Share Name Share Symbol Market Type Share ISIN Share Description
Esure LSE:ESUR London Ordinary Share GB00B8KJH563 ORD 1/12P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.20p -0.07% 278.40p 277.80p 278.20p 278.80p 277.40p 278.60p 832,943 16:35:27
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonlife Insurance 78.1 98.6 19.2 14.5 1,166.75

Esure Share Discussion Threads

Showing 976 to 1000 of 1000 messages
Chat Pages: 40  39  38  37  36  35  34  33  32  31  30  29  Older
DateSubjectAuthorDiscuss
17/8/2018
18:50
Useful comments. Thanks. There is no interim dividend though. That was canned. I do feel this offer is not quite as good as it could have been and the reserve releases maybe tweaked a little to make the bid look better. Let’s face it, would Sir Peter Wood have accepted 280p if he wasn’t given the opportunity to roll over £50m into a much bigger gain? Probably not. Sadly, we don’t get that opportunity, so it’s a case of he gets a slightly better deal than everyone else.... that leaves a slightly sour taste, but then again he is Esure and probably deserves it as he’s run a tight ship and given us some valuable Gocompare shares and a generous dividend. Best to just reluctantly accept what is on offer and look for something equally as good to reinvest into.
topvest
17/8/2018
00:29
"UBS upgraded Esure to 'neutral' from 'sell' and hiked the price target to 280p after the insurer agreed to be bought by private equity firm Bain Capital for 280p a share, as it said there is a high probability of deal success. The bank pointed out that the deal has support from key shareholders controlling nearly 48% of the shares and said there is limited scope for a counter-bid, give an implied 14x 2019E earnings per share valuation, which is at the upper end of the peer group. In addition, it noted limited anti-trust concerns as this appears to be Bain's first investment in the UK insurance market. Should 75% of shareholders be supportive, UBS estimated that the deal could be finalised by early December 2018. If the transaction receives 50-75% support, which it views as unlikely given the support of key shareholders, it would expect completion in early January. UBS said Esure's first-half results, which were announced alongside the Bain deal, were weaker than expected, with pre-tax profit 8% below consensus, mostly due to weather losses. However, it said the positive for the market was that as prices slowed, Esure slowed growth somewhat, maintaining a relatively stable gross motor premium year-on-year despite claims deflation." Source: Barclays 16/8/18
masurenguy
15/8/2018
13:14
Early bonus for Esure investors, says Hargreaves - HTTP://citywire.co.uk/money/the-expert-view-royal-mail-g4s-and-esure/a1146790#i=4 Esure (ESUR) shareholders will see the benefits of improvements at the insurer earlier than expected following a £1.2 billion offer from Bain Capital, says Hargreaves Lansdown. While the insurer yesterday reported a 20% fall in first-half profit before tax, investors were still basking in the glow of Tuesday’s 280p-per-share offer from Bain Capital. The shares were trading at 277.4p yesterday, up 35% since the start of the week. Analyst Nicholas Hyett said the offer’s ‘sizeable premium to market price’ meant ‘Esure will in all likelihood be leaving the stock market soon’. ‘With scope to improve the Esure and Shelia’s Wheels brands, as well as further improvements in underwriting, we can see the attractions for Bain,’ he said. ‘For shareholders, the deal means the benefits of those improvements will be landing in bank accounts a little earlier than expected.’
speedsgh
15/8/2018
10:19
Many thanks Masurenguy for your excellent reply. Was going to move into overseas funds, but they are on a slight downtrend currently due to the Trump factor, so I'll hold here till that situation turns one way or another or I get the full price unless another suitor appears. Also great observations from wba1, reasoning that this may be a managed takeover not to maximum shareholder advantage. If its huge surplus reserves bolstered by "our stolen divi", I hope the fact is noted by any suitor out there.
belgrano2
15/8/2018
09:50
I have had a closer look at prior year releases and their effect on profit, and I am getting even more suspicious about Esure's management of reserves, how it reflects in the half year results and whether it is being managed to encourage support for the bid. For those unaware, prior year reserve releases are generally used by companies to smooth profits and reduce tax - but they can be used for other purposes. Esure released prior year motor reserves in H1 2018 to reduce reported motor loss ratio by 1.4% (it was 4.0% in H1 2017). In the same periods Direct Line Group released reserves in H1 2018 reducing motor loss ratio by 18% (and this was less than 2017), and Sabre released reducing the motor loss ratio by 13.3% (slightly higher than 2017). Either Esure have been systematically reserving their motor account more aggressively than competitors (boosting past profits) or they are holding onto huge surplus reserves at present in order to make 280p look good value. Either possibility raises huge questions in my mind about the credibility of Esure management.
