Hba Health Insurance

Life insurance provides a safe haven

But from adversity springs comfort and hope: while the equities-exposed players look unappealing, there are a couple of players in the life insurance sector benefiting from the flight to safety.

Let's start with Challenger Ltd (ASX code: CGF), the only ASX200 financials stock to gain in the past year. Mind you, that didn't stop James Packer last week lightening up his derivatives exposure to the stock in a complex deal intermediated by UBS.

There's good reason for the outperformance: Challenger is focused on annuity products that offer retirees guaranteed income for a set period.

Challenger had its moments in the last global financial crisis but has now hit its stride, targeting the expanding demographic of baby boomers hitting retirement at a very dicey time.

Challenger last month recorded a $248 million net profit and forecast and delivered $1.45 billion of underlying retail sales, up 56 per cent.

Management forecasts these sales will increase 25 per cent this year for a net gain of 10 per cent, with a notable rise in long-dated annuities.

According to Richard Howes, the head of Challenger's life (annuities) arm, annuities account for only about $2bn of the $50bn post-retirement market, but he expects this to rise to about 30 per cent (the prevalent share of annuities in Western economies).

Not surprisingly, other providers such as AMP and the Commonwealth Bank's CommInsure are also looking to expand their presence, and Challenger doesn't mind the competition. "It takes the burden off Challenger in terms of spreading the message," Howes says.

Challenger's life products contribute 90 per cent of earnings.

Interestingly, Challenger has a much higher market cap than the higher-profile Perpetual Trustees: $2.25bn versus $960m.

Our second stock to watch is minnow ClearView Wealth (CVW), a well credentialled entrant into the market for death and accident cover.

ClearView has similarities with Tower Australia, the only pure-play listed life company, taken over by Japan's Daiichi Life for $1.2bn.

HBA Makes Selecting Health Insurance Easier

Australia (PRWEB) April 3, 2008

HBA’s new website offers an innovative Health Cover Selector, which makes it easier to select and compare HBA’s various private health insurance options online. HBA’s Corporate Development General Manager Mark Engel said the selector was created following research into what today’s health insurance customers were looking for.

“Australians’ health care needs vary depending on their individual lifestyles, so to offer value; health insurance must be both affordable and relevant to them. Most importantly, they want to be able to identify and compare health insurance plans as simply and quickly as possible,” said Mr. Engel.

“HBA’s Health Cover Selector guides the user to think about the current status of their health, the health services they are using today and what their needs might be in the near future,” Mr Engel continued. “In just three steps, visitors to the website are matched with two HBA health insurance options that are most relevant to the health needs they selected.”

Based on membership size HBA is the largest health fund in Australia to consistently keep its average premium increases below the industry average since 2002. But Mr. Engel said that price was only one element of value. “It is worth remembering that insurance policies that cost the same amount can still vary substantially in terms of coverage and service. So even on a restricted budget, researching your options is still the best way to ensure you get the best value for your individual lifestyle.”

With so many different health insurance products on the market, more and more Australians are turning to the Internet for research, but the results can be confusing or misleading. “Most broker comparison websites compare only a small number of health insurers, so results are limited and do not reflect the vast range of products available,” stated Engel. “By researching thoroughly and purchasing directly from health funds, not only are you more likely to find the best product at the best price, but you will also be dealing directly with those who will be there to assist when you need to make a claim.

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