Category Archives: Wealth

Tax avoidance measures hit Crown Dependencies

  • About £600 billion in assets under management is held in the Crown Dependencies of Jersey, Guernsey and Isle of Man.    
  • At least £305 billion is held in banking deposits in these three islands.
  • Guernsey and Isle of Man, the two Overseas Territories to have recently signed up to FATCA-styled tax disclosure treaties with the UK, hold over £152 billion in banking assets.
  • Jersey, which today pledged to sign a similar agreement, is the largest crown dependency offering reduced tax rates.
  • There are over 1.7 million non-doms currently living in the UK.
  • The global private banking industry has AuM of $19.3 trillion. Offshore centers account for 42% or $8.3 trillion of this total.

According to WealthInsight’s analyst, Oliver Williams: “The 2013 budget sends a clear signal to the Crown Dependencies that their days of tax freedom are limited. Today, all three islands have pledged to agreements allowing greater tax transparency and HMRC have promised to recover £1 billion over the next five years. This will affect many of the 1.7 million non-doms living in the UK and even more HNWIs who hold assets in the Dependencies”.

Obama’s first three years adds 1.1 million US millionaires

Despite the global financial crisis, the number of US millionaires has grown by 29% since President Obama was elected. Looking ahead to 2016, HNWI wealth is forecast to increase by a quarter, but considerable downside risks remain.

Key findings:

  • From the end of 2008, when President Obama was elected to the White House, to the end of 2011, the US has added more than 1.1 million HNWIs, an increase of 28.6%.
  • This is equivalent to over a thousand new millionaires per day during President Obama’s first three years in office.
  • As of 2011 there are just over 5.1 million millionaires in the United States, still 165,360 fewer than in 2007.
  • These high net worth individuals (HNWIs) hold $18.8 trillion in wealth which equates to 34% of total individual wealth held in the country. This is above the global average of 29%, indicating a relatively uneven spread of wealth.
  • Since 2007, the number of ultra-HNWIs in the financial services sector has risen by 12%, despite the financial crisis.
  • Looking forward, the total number of US millionaires is forecast to grow by 19%, reaching 6.1 million in 2016.
  • But significant downside risks remain which could hit HNWI wealth, specifically the so-called fiscal cliff looms if political action on fiscal policy is absent in the months ahead.
  • At present, we expect HNWI volumes to rise by 4.3% in 2013. If the fiscal cliff were not averted, we see the HNWI population declining by 5.9% – a 10.2% swing in the US’ millionaire population.

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According to WealthInsight analyst, Christopher Rocks: “The US wealth sector has recovered strongly since the financial crisis. Contrasting with a lot of campaign rhetoric, growth in the HNWI population under President Obama has been rapid, far outpacing growth in the broader economy.”

“With signs that growth in the US economy might be slowing, HNWIs will be worried about the economic uncertainty being created by the so called ‘fiscal cliff’. At the moment it’s not entirely clear how either presidential candidate would solve the current political deadlock, which could have a huge impact on America’s wealthy population.”

See the full report on the US wealth sector here.

Australia’s multi-millionaires: Perth and Adelaide outperform the rest

According to WealthInsight research, the number of multi-millionaires in Australia increased by 11% over the four year period between 2007 and 2011, to reach 2,460 at the end of 2011. This includes 930 multi-millionaires in Sydney, 590 in Melbourne, 330 in Perth, 240 in Brisbane, 60 in Adelaide and 37 on the Gold Coast.

 

Adelaide experienced the strongest multi-millionaire growth among Australian cities over this period with growth of 75%, followed by Perth with 52% growth. Adelaide’s growth can be attributed to growth in a number of local industries including retail and fashion, construction and FMCG.

 

According to WealthInsight analyst Andrew Amoils: “the strong growth in Perth was facilitated by growth in the number of multi-millionaires who acquired their wealth from the basic materials sector, which was fuelled by a rise in commodity prices.”

Super rich: Top 20 Cities for UK multi-millionaires

According to WealthInsight research, there are just over 10,100 multi-millionaires in the UK (each with net assets of over US$30 million). These individuals have a combined wealth of US$1,113 billion. London is home to over 40% of these or 4,220 multi-millionaires, which is greater than the whole of France (3,800 multi-millionaires).

Manchester has the highest number of multi-millionaires (170 multi-millionaires) outside of London followed by Glasgow (158 multi-millionaires), Edinburgh (134 multi-millionaires) and then Birmingham (130 multi-millionaires).

