Highway Insurance Share Discussion Threads

[dumpling] 05/9/2007 14:48

Must break 80 again.

[taylor20] 05/9/2007 09:04

Perfect Results, was expecting the >100% op. ratio thought it was a little early to call the upturn in rates. Worth a top up I think.

[nigelwestm] 05/9/2007 08:45

Yes, that was my thinking too. Expected the price to move up a bit more though... Maybe that will come just before it goes ex-div...

[miamisteve] 05/9/2007 08:39

The section on investment strategy is very reassuring. They were actually short sub-prime derivatives.

Dividend cover has rocketed now, which puts to rest to usual scare story of potential divi cut.

[nigelwestm] 05/9/2007 07:50

Interim results look good: H1 EPS up 57% to 4.1p, interim divi increased to 1.65p.

And I like this statement:

"Investment markets have been particularly volatile throughout July and August
and appear likely to maintain this volatility until the USA sub-prime issues are fully resolved. We reviewed our absolute return investment strategy in August 2007 and are confident that this will continue to deliver market-leading returns without undue risk. These returns and our significant investment fund will underpin the dividend."

[miamisteve] 15/8/2007 12:09

Vikcom - Agreed. 25% in hedge funds, spread across 63 funds.

They will have some exposure, but limited. Declining equity markets as a whole will have more impact.

[nigelwestm] 14/8/2007 22:53

Yes, but the subprime stuff has been known about for some time now. Surely the likes of L&G would not have recently invested at around the 70p level if they felt there was a significant risk to the investment fund.

[vikcom] 14/8/2007 22:02

if you look at last results. 400million in investment fund with 25% in hedge funds. although funds are probably diverse, there could be some exposure here. may be advisable to wait for results in september before jumping in.

[nigelwestm] 14/8/2007 10:46

I reckon it would have to take something drastic, like a cut in the dividend, for the shares to do anything else.

[timben] 14/8/2007 10:40

Fundamentals seem to be ok so hopefully a good move up before the interims?

[nigelwestm] 14/8/2007 10:35

thanks steve

[miamisteve] 14/8/2007 10:11

Chaucer also stated that they have no exposure to sub-prime debt.

HWY's majority of investment income is from cash equivalents and non-mortgage linked bonds.

Hedge funds are 10%, of which most will be equity plays. They took a $1.5m hit from the collapse of Amaranth previously, so despite declining markets they don't have high comparables from last year.

They will have very little exposure if any to sub-prime debt because they would be obliged to keep the majority of investments in sterling.

[nigelwestm] 14/8/2007 08:07

Hopefully not much. Anyway, Chaucer have announced this morning that it forecasts UK motor premiums will improve by at least 5 pct due to a market upturn.

[rfaustin] 13/8/2007 23:17

So, with the major part of HWY's income last year from investments using hedge fund strategies, what's the cost of exposure to US mortgages etc?

[nigelwestm] 13/8/2007 13:34

Just a shake out of nervous PIs ahead of the interim results next month, I reckon. Anyone got their hands on recent research? The last figures I saw suggested EPS of 7.5p for 2007 and a dividend payment of 5.8p. That's a PE of 8.7 and a yield of 9% at the current share price.

[timben] 13/8/2007 13:07

Why the big drop on Friday? Fundamentals still the same

[taylor20] 13/8/2007 08:40

Lovely trading opportunity for those who were quick (not me :( )

[miamisteve] 27/7/2007 11:00

This was from Chaucer's statement today, confirming the start of an upturn in UK motor insurance.

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

While prudently renewing as much of our current portfolio as possible, we will
also switch capital to those areas where returns are more attractive, notably UK
motor where we are seeing first signs of a market upturn.


This philosophy, combined with the unique structure of our Lloyd's business,
with its significant UK motor presence, leaves us well placed to manage the
market cycle challenges ahead."

[nigelwestm] 19/7/2007 20:48

Well I haven't heard anything. I'm in this share because of the dividend.

[ursus] 19/7/2007 17:04

i've heard that i've bought another 175k.

[timben] 19/7/2007 16:46

Ah yes!!!! anybody else heard anything?

[nigelwestm] 19/7/2007 14:01

Ah... you mean someone is sniffing around. When you said "someone is sniffing" I thought you meant the company was catching a cold or something...

[timben] 19/7/2007 13:38

Just heard a rumor from a gent that has got several insurance takeovers right Cox insurance etc etc.

[dumpling] 18/7/2007 17:02

Can you elaborate Timben?

[timben] 18/7/2007 16:38

more to this than meets the eye??? I heard someone is sniffing