AI Claims Solutions Share Discussion Threads

[alexacj] 06/7/2006 13:07

Trixter you are right on the volume that created the fall.....I have just gone back through all the trades since the fall from 20p....and guess what...there have been net BUYS of nearly 310000!!!!

[trixter] 06/7/2006 12:52

alex - I certainly took advantage of the fall :-) I like what ACS has said in the last couple of updates, but no-one else seems to (apart from you)! I also like the management changes that have been implemented, presumably for bigger and better things? In short, I agree 100% with what you say above. IMHO the potential is certainly there, but, of course, no guarantees...

Two buys of 50k would have the effect on SP, of course, because the fall was on pitiful volume!

[alexacj] 06/7/2006 11:50

Morning Trixter......nice to see a rise for a change.I hope you took advantage of the fall!......my call would be a rise back to 20p - 25p IF the results are in line with the revised estimates....in fact they may deserve a little more than that maybe 25p - 27p.....but in todays markets probably can't realistically expect too much.The real attraction of this share to me is not today or even the next set of results....it is what MAY happen to the share price IF ACS win one or more of the BIG insurer contracts.In my own mind it now looks inevitable that the insurers will outsource their mobility requirements.....question is who will win that business?......IF ACS do then the earnings will rise dramatically......The other part of this share that I like is that it is not blue sky....it is profitable....it operates in a sector where 70% of available business is not contracted.....whether the economy crashes (excuse the pun) or not people will unfortunately continue to have motor accidents....in fact with more and more traffic on the roads those accident statistics will probably just increase.....and they have a £10 million bank facility that should ensure they have sufficient funding to finance any increase in volume without needing to call for more cash from the market,therefore avoiding dilution....aimho etc etc!
Edit - now we can see the reason for the rise, 2 buys of 50000!

[trixter] 06/7/2006 11:35

a return to 20 - 25 p range on the cards?

[trixter] 06/7/2006 11:30

like that?

[elmfield] 05/7/2006 23:10

Have we had a blue day or two, still here but ain't expecting much but that is just when ....... boom!

[alexacj] 05/7/2006 13:40

LOL....I would guess Stone is busy at the moment.....wouldn't you!
There was a snippet a couple of weeks ago I found from one of the papers ,local to ACS ,advertising for an Assistant Claims manager for AI Claims.They also stated that they had vacancies for Team Leaders (plural) in claims .....not sure whether that is to replace a mass walkout of their employees or whether they are just recruiting for the normal reasons....time will tell I guess!
Edit....tried to post the "advert" but I can no longer find it on the search engine.The application closing date was 21st June so I guess it is now "obsolete"!

[ellie8] 04/7/2006 19:57

Where is StoneMe when you need him most? He's got the inside track!

[squash90] 04/7/2006 18:08

please any body why is there no news on acs only the american acs is there another news page

[cornelious billy bee] 30/6/2006 16:53

so do youthink it is worth a punt at 15p or do you think this ones for the knackers yard?

[alexacj] 22/6/2006 22:22

Hi Cornelious....u may be right....but if there is wouldn't you have expected at least part of that sell order to have hit the market today rather than wait 4 it to go even lower....personally I think that any sizeable sell (if there is one, which I now doubt given the circumstances)would be an off market transaction i.e broker 2 broker etc.....I may be proved wrong but I think we can probably put this down to MMs trying 4 cheap stock....I'm fairly impressed that even the PIs are not selling with these mark downs......maybe we're not all as silly as MMs think we are!Having said that I think we can expect more price manipulation (and I don't blame them in the current markets)......watch and either top up or wait would b my call....as Scots used to say....good luck all!

[cornelious billy bee] 22/6/2006 19:59

must be a sell order gong on in the background, i willl check LII tomorrow to see how healthy its looking

[trixter] 22/6/2006 15:38

alex - good posts. Waiting patiently for news. Price fall has been on very low volume....

[alexacj] 22/6/2006 12:44

Hi Elmfield.......I think that it is going to prove a waiting game to see where the big 4 insurers place their business....but in my opinion the upside potential is enormous for the winner/winners!.....another point worth noting is that even if ACS gain nothing more than they have today Evolutions current (downgraded!) forecast would put them on EPS of just below 2.5p and placing a reasonable p/e of 12 on that number (i.e. assuming only modest growth potential!!!) then the share price should be around the 26p - 27p.....that's about a 60% YES 60% uplift from where we stand today.Think that currently says it all on a risk reward profile basis!
Interesting price action today....so far buys of over 70000 with no sells......I'm assuming that there must be a T trade at close!
EDIT :- Well all MMs have now closed and there have been a total of over 90000 buys today and guess what.....absolutely no sells.....LOL!

[elmfield] 22/6/2006 08:32

Good post, holding and waiting.

