Esure Share Discussion Threads

[soundbuy] 19/1/2018 07:21

My thoughts exactly..........

[speedsgh] 05/1/2018 08:09

Deutsche Bank upbeat on European insurance sector, raising price targets for a swathe of UK names -

The bank's analysts said insurers "look reasonably positioned – cushioned against market weakness by strong balance sheets and on PEs that are well within the long-term trading range”

Deutsche Bank has issued an upbeat note on the European insurance sector at the start of 2018, raising price targets for a swathe of UK names including Admiral Group PLC (LON:ADM), esure Group PLC (LON:ESUR), Legal & General Group PLC (LON:LGEN), Prudential PLC (LON:PRU), St James’s Place PLC (LON:STJ), and RSA Insurance Group PLC (LON:RSA).

In a note to clients, the German bank’s analysts said: “Strong balance sheets provide underpin; rising yields offer optionality.”

They added: “DB's strategists are generally cautious on the year ahead, but insurers nonetheless look reasonably positioned – cushioned against market weakness by strong balance sheets and on PEs that are well within the long-term trading range.”

The analysts concluded: “Overall, we feel the sector can modestly outperform in 2018, particularly if bond yields rise (as DB expects) – though given our cautious top-down view, our preference is for higher-quality/safer stocks.”

They noted that many of the higher-quality insurance stocks performed well in 2017, and selectively they see this momentum continuing, highlighting Prudential.

The analysts also analysed the downside in UK insurers from UK political risk, concluding that for most stocks the impact of a hard Brexit, for instance, is manageable.

They said that, in this regard, the December rally in UK insurers looks justified, while Aviva PLC (LON:AV.) and - to a lesser extent - L&G still look oversold.

In contrast, the analysts downgraded their rating for Phoenix Group Holdings PLC (LON:PHNX) to ‘hold’ from ‘buy’, primarily reflecting their perception that “the market for UK closed book acquisitions has become more competitive, implying less potential accretion on future deals.”

[speedsgh] 10/12/2017 18:00

Peel Hunt upgrades accelerating Esure -

Peel Hunt has upgraded Esure (ESUR) after the insurance company delivered better than expected growth this year.

Analyst Andreas van Embden upgraded his recommendation from ‘hold’ to ‘add’ and increased the target price from 285p to 295p. The shares rose 2.5% to 262.4p yesterday.

‘Esure is delivering better than expected growth momentum in 2017, with evidence that underwriting performance is recovering gradually. Esure is starting to accelerate growth, leaving some competitors behind amidst a changing motor insurance landscape in the UK.’

He estimated an earnings per share compound annual growth rate of 12% in the next three years from 2017.

[cwa1] 07/12/2017 22:37

Not exactly a rumour but from earlier today:-

07 Dec 17 Peel Hunt Add 261.80 285.00 295.00 Upgrades

[r ball] 07/12/2017 12:48

not on that volume....

[nicbw01] 07/12/2017 08:39

On the move today. Is there any rumours out there.

[thewheeliedealer] 15/11/2017 00:38

Hi all, pretty much most weekends I do a Blog on some Charts and stuff and this week ESUR got a mention cos it looks pretty decent Value here - I also explain Breakouts and suchlike with loads of examples and some promising set-ups, you can read it here:



I hope you like it, cheers, WD.

[fenners66] 13/11/2017 21:49

The update looked good and I was tempted to buy, but the price rose on the open and I thought I would wait.
That gave me time to read this thread and obviously find out about the divestment so although the share price does not look historically high, it really is quite high.

So the share price has slipped back a bit, worth a punt yet?

[sphere25] 09/11/2017 14:14

Can't believe the fund manglers have sold on the back of yesterday's update - I'm a buyer.

These muppets need to look at what was said yesterday, particularly in light of how much higher the stock has traded in the past, the growth, multiple and yield.

Also been far too much bid talk for a bid to not happen imo. These things have murmerings, then quieten down for abit, then bang, bid comes in. Any institutional fund manglers selling now will regret it - can't trust the numpties with your funds.

[nicbw01] 08/11/2017 08:58

I reckon around £3.60

[r ball] 08/11/2017 08:41

How much is the implicit bid premium on his one?

[masurenguy] 08/11/2017 08:06

This update will arrest the shareprice decline over recent weeks !

