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BRE Brit Ins Hldgs

1,075.00

0.00 (0.00%)

10 May 2024 - Closed

Delayed by 15 minutes

Brit Insurance Investors - BRE

Share Name	Share Symbol	Market	Stock Type
Brit Ins Hldgs	BRE	London	Ordinary Share

	Price Change	Price Change %	Share Price	Last Trade
	0.00	0.00%	1,075.00	01:00:00

Open Price	Low Price	High Price	Close Price	Previous Close
			1,075.00	1,075.00

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Posted at 25/10/2010 07:23 by spob Brit Insurance to Get Formal Bid From Apollo, CVC on Monday, Times Reports By Abigail Moses - Oct 24, 2010 10:35 AM GMT+0100 Tweet (3)LinkedIn Share Business ExchangeBuzz up!DiggPrint Email .Apollo Global Management and CVC Capital Partners Ltd. are planning to make a formal takeover offer tomorrow for Brit Insurance Holdings NV, the Sunday Times reported, without saying where it got the information. The total value of the bid will be between 851 million pounds ($1.3 billion) and 871 million pounds, the Times said. The private equity firms agreed to pay 10.45 pounds a share and honor the 30 pence a share dividend to all investors, as well as pay an extra 25 pence a share depending on the insurer's financial performance at the end of the year, the newspaper said. To contact the reporter on this story: Abigail Moses in London at Amoses5@bloomberg.net. To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net. Read Full Thread Reply
Posted at 01/10/2010 01:07 by spob Speculation grows over Brit Insurance sale as Footsie dips By Miles Johnson Published: September 30 2010 09:03 \| Last updated: September 30 2010 20:47 Brit Insurance was in traders' sights on Thursday as speculation grew that it was close to a sale to a private equity consortium. Interest focused on Brit's chief executive Dane Douetil relinquishing his vote on the board to negotiate a contract with Apollo and CVC, the buy-out groups who have made an £870m offer for the insurer. EDITOR'S CHOICE Treasury to probe high-frequency trading - Sep-29.New chief revamps BP safety operations - Sep-29.Growth in margins gives boost to Smiths - Sep-29.BA, Iberia and AA set to start sharing revenue - Sep-29.India court orders closure of Vedanta smelter - Sep-29.Shell plans rapid North American growth - Sep-29.. Brit has already agreed in principal to recommend an offer of up to £11 per share to its investors, a 53 per cent premium to its pre-approach price. Its shares fell 0.3 per cent to £10.25 Read Full Thread Reply
Posted at 17/9/2010 20:23 by spob Brit Insurance to recommend CVC/Apollo offer By Paul J Davies and Miles Johnson Published: September 17 2010 18:48 \| Last updated: September 17 2010 18:48 Brit Insurance, the sponsor of the England cricket team, is set to be bought by Apollo and CVC, the private equity groups, after the London-based insurer agreed in principle to recommend an offer to its shareholders of up to £11 per share. UK-based CVC's surprise inclusion in a partnership with Apollo of the US came after it became apparent that Apollo would struggle to finance a deal alone, according to people with knowledge of the situation. EDITOR'S CHOICE In depth: Private equity - Sep-06.CVC to buy out TDC's Swiss division - Sep-17.Apollo pursues Brit Insurance with third offer - Jul-29.M&A and hurricanes stalk Lloyd's market - Sep-02..The deal values Brit at up to £870m, a 53 per cent premium to where the company's shares were trading before Apollo's initial approach was made public in June. A takeover of Brit at a price equivalent to its expected book value at the end of the year is likely to boost valuations in the Lloyd's of London insurance sector, where most companies' shares have been languishing at discounts to book value. Investors have shied away from the companies as a continued slide in premium rates for most types of insurance and low expected investment returns have led to a downbeat view of the sector's profitability. Brit was one of the lowest rated of the sector's stocks before Apollo's initial approach. It was trading at 729.5p a 30 per cent discount to book value before Apollo's first £10 per share offer was rejected by the company in June. Apollo made three offers for Brit over the summer before the company agreed to open its books for due diligence at £10.75. CVC then also made a separate approach to the company, but was not brought in by the Brit board until it became apparent that Apollo would find it difficult to raise enough financing to complete a deal on its own. The joint offer from Apollo and CVC announced on Friday is equivalent to £10.75 per share but also offers extra payments of up to 25p per share that will be granted on a straight sliding scale if the book value of Brit at the end of this year comes in above £10.75. Brit shares closed at 987.5p. A deal is dependent on completion of due diligence by the private equity consortium and on successful discussions with Brit's regulators. The Brit board and the private equity consortium have set a deadline of October 15 for the remaining pre-conditions to be satisfied. However, Brit added that there was no certainty that a firm offer would be made even if all the conditions were satisfied. Read Full Thread Reply