[alexacj] 20/6/2006 23:05

Well it's all gone quiet over here....as they say!......i feel we were "robbed" tonight of our first win over Sweden for many years....at least we're not facing Germany in the next match!
Anyway...back to AI Claims......thought that it may be worth mentioning that we are drawing near to year end and we should expect some sort of trading update in the next 4 - 5 weeks imho!.....However I'm sure that most of you CHO fans have been diligantly pouring over the recent ACE & HHR results.....you have to hand it to them yet again their earnings and turnover numbers look excellent....maybe we all backed the wrong horse....UNTIL.....you look closely at the commentary & can clearly see in both sets of results the reference to insurers now looking to outsource/have outsourced their business!

ACE - "Since the introduction of the ABI GTA there has been a gradual but clear
improvement in the relationship between insurers and credit hire operators. Our
strategy has always been supported by using technology and efficient business
process to help reduce cost from the motor claims supply chain. It is my belief
that we are approaching a 'tipping point'. There is an increasing need on the
part of insurers to explore and embrace a cost efficient 'process centric'
approach to supplying a mobility solution to their policy holders in a cost
contained environment. For some time we have been exploring the most efficient
way of reacting to this opportunity and we expect to announce initiatives in
this area shortly."

HHR - "A trading statement issued on 2 May announced the signing of the latest
significant contract for the provision of accident management services to a
major insurance company. Volumes of cases from this contract are growing
strongly and a new call centre facility has been opened in Bristol to service
the insurance contract announced at the beginning of May.

(from interview with CEO)
Considering the stance of the other motor insurance giant, Norwich Union, Mr Jackson adds: "NU to date has not used credit-hire but since it bought the RAC I believe it is considering it because the latter did quite a lot of credit hire. So everyone is moving towards the offering - I don't know of any underwriter that is not considering it."


AQL (on a smaller scale!) - "Aquilo PLC said it has been appointed by Ecclesiastical Insurance Group PLC to provide motor claims and accident management services"

So in essence we have gone from being the only company thinking that the future is with insurers to virtually everyone now declaring that Insurers are on the brink of outsourcing their business!ACS have positioned themselves and indeed waited a long time (along with their poor long suffering shareholders!!!)for Insurers to begin to outsource......all now agree the time has arrived......the million dollar question is will the BIG insurers choose a low cost operator or will they choose one of the 2 biggest players who have historically not embraced a pro insurer model.....if this company is ever going to make it then the time has never been better.....watch what happens with the "BIG" Insurers...if they don't sign up with ACS then the current model does not work and ACS need to revisit their target markets PDQ and solicit business from all sectors(as per my previous thoughts!).....but if they do sign up with ACS....well that's a whole new ball game.
I think that the future growth story may now be with the low margin volume business.....let's hope that ACS win that business.....Next 6-8 months will tell...also worth remembering that the MMs don't hold stock of these.... over 70% with holders over 3% and the rest with PI's any prolonged buying will move the price sharply.....but we will need positive news of a large Insurer win.....if that occurs then PBT of more than £4 million should be achievable..... the infrastructure/overheads are already in place to handle volume a lot higher than they currently do so the majority of profit increase will go straight to the bottom line!.....aimho etc etc!

[lord orphan] 10/5/2006 15:32

I think Adrian is virtually out of the company now. I agree with your other points.

[alexacj] 09/5/2006 16:25

I think that the announcement by HHR actually supports the ACS belief that Insurers are now more likely to outsource their business and utilise credit hire co's.Only a few years ago (imho) the thought of insurers actually utilising the services of a CHO were slim with most insurers viewing CHOs as the enemy and at that time the business model for ACS was unproven.This has now changed.
My own area of concern for this company continues to be the fact that they are "ignoring" main stream business offered from brokers/dealerships/fleet operators and manufacturers....from which we can clearly see competitors producing significant profits!The "arguments" for doing so were to ensure that ACS produced the most Insurer friendly stance......i.e. minimising the days on hire and not paying bonus's etc etc.
For HHR to now win a "significant" insurer (and therefore for ACS to have lost this potential contract) in my mind sends a clear message that Insurers do not care whether a company operates in all areas of Credit Hire....it is the lowest price coupled with the "best"service that is more important.......I am sure that ACS will also win further insurance contracts and maybe even one of the big two......I also think that given time it is capable of earnings of perhaps £3 or £4 million....but whilst it ignores "mainstream" it will fail to maximise the company's profit potential and therefore(imho) also fail to maximise shareholder returns.
I also have a question on Adrian Palmers current role.It strikes me that it is somewhat akin to John Prescott's....i.e. he has a title and salary but what does he actually do?........as I've said before I think that this year is fairly crucial for ACS and will (imho) show what the business is truly capable of.....credit hire company's are producing excellent profits and more importantly Insurers are "outsourcing" business!

[masurenguy] 08/5/2006 19:06

"LONDON (AFX) - Helphire Group PLC said it won a 'significant' contract to provide accident management services to a major insurance company with around one mln motor policy holders. Financial details of the five-year contract, which started May 2, were not disclosed."

So why should this undermine the ACS business model ?

[thelondonlush] 08/5/2006 18:55

Based on todays announcement by HHR I dont think the business has a model.

