Zurich Insurance buys AIG travel business in $600 million deal
By John Revill
ZURICH (Reuters) -Zurich Insurance on Wednesday announced a $600 million deal to buy AIG (NYSE: AIG)’s global personal travel insurance and assistance business.
The business will be combined with Zurich’s travel insurance provider Cover-More Group (Cover-More) and will expand its footprint in the United States, Zurich said.
The acquisition, which is expected to close before the end of 2024, will result in combined annual gross written premiums of approximately $2 billion for the enlarged Cover-More Group.
“Travel insurance is a priority for us,” said Cara Morton, CEO Zurich Global Ventures.
“This transaction is a great strategic fit, which enhances Zurich’s existing capabilities and makes us a leading travel insurance provider across all regions,” she added.
General Mills sees tepid annual profit, posts Q4 sales decline as demand falters.
By Anuja Bharat Mistry
(Reuters) -Cheerios cereal maker General Mills (NYSE: GIS) forecast annual profit below estimates on Wednesday and posted a bigger-than-expected drop in quarterly sales hurt by lower demand for its snack bars and pet food, as well as higher input costs.
The company also expects annual dollar value growth in its businesses to be below its long-term projections, pushing its shares down by about 4%.
General Mills has struggled with lower volumes and retailers cutting down on inventory, while facing ongoing competition from lower-priced private labels that have been eating into its market share.
“We expect ongoing macroeconomic uncertainty to result in continued value-seeking behaviors by consumers, affecting both the products they buy and the channels they shop,” CEO Jeff Harmening said, adding that the company has more work to do to improve competitiveness.
Net sales at General Mills’ North America retail segment, the company’s biggest revenue contributor, fell 7% in the quarter ended May 26 due to a 6-percentage point drop in volumes.
“Value-oriented consumers have learned that trading down to lower-priced private labels doesn’t mean sacrificing quality,” said Zak Stambor, an analyst with eMarketer, adding that this is a growing concern for companies like General Mills.
Peers WK Kellogg (NYSE: K) and Kraft Heinz (NASDAQ: KHC) have also reported pressured volumes, while competitor Campbell Soup (NYSE: CPB) reported an upbeat quarter and raised its forecast owing to demand recovery and improvement in volumes.
General Mills has also been pressured by higher input costs, such as sugar and labor, as well as supply chain disruptions.
Citi initiating coverage on US Machinery stocks.
Citi analysts-initiated research coverage on US machinery stocks, voicing a neutral-to-positive outlook based on its balanced distribution of Buy and Neutral ratings across the sector.
Within it, Citi identifies construction-levered companies as having the most upside potential, owing to a more optimistic view of North American non-residential construction and Commercial Equipment markets than initially anticipated.
“This outlook is underpinned by our proprietary non-res starts-to-spending model. Our positive non-res outlook suggests that United Rentals (NYSE: URI) has room to run,” analysts wrote.
Moreover, Citi maintains Buy ratings for Caterpillar (NYSE:CAT) and Oshkosh Corporation (NYSE: OSK), citing unique catalysts and strong exposure to ongoing secular trends that could propel these stocks.
On the flip side, the bank sees more significant downside risks within the North American agriculture sector. Analysts point to potential challenges ahead, with an increase in used equipment inventories and a possible decline in large agriculture replacement demand. According to Citi, these factors may pose risks to the current and projected estimates for 2025.
Analysts identify CNH Industrial (NYSE: CNH) (CNHI) as their top agriculture sector pick, saying the stock stands out “as the only ag OEM we cover for which we expect EPS growth next year, driven by its sizable cost savings initiatives.”
Premium Catering (Holdings) Limited Files for 2M Share IPO at $4-$5/share.
Premium Catering (Holdings) Limited (PC) has filed for 2,000,000 share IPO at $4-$5 per share. The company is offering 1,650,000 shares and selling stockholders are offering 350,000 shares.