Posted at 08/9/2010 03:42 by spob M&A and hurricanes stalk Lloyd's market By Paul J Davies FT Published: September 2 2010 23:59 \| Last updated: September 2 2010 23:59 Lloyd's of London insurers and reinsurers are watching nervously as Hurricane Earl passes perilously close to the US east coast. Warnings of hurricane strength winds and heavy rains have been issued for parts of North Carolina and Massachusetts even though the storm is not expected to make landfall. But more worryingly, Earl is already the third named Atlantic hurricane this year and the most active part of the season is only just beginning. Last year, when the El Niño-effect damped storm activity, only two named hurricanes developed. This year is forecast to be one of the most active storm seasons on record. The insurance world has already been hit by big losses from February's Chilean earthquake and a costly winter storm in Europe, which helped make the first half of 2010 one of the worst ever for natural catastrophe losses. Global first-half losses of $22bn were more than double the first half average seen over the past decade, according to Munich Re. At the same time, insurers are faced with a tough investment environment as ultra-low interest rates and a poor economic outlook hit the returns they can make from their mainly fixed-income holdings. EDITOR'S CHOICE Catastrophe losses hit Omega Insurance - Aug-31.Catastrophes hurt Amlin and Hiscox - Aug-23.. Investment returns at Lloyd's companies dropped dramatically in the first half compared with the same period last year to an average annualised rate of less than 3 per cent. The longer this environment persists the more painful it will be, especially for those who insure longer term risks such as casualty or professional liability business. In spite of those factors, premium rates are still declining, or softening, in most business lines with the exception of Latin American quake risks and offshore Gulf of Mexico energy policies, which were given a boost by the collapse of BP's deepwater drilling platform. This trend is only likely to quicken unless there are some big storm related losses, according to market specialists. However, most Lloyd's companies still delivered robust interim profits and many also managed to grow their book value or net tangible assets per share which is a key measure for investors in the Lloyd's market. But with the exception of Amlin, Hiscox and Lancashire, shares in all the listed Lloyd's companies are trading at a discount to book value as investors shy away from the sector. The Lloyd's companies are not alone most of the New York-listed Bermudan reinsurers are also trading at discounts. "Shares in the sector are trading on low valuations because investors are discounting the combined impact of softening rates and weak investment returns," says Thomas Dorner, analyst at Oriel Securities. The big question in coming months is whether these low valuations will attract new financial bidders for some of the companies who could help drive consolidation. Apollo, the US private equity group, is in the middle of extensive due diligence on Brit Insurance after it made a £10.75 per share offer for the group about four weeks ago. Meanwhile, Pamplona, an activist investor backed mainly by Russian money, still holds a near 10 per cent stake in Chaucer, which it is expected to use to encourage the company into some kind of consolidation. One investor in the sector says change is needed because there is too much capacity and too much cost. "These companies are always keen to write more business, but they need to increase their internal rates of return," the investor says. "There should be consolidation, but more active investors, private equity or hedge funds, need to come in and be a catalyst." Michiel Bakker, head of the European Capital Markets and Advisory unit at Willis, the insurance broker, says that while many of the ingredients for consolidation in the Lloyd's market are there, he is cautious about the level of M&A activity to come. "First-half losses hit some of the smaller companies hardest, which highlights the advantages of size and diversification," Mr Bakker says. "Also there is a general expectation that capital requirements for insurers will go up, which could drive consolidation. "In Bermuda, people talked about the need for consolidation for years, but it has only just