[masurenguy] 04/5/2006 16:52

This share has been vacillating in the 20 - 22p range for 4 months now.
Is it ever going to breakout to even reach last years high of 28p ?

[alexacj] 16/4/2006 14:29

A view from within!(recent Article in Post magazine by the MD of Albany Assistance....part of HHR)

The way forward


Not so long ago, the credit-hire industry was regarded as an enemy by insurers. Martin Ward explains how, through set protocols and increased collaboration, attitudes have changed and the end-customer is reaping the benefits


The credit-hire industry has come a long way from its legal battles with the insurance industry of the late 1990s, and has firmly established its place in the market. As a result, insurance companies and brand intermediaries are increasingly turning to credit-hire organisations because they realise the advantages such relationships bring and are loath to let competitors steal a lead in their client proposition. So how has this changing attitude evolved?

Despite the tension of those early years, legal rulings such as that given in Dimond v Lovell in 2000 endorsed the use of credit-hire services, and meant the two industries needed to find a way of working together effectively. Both wanted to reduce the volume of litigation and create a framework of acceptable charges for replacement vehicles, which would ultimately provide better service for consumers.

The solution was the General Terms of Agreement. Facilitated and run through the Association of British Insurers, it brought about agreed protocols and an orderly structure that credit-hire organisations and insurers could work with.

Hire and repair

In practice, it led to a change in the way firms operate. For example, Albany Assistance has a hire-and-repair review team that manages the repair and hire process to ensure that claims are sorted in the fastest timeframe possible. In return, insurers agree to pay promptly and, over time, trust has been built between the two industries.

Since the GTA has been in operation, signatories from both sides of the industry have experienced a better understanding and an increased level of co-operation when satisfying consumers' needs, and retain the cost of credit hire in line with set expectations. Operating through the agreed protocols, involved parties know what to expect, can budget for the costs they will incur and begin to create business models that will work effectively.

Through collaboration, both industries are beginning to see the benefits of working together and, by adopting this increased level of co-operation, are improving their offerings.

The credit-hire industry provides a consumer-led service that fills a need in the market. It may not have been popular to start with because of the perceived increase to claims costs but that argument has moved on. As insurers try to meet the demands of customers hungry for improved services, the part played by the credit-hire industry has become important.

Credit-hire organisations that have been in the market from the beginning have matured, and enjoy a knowledge and wealth of experience that positions them favourably to take advantage of the business opportunities that are opening up.

Similarly, insurers and branded intermediaries that came to understand credit hire early in the process have also fared well. They were able to tilt the playing field in their favour by offering customers services that enhanced propositions, and this has been an aid to customer acquisition and retention.

Essential credentials

By improving what had been established before its appearance, the credit-hire industry has become an essential part of the market for insurers wishing to offer the best solutions to clients.

As such, insurers and brokers are beginning to realise this and the future of credit-hire organisations is more secure. However, the credit-hire industry must work hard to ensure it capitalises on the potential that is there, and continue to deliver for insurers and their customers.

Currently, major credit-hire organisations are used by insurers to provide claims handling solutions for non-fault customers. This increasingly involves uninsured loss recovery, personal injury management and repair handling.

The cost benefits for insurers are substantial, and the feeling in the market is that it is better to leverage value from this and retain happy customers than provide a cost-bearing service. These advantages are shown by the number of insurers and large intermediaries now directly engaged with credit-hire organisations.

Despite this, sceptics have not got over their past grievances and find credit hire difficult to digest, believing that it inflates claims. In light of this, some insurance companies use third-party intervention as an answer and, although it works in some cases, these remain in the minority.

How will a high mileage BMW driver be convinced that a Corsa is an adequate replacement while their vehicle is being repaired? It is likely the BMW driver will also be offered many opportunities to have a like-for-like replacement along the claims journey, making for a poor comparison with their existing insurer.

Given this comparison, the same client is unlikely to react favourably if they have an injury and it is the third-party insurer that makes the settlement offer rather than their own. It is not about credit-hire firms being the enemy but about evolving the services that insurers have on offer, and providing a better experience for customers.

On another note, why would non-fault customers want to pay an excess on their repairs when they can have this waived through credit repair? People are not fools and should not be treated as such.

Once the level of service that credit-hire firms have brought to the market becomes the accepted norm, insurers that are unable, or unwilling, to provide this will lose out.

Credit-hire organisations and insurers have walked a long road together, and have made substantial progress in reconciling their differences. This improved collaboration will be the trend that defines the industry moving forward.

- Martin Ward is managing director of Albany Assistance, part of the Helphire Group.

[alexacj] 30/3/2006 16:12

It would appear that someone is continuing to buy up stock....another 175000 buy at mid!.....and yet another 125000 above mid!..... since the 23rd of this month there have been a number of trades totalling just over 1.1 million shares at or above the mid....that suggests to me that either the MMs are VERY generous or that there is a buyer in the background mopping up the sales from EVO......