Esure Share Discussion Threads

[coldfish 2] 06/8/2013 21:43

No wonder they offered this to private investors at float.

[scrabble1975] 06/8/2013 21:09

Bloody hell. What happened here today?!

[yam114] 06/8/2013 21:06

A lot more buys than sells today so it can't be that bad.

[ninja 19] 06/8/2013 20:46

This is heading straight to 50p.

Premium expected to go even lower

[dewtrader] 06/8/2013 19:41

ex growth
wait until 170p

[birdsedgeuk] 06/8/2013 16:54

Good do i got out yest. Im a follower of the traderdiarycouk n it pays to be

[dr biotech] 06/8/2013 15:57

I sold these a couple of days after flotation - regretted it a few weeks after but it was never going to be a long term hold. From various press reports it appears the results were slightly ahead of consensus but the outlook and dividend have sent it down.

It reminds me of Aviva - slashed the dividend and the shares tanked, but 6 months on expectations of the payout are more realistic and the share price is higher. Perhaps it will be the same here.

[yesrupnel] 06/8/2013 15:26

low dividend and motor insurance rates have already fallen rapidly - what else did you expect?

[chickcrumbs] 06/8/2013 15:22

2008 ....now that was a time to buy.

[chickcrumbs] 06/8/2013 15:00

This has been on my watch list since it listed. I've never had the courage to buy, now however a buy point maybe coming not sure where though. I think the price will fall to a much more acceptable PE and Dividend yield. I agree it needs to settle first, maybe there's a bit more to fall?

[simon gordon] 06/8/2013 14:55

1107 GMT [Dow Jones] Esure (ESUR.LN) shares are down 8.6% at 285p after the company's 1H results. Shore Capital says the results are solid, with a gentle beat against consensus for each of the metrics. However, says the dividend of 2.5p is much lower than expected and this likely explains the fall in the share price. Given the uncertainty in the UK personal motor insurance market, Shore remains negative on this whole sub-sector of the non-life market. No rating on Esure.

[yam114] 06/8/2013 14:39

This will be a good buy once it settles down.

[11mel] 06/8/2013 14:17

Are the mm short on stock , or do the institutions just want more at the lower price, imo i think these will head north in next few days / weeks

[liquidkid] 06/8/2013 12:20

JD, In short, NO. And those in the know don't want you to know. I mean how many PI's actually bought into the IPO? I'd guess very few & this has a mostly institutional share holder base - are they really selling today?

[jdgarner] 06/8/2013 12:15

Can anyone explain to me why the share price is dropping when the trades of today show that more is being bought than sold? I thought more buying than selling would force the share price up

[ramridge] 06/8/2013 12:14

Of course a 9% drop on these results does not make sense. But don't get mad, get even. Buy some more. I have just topped up.

[montyville2] 06/8/2013 11:03

I agree the drop is unwarranted from my point of view...

I have just opened a SB and expect to see this come back over the next few days/weeks

we shall see...

[yam114] 06/8/2013 09:50

This drop is a bit of an over reaction IMO.

[saltaire111] 06/8/2013 09:36

From Fool:

Newly listed Esure Group PLC (LON:ESUR) see profits rise 15% and pays its first dividend, but highlights increasing price competitiveness.
Shares of Esure Group (LSE: ESUR) slipped 5% to 295p in early trading this morning after the motor and home insurer warned it was seeing increasing price competitiveness.
This news blemished what otherwise seemed to be a pretty good set of maiden results from the company. Highlights included a 7% increase in gross written premiums, and a 6% rise in policy numbers to 1.85 million.
Esure's combined operating ratio fell nearly five percentage points to 89.6%. This is a key measure insurers publish that effectively shows expenses divided by income -- so the lower the percentage, the better.
This greater operational efficiency helped Esure increase its profits by 15% to £57m in the first six months of 2013. The insurer is also paying its first dividend, totalling 2.5p per share. Going forward, Esure hopes to pay around 70% of its earnings to its shareholders.
Esure also appears to have taken a couple of recent regulation changes in its stride. As Stuart Vann, chief executive officer, commented:
"Our retention of Sheilas' Wheels customers following the ECJ gender-neutral pricing changes in December 2012 is yielding the predicted benefits. The Government's civil justice reforms earlier this year are starting to show promising trends in the efforts to reduce gratuitous personal injury claims; however, it's still early days."
However, management statements about Esure's current prospects were slightly less encouraging:
"The UK personal lines motor market has seen an increase in price competitiveness as demonstrated in the recently published indices which show significant rate reductions. This has been most noticeable during the latter part of quarter two and into quarter three... In light of market conditions, the Group now expects full year premium growth to be lower than that achieved in the first half of the year. However, the positive factors outlined above should serve substantially to mitigate any earnings impact from the lower premium growth."
This news was hardly a surprise, as it has also been commented upon by other insurance firms recently, but it still seemed to be enough to drive down Esure's shares today. At 295p, they are just 5p above the price at which the company joined the market in March of this year.
If growth shares are your thing, then make sure you don't miss this free report highlighting The Motley Fool's Top Growth Share for 2013. It has successfully reinvented its business for the digital age, and looks set for a bright future.

[saltaire111] 06/8/2013 09:15

Don't understand this... Great results and shares panned 7.5%. Is it the divi at 2.5p which has disappointed the market? Salty

[danny murphy] 06/8/2013 08:07

Down 11p to 300p!!!