CGNU, the U.K.’s biggest insurance group, announced that it would no longer issue financial reports on a quarterly basis, and would revert to the more traditional preparation of reports twice a year.
The company told London’s Financial Times that it felt the extra effort and expense was unjustified in light of the decreased volatility of its business. CGNU has significantly decreased its general insurance business, including the sale of its U.S. p/c units, in order to concentrate on life insurance and asset management.
Analysts reactions to the move were reportedly mixed. Some felt that the lack of quarterly reporting reduced the transparency which most European companies are seeking in order to acquire more credibility with U.S. investors. Others agreed with the company’s decision, indicating that it would reduce volatility and give analysts more time to examine strategy and long term trends.
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