Amazon to Offer Business Insurance in U.K. — Report

Business insurance broker Superscript has said that Amazon (AMZN) plans to offer insurance to small and medium-sized businesses in the U.K., according to a report by Reuters. The company will Read More... The post Amazon to Offer Business Insurance in U.K. — Report appeared first on TipRanks Financial Blog.

Amazon to Offer Business Insurance in U.K. — Report

Business insurance broker Superscript has said that Amazon (AMZN) plans to offer insurance to small and medium-sized businesses in the U.K., according to a report by Reuters. The company will be offering business insurance in the country for the first time.

Superscript will provide insurance covers like professional indemnity insurance, cyber insurance and contents insurance to members of Amazon's Business Prime program. A spokesperson of Superscript said that “major U.K. insurers” will underwrite these covers.

Furthermore, in a bid to attract businesses, the insurance covers will be offered at a 20% discount. (See Amazon stock chart on TipRanks)

The Country Manager for Amazon Business U.K. & Ireland, Molly Dobson, said, “As businesses come out of the pandemic and gradually resume normalcy, we want customers to have the best-in-class tools to run their business.”

The CEO of Superscript, Cameron Shearer, said, “The (insurance) industry needs to bridge the divide between insurers and customers by providing a quick, smooth buying process that is customer-centric.”

Amazon’s entry into the U.K. business insurance segment follows U.S. insurtech Next Insurance’s announcement in March that it is offering insurance cover to small businesses in the country via Amazon Business Prime.

Amazon already offers “buy now, pay later” services and warranty insurance in Britain.

On September 13, Bank of America (BAC) analyst Justin Post reiterated a Buy rating on the stock with a price target of $4,250 (24.8% upside potential).

The analyst said, “The ability for SMB merchants to capture direct Online sales, off of marketplaces, is a long-term potential threat to Amazon, so we expect Amazon to offer a feature-rich product with deep integration with Amazon’s marketplace, fulfillment, checkout, and payments processing capabilities (with a possible discount on payments processing).”

“We expect some entrenched resistance to Amazon services due to competitive concerns, but the opportunity is big and Amazon’s existing customer relationships provide a foundation to help build adoption,” Post added.

Overall, the stock has a Strong Buy consensus rating based on 31 unanimous Buys. The average Amazon price target of $4,214.47 implies 23.7% upside potential. Shares have gained nearly 10.7% over the past six months.

According to TipRanks’ Smart Score rating system, Amazon scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.

Related News:
BMO Announces Winners of 19th 1st Art! Competition
RBC Reveals 3 Important Trends for Small Businesses
Ford Recalls Nearly 39,000 Mustang Mach-E SUVs — Report

The post Amazon to Offer Business Insurance in U.K. — Report appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

Hyatt Prices $1.75B Senior Notes Offering

American multinational hospitality company Hyatt Hotels Corporation (H) recently announced the pricing of its senior notes due in 2023 and 2024 for an aggregate principal amount of $1.75 billion. The Read More... The post Hyatt Prices $1.75B Senior Notes Offering appeared first on TipRanks Financial Blog.

Hyatt Prices $1.75B Senior Notes Offering

American multinational hospitality company Hyatt Hotels Corporation (H) recently announced the pricing of its senior notes due in 2023 and 2024 for an aggregate principal amount of $1.75 billion.

The offering is likely to close on October 1, 2021. The company also has the option to redeem all or any portion of the notes at 100% of their principal amount any time or after October 1, 2022.

The offering consists of two senior notes due in 2023 and one in 2024. The notes due in 2023 have aggregate principal amounts of $700 million and $300 million. While the $700 million offering has an interest rate of 1.3%, the $300 million offering bears interest at a rate equal to compounded SOFR (Secured Overnight Financing Rate), reset quarterly, plus 105 basis points. Additionally, the notes due in 2024 have an aggregate principal amount of $750 million and a fixed annual rate of 1.8%.

The company intends to use the net proceeds from the offering to partly fund the purchase price for its pending acquisition of Apple Leisure Group. Also, the net proceeds from the offering are to be used for general corporate purposes and refinancing the company’s $750 million principal amount of floating rate notes due 2022. (See Hyatt stock chart on TipRanks)

On September 27, Bank of America Securities analyst Shaun Kelley downgraded the stock to Sell from Hold with a price target of $85, which implies upside potential of 5.8% from current levels.

According to the analyst, though Hyatt’s transition to a more capital-light model, its recent targeted asset sales and its acquisition of Apple Leisure may put the company in a better position later in the lodging cycle, the delta variant of COVID-19 has dented the prospects of travel, which remains a headwind for the company.

Consensus among analysts is a Hold based on 7 Holds and 1 Sell. The average Hyatt price target of $82.36 implies upside potential of 2.6% from current levels. Shares have gained 47.4% over the past year.

Related News:
Ford Recalls Nearly 39,000 Mustang Mach-E SUVs — Report
IBM Wins Wheat Silos Automation Project in Egypt
Uber Deepens Partnership with Rite Aid; Street Says Buy

The post Hyatt Prices $1.75B Senior Notes Offering appeared first on TipRanks Financial Blog.

Source : Tip Ranks More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.