Highway Insurance Share Discussion Threads

[barkjon23] 14/5/2008 13:19

I bought some more at 55p yesterday. Feel that's a good price

[taylor20] 13/5/2008 08:51

Have to admit sold on the IMS, but nice to have the fat divi payment arrive yesterday.

Still have some exposure through a holding in SDV, but I've given up waiting for the insurance cycle to turn.

[blueledge2] 08/5/2008 16:11

Shall I sell so they can go up again?

[barkjon23] 08/5/2008 16:08

I had a look at the Investment section of the results
12/07 numbers
£439mm in Investment Funds
Cash 28%
Fixed Interest 43%
Equities 6%
Hedge funds 23%

No long exposure to sub-prime (short exposure via Paulson hedge fuund)

January 08 performance -0.4% (equity element -5.3%)
February 08 performance +0.7% (equity element +1.2%)

seem to have a low exposure to banks ~£1mm

More cautious since credit crisis - equities reduced in 12/07 and 1/08
£7.8mm of gedge fund redemptions in 1/08


Reads well to me!

[blueledge2] 08/5/2008 13:09

Sorry. I brought in when it went under 60p thinking that would be a bottom.
Usual kiss of death i`m afraid.

[makingheaps] 08/5/2008 08:39

RSA report today that they have increased personal motor premiums by mid single figures (presumably thats 5%) and commercial motor by 8%. Don't know their market share but More Than is a big player. Seems a bit at odds with what HWY are saying on rates

[nigelwestm] 06/5/2008 10:03

I don't think the divi will be cut.

From the trading update the other day:

"The business has a strong balance sheet, robust reserves, healthy cash flow and a significant solvency capital surplus."

That bit about the significant capital surplus indicates to me that, even if earnings don't cover the divi this year, then it is likely the divi will be maintained.

As ever, DYOR...

[leadersoffice] 03/5/2008 