begun to happen." According to Stephen Catlin, chief executive of Catlin, it is not just the level of capital requirements that could encourage consolidation, but also the cost of complying with beefed up regulations. He said: "I think it's going to be very, very difficult for the small players to survive not because of lack of quality but simply because the cost of business is increasing". But there are plenty of obstacles to M&A. Low valuations may attract interest from financial buyers such as Apollo, but bankers say it is extremely difficult for a board to consider recommending a bid that is below book value. There is also a cultural issue, according to Mr Dorner. "The strong personalities involved in the sector have made mergers difficult in the past." Tough times for Lloyds insurers Annualised investment return * Net tangible assets per share * Net tangible assets growth * Ratio share price / net tangible assets per share Beazley 0.5% 114.0p 0.7% 0.99 Brit 3.2% 1,100.0p 4.6% 0.89 Catlin 3.6% 388.0p -2.0% 0.86 Amlin 3.4% 295.9p 2.2% 1.42 Hiscox 3.5% 318.9p 7.0% 1.15 Chaucer 2.8% 52.3p -5.8% 0.86 Sources: Oriel Securities; company reports * H1 2010 Read Full Thread Reply
Posted at 18/6/2010 12:09 by jonwig BRIT Insurance, the Lloyd's of London outfit, has asked the City watchdog to investigate the leaking of a £785m takeover offer for the business from US private equity group Apollo. Brit's board, led by chief executive Dane Douetil and chaired by John Barton, is said to be concerned after news of an anonymous approach was reported by a trade magazine before a stockmarket announcement had been made last Thursday. Barton has asked the UK Listing Authority, a subsidiary of the Financial Services Authority (FSA, to find the leak. A person close to Brit said: "They were concerned that the circle who knew about [Apollo's offer] from the Brit end was small, and they wanted to try and establish where [the leak] came from." Although there is no suspicion of insider trading, the unusual intervention by the FSA threatens to disrupt negotiations between Brit and Apollo, which is mulling a higher offer after its first bid at £10 per share was immediately knocked back. Brit is expected to meet its largest shareholder, Schroders, today to discuss the impasse with Apollo. The firm has the backing of most of its top 10 investors to hold out for an offer of at least £11 per share equal to forecasts of its tangible net assets for 2010 but some smaller fund managers say they would be prepared to sell at £10.50. Apollo's advisers, Merrill Lynch and West Hill, are understood to have spoken directly to some shareholders. They have made clear Apollo is serious about buying the firm but said it is sensitive on price because it is not a trade buyer, and will not be able to extract significant synergies. Read Full Thread Reply
Posted at 12/6/2010 10:07 by luthier Apollo considering fresh offer for Brit Insurance One leading investor in the insurer said it would now seek discussions with Brit's management over the offer but agreed that Apollo's bid was too low. "We don't think that the company should just simply roll over and accept an offer in this region," the investor added. "Brit is a very good quality business and is performing well in a sector that private equity investors are circling. We don't expect this offer to be the last it accepts." Read Full Thread Reply
Posted at 11/6/2010 19:26 by jtcod He is less fallible than anyone else I have come across in Investment and business management Hieronymous1 so I think it is worth considering what he has to say regarding a business sector that represents by far the biggest part of the Berkshire group and with regard to more than 50yrs experience of investment and ownership in the industry. After all, whilst most the other players in the Insurance industry have been treating investors to BS for 50yrs Buffett has continued to erode their market share with his no nonsense approach. Read Full Thread Reply
Posted at 11/6/2010 10:43 by jtcod EC Firstly RSA which is far from one of 'the very best insurers' is valued at 2x NTA. Yes it's far bigger but it has been a basket case for years. Also, I agree that the institutions will decide but that figure will not necessarilly be what it is worth. I was stating what I believe it is worth because people were saying that £10 was fair. Institutions are on balance lousy investors btw. That's why 86% of them cannot even match the market. Insurance is a long term game for the insurer and can only be judged/valued on the same basis rather than one years earnings or worries about a current market. BRE have a very big float when compared to their market cap. As an investor who has beaten the market and institutions for 15yrs by a significant margin, I believe a top investment team could gain significantly higher return (whilst still keeping within rules) from that float, should that be their strategy. And yes, even over the next 6 years. I didn't say an Equity firm should pay £16 per share. They never pay fair value for a business but a reasonable take-out price should be nearer £13 imo. So we are not that far apart in our calculations. Read Full Thread Reply
