Topic: Climate Change and Insurance

More and more companies are persuaded that climate change is real. So why aren’t insurers factoring it into property insurance premiums?

 

New Home Sales Up 2% on Surge in the West

The market for new homes was uneven in February as homebuyers in some regions faced tight inventory and high prices.

 

General Mills’ Q3 Profit Beats Estimates

The company’s cost-cutting measures offset a 7% drop in U.S. sales as consumers continue to switch to foods they consider to be healthier.

 

Clean Tech Firm Quantum Fuels Files Chapter 11

The maker of alternative fuel-storage tanks for the trucking industry is seeking a buyer through the bankruptcy process.

 

Credit Suisse to Slash 2,000 Jobs in Trading Unit

The layoffs are part of a major strategic revamp of the bank aimed at reducing its dependence on investment banking.

 

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