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RSA Insurance Share Discussion Threads
Showing 9351 to 9369 of 9375 messages
|Barrie Cornes, an analyst at Panmure Gordon exercised caution about this morning's further jump in the share price. He said: We like what Stephen Hester is doing at RSA... but, in our view, this good news is now all in the share price.|
|Final Dividend 11p.
|Well I sold at 600, we shall see if that was wise or not in about 9 days!|
|"We expect the additional capital released to be used to pay down expensive debt thus increasing earnings per share in the future and [thus] improving the dividend story,"
This is obviously encouraging, but if I read the release correctly, didnt they pay almost £1B to offload this, so does that suggest the upcoming FY results might not look that good, with the benefit coming over the next year or so. Im contemplating selling, and buying back post results.|
|So expect 10% + rise in earnings then based on currency.|
|Analyst Barrie Cornes at Panmure Gordon said the deal was good news for shareholders "as it removes a book of 'nasties' and has a positive impact on financials".
"We expect the additional capital released to be used to pay down expensive debt thus increasing earnings per share in the future and [thus] improving the dividend story," he added.
RSA said it has benefitted from the drop in the fall in the value of the pound by some 16% since the June Brexit vote, and expected a boost in operating earnings for the tax year. Over two-thirds of the company's profits are generated overseas.|
|Market seems to like the latest deal.|
|Canaccord Genuity today reaffirms its hold investment rating on RSA Insurance Group (LON:RSA) and raised its price target to 600p (from 475p).|
|I've taken the opportunity to sell today. To have made a 10% profit before dividends on this near disastrous investment is a wonderful result. Too marginal a business to warrant investment long-term. Good luck to those that remain.|
|UBS downgraded the insurer to Sell from Neutral, arguing it will be hard for RSA to surprise to the upside given its shares are near a five-year high. The Swiss bank also sees challenges for RSA in 2017 on the pace of its UK turnaround plans and said the need for RSA to trim its debt pile will mean any special payouts are unlikely to materialise any earlier than 2018.|
|Legacy specialist Catalina is in pole position to acquire RSA's £600mn ($750mn) UK legacy book as the sale process draws towards a close.
Sources said that following the submission of final bids Catalina is the likeliest acquirer of the business, with both Armour Holdings and Enstar set to come in as underbidders.|
|By Robert Stephens - 2017 could be the year that dividend growth becomes the most important aspect of income investing.
In 2016 and recent years, low levels of inflation have meant that investors focused on higher yielding stocks. While this was enough when inflation has been at or near zero, a faster rising price level could mean that the market favours fast growing dividends over high yields.
For companies which are stifled by high payout ratios, lacklustre earnings growth and large interest repayments stemming from high debt levels, this could be a problem. Their dividend growth may be unable to keep pace with inflation and their share prices could suffer.
However, for companies such as RSA Insurance (LON:RSA), a renewed focus by investors on dividend growth could be a fillip. It is due to raise dividends per share by over 40% in 2017. It should also benefit from continued improvements in its operating performance and a low valuation over the next year.
2017’s fastest growing dividend stock?
Due to the potential for companies with fast-growing dividends to perform well in 2017, RSA Insurance has appeal. It only yields 2.6% today, but it is due to raise dividends by 40.3% in 2017. This could make it one of the fastest growing dividend stocks in the UK index, and it is being paid for out of a mix of a slightly higher payout ratio and improving operating performance.
RSA is forecast to increase its payout ratio by 1% next year, which will put it at 48% versus 47% for 2016. Therefore, in spite of such a large planned increase in dividends, there is still the prospect of a higher payout ratio to boost payouts over the medium term.
In fact, the company is targeting a payout ratio of up to 50% plus special dividends over the medium term. The bulk of the 40%+ forecast rise in dividends next year will be from improved financial performance as RSA gradually continues to benefit from a sound strategy.
In terms of RSA’s operational improvements, it has completed a large disposal programme. This has totalled around £1.2 billion, taken two years to complete and left a more appealing core business.
The ‘new’ RSA has a superior risk/reward ratio than the ‘old’ RSA and should position the company for better performance in the long run. It has also cut costs and is on target to deliver £350 million in cost savings by 2018. This has taken place alongside a deleveraging process. For example, in the first half of the current year around £200 million of subordinated debt was retired.
In spite of these improvements, RSA has a relatively low valuation. Its P/E ratio of 17.8 is due to drop to 13 next year. Given the company’s positive outlook, I feel this is fair. Further evidence of an appealing valuation is evidenced by its prospective yield for 2017 of 3.7%.
Given the risks facing the global economy, 2017 is a challenging year to forecast. However, higher inflation seems likely and this could cause income investors to pivot away from high yielding, slow dividend growth stocks and towards lower yields from stocks which have superior dividend growth potential. The risk of negative real income growth could spur this change.
Since uncertainty from Brexit in particular is likely to rise, sterling could weaken and the pound could depreciate further. Therefore, inflation may overshoot The Bank of England’s current target.
In such a climate, RSA has appeal. Its yield may be low today, but rapid growth in 2017 and the potential for further growth in 2018 mean that it could become more popular among income investors. Its operational improvements mean that its business is now lower risk and offers potentially higher rewards than in recent years, which bodes well for the long term.
Trading at a fair price and with an upbeat outlook, the search for dividend growth leads to RSA in my view.|
|Barclays Capital today reaffirms its overweight investment rating on RSA Insurance Group PLC (LON:RSA) and raised its price target to 597p (from 572p)
The disposal of £600mn ($754mn) of RSA's UK legacy exposures could increase the likelihood of special dividends from the insurer, according to Keefe, Bruyette & Woods analyst Greig Paterson.|
|Goldman Sachs 12/12 Resumes Buy 635.00p|
|The disposal of £600mn ($764mn) of RSA's legacy UK exposures has gone down to the wire, with parties now in the final stages of the bidding process, The Insurance Insider understands.
Final bidders are believed to include Catalina, Enstar and Armour.|
|Research by RSA has shown that 63% of brokers believe that leaving the EU would be either positive (32%) or have no effect (31%) on their SME clients.
Only 17% said Brexit would have a negative impact.
According to the insurer's findings, brokers were equally unmoved about the impact of Brexit on their own business. Some 32% predicted it would be positive and 32% also predicted it would have no impact on their company.|
|As an ex employee Id be staggered if those figures were correct. There were several different pension schemes, and while there were deficits, the ones I saw published were never in that order of magnitude.
RSA always surfaced the deficit figures to their employees regularly so there shouldnt be any real opportunity for rumours.|
|Insurer RSA (RSA) has cut costs to boost its bottom line, but investors need to see growth coming through soon.
Following a 5% drop in premiums during the first nine months of the year, Hargreaves Lansdown analyst Nicholas Hyett commented: ‘The results show more of the same at RSA.. Premiums are broadly flat at constant currency, but progress on costs and underwriting suggest the bottom line continues to improve,’ said Hyett.
‘However, there’s a limit to how far costs can be cut. Eventually the group will need to start growing its gross written premiums, and in the highly competitive, price-driven world of commercial and personal insurance, that could well prove a challenge.’|
|Well that was a little disappointing if not that surprising. Still think this looks a lot better 6-12 months from now. I would expect another takeover off if it wasnt for the Brexit uncertainty.|