R&q Insurance Share Discussion Threads

[alter ego] 02/10/2012 16:42

"The Return of Value, details of which are outlined in a circular posted to shareholders today, will give shareholders the option of receiving their payment as capital or income and provides a more flexible and efficient mechanism of returning capital. The payment of 3.4p per share is anticipated to be made through the scheme on or around 7 November 2012 to those shareholders on the register at 5.00 p.m. on 11 October 2012."

So you can elect to take the dividend as income (subject to income tax rules) or as capital (subject to capital gains tax rules). If you elect for income and you pay higher rate tax, you will have to pay a bit more tax on the dividend you receive and declare it on your tax return. If you elect for capital, the amount returned to you reduces the cost of each share by the amount returned. When you sell the shares, any capital gain made will be based on the lower share price (you need to keep records so you can correctly calculate this and fill in your tax return). All IMO, no advice intended.

[joan of arc] 02/10/2012 16:25

Sogesit, I am in the same situation.

[sogoesit] 02/10/2012 15:34

Indeed.... although why my broker cannot get the details to me of this JaKey share scheme is beyond me.... well it seems beyond them, not me... if you get my drift!
Thanks for the info. all above players!

[stemis] 18/9/2012 09:05

If you read the exchange between jonwig and I you will see I was talking about TAWA!!

[alter ego] 17/9/2012 22:16

Quite; a rose by any other name.....

[lord gnome] 17/9/2012 21:03

It never ceases to amaze me how some people can maintain that this company doesn't pay a dividend.

[koolio] 17/9/2012 18:45

We have been notified that Randall & Quilter Investment Holdings plc (Randall & Quilter) has proposed a return of value subject to approval at a General Meeting to be held on 11 October 2012.

PLEASE NOTE WE MUST BE IN RECEIPT OF YOUR INSTRUCTION BY 23 OCTOBER 2012

TERMS OF THE RETURN OF VALUE

Shareholders will receive one J share or one K share for each ordinary share held on the register at close of business on 11 October 2012 by electing for either one or a combination of the following options:

Option 1 – J Share Capital Alternative

Receive GBP0.034 in cash by way of Capital Repayment for each J Share held.

The payment under the J Share Capital Alternative should be generally treated as capital for UK tax purposes.

AND/OR

Option 2 – K Share Dividend Alternative (Default Option)

Receive GBP0.034 by way of a Special Dividend for each K Share held.

The payment under the K Share Dividend Alternative should be generally treated as income for UK tax purposes.

SHAREHOLDERS WHO DO NOT MAKE A VALID ELECTION WILL BE DEEMED TO HAVE MADE AN ELECTION FOR THE K SHARE DIVIDEND ALTERNATIVE IN RESPECT OF ALL OF THEIR SHARE ENTITLEMENT. SHAREHOLDERS WHO MAKE A PARTIAL ELECTION FOR THE J SHARE CAPITAL ALTERNATIVE WILL BE DEEMED TO HAVE ELECTED FOR THE K SHARE DIVIDEND ALTERNATIVE FOR ANY REMAINING SHARE ENTITLEMENT.

MORE INFORMATION ABOUT THE RETURN OF VALUE

The cash proceeds from Options 1 and 2 are expected to be received on or around 7 November 2012. We will aim to release these funds to your account within five business days of receiving the proceeds.

The J shares and K shares have not and will not be admitted to trading on any stock exchange.

OPTIONS

OPTION 1 - ELECT TO HAVE YOUR J SHARES REPURCHASED BY THE COMPANY AT GBP0.034 PER J SHARE.

[lord gnome] 17/9/2012 18:30

No dividend?

[stemis] 14/9/2012 12:40

As you say, great discount. But no dividend, so doesn't tick all the boxes for me. Haven't really looked at it in detail.

[jonwig] 14/9/2012 12:24

Stemis - I didn't have in mind the whole company, as 'incubator' seems off-target for RQIH anyway.
There might be some bits, though - TAW has lots of bits!

More to the point: would you buy TAW, thinking of the asset discount?
I wouldn't touch it, if only because of the 71% stake you draw attention to.
That sort of situation looks a prime case for a potential de-listing if they don't receive decent bids.

[stemis] 14/9/2012 11:12

The deferred assets are consideration due from the sale of CX Re.

Can't see RQIH going for Tawa. Even on a tangible nav basis, TAWA is valued at $172.5m. Market cap is £49.3m, which is just less than RQIH's. Financiere Pinault own 71%. Why would they sell at anything other than a significant premium. Out of RQIH's financial range.

[jonwig] 13/9/2012 18:12

Would RQIH be interested in Tawa [TAW], post #214?

Well, on the face of it, net assets are 113p/sh against share price of 43.5p.

All I've looked at is the bare statement of 23/03 (FY to 31/12/11). I'd be inclined to subtract the goodwill, the deferred assets (not explained) leaving about 68p/sh.

Is the 'incubator' division properly valued? the last time I heard that word was in dot.com times.

And debt with re-insurance isn't comfortable for me.

Also, these small re-insurance companies - isn't that a contradiction in terms? - And I see they are experiencing above-expected calls.

No doubt RQIH could cherry-pick some stuff at the right price, and I'm sure they would look.

B P Marsh [BPM] might have been interested at one time, but that has a for sale sign now, as well.

