Highway Insurance Share Discussion Threads

[shauney2] 16/10/2008 20:37

Anybody reinvesting in these markets?Lots looking really cheap with high yields but its spooky out their.

[stevefoster] 13/10/2008 14:40

From the Offer Update RNS:

"Settlement will be effective on or before 22 October 2008 for Highway Shareholders who have already validly accepted the Offer.
Settlement for Highway Shareholders who validly accept the Offer from today onwards will be effected within 14 days of receipt of their valid acceptance."

[finess] 13/10/2008 11:33

When do we get the LOOT

[nn1] 24/9/2008 09:34

I only have a small holding here (ooh, er) but will still record a loss at this price. I think this company is potentially worth much, much more and will sell for higher once we get beyond this current financial situation. I have cast my 'no' vote to the sale.

[pvb] 23/9/2008 18:51

It seems to have gone mighty quiet on here. Is everyone accepting the offer? Is it likely there will be a better one? Is it a done deal? I've no idea, what do you think?

[nigelwestm] 05/9/2008 10:51

I know what you mean. I first got into HWY a few years back when the shares were just over 40p because it was already a high yield play, but then they increased the divi aggressively and the shares shot up to 93p. I'd bought all the way up, and was hoping to see a pound but it never happened.

I've been trading in and out ever since (my last really good sell was 5,000 shares at 81p earlier this year) but I still had plenty of shares when the share price headed south. Overall all, if you count divis, my average purchase price of the shares works out at around 55p so I can't complain too much.

Still, I am holding for a few more weeks to see if another bid emerges...

[gogoalex] 05/9/2008 07:36

I agree, but cant complain as decent profit having topped up at sub 64p and have held for a while, i bought more in jelf but sold some CB. to do so, but this money is going into CBG insurance, with the big boys taking out all the brokers these have to be on the list, great record of earnings.

[nigelwestm] 03/9/2008 08:39

It's funny. The current share price is what I was expecting if HWY had simply maintained its divi, yet it is being taken out!

I think LV have got themselves a real bargain. Wish I had a much larger holding (like 20% of the business or something) because if I did I wouldn't be selling...

[muffster] 28/8/2008 20:00

Great news. Not sure if the Naked Trader bought in to this share in the end though as I expected he would.

Have a look over HMS (Hallin Marine Subsea) as I expect this one to start motoring again.

Anyone else got any good tips?

[miamisteve] 28/8/2008 09:37

If Chaucer has substantial exposure to Florida then I don't expect the rest of the year to look too healthy for them. Keeping an eye on them for when they bottom out. My current insurance holdings are LRE and CGL. 15% and 9% divi. yields and both trading at discount to NAV.

[nigelwestm] 28/8/2008 09:24

I'm in Chaucer too, although not to the same extent as I am in Highway. Used to have a lot of shares in CHU but sold most of them at 80-odd pence a while back.

I see opportunities in Chaucer towards the end of the Hurricane season (CHU is mainly an insurer to people and businesses in US states like Florida). Also, CHU is a possible bid target in the longer term, I reckon.

[miamisteve] 28/8/2008 08:55

Nigel West - Could have been a lot worse, look at Chaucers's results today. Profits collapsed by 90%. Motor was one of it's worse performing divisions. I jumped ship too early on this one and missed the takeover, but there's probably a chance for another 30% upside on some other companies in the sector, if you want to let it ride.

[nigelwestm] 28/8/2008 08:31

I have to say that I am very p1ssed off with that IMS earlier in the year. It was that statement that sent these below 50p (from above 80p each) and now we are being told we are getting a premium of around 50% for our shares!!

The point is that this company is still in very good shape and I think it is not a suitable time in the cycle to be selling up.

I held on because I was convinced that things couldn't have been as bad as the reaction to the IMS suggested, and that the divi would not be cut. But what's the point in holding on for a maintained divi, and share price recovery, if the company is then sold...???