According to WealthInsight analyst Andrew Amoils: “Despite being the 2nd largest city in the UK by population, Birmingham has a relatively low number of multi-millionaires when compared to the likes of Manchester and Glasgow”

 

Among UK counties, Greater Manchester (which includes Manchester, Bolton, Wigan, and Salford) has the highest number of multi-millionaires outside of London, with 374 multi-millionaires, followed by Surrey with 230 and Hertfordshire with 206.

Definitions:

  • “Multi-millionaires” otherwise known as “ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences.
  • “Millionaires” otherwise known as “high net worth individuals” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences.
  • For the purposes of this report, the phrase “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.

The Rise of Russian Tech: New opportunities for wealth creation in Russia

Basic materials have been the driving force behind the growth in Russian high net worth individuals (HNWIs), but research by WealthInsight has found that the technology sector has been booming in recent years. Wealth managers should pay attention to this fast-growing sector.

Since 2007 the number of  ultra-wealthy Russians (those with net assets of US$30 million or more excluding their primary residences) who acquired their wealth through technology has grown by 21% – more than any other major sector. Research by WealthInsight finds that, at the end of 2011, the technology sector is the primary source of wealth for 5.7% of Russia’s ultras.

At present, compared with the other ‘BRICS’, only Brazil is behind Russia in its ratio of ultra-HNWIs coming from the technology sector.

But the Russian technology sector is a growing market: in 2011, Russia overtook Germany as the European market with the highest number of unique visitors online and internet penetration rates, relatively low compared to developed markets, are expected to increase from 40% to 70% over the next four years. As the internet market continues to develop, this will create opportunities for companies with an understanding of local markets and political nuances, leading to an upsurge in the numbers of HNWIs coming from this sector.

WealthInsight research also shows that:

  • Between 2007 and 2011 the number of Russian millionaires decreased: from 194,870 high net worth individuals (HNWIs) in 2007, to 159,558 in 2011.
  • Basic materials is the most important wealth sector in Russia, constituting the primary source of wealth for 26% of ultra-HNWIs (those with wealth >$30m).
  • By 2016 the total wealth of Russia’s HNWIs is projected to grow by 39%, to reach $1,304 billion. The number of HNWIs will grow to 216,000 individuals in 2016.

Definitions:

  • For the purposes of this report, the phrase “coverage period” refers to the period of 2007–2016, while the “review period” relates to the years 2007–2011 and the “forecast period” relates to the years 2011–2016.
  • “High net worth individuals” otherwise known as “millionaires” or “HNWIs” refer to individuals with net assets of US$1 million or more excluding their primary residences
  • “Ultra high net worth individuals” or “UHNWIs” are individuals with net assets of US$30 million or more excluding their primary residences
  • Billionaires are those HNWIs with wealth of US$1 billion or more, including equities, bonds, cash and deposits, fixed-income products, real estate (excluding primary residence), alternative assets and business interests.

For more information see WealthInsight’s report on Russia, “Russia – The Future of HNWIs to 2016: The Land of Oil and Gas”.

Business and Investment Opportunity in the Indian Health Insurance Industry: Analyses and Forecasts to 2016

Business and Investment Opportunity in the Indian Health Insurance Industry: Analyses and Forecasts to 2016

The Indian health insurance market accounted for only 3.2% of the overall insurance industry in 2011. The driving factors for the health insurance sector are the rising healthcare expenditure, increasing disposable income and rise in population with affluent lifestyles

Executive Summary

Since the liberalization in 2000, the insurance industry in India has been growing considerably driven by multiple favorable economic and demographic factors. The Indian health insurance market grew at a CAGR of 34.00% during the review period and is expected to grow at a CAGR of 23.51% over the forecast period to register the fastest growth among all the insurance sectors. Factors such as robust economic growth, changing demographic patterns such as the rise in ‘double-income no kids’ families, increased FDI limits and the expansion of distribution channels are expected to contribute to the market growth in the forecast period. Of the overall healthcare expenditure in India, only 26% comes from the local, state and central government authorities, while nearly 71% is paid by the patient’s family. Insurance accounts for just 3% of overall healthcare expenditure in India, indicating a substantial opportunity for the health insurance sector. The health insurance market is dominated by public-sector companies, while the private sector has made gradual progress in the sector.

