Friends Share Discussion Threads

[a0148009] 31/10/2014 12:03

Contrarian - I have a large holding and like yourself occasionally revert back to the announcements above for comfort, as mentioned by another poster above it would be most unlikely that this management team would cut the dividend - with the shareholders substantial reserves a few basis points of earnings short of the dividend I believe BoD would still payout full dividend.

AO

[a0148009] 31/10/2014 11:53

YES - which will usefully enhance dividend cover.

"The Buy Back Programme will commence on completion of the sale of the Lombard Business, which is expected to occur in the second half of 2014, subject to regulatory approval. The Buy Back Programme will end on the date the Programme Limit has been utilised. Ordinary shares repurchased pursuant to the Buy Back Programme will be cancelled by the Company."

AO

[nigelmoat] 31/10/2014 10:58

Will the approx 100 million shares bought back be cancelled and thereby increase the dividend cover?

[contrarian2investor] 31/10/2014 10:20

This what I wrote on the SHA back in May after making my initial purchase the previous day proved poorly timed.

contrarian2investor 9 May'14 - 09:50 - 30439 of 35867 0 0 edit

RSL now known as Friends Life (FLG) put out a reasonable set of results. I have bought some more FLG for £2.95p after some generous punters sold the stock down after skim reading the results. The yield of 7.1% is less than 2x covered but therein lies the risk. A steady rise to above £3.30p will more than compensate for that.

I will however be watching the FCA legacy product review, side issue very carefully.



------------------

I have held FLG through the annuity debates and will look to FLG next month to be as upbeat as they were back in August. GLA c2i

[a0148009] 31/10/2014 09:10

Although rare it would not be the first time a company cut the dividend after a buy back,however I do not anticipate this happening with FLG - 350p should be achievable with shares yielding 6%. There is a degree of investor caution waiting to see the impact of Pension and Annuity changes which will weigh on the share price until company reports trading figures and up-to-date outlook. At current market price we are talking of a short 100m shares, we should get an idea how long it will take when we have seen a couple of weeks
purchases.

AO

[lord gnome] 31/10/2014 08:46

I can foresee no situation in which a company buying back its own shares would cut its dividend. If the shares are therefore bought until the yield is down to 5% (ish) this could indicate a share price target of around £4.00. A bit hopeful to say the least, but we should be in for better times.

[a0148009] 31/10/2014 08:16

Approx 7% of capital Share buy back providing good support and if you believe the Company will maintain the divided as indicated shares yield 6.5%.

AO

[cardiffjohn36] 31/10/2014 08:12

Flip I'm getting a nose bleed

[cardiffjohn36] 31/10/2014 07:21

Friends Life Group Limited Completion of Lombard DisposalTIDMFLGRNS Number : 7585VFriends Life Group Limited30 October 2014NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTIONFriends Life Group Limited("Friends Life")Friends Life announces the completion of Lombard disposalFriends Life confirms that the disposal of Lombard International Assurance S.A. and Insurance Development Holdings AG to funds managed by Blackstone(1) completed today.The total consideration of GBP316 million (EUR398 million(2) ) comprises GBP254 million (EUR320 million(2) ) upfront consideration, GBP6 million (EUR8 million(2) ) interest equivalent(3) , both paid in cash, and GBP56 million (EUR70 million(2) ) deferred payment in the form of a vendor loan note (subject to adjustment).As expected, the share buy-back programme of GBP317 million will commence on 31 October 2014.- Ends -Enquiries Investors / analysts Yana O'Sullivan, Director of Investor Relations [phone] Tom Cannings, Investor Relations [phone] Media Ben Woodford, Bell Pottinger [phone] Olly Scott, Bell Pottinger [phone] Notes1. Blackstone means The Blackstone Group L.P. and its affiliates. The Blackstone entity that will acquire Lombard is BTO Monarch Luxembourg Holdings S.A.R.L., a company incorporated in Luxembourg.2. GBP:Euro exchange rate of 1.2602 has been applied to the consideration amounts. It represents the forward rate as at 10 July 2014 to the completion date.3. The interest equivalent was originally estimated to be GBP7 million (EUR9 million) in the sale announcement RNS on the 11 July 2014. At completion the actual interest equivalent is GBP6 million (EUR8 million).This announcement includes statements that are, or may be deemed to be, "forward-looking statements" with respect to Friends Life Group Limited, its subsidiary undertakings and their outlook, plans and current goals. In some cases, these forward-looking statements can be identified by the use of forward looking terminology, including the terms "targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend upon circumstances that may or may not occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements are not guarantees of future performance. Friends Life Group Limited's actual performance, results of operations, internal rate of return, financial condition, liquidity, distributions to shareholders and the development of its acquisition, financing and restructuring and consolidation strategies may differ materially from the impression created by the forward-looking statements contained in this announcement. Forward-looking statements in this announcement are current only as of the date of this announcement. Friends Life Group Limited undertakes no obligation to update the forward-looking statement it may make. Nothing in this announcement should be construed as a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements.This information is provided by RNSThe company news service from the London Stock ExchangeENDDISEASEEDSALFFF

