Tellworth British Recove... Share Discussion Threads

[lord gnome] 12/11/2014 10:22

Reads well enough to my untrained eyes. Market has marked them down again a bit this morning for no reason that I can fathom. Happy to hold.

[valhamos] 12/11/2014 07:34

Very good update. Not sure what the price dip over the last couple of months was about.

[nw99] 12/11/2014 07:19

Solid set of numbers

[neilyb675] 15/10/2014 16:14

cheap here, also watching ESUR .....

[neilyb675] 04/9/2014 16:18

added just under 247, nice bounce back since

[ramridge] 04/9/2014 08:31

Yes. He said the answer is in the post.

[scottishfield] 03/9/2014 20:24

Have you asked the postman yet?

[ramridge] 03/9/2014 20:22

Guys - Let's consider this situation in some detail.
Brit Insurance was taken private in 2010 by two US private equity firms, Apollo and CVC. In march 2014 they decided to float it at a placing price of 240p and making available only 25% of the equity immediately. the remaining 75% was subject to a 180 days lockup. The lockup period expires on 25 Sep 2014.

Today's closing price is 256p so the gain to them since the float is approx 7%. Remember that they are already sitting on substantial gains since the acquisition in 2010.

Their purpose of floating in March was to crystallise profits - that is what private equity firms do. So come post lockup day say they are sitting on 10% profit since IPO. What do they do? Yes, a placing is probably the right answer. The question then is at what discount. That is very much determined by market conditions and market sentiment at that time. The market price will be determined by the terms of the placing. We are now into lots of ifs and buts. My postman's opinion is probably no better or worse than anyone's. Take your pick, roll the dice and live with the consequences :-).

[lord gnome] 03/9/2014 17:36

I can't see a major sell-off in the market. They are cheap enough as they are. We may get a small dip, but not enough to worry me. The Private Equity houses are far too savvy to sell against themselves. They will organise a placing. This will remove any possible overhang and the shares will then rerate.

[lonrho] 03/9/2014 15:31

yes there may be a sell off related to various reasons but it is unlikely to relate to private equity reducing their stake in an undisciplined way. They have had loads of time to agree in principle a sale with institutions subject to final pricing dependent on market conditions and the brit price at the relevant date.

[ramridge] 03/9/2014 15:24

Thats exactly what I have planned. I have banked 14% profit with the view to buying back once there is a sell-off. But hey, best laid plans of mice and men....

[speedsgh] 03/9/2014 12:21

ramridge - all depends on your investment objectives. if the share price is hit as you suggest, it might be a very good opportunity to use the weakness to buy/add to one's holding to lock in an even better dividend yield. que sera.

[ramridge] 03/9/2014 12:11

ft.com on 14/8:
" ..... The private equity houses retain a stake of 75 per cent. A lock-up on them selling more shares expires in September."

Time to take some profits before the fat cats?

[spob] 20/8/2014 08:30

ex dividend today 6.25p

[this_is_me] 13/8/2014 08:14

Yes no nasty surprises, claims below average.

[m1das_touch] 13/8/2014 07:49

This is the best bit, because any special dividends will come from the capital surplus:-

• Capital surplus over requirements of £336.8m with a solvency ratio of 153.5% before payment of interim dividend (FY 2013: £264.4m/141.0%).

[analyst008] 13/8/2014 07:33

• Return on adjusted net tangible assets (annualised) before FX movements of 25.0% (HY 2013: 16.7%).
• Profit on ordinary activities before tax, FX and IPO costs of £96.0m (HY 2013: £56.0m).
Profit after tax of £56.6m (HY 2013: £69.0m).

Gross written premiums of £701.2m (HY 2013: £671.2m), an increase of 4.5%. The
increase at constant exchange rates was 11.6%.

• Combined ratio of 88.3% (HY 2013: 86.2%).
• Attritional claims ratio of 51.4% (HY 2013: 51.4%).
• Investment return for the period of £56.3m representing a non-annualised return for the half year of 2.1% (HY 2013: £9.0m/0.3%).
• Capital surplus over requirements of £336.8m with a solvency ratio of 153.5% before payment of interim dividend (FY 2013: £264.4m/141.0%).
• Earnings per share of 14.2 pence (HY 2013: 15.9 pence).
• Closing adjusted net tangible assets per share of 179.4 pence (FY 2013: 168.6 pence).
• Interim dividend declared of 6.25 pence per share (HY 2013: nil).
• Successful IPO of Brit PLC and re-domicile to the UK.

[lord gnome] 13/8/2014 07:20

Decent enough set of numbers and a good divi - better than I had anticipated. Hopefully the market will respond positively. What a good income stock.

[neilyb675] 12/8/2014 16:22

I hope so.....

[scottishfield] 12/8/2014 16:22

augers well for tomorrow I trust.

[neilyb675] 12/8/2014 16:19

163 k BUYS

91 k SELLS

+1.2% LIVE

[neilyb675] 12/8/2014 16:18

top ups look prudent at this moment, and all ready for 10.30am tomorrow......very interested to see what DIV is declared in black and white.

GLA