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RSA Insurance Share Discussion Threads
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|What I´ve read is if RSA produce all the savings they say and their predicted profit materializes then the trading range mentioned by chancer will most probably be reached with in the next year.|
|Thank you chancer, my point entirely. I am a huge fan of Hester and believe that Osborne got it horribly wrong moving him out of RBS. The results of Hester's efforts will serve us proud!|
|Zurich were forced to pull out following their liabilities in China after a major explosion.
RSA were informed on the Sunday and therefore market opened on Monday with bad news and 20% drop in share price. Seems so long ago.
The former CEO Martin Senn committed suicide. No link intended.
Did someone make a killing on the Friday knowing the deal was not going through ?
Anyway, even if RSA hit £6:00 (which is largely expected in the know) it is still a bargain and relates to £1:20 a share before the last consolidation 1 for 5 shares.
Rumour has it that the future long share price should or could be trading in the range of £6 -£7 if future forcasts are correct.|
|ianood - Zurich pulled out because RSA said the bid undervalued the company, therefore in my opinion RSA pulled out of the bid as they rejected the bid.|
|Ian- yep, 12 months ago to the day. Coincidence on recent share price increase? Are they circling again?|
|loganair - RSA didn't walk Zurich pulled out!|
|I am also glad, that for once a companies CEO was right to walk away from a take-over bid saying it under valued their company as it seems to be in the case of RSA.
Saying this, 530p is only equivalent of the old 106p before the 1 for 5 share consolidation. 20 years ago RSA was over 600p per share which would now equate to over £30 per consolidated share.|
|I´ve read in the long term motor insurance premiums will fall due driverless cars, when they are finally fully rolled out will be much safer then the todays drivers.|
|Thanks chancer. Good find.
Can anyone explain this to me "UK motor insurance premiums would continue to rise because the levels of reserve releases that have supported profitability in recent years are unsustainable in the long term."
Why would this be positive for the share price? What "reserve releases" are they talking about? Apologies if this is off topic for RSA but I expect there are others here who are interested in motor insurers as well.|
|Non-life insurers were also racing ahead on Thursday after Fitch forecast UK motor insurance premiums would continue to rise because the levels of reserve releases that have supported profitability in recent years are unsustainable in the long term.
That drove gains in the likes of Admiral Group, Direct Line and Hastings Group.
RSA on the other hand was also getting from reports in Bloomberg that last night's closing price auction feature one or more large buyers.|
|Source / link????|
|Takeover bid expected at £6 plus|
|HSBC upgraded RSA Insurance to 'buy' from 'hold' and raised the price target to 595p from 520p despite the strong share price performance.
The bank noted RSA shares are up 19% year-to-date, outperforming the FTSE 100 index and the DJ Stoxx Insurance index by 9% and 36%, respectively.
"We upgrade the shares given we see more scope for management actions around the legacy portfolio, debt restructuring, cost savings and a further improvement in attritional loss ratios."
"The capital position is comfortable while there is more scope for EPS upgrades if the management team achieves its 2018 ambitions, increases cost targets or restructures debt further."|
|Wasn't aware of RSA turning down the Zurich bid, I think you'll find they walked, albeit for their own internal reasons!|
|PANMURE RAISES RSA INSURANCE TO 'BUY' from 'HOLD' - TARGET 575p from 470p.|
|RSA seems to be one of only a few companies that have turned down a take over approach while their share price is nearing the take over offer price in my opinion shows that the offer made by Zurich did in fact under value RSA.
It seems to me that Hester was right during the bid by Zurich to say that RSA was worth 600p and maybe a little more.|
|Beaufort Securities - Our view: RSA delivered good performance in H1 2015. The group recorded a sharp rise in operating profits, well supported by higher net written premiums across most of the regions in which it operates. Premiums were strong in both personal and commercial lines, driven by strong rate increases. The group has improved performance under Stephen Hester (Chief Executive), who has streamlined the business to focus on markets in Britain, Ireland, Scandinavia and Canada. RSA successfully completed the disposal of businesses in Latin America and Russia, taking it closer to its principal disposal programme (total proceeds £1.2bn 2014–16). The group's cost reduction programme remains on track to deliver over £350m gross annualised savings by 2018. RSA is progressing well on various performance initiatives, including customer service, sales effectiveness, pricing and underwriting improvements, and technology improvements. Return on tangible equity remains within the medium-term target of 12–15%, a year ahead of its expectations. Solvency II coverage ratio remains towards the upper end of its target range of 130–160%. The group continued on its medium-term policy of ordinary dividend pay-outs of 40–50%. We note the uncertainty in the market after Brexit. However, RSA is well-placed with the majority of its earnings in foreign currencies to mitigate the challenges. Therefore, we maintain a Buy rating on the stock.|
|Jake Cordell - In terms of its share price, RSA has gone practically nowhere in the last two and a half years. On 1 January 2014 they opened at 460p a pop, and they closed yesterday at 498p - having rarely sunk lower than 400p or popped higher than 500p.
Such stability is a rare beast on the stock markets, so when chief executive Stephen Hester warns in the report today "we will have setbacks", they are probably the kind of setbacks most other firms would be envious of. With underlying profits growing handsomely, RSA were quick to herald their own strong performance in an otherwise tough external environment.
"RSA is insulated from Brexit impacts via non-sterling profits and separate regulated European subsidiaries. However, the impacts on interest rates are negative for insurers generally and uncertainties remain in other dimensions."
RSA keeps ticking over and insists Brexit won't hold it back.|
|Analysts said the good underlying numbers, combined with the fall in sterling since the Brexit vote, could attract bids for the company.
"Following the failed takeover approach by Zurich last summer we believe that chief executive Stephen Hester has effectively hoisted the ‘for sale’ sign over the company," said Panmure Gordon's Barrie Cornes.
"The weakness of Sterling post Brexit has effectively lowered the price those potential suitors such as Axa would have to pay to acquire RSA by circa 10pc. The downside for those shareholders hoping for an exit is that the share price has rallied 28pc since mid-February 2016 lows."|
|Most important part of the results to me was - Core Group combined ratio of 94.3% (H1 2015: 96.4%).
Scandinavia 88.5%; Canada 94.5%; and the UK 94.4%.
And the retirement of some of their more expensive debt.
And great to see an increase in the dividend to 5p.|
|Yes, very good results indeed. The turnaround plan has worked. Well done Stephen Hester!|
|Not too shabby!|
|"RSA will report its H1 2016 results on Thursday 4 August (same day as Aviva). We are forecasting a headline Operating profit of £275m (+6%) and an interim dividend of 4.9p/share (+40%). We anticipate a Combined Operating Ratio (COR) of 95.4% with the underwriting performance having benefitted from relatively benign weather offset by a couple of larger claims incidents. The shares have performed remarkably which we believe reflects an improving outlook for motor insurance in the UK, combined with an expectation that the business will be sold at a multiple similar to that which Zurich almost paid for RSA before pulling out."
Taken from Research Tree|