wba1
15/8/2018
09:25
belgrano - your own guess on whether another bid might materialize or not is as good as anyone elses. The major shareholders have all indicated that they will accept Bain's offer so that would appear to be the minimum takeout price. If you sell now at circa 277.5p you will effectively be forfeiting 2.5p on the offer price on top of the lost 4.1p interim dividend. If you currently have an alternative investment opportunity, where you can immediately redeploy the ESUR funds, then you might want to sell now to take advantage of it. If not, you might as well hang on for the full 280p and the outside possibility of a higher bid materialising.
masurenguy
15/8/2018
08:52
It'll take 4 months for deal to go through.
r ball
15/8/2018
08:38
Its a nice offer but certainly not outstanding looking at the trends longer term of this company. But it is what it is. To sell right now or hold in the hope of an increased bid from elsewhere is my question....Any views guys.
belgrano2
15/8/2018
00:51
"The insurance entrepreneur Sir Peter Wood is staying on as chairman of Esure and taking a £50m bet on the future of the company he founded as it confirmed it had agreed to accept a £1.2bn offer from Bain Capital, the private equity investor. Sir Peter is selling most of his 31% stake, taking £310m in cash, but in a deal exclusively arranged for him, will roll over £50m of his investment into shares in the private holding company created to own Esure in future. The independent directors of Esure recommended that shareholders accept the offer, which has been structured as a scheme of arrangement, requiring 75% shareholder approval. Toscafund, the private equity group that owns 17% of the business, has also undertaken to accept the offer, which represents a 37% premium to the price prevailing just before talks were revealed. Other leading investors are Investec, Jupiter and Miton." Complete article: https://www.thetimes.co.uk/edition/business/esure-founder-sir-peter-wood-to-stay-at-wheel-after-takeover-6q05fdf2l
masurenguy
14/8/2018
19:22
Sounds to me like this has been managed a tad. OK, we have done reasonably well, but Sir Peter Wood will do much better. Seems to me that this is a deal in the best interests of Sir Peter Wood + management and in "not quite the best interests" of everyone else.
topvest
14/8/2018
17:37
I have some questions about the half year results and whether they have been 'managed' to make the bid look difficult to challenge. A key issue is the release of prior year reserves. Directors have huge discretion about how much to release and when to release surplus reserves (especially at half year stage). I was expecting a release at least as big, and probably bigger, than in previous years as Esure (and other motor insurers) are now in a position to reflect recent changes to personal injury awards in their prior year reserves. Instead, this years release was much smaller than at the same stage last year. This had the effect of depressing declared profit (which makes 280p look good). So, either Esure had already run down their reserves (in which case 280p is excellent) or they decided to retain surplus reserves (in which case 280p may not be value). The answer to this is for Esure to release (for each prior year) the % margin over actuarial best estimate, for each accident year. And the answer to prevent this happening in future is for the regulator to require insurers to include this information in their reports. I know that when I was an Underwriting Director we initially reserved 5% over best estimate (and because our best estimates were conservative anyway we usually released (over time) nearer to 10% of the initial reserve. This is a hell of a big number if Esure reserve similarly. I knew Catherine Barton when she ran the E&Y motor team. I would expect her, as an independent director who is also an actuary, to shout loudly if there was a deliberate decision to retain reserves which would usually have been released to profit.
wba1
14/8/2018
11:57
This a deal to suit Peter Wood , content to give away upside for a cosy deal with Bain . He is only 72yrs and like Mark Weinberg in Life Assurance is happy to start again , having founded Direct Line , Esure and Privilege . Longer term UK motor will be disrupted by technology , driverless cars etc , and young people living in congested cities with limited parking opting not to own a car and belong to car clubs, so maybe he has taken a view that he should exit for good before the car loving petrolheads die off .