[cardiffjohn36] 31/10/2014 07:20

Friends Life Group Limited Completion of Lombard DisposalTIDMFLGRNS Number : 7585VFriends Life Group Limited30 October 2014NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTIONFriends Life Group Limited("Friends Life")Friends Life announces the completion of Lombard disposalFriends Life confirms that the disposal of Lombard International Assurance S.A. and Insurance Development Holdings AG to funds managed by Blackstone(1) completed today.The total consideration of GBP316 million (EUR398 million(2) ) comprises GBP254 million (EUR320 million(2) ) upfront consideration, GBP6 million (EUR8 million(2) ) interest equivalent(3) , both paid in cash, and GBP56 million (EUR70 million(2) ) deferred payment in the form of a vendor loan note (subject to adjustment).As expected, the share buy-back programme of GBP317 million will commence on 31 October 2014.- Ends -Enquiries Investors / analysts Yana O'Sullivan, Director of Investor Relations [phone] Tom Cannings, Investor Relations [phone] Media Ben Woodford, Bell Pottinger [phone] Olly Scott, Bell Pottinger [phone] Notes1. Blackstone means The Blackstone Group L.P. and its affiliates. The Blackstone entity that will acquire Lombard is BTO Monarch Luxembourg Holdings S.A.R.L., a company incorporated in Luxembourg.2. GBP:Euro exchange rate of 1.2602 has been applied to the consideration amounts. It represents the forward rate as at 10 July 2014 to the completion date.3. The interest equivalent was originally estimated to be GBP7 million (EUR9 million) in the sale announcement RNS on the 11 July 2014. At completion the actual interest equivalent is GBP6 million (EUR8 million).This announcement includes statements that are, or may be deemed to be, "forward-looking statements" with respect to Friends Life Group Limited, its subsidiary undertakings and their outlook, plans and current goals. In some cases, these forward-looking statements can be identified by the use of forward looking terminology, including the terms "targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend upon circumstances that may or may not occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements are not guarantees of future performance. Friends Life Group Limited's actual performance, results of operations, internal rate of return, financial condition, liquidity, distributions to shareholders and the development of its acquisition, financing and restructuring and consolidation strategies may differ materially from the impression created by the forward-looking statements contained in this announcement. Forward-looking statements in this announcement are current only as of the date of this announcement. Friends Life Group Limited undertakes no obligation to update the forward-looking statement it may make. Nothing in this announcement should be construed as a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements.This information is provided by RNSThe company news service from the London Stock ExchangeENDDISEASEEDSALFFF

[dutch123] 15/10/2014 21:11

FLG RBC Capital Markets Outperform 294.60 301.10 - - Retains

[nigelmoat] 25/9/2014 15:37

Canaccord Genuity raises target price from 300p to 340p upgrading from hold to buy. Perhaps explains today's tick up on a generally poor market day.

[rcturner2] 10/9/2014 09:45

If the Scots vote yes I see some serious turmoil ahead.

