Highway Insurance Share Discussion Threads

[leadersoffice] 28/2/2008 08:20

When they paying the divi?? its usually in may... no mention of the date

[welsheagle] 28/2/2008 07:10

RNS Number:9145O
Highway Insurance Holdings PLC
28 February 2008

Highway Insurance Holdings Plc

Preliminary Group Results 2007

2007 2006

Gross written premium £250.6m £241.3m

Profit before tax £24.3m £19.1m

Operating ratio 101.4% 98.9%

Expense ratio 20.5% 21.1%

Investment yield on managed funds 7.9% 5.9%

Investment funds £439m £416m

Earnings per share (Basic) 8.6p 6.7p

Final dividend 4.1p 3.9p

Full year dividend 5.75p 5.5p


Highlights

* Profit before tax up 27% to £24.3m (2006: £19.1m)

* 26% pre-tax return on opening shareholders' equity

* Net assets up 11% to £103m (2006: £93m) after accounting for a more
prudent IAS 19 pension position

* Proposed full year dividend increased to 5.75p per share (2006: 5.5p)

* Premium volumes increased by 4% with stronger signs of a sustainable
market upturn

* Exceptional weather related claims including the June and July floods have
increased 2007 operating ratio by 1.8%

* 7.9% net investment return on managed funds (2006: 5.9%)

* Investment funds increased by 5.5% to £439m

* 13% policy growth in Hero Insurance Services to 234,000 policies



Commenting on these results, Richard Gamble, Chairman, said:

"This is a strong result at the bottom of the underwriting cycle underpinned by
a robust investment performance in turbulent markets.

The second half of 2007 saw private motor premium rate increases gathering
momentum and this trend is continuing in early 2008, albeit in an environment
where price comparison websites are generating substantial growth. Highway is
prudently reserved and is well positioned to increase underwriting volumes as
rates continue to improve.

2008 will see more challenging conditions in investment markets. Our absolute
return investment strategy implemented four years ago has consistently produced
market-leading returns with low volatility and we remain confident that it will
continue to perform in 2008."

[nigelwestm] 27/2/2008 19:01

Hi Ursus. You can have mine, if you pay me 90p per share for it...

[ursus] 27/2/2008 16:54

doesn't seem to be much stock around does there? i expect the results will shake a bit loose.

[barkjon23] 27/2/2008 15:20

Fingers crossed for tomorrow!

[nigelwestm] 26/2/2008 16:40

Nice rise today. Bodes well for Thursday...??

[effortless cool] 23/2/2008 08:44

Dividend increased slightly (to 4p?) and covered.
Investment income of 6.5%
Operating ratio slightly worse than H1
Retail broking growth more from acquisition than organic.

No fireworks, but improved outlook.

[taylor20] 22/2/2008 12:41

Highway Insurance Holdings PLC made 11.8 mln stg pretax at the half-way
mark, and KBC Peel Hunt looks for 23 mln stg for the year to December 2007, up
from the previous year's 19.1 mln.

[taylor20] 22/2/2008 12:03

Divi maintained (but not covered?),
Investment income down at 5% - £20m,
Operating ratio improved offsetting H1 to be above breakeven 100%,
Retail broking continuing to accelerate.

No fireworks, but improved outlook.

[nigelwestm] 22/2/2008 11:39

So, it's a week until the results. What are people expecting? Will the divi be maintained?

[welsheagle] 12/2/2008 21:20

From February's 'Company Refs', when price was 70p:-
a/ Prospective PE ratio of 7.51 (based on two broker forecasts, both recommending 'buy').
b/ Forecast growth in eps of 9.88%.
c/ Positive cash flow per share of 13p per share.
d/ Net cash per share of 93.5p.
e/ Prospective dividend of 8.51%.
f/ Two directors buying recently.

[nigelwestm] 06/2/2008 10:16

From Chaucer Holdings' statement today:

"After a prolonged difficult period, the UK private car market is now achieving rate increases as pressures for a return to market profitability increase. We believe that our Motor Division will benefit significantly from this upturn."

[nigelwestm] 23/1/2008 16:45

Just announced this afternoon that results are coming out on 28 Feb. That's a few days earlier than last year, so it must be a good sign...

[bracke] 22/1/2008 15:24

For those who are interested in charts the long term one above appears to be culminating in a 'hinge' - lower highs and higher lows, which looks set to 'arrive' just about March in time for the results to influence a breakout either way. Moving sideways after the 'arrival' is a possibility but the chart shows little evidence that hwy share price moves in this manner.

[nigelwestm] 22/1/2008 15:01

well i'd say the fact that HWY has held up around the 69p level amid the general panic is a very good sign ahead of the results that are due in March...

[johne1] 21/1/2008 13:02

I think you said it all in your summary NigelWestM. Good support and luvly dividend are what I hang on for.

[nigelwestm] 21/1/2008 12:58

Not sure what to do about Highway. I'm quite heavily in but the shares have not been going up or down much for a while, despite the volatility in the market.

I suppose that the fact that the share price has not gone down today in spite of the FTSE100 falling 4% is a good sign. Might mean the upcoming results will be good. Meanwhile, the divi (assuming it is maintained/increased) is fantastic. What do others think?

[ddav] 31/12/2007 10:51

I already have -- Director buying plus they are particularly strong when market is flat!!

[johne1] 31/12/2007 10:11

Yes I'm in. Might even add some time in the new year.

[ddav] 31/12/2007 10:08

Anyone else invested in this fast moving business?

[oniabsta] 18/12/2007 00:07

'And I like they way they go for decent clients rather than the bottom line.'

Good grief!!

[skunkjam2006] 10/12/2007 18:14

FROM THE NAKED TRADER WEBSITE:

"I bet you're all dying to know which share won the seminar vote! That is which share the audience voted for me to buy on the day. Of course I promised not to report them to the relevant authorities for giving me investment advice. But if the share tanks of course I will be sending the boys round to their houses to cover any losses.....

And that share winner was..... Highway Insurance (HWY)! Where I bought 5,000 shares live at 71.74. And I bought another 5,000 this morning at 71.49p! Target 85 (plus a huge dividend) stop 62.


My reasons for buying Highway (on a three month to one year view) was in order: excellent recent statements, an 8% dividend and bid prospects. And I like they way they go for decent clients rather than the bottom line.

So my hope here is for roughly 15-20% capital increase, an 8% dividend and possible bid. And the price should hold up ok if the market hits a bad patch. We shall see!"

[bracke] 10/12/2007 14:59

The following may be the answer to the share price increase.

[dumpling] 06/12/2007 15:05

350k traded, must have been a BUY, suddenly put us into intraday profit.

[taylor20] 21/11/2007 13:11

Chaucer predicting 6.4% rise in motor insurance premiums in 2008.