Posted at 20/5/2010 10:41 by jonwig Questor share tip: Buy Brit Insurance for its attractive yield There's a definite feeling in the market that it's time to reach for your tin hat. By Garry White, Questor Editor Published: 7:00AM BST 20 May 2010 Questor says BUY The FTSE 100 has fallen by about 12pc in the last month as eurozone sovereign debt concerns persist. It looks like the situation is going to get worse before it gets better. This means that once again it's time to be defensive and buy shares in sectors that offer long-term value. One way to be defensive is to buy high-yielding shares as negative market sentiment drags them lower. This is why business insurer Brit Insurance is a new buy in the portfolio today. Cricket fans will know the Lloyds of London insurer well. The company sponsors the England Cricket Team and The Oval. It is also the sponsor of Test Match Cricket on Sky Sports. However, the most attractive thing about Brit is the yield, which Questor, after conversations with the company, believes looks secure. The current-year yield is an impressive 8.1pc, much higher than any interest you can get in a savings account. Indeed, after the jump in inflation revealed earlier this week, rates are now a real issue for prudent savers. The company is not expected to grow the number of premiums it sells in 2010. However, Questor regards this as a good thing. The company appears to be turning away lower-margin business and is focusing on improving underwriting returns. This effect was seen in the group's first-quarter update, which was released on May 6. Brit's gross written premiums fell 13.3pc to £483.5m, a fall of 9.9pc at constant exchange rates. The figure fell 4.9pc on a like-for-like basis. However, the average increase in premiums on renewal business for the period was 1.4pc. Lower premium volumes resulted from a reduction in the capital allocated to certain classes where competition is increasing. "This is consistent with the group's previous comments that it does not expect to grow in 2010 in order to protect profit margins," Brit said. This is an important step for the group and is one reason that Questor feels the dividend is secure. The company is not going all out for growth at any expense. This focus on quality should also boost its valuation over the medium term when the market backdrop improves. Investors taking a look at the group's dividend history will see that previous annual payments were 15p. However, the shares were consolidated on a four-for-one basis in February this year, so the rebased dividend for last year would be 60p. The current consensus is 62p and that's why historical records of dividend payments may imply a lower yield. Of course, insurers are in the business of managing risk and any major "black swan" event can eat into profits. In its first-quarter update, Brit said it did not expect major claims from the partial closure of European airspace after the volcanic eruption in Iceland. It also said the explosion on Transocean's rig, which has caused the current problems for BP the Gulf of Mexico, would not see a significant claim. Brit's pre-tax net exposure to the recent earthquake in Chile was $71m (£49.5m). The group also revealed a £30m exposure to Spanish government bonds maturing in 2010 and said it had has no direct exposure to Greece, Portugal or Ireland. This means that the Greek contagion risk for the group is actually pretty low. The company also operates in a highly competitive market, which presents another risk. The shares are trading on a December 2010 earnings multiple of 7.3 times, falling to 5.8 next year. They are a buy for the 8.1pc yield in turbulent times. Read Full Thread Reply
Posted at 19/5/2010 23:20 by hieronymous1 Investors Chronicle repeat BUY Certainly, mounting claims will hurt short-term earnings. But it should mean good news for premium rates and, therefore, for the longer-term earnings outlook. On that basis, and even though investment returns remain fairly low across the sector, we reiterate our buy advice on Hardy (285p, 27 November 2009), Brit (840p, 9 November 2009) and Catlin (337p, 19 February 2010). They are high quality underwriters, they don't share profits with Lloyds' Names, and their shares all trade below forecast net tangible assets - which is churlish given the reasonable rating Read Full Thread Reply

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