The ASX 200 (Index: ^AXJO) (ASX: XJO) was eventful this week. Here are four stories you may have missed that affected businesses in the ASX 200 index:
Insurance Australia Group Ltd (ASX: IAG)
Bushfire and hail has caused IAG to downgrade its expectations for the FY20 result. The FY20 reported insurance margin will be in the range of 14.5% to 16.5% compared to previous guidance of 16% to 18%.
The recent hailstorm affecting Melbourne, Canberra and Sydney is expected to result in a pre-tax cost to IAG of $169 million (post-quota share).
IAG also indicated that its upcoming half-year result will contain a post-tax provision of around $80 million for a customer refund program.
Cimic Group Ltd (ASX: CIM)
This week Cimic announced it had completed an extensive strategic review of its investment of the non-controlling 45% interest in BIC Contracting (BICC) which operates in the Middle East. Cimic has decided to exit the region and focus on Australia, New Zealand and the Asia Pacific region.
After looking at the financial exposure to BICC, mainly being shareholder loans and financial guarantees, Cimic will recognise a post-tax impact of around $1.8 billion in its FY19 result.
Cimic will not pay a final 2019 dividend. Excluding the BICC impact, Cimic expects to report net profit of around $800 million for 2019, in line with its guidance.
Macquarie Group Ltd (ASX: MQG)
Macquarie was in the news for the wrong reasons this week. German authorities have recently named 60 current and former Macquarie staff as suspects in relation to historical short selling-related activities. One of them being CEO Shemara Wikramanayake.
The investigation relates to German lending transaction in 2011 which allegedly related to refunding dividend tax that was never actually paid, which may have cost the German tax office more than €5.5 billion in total. There are 400 suspects in total that are being investigated.
Crown Resorts Ltd (ASX: CWN)
Crown announced some leadership changes at the end of the week. Non-executive director Helen Coonan has been appointed as the new Chair of Crown. Non-executive John Horvath has been appointed as the Deputy Chair. John Alexander has stepped down as Executive Chairman.
At the same time, the Crown Board has appointed chief financial officer, Mr Ken Barton, as the new CEO of Crown. He will also be Managing Director.
