R&q Insurance Share Discussion Threads

[lord gnome] 15/1/2013 11:35

Spot on adam - today's RNS confirms that Phoenix are out.

[cestnous] 14/1/2013 14:50

And it's my birthday!


Back to sleep now.

[jonwig] 14/1/2013 14:38

Oh dear, will this holding start to get interesting? I do hope not, I was hoping for a quiet 2013.

(We don't actually have enough information about the trade, yet.)

[adam] 14/1/2013 13:52

Looks like Phoenix cleared out as trade of 1,925,548 goes through at 106.25.



So we know the seller. Who is the buyer?

[speedsgh] 14/1/2013 13:41

Shame. I quite like investing in a dead corpse. Wonder what's piqued interest?

[lord gnome] 14/1/2013 13:27

Sudden surge in volume with a couple of big trades going through followed by a welcome tick up or two. We have a pulse.

[jonwig] 08/12/2012 15:47

Equity Development's regular round-up, page 2:

Randall & Quilter have announced, as hoped for, the launch of a new Lloyds syndicate which will write SME and niche personal lines property and associated liability business through Managing General Agents with a balanced portfolio in the USA, UK, Europe and the rest of the world, and between catastrophe-exposed and non-cat localities. Syndicate 1991 will have an initial capacity of £77m, of which R&Q is providing 20%, two major reinsurers 15% each and individual investors 50%. Among the latter is Michael Deeny, a member of the Council of Lloyds and a former Chairman of the Association of Lloyds Members who will also be joining the group as a Non-executive Director. R&Q should benefit from management fees as well as its share of syndicate profits.

As for no share price reaction, I'm almost pleased at that as I've been adding to my holding at reasonable prices and can do again.

Another thing might be relevant - the sort of business RQIH is involved in should be fairly uncorrelated with other financial assets. That's always a worthwhile thought for holders of equities and bonds like myself.

[topvest] 07/12/2012 17:16

Yes, they seem to be very active in developing their business this year. Hopefully this will lead to good results in the coming years. Quite a positive development this one.

[18bt] 07/12/2012 17:11

Amazed no share price reaction to today's announcement. Seemed material to me one way or another!

[alter ego] 28/11/2012 10:17

thanks for that jonwig
the deal should generate value for shareholders.
that's the bit that matters.

[jonwig] 28/11/2012 06:57

Equity Development note (p3):

Randall & Quilter have extended their range of domiciles further by acquiring
(subject to approval by the Finnish regulator), Alma Insurance, a Finnish
reinsurance company that has been in run-off since 1989 for £4.4m cash, a
discount to its estimated (adjusted) NAV.
Alma had net insurance reserves of £1.6m in its latest accounts, so assets are
more than three times claims reserves but the negative real interest rates in
financially sound countries like Finland result in interest and investment income
falling short of management costs, so NAV is liable to shrink. Assuming that R&Q
use their skills and some economies of scale to reduce ongoing costs and
accelerate claims settlements, the deal should generate value for shareholders.

[jonwig] 26/11/2012 07:22

Another acquisition announced, making it the fifth this year. All five done for cash, at a discount to net assets.

They don't always declare the amount paid, but I reckon the total is around £12.5m.

[jonwig] 17/10/2012 12:28

My broker notification appeared this morning (T D Direct).
I chose capital as I need to lose some income, which is eating into my age-related tax allowance. That's only now becoming a problem!

[jonwig] 16/10/2012 13:10

It's now marked as 'XP' which a pleb like me reads as 'XD' - link in post #235.

Not the full drop though.

[this_is_me] 11/10/2012 20:49

It is hard to get through all the risk of the cleaner cuting a finger and being awarded £2.51 compensation etc. to the real information.

[jonwig] 11/10/2012 15:04

Ah - the payment is approved and here's a circular:



... which is 40 pages and I haven't read! Don't we trust these companies!!

[lord gnome] 11/10/2012 08:00

'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.'
Taken from the interim results statement. Strangely, there was no official ex-div date, probably because it isn't a dividend. Either the share price has already dropped by the amount of the distribution or we will have a bit of a shock when we wake up tomorrow morning!