bench2
14/8/2018
11:22
Price looks high. Must be pricing in counter offer. Didn't Reg Vardy have a similiar issue. Main chap pledged shares at one price but bidding war broke out .
r ball
14/8/2018
09:55
"The challenge for shareholders will no doubt be finding something at least as good to put their money into." Agreed, although with the traditionally choppy waters of Sep-Nov in the markets just round the corner, not to mention a plethora of other risks continuing to lurk out there (this list would appear to be nearly endless), we may hopefully find some opportunities present themselves.
speedsgh
14/8/2018
09:21
Not going to fight it - just a question of where to invest the proceeds ......
wilddcw
14/8/2018
08:43
Although we have received value for Gocompare its disappointing that the offer is still below the 290p IPO price some 5 years ago, given the growth in the business. Looks like Sir Peter Wood is staying on board and rolling over some of his holding. I'm inclined to agree that this is an opportunistic offer and may flush out other bidders. Esure is worth at least £3 in my view. The challenge for shareholders will no doubt be finding something at least as good to put their money into.
topvest
14/8/2018
08:36
Based on last years interim of 4.1p, an equivalent interim this year would have only cost £17.2m. That represents circa 1.4% of the £1.173bn current offer price, based upon 280p. Maybe Wood just wants to cash out at this stage and take off to enjoy his retirement with a ton of cash in the bank ! However, this price may flush out another bidder.
masurenguy
14/8/2018
08:33
I agree. The interim results appear fair (given the weather related claims) and it's hardly a knock out offer and I think it wrong not to pay the dividend which is due. Hopefully it leaves the door open for someone else to come in.
pete160
14/8/2018
08:19
Very stingy offer IMHO.
cwa1
14/8/2018
07:59
Interim Results plus confirmation of firm offer at 280p. Not paying an interim dividend “in light of the Proposed Acquisition” is a bit cheap! Can’t see the justification for that. Disappointing. 2018 Interim results and proposed acquisition - HTTPS://www.investegate.co.uk/esure-group-plc--esur-/rns/2018-interim-results-and-proposed-acquisition/201808140700096786X/ ...In light of the Proposed Acquisition, the Board is not recommending the payment of an interim dividend (1H 2017: 4.1 pence per share) Offer by Blue (BC) Bidco Limited - HTTPS://www.investegate.co.uk/esure-group-plc--esur-/rns/offer-by-blue--bc--bidco-limited/201808140700166788X/ ...It is currently expected that the Scheme Document will be published in early to mid September 2018, that the Court Meeting and the General Meeting will be held in early October 2018 and that the Scheme will become Effective towards the end of 2018.
speedsgh
13/8/2018
18:15
Looks like Wood is happy to exit at 280p ! "The 280p-a-share offer is yet to be formally made, but esure has said it is in “advanced negotiations” with Bain and would be “minded to recommend" the bid, assuming it is made on those terms. The offer hasn’t been formalised just yet, but esure, which is due to report its half-year results tomorrow, said the two parties are in “advanced stages” of negotiations. Should Bain follow through with its proposal, it would represent a 37% premium to Friday’s closing price of 204p. “The board of esure has indicated to Bain Capital that it would be minded to recommend a firm offer for esure if made by Bain Capital at the price set out in the proposal,” read a brief stock exchange statement. Bain has until 5pm on September 4 to either announce a firm intention to make an offer or withdraw from the process altogether." www.proactiveinvestors.co.uk
masurenguy
13/8/2018
14:01
Added another 450 shares a few weeks ago so this should be good news. However I can’t help feeling the buyer has timed this very well given ESUR was over £3 a year ago.
nk104
13/8/2018
13:31
Don't rule out a counter approach from another insurance company. If private equity is prepared to pay around 280p then another insurance company or financial institution, that has greater business synergy with eSure, could value it even higher !
masurenguy
13/8/2018
13:00
Wonder how much Bain Capital have paid to have the price walked down in recent months ;o)
speedsgh
13/8/2018
12:53
Yes, I would have thought £3 was about right, particularly as we are now forfeiting the H1 dividend. Suspect this will be it though, unless Admiral or Direct Line show some interest. Looks like Sir Peter Wood can retire with a nice payday. It’s only a few weeks ago that we were all getting a bit jumpy as this plummeted below £2. Seems quite opportunistic in terms of timing.
topvest
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