[colonel a] 10/9/2014 09:38

"not keen".
As a native and a resident that is a massive understatement.

[rcturner2] 10/9/2014 09:32

I sold out yesterday. I am not keen on the current situation wrt Scotland.

[a0148009] 26/8/2014 14:46

Halleluiah - slightly stirring upwards expected share price to do better than this with shares xd tomorrow.

AO

[cardiffjohn36] 23/8/2014 07:19

This workshttp://www.bloomberg.com/news/2014-08-22/friends-life-said-to-hire-goldman-sachs-for-sale-of-unit.html

[a0148009] 14/8/2014 18:27

That may have made a difference but the buy back is almost 7% of the outstanding capital and increases the eps now and for the future and hopefully will hasten a progressive dividend. I am sure there is a seller in the background and we have to be patient until he has finished. The lower the share price buy back price the better - so many buy backs end up under water.

Look at Deutsche recent forecasts they a not very clever.

Digital Look
11-Aug-14 Deutsche Hold 315.00p 332.00p 330.00p DownGrade
07-Aug-14 Deutsche Buy 321.50p 332.00p 332.00p Reiteration
07-Aug-14 Barclays Overweight 321.50p - - Reiteration
07-Aug-14 Canaccord Genuity Hold 321.50p 300.00p 300.00p Reiteration
17-Jul-14 Berenberg Bank Hold 332.80p 310.00p 330.00p Reiteration
14-Jul-14 Deutsche Buy 331.00p 332.00p 332.00p Reiteration

AO

[nigelmoat] 14/8/2014 16:47

Drip drip drip goes the share price which shows little support. Instead of announcing a share buy back which often prove to be worthless a special dividend should have been granted.

[a0148009] 13/8/2014 15:54

Forgot to mention the £317 million approved buy back scheme arranged with Barclays and RBC as brokers when the sale of the Lombard Business is completed in the second half of this year which should also be supportive to the share price

Friends Life Group Limited

06 August 2014

Friends Life Group Limited

("Friends Life" or the "Company")

Friends Life announces regulatory approval of increased share buy back programme

Friends Life is delighted to announce that regulatory approval has been received to increase the share buy back programme (the "Buy Back Programme") announced on 11 July 2014 from GBP261 million to GBP317 million. The Buy Back Programme will be funded from the GBP261 million upfront cash consideration from the sale of Lombard International Assurance S.A. and Insurance Development Holdings AG (together, the "Lombard Business") together with GBP56 million from existing surplus cash resources in the Company. The GBP56 million increase in the Buy Back Programme is equivalent to the amount of the vendor loan note issued as part of the Lombard Business sale. This demonstrates the strength of the Company's balance sheet and the Board's confidence in the Company's financial strength.

Friends Life has today entered into an irrevocable and non-discretionary arrangement with its corporate brokers, Barclays Bank PLC, acting through its investment bank, and RBC Europe Limited, (together, the "Joint Brokers"), to repurchase on its behalf GBP317 million (the "Programme Limit") worth of ordinary shares of nil par value in the capital of the Company, representing approximately 6.7% of the current issued share capital of the Company based on the 10 day rolling average share price of 332.1p on 4 August 2014.

The Buy Back Programme will commence on completion of the sale of the Lombard Business, which is expected to occur in the second half of 2014, subject to regulatory approval. The Buy Back Programme will end on the date the Programme Limit has been utilised. Ordinary shares repurchased pursuant to the Buy Back Programme will be cancelled by the Company.

Any purchase of ordinary shares in the Company carried out under the Buy Back Programme will be executed within certain pre-set parameters in accordance with the Listing Rules and the Company's general authority to make market purchases of ordinary shares. The Company will announce any market repurchase of ordinary shares no later than 7.30 am on the business day following the calendar day on which such repurchases occurred.

The Joint Brokers may undertake transactions in ordinary shares in the Company, (which may include sales and hedging activities, in addition to purchases) in order to manage their market exposure under the Buy Back Programme. The Joint Brokers will make any disclosures they are legally required to make in relation to such transactions.

- Ends

AO