[red ninja] 11/9/2012 22:31

C

Its the standard capital or income dividend choise at the aforementioned 3.4p a share.

Market still wary of RQIH as share price doesn't seem overly rich...

[cestnous] 11/9/2012 09:34

Had this yesterday

Terms: RETURN OF VALUE The Company is proposing to make a return of cash to Shareholders through a
Return of Value scheme. Shareholders will receive one Entitlement Share for each Existing Ordinary Share held
by them at the Record Date. Each Entitlement Share will entitle holders to receive a Capital Repayment of 3.4
pence per share or a Special Dividend of 3.4 pence per share. The Return of Value requires the approval of
Shareholders, which will be sought at a General Meeting to be held on 11 October 2012. Relative Details and
Dates: 11 October 2012 General Meeting; 16 October 2012 Record Date. You are not required to take any action
at this time. Further information may follow in due course.

[jonwig] 10/9/2012 14:31

Amazing - I'd never even heard of Tawa [TAW] till now!

Thanks, tv, will look, but RQIH won't want to pay a penny over the odds!

[topvest] 10/9/2012 14:20

I wonder whether they will be sniffing around parts of Tawa as they seem to have a "for sale" price over parts (if not all) the business.

[stemis] 10/9/2012 09:27

Note from Equity Development



R&Q produced sparkling figures for the first half of 2012: the tax-efficient distribution is, as promised, up by 5%, so the net yield at the current price is 7.7%, equivalent to 14.1% gross for a top-rate taxpayer

While Syndicate 3330, was the star turn, all four divisions showed an improvement, both in revenue and profitability

The launch of R&Q's new Lloyd's syndicate for the 2013 Year of Account will provide its live underwriting division with critical mass, guaranteeing sufficient income to cover essential overheads as well as, hopefully, generating a good return on the Funds at Lloyd's

The profitability of the run-off syndicates was even better than I expected and with some bias towards the second half, I am increasing my forecast for attributable pre-tax to £10.5m and EPS to 18.1p. This leaves the PFER at 6.1x compared to a prospective net yield of 7.7% and the shares undervalued by any measure

[jonwig] 06/9/2012 08:24

Good divi increase ... what's the betting somebody will come along again and insist they aren't paying a dividend!

[lord gnome] 06/9/2012 08:21

Headline figures make nice reading. Good divi increase - if I could get 6% a year on everything I own I wouldn't have a care in the world. Directors look forward to the future with confidence - those are the words I like to hear. Happy to hold and would add more if I had funds. Yield of 7.4% based on current offer price of 111p.

[jonwig] 06/9/2012 08:06

Very good, I think, yes.

Businesses such as this make it pretty hard to decide just what the trend in "profits" is, or even what constitutes a profit!

But what stands out (for me) is the pretty significant amount of cash generation in this half (£26m) as opposed to outflow in the last two halves.
This is mostly from run-off syndicate 3330, by the looks of it.

[18bt] 06/9/2012 08:00

Good interims today, seem to be ahead of what the market is expecting. Surprised there isn't some further acquisition of run off portfolios, but perhaps they'll come in 2nd half.

[lord gnome] 14/8/2012 08:41

Continuing to move up - which is nice.

[18bt] 02/8/2012 13:01

R&Q forms new Lloyd's syndicate

2 August 2012 |By Newsdesk

Syndicate 1991 will be led by former Axis underwriter

Randall and Quilter's syndicate managing agent RQMA has launched a new Lloyd's syndicate.

Syndicate 1991 will be led by active underwriter Daniel Wright, formerly of Axis, who will underwrite delegated authority business.

RQMA has been given provisional approval by the Lloyd's franchise board to form the syndicate.

Syndicate 1991 plans to underwrite for the 2013 year of account, subject to formal Lloyd's approval.

RQMA chief executive Robin McCoy said: "This is a key development in the growth of our live underwriting business at Lloyds, as we add a 'first party' syndicate to our existing turnkey and RITC syndicates."

[18bt] 19/7/2012 13:57

From Insurance Times today:

Capacity provided by Ironshore Europe and Equity Red Star

Randall & Quilter-owned MGA Synergy Insurance Services has expanded its product range after securing new capacity providers.

The MGA is a provider of personal insurance for medium- and high-net-worth (HNW) individuals.

Synergy has established new long-term agreements with two A-rated capacity providers, Ironshore Europe Ltd and Equity Red Star.

As a result, Synergy's product rangae now includes insurance of UK and European properties, high performance vehicles, classic cars and large fine art and jewellery portfolios.

The MGA has also secured a new single specialist HNW claims provider for all claims, through Lawshield UK.

Synergy is part of R&Q MGA Limited, the specialist MGA segment of Randall & Quilter.

Commenting on the launch, Synergy underwriting director Emma Bennett said: "Our new long-term agreements with Equity Red Star and Ironshore Europe have enabled us to broaden our risk appetite and product range for our clients. Furthermore, our agreement with Lawshield means our clients will benefit from offering a single claims provider and contact number for all claims."

R&Q MGA chief executive Nicholas Hales added: "This product launch is a further example of our commitment to growing the R&Q MGA offering. We're focused on replicating the Group's unrivalled quality of service and innovation across our global platform and we look forward to the continued development of R&Q's MGA underwriting business."

In addition to Synergy,. the R&Q MGA stable also includes R&Q Just Underwriting, R&Q Marine Services and R&Q Commercial Risk Services.