Key highlights of this title

• The Indian health insurance market accounted for only 3.2% of the overall insurance industry in 2011. The driving factors for the health insurance sector are the rising healthcare expenditure, increasing disposable income and rise in population with affluent lifestyles.
• During the review period, the penetration of Indian health insurance products increased from 0.07% in 2007 to 0.19% in 2011, as many new policies were sold in rural India.
• Although the health insurance market is currently dominated by public-sector companies, top six private health insurance companies increased their cumulative market share from 17.2% to 29.1% during the review period
• One of the key challenges for the health insurance market is the low coverage of the plans in terms of both the diseases and the hospitals covered

Scope

This report provides a comprehensive analysis of the health insurance market in India:
• It provides historical values for India’s health insurance industry for the report’s 2007–2011 review period and forecast figures for the 2012–2016 forecast period
• It offers a detailed analysis of the key sub-segments in India’s health insurance industry, along with market forecasts until 2016
• It covers an exhaustive list of parameters, including premium per capita, incurred loss, loss ratio and paid claims
• It entails the competitive landscape in the Indian health insurance industry along with the product innovation and customer targeting strategies followed
• It analyses the various distribution channels for the health insurance products in India
• It profiles the top health insurance companies in India along with snapshots of their major products and services

Reasons to Purchase

• Assess the overall healthcare sector in India with focus on key trends such as medical tourism and telemedicine
• Make strategic business decisions using top-level historic and forecast market data related to the Indian health insurance industry
• Understand the demand-side dynamics, key market trends and growth opportunities within the Indian health insurance industry
• Assess the competitive dynamics in the health insurance industry and the future outlook
• Gain insights into the key regulations governing the Indian insurance industry
• Understand the product innovation strategies and the customer targeting strategies followed in the industry

More information available at:

http://bricdata.com/research/report/IS0101MR/

Business and Investment Opportunity in the Turkish Health Insurance Industry: Analyses and Forecasts to 2016

Business and Investment Opportunity in the Turkish Health Insurance Industry: Analyses and Forecasts to 2016

Executive Summary

The Turkish health insurance category accounted for 12.5% of the overall Turkish insurance industry. The Turkish health insurance category grew in written premium value from TRY1.2 billion in 2007 to TRY1.9 billion in 2011, at a compound annual growth rate of 12.02% during the review period. It is expected to continue growing at a CAGR of 10.89% during the forecast period, to reach TRY3.2 billion in 2016. In addition, the number of Turkish health insurance policies sold increased from 0.48 million in 2007 to 1.14 million in 2011. The number of new policies sold in the health insurance category is projected to total 2.53 million policies in 2016.

Key highlights of this title

  • The Turkish health insurance category grew in written premium value from TRY1.2 billion in 2007 to TRY1.9 billion in 2011, at a compound annual growth rate of 12.02% during the review period.
  • The penetration of health insurance in Turkey is expected to increase from 0.16% of GDP in 2011 to 0.19% in 2016.
  • The Turkish health insurance category is dominated by public-sector companies, although the private-sector companies have increased their market shares over the review period.
  • Agencies accounted for the largest share of 29.5% of Turkish health insurance written premiums in 2011, followed closely by bancassurance with a share of 27.6%.

Scope

This report provides a comprehensive analysis of the health insurance market in Turkey:

  • It provides historical values for Turkey’s health insurance industry for the 2007–2011 review period and forecast figures for the 2012–2016 forecast period
  • It offers a detailed analysis of the key sub-segments in Turkey’s health insurance industry, along with market forecasts until 2016
  • It covers an exhaustive list of parameters, including premium per capita, incurred loss, loss ratio and paid claims
  • It entails the competitive landscape in the Turkish health insurance industry along with the product innovation and customer targeting strategies followed
  • It analyses the various distribution channels for the health insurance products in Turkey
  • It profiles the top health insurance companies in Turkey along with snapshots of their major products and services

Reasons to Purchase

  • Assess the overall healthcare sector in Turkey with focus on key trends such as medical tourism and online retail insurance
  • Make strategic business decisions using top-level historic and forecast market data related to the Turkish health insurance industry
  • Understand the demand-side dynamics, key market trends and growth opportunities within the Turkish health insurance industry
  • Assess the competitive dynamics in the health insurance industry and the future outlook
  • Gain insights into the key regulations governing the Turkish insurance industry
  • Understand the product innovation strategies and the customer targeting strategies followed in the industry

More information available at:

http://bricdata.com/research/report/IS0102MR/