[alter ego] 10/10/2012 22:50

I read elsewhere (the IC) that RQIH go xd today

[jonwig] 10/10/2012 19:28

The record date for the capital distribution (3.4p) is 5:00pm tomorrow but no xd flag is showing - maybe it will appear then?
I'm looking here:

[eekorehc] 04/10/2012 15:29

Taken from a tip sheet.

Randall & Quilter Investment Holdings (RQIH) has completed the acquisition of Guernsey domiciled captive insurer, RAB Insurance Ltd at a discount to net asset value – net asset value estimated at circa. £0.95 million based on the latest available management accounts.

RAB has been in run off since October 2011 – with Randall emphasising the acquisition "continues to demonstrate our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business" and that it "further evidences the increasing level of acquisition activity we are seeing as a group" – this being the company's third captive acquisition in 2012 and its second in Guernsey this year.

Shares in Randall currently trade at 106p and the company's joint broker, Shore Capital, continues to look on the money with its assessment; "currently trading at broadly parity to our 2012 forecast net tangible asset value, with a forward yield of 8%, which we view as secure... such a valuation undervalues, in our view, the opportunities that are emerging for the company, the benefits arising from the recent diversification and the quality of management". In the near term a 3.4p per share interim return of cash has been proposed, up from the prior years' 3.2p, and is anticipated to be paid on or around 7th November to shareholders on the register at close on 11th October. As both an income and growth play, the stance remains "buy".

[sogoesit] 04/10/2012 09:26

04 October 2012

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has completed the acquisition of the entire issued share capital of RAB Insurance Limited ("RAB"), a Guernsey domiciled captive insurer, from the owner Drakelow Development Holdings Limited ("DDH").

RAB has been in run off since October 2011 and previously wrote from 1992 employer's liability, product liability and constructors all risks for Roger Bullivant Limited and its subsidiaries, a building foundation company sold by DDH in July 2011. The Net Asset Value of RAB based on the latest available management accounts is estimated at c. £950k and RAB was acquired by R&Q at a discount to net asset value.

Commenting on today's announcement, Ken Randall, Chairman and Chief Executive Officer of Randall & Quilter, said:

"The acquisition of RAB further evidences the increasing level of acquisition activity we are seeing as a Group. It also continues to demonstrate our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business. This will be our third captive acquisition in 2012 and our second in Guernsey this year."

[sogoesit] 03/10/2012 11:15

Yes, thank you very much jonwig for your insight.
I know little about insurance, although I have been reading up on the complexities (especially how legislation and Solvency Regulations can affect the companies and thence their share price) but a lot befuddles me. However, buying last year at just over 100p, I thought the risk/reward balance was worth making it an income investment. I did not expect any capital growth but I was impressed by management and their stake in the enterprise.
I shall now re-invest last year's and this year's dividends in the company.
Reegards.

[jonwig] 03/10/2012 08:44

Pay-date isn't until 7 Nov, so cheapo brokers (like mine, T D Direct) still have time to let you make your choice. I imagine the 'default option' will be to take income.

Sogoesit - if you take income, you'll have some tax to pay as a HR payer. If you take capital, you might have some CGT depending on your good fortune in the current year!

As for RQIH and "will it ever be a capital grower?", it's not something I would particularly hope for or expect.
Insurance is highly cyclical (though different underwriting cycles are a bit jumbled with this company), and investment returns (mostly bonds) are pretty low. What they seem to be good at is managing run-off situations by buying assets and managing them cheaply thus squeezing out capital.
And there might be defensive merits - if equities generally take a fall, there's no obvious reason why RQIH and such things as Lloyds syndicate managers should suffer. Your 7% should be pretty secure.

[sogoesit] 02/10/2012 17:22

Well, I have an "Income Portfolio" where this stock sits, amongst other income generators, so I like to get the compounding effect going and, given my dealing costs are low enough, I then re-invest when I have gathered enough dividends.
I think, too, that this is an "income stock"... will it ever be a capital grower? I doubt it.

I ask myself, and anyone who may wish to respond, whether the capital return feature helps my cause or the likely cause of capital growth.... I don't think so on first glance (but I do pay higher rate tax which is "morally repugnant" in my view).
Personally I also like to see, and control, cash in the hand.
(Hoping my broker, as well as yours Joan, will fly that paperwork over to me in the not too distant future!)