I shouldn't get too upset since I just worked out that - with the divis I've been paid already - the current offer gives me a 30%-plus upside to my investments in Highway over the past three years. But I was hoping for much more.

I just hope that there aren't too many insurance industry executives on holiday at the moment. Surely, rival companies paying attention to the situation will recognise a bargain!

[nickcduk] 28/8/2008 08:30

I think the chances of a rival bidder coming out are pretty good. Lots of synergies are on offer for anyone looking to merge operations. Its probably worth a punt around current levels. Worst comes to worst you make a small profit for a couple of months investment. On the upside you could make 10-20%. Risk/reward is pretty good.

[gre] 28/8/2008 08:16

Must admit that I was hoping for a bit more than is on the table at the moment. LV have got themselves a bargain at this price! Like wallywoo I'm in no rush to sell at the moment.

[nigelwestm] 28/8/2008 06:58

Well the interim results look pretty healthy. I wonder where this share would have gone to without the bid as the divi was maintained...

So hopefully another bidder will come out of the woodwork. They'd better had, since I had an opportunity to sell these at 90-odd pence a couple of years back and I have been kicking myself hard ever since!

[wallywoo] 28/8/2008 06:41

Well thats a good starting point and with the company going xd on the 5/9, I will hang on for a few weeks before selling and see if another bidder shows up. The news today should quickly flush them out.

[nigelwestm] 28/8/2008 06:40

75p (including the divi) is not enough.

[welsheagle] 28/8/2008 06:33

RNS Number : 1797C
Highway Insurance Group PLC
28 August 2008


Highway Insurance Group Plc

28 August 2008

Recommended cash offer by Liverpool Victoria Friendly Society
The Board of Highway Insurance Group has announced today that it has reached agreement on
the terms of a recommended cash offer that is
to be made by Liverpool Victoria Friendly Society for the entire issued and to be issued share
capital of the Company. Under the terms of
the proposed offer, the shareholders of Highway Insurance Group will receive 73.35p per share
in cash as well as an interim dividend of
1.65p per share with respect to the six months ended 30 June 2008. Further details are set out
in a separate offer announcement that has
been released today.

Interim Results 2008

6 months ended 30 June 6 months Year ended
2008 ended 30 31 December
June
2007 2007
Gross written premiums £130.7m £131.2m £250.6m
Profit before tax £1.4m £11.8m £24.3m
Operating ratio 98.5% 100.9% 101.4%
Net investment return 0.4% 3.9% 7.9%
Retail broking revenues £12.0m £12.7m £25.6m
Net assets £98.0m £93.8m £102.7m
Investment funds £414.0m £416.0m £439.0m
Earnings per share (basic) 0.5p 4.1p 8.6p
Interim dividend 1.65p 1.65p N/A


Commenting on the results, Richard Gamble, Chairman said:

"Although the result for the six months ended 30 June 2008 is disappointing when compared
to previous years, we are pleased that our
investment managers have protected capital during what has been a period of extreme conditions
in financial markets in early 2008.

The improvement in underwriting conditions that accelerated in the second half of 2007 has
continued in 2008. Our underwriting and
distribution businesses remain well positioned to take advantage of the upturn and the Board
remains confident about the outlook for the
business. We are therefore paying an interim dividend of 1.65p per share, the same as last
year."

[leadersoffice] 28/8/2008 06:29

They can make a better offer we should be looking at least at 85p plus the divi so think again London Victoria

I would imagine Admiral might want to throw in an offer? any thoughts??

[kimboy2] 28/8/2008 06:25

73.35p from Liv Vic

[topinfo] 27/8/2008 21:30

They are in very advanced talks, I have heard full offer price will be revealed 2moro and its 100p a share...lets wait and see if Im right.?

[wallywoo] 27/8/2008 15:36

Aslong as there is no further deteoration in the results (from the previous profit warning), I reckon we should sale up to 80p plus. I would be surprised if the talks are a fire sale (ie hwy are in trouble) but lets wait til tomorrow.