Chaucer Hldgs Share Discussion Threads

[this_is_me] 20/4/2011 07:58

That is a pathetic offer. The management are obviously staying and provably will have huge bonuses afterwards.

I will certainly vote against it

[tom111] 20/4/2011 07:56

56P including the divi which makes it somewhat less

[carl79] 20/4/2011 07:51

I would have expected a bit more of a premium...

[edmundshaw] 20/4/2011 07:50

Got to hand it to you solarno, that was a good one. ...hand it to you... get it...

[edmundshaw] 20/4/2011 07:48

Given the impact of 2011 cats, and Japan in particular, Chaucer has obviously had to settle for a lower offer. Could have waited a year or two for claims to "normalise"; but this year is not looking nice for them, if you compare total cat losses last year (which was a bad year itself), to losses this year to date.

So a mooted 60p offer has descended to around 55p (discounting some of the divi since the initial approaches). I guess this is the safe route for Chaucer; what else to expect from an insurer? :-)

Not thrilling, but to be honest a bit of a relief, after I read the level of Japan losses, which was greater than my guesstimate.

[solarno lopez] 20/4/2011 07:47

Guy Hands hasn't shown his HAND .....get it... hand...

[kirkie001] 20/4/2011 07:18

So - cash acquisition for 56p per share. Recommended by the Board, and with 21% of shareholders already having committed to accepting.

Only way out appears to be if there is a counter-bid of over 61.6p. And in the ofer, the Chaucer board say that this was the highest firm bid achieved.

With the energy market hardening - Chaucer say that they expect to be raising rates on the 2/3 of their book that hasn't yet been through renewals season - then it sounds like a bit ore could be squeezed out of a purchaser.

Is anyone willing to raise Hanover by 10%???? That's the million dollar (or a bit more!) question.

[dashton42] 20/4/2011 07:04

Well, the first offer's in...

[effortless cool] 12/4/2011 10:05

edmundshaw - certainly not three offers, perhaps three potential offerors. The distinction is important.

dunns-river-falls - I suspect you are working off an out-of-date forecast that does not reflect q1 catastrophe experience.

[dunns_river_falls] 12/4/2011 09:20

I have loaded up my ISA with these.

2.7p divi in the next few weeks will give 5% yield on its own. Then there is the potential for the offer. Even if the offer fails to materialise they are forecast to do eps of 6.5p this year. P/E of 8.3

Sounds a bargain to me.

BWTFDIK

[edmundshaw] 11/4/2011 13:32

3 offers iirc.

[solarno lopez] 08/4/2011 12:32

potential offer for the company

[carl79] 08/4/2011 12:31

Hi,

Can anyone help me understand why there are so many holding RNS with this company? TIA

[harleymaxwell] 31/3/2011 17:03

big volume day....

[cestnous] 28/3/2011 09:32

Put a load in my sipp on the pullback. R/R too good to miss imo.

[plootocrat] 22/3/2011 11:06

The press release of 14th March relates specifically to losses at nuclear power plants not the wider position. The company are currently (understandably)unable to put an estimate on their exposure to other losses arising from the Japanese earthquake and tsunami.
I can't see much likelihood of upward movement in share price until there is some more clarity on this issue.

[peterz] 21/3/2011 07:48

Now all we need it the share price to move...up.

[effortless cool] 14/3/2011 08:58

That looks to give a pretty clean bill of health on nuclear then.

They did well to pull that together over the weekend.

[dashton42] 14/3/2011 08:44

From today's City AM:

Chaucer, one of the world's leading nuclear risk insurers, said it did not expect to take a big financial hit from earthquake-related damage to nuclear power plants in Japan.

Chaucer said it provided property cover to a nuclear power plant at Onagawa, one of three affected by last week's earthquake, but its policy excluded damage arising from earthquakes and tsunamis.

The company, which insures nuclear power firms through its Syndicate 1176 in the Lloyd's of London market, added that the Japanese Nuclear Act of 1961 absolves nuclear plant operators of liability for damage caused by major natural disasters.

"Consequently Chaucer does not expect any significant insured loss to arise in respect of this event insofar as it is relevant to Syndicate 1176," it said in a statement on Monday.

Chaucer, which in February said it had received a number of takeover approaches, also said it was still in talks with its suitors.

[stevie blunder] 12/3/2011 17:37

The Japanese earthquake could cost the insurance industry $10bn (£6.25bn) but it is not likely to cause rates to harden across the market.
Analysts at Jefferies have estimated that the impact on insurer reinsurer balance sheets is likely to be close to 5%.
"We expect some rate momentum in the upcoming Japanese/cat renewals, but not enough for the total industry cycle to turn. Tsunami and aftershocks remain real risks, and this will drag on sector performance," analysts James Shuck and Nick Pope stated.


Lots of results from a quick search on Google News, but can't find anything specific to nuclear insured losses yet.

[tom111] 12/3/2011 17:29

Effortless cool read the ft and have a go at them not me

[effortless cool] 12/3/2011 12:38

Complete rubbish tom111 - this will be a big market loss, with the nuclear angle putting an interesting spin on it for Chaucer. Japan quake is a big distaster scenario event for Lloyd's.

I'm not sure it will be big enough, or broadly spread enough, to turn the market, however.