[cwa1] 08/11/2017 07:30

Agreed sounds satisfactory to me:-

Esure Group plc - Trading update for the nine months ended 30 September 2017

A record quarter; raising full year guidance

Trading update


2017 2016 Movement
Q3 YTD Q3 YTD
Gross written premiums (GBPm) 625.8 499.0 25.4%
Motor 561.5 430.6 30.4%
Home 64.3 68.4 (6.0)%
In-force policies (millions) 2.324 2.105 10.4%
Motor 1.830 1.530 19.6%
Home 0.494 0.575 (14.1)%
Additional services revenues
(GBPm) 93.6 80.6 16.1%

Stuart Vann, Chief Executive Officer of esure Group plc, commented:

"The business continues to grow strongly and we delivered a record quarter of premiums at GBP233m. Year-to-date, premiums are 25% higher at GBP626m and policies 10% higher year-on-year at 2.3 million, underpinned by a strong performance in Motor where we are continuing to see the benefits of our proven underwriting expertise and footprint expansion programme which enable us to offer more and more customers access to our excellent products and services. Meanwhile, we remain disciplined in Home, as current market conditions do not provide opportunities for profitable growth.

"Our strong performance to date gives us confidence that we will exceed previous guidance. We now expect growth in premiums of 20-25% for the full year and our combined operating ratio to be at the lower end of our 96-98% range, subject to normal weather.

"We approach 2018 with confidence and remain well placed to deliver our 3 million in-force policy ambition by 2020."

[soundbuy] 08/11/2017 07:27

That'll do............Panmure calling it up 3-5%


Let's see........

[masurenguy] 27/10/2017 08:33

Quote from the above referenced TMF article.

"eSure is tipped by City analysts to flip from an anticipated 5% earnings decline in 2017 to report a 13% improvement in 2018. And this is expected to push dividends northwards again then, from a reduced 12.5p per share in the current period to 14.4p. These projections yield a very-decent 4.6% and 5.2% respectively. I am convinced eSure should prove a brilliant bet for growth and income investors now and in the future."

[speedsgh] 04/10/2017 09:43

Yes, the market doesn't appear to be pricing in anyone making a bid substantially higher than the current valuation. There again Mr Market doesn't always get it right. One can but live in hope... and enjoy the generous dividends in the interim.

[nicbw01] 04/10/2017 09:40

Not much movement in the share price though. Seems to be very stat around the £2.80 mark.

[speedsgh] 04/10/2017 09:38

Certainly interesting times with Peter Wood reportedly looking to sell his 30.8% stake in the company.

[nicbw01] 04/10/2017 09:28

5m shares in one trade

[soundbuy] 19/9/2017 07:28

Ah................thanks

[masurenguy] 18/9/2017 17:18

"Wouldn't this result in a mandatory bid for the entire capital of the Co.?"

Checkout post #828 above !

[soundbuy] 18/9/2017 15:07

'Peter Wood was looking to sell his 30.8% stake in the firm'

Wouldn't this result in a mandatory bid for the entire capital of the Co.?

If somebody wanted a 'stake' rather than mounting a takeover they'd have to acquire 29.99% (or less) or perhaps I'm mistaken.........

Sure Tosca would be happy with an exit.

Interesting times.

[masurenguy] 18/9/2017 12:45

"Shares in motor insurer Esure have charged ahead of the wider market over the past year, gaining nearly 40% excluding dividends year-to-date. And this morning, the shares have added another 6% after a report published over the weekend suggested that the insurer’s biggest shareholder, Peter Wood was looking to sell his 30.8% stake in the firm. This report has sparked speculation that Esure could fall prey to a larger peer after Wood offloads his stake. According to the Sunday Times, which broke the story, Wood has already been approached by other insurance company bosses about a potential deal, and he believes he can have a deal in place by next month.

Chances of a takeover

It’s hardly surprising that Esure is being touted as a potential takeover target. The company is on track to nearly double revenue over the space of seven years, from £512m in 2012 to an estimated £900m for 2018. That said, profit during this period has remained stable. Still, the company has proven itself as a dividend champion since its IPO in 2013 having paid out 55p per share in regular and special dividends since 2013, around 18% of its IPO price. Analysts have pencilled in a dividend payout of 12.5p for 2017, giving a dividend cover ratio of 68%. Esure’s interim results showed that at the end of the first half the company had a solvency coverage ratio of 153%, indicating that the firm’s balance sheet is strong enough to support further generous payouts.

Esure’s strong balance sheet and record of steady cash distributions makes the company an attractive target for both peers and investors alike. While you should never buy a company just because it’s a rumoured takeover target — in case the deal never materialises — as a standalone business, Esure is an attractive investment in its own right. With a prospective dividend yield of 4.7% and forward P/E of 14.7, the company looks like an attractive income and growth play to me at current levels. The prospect of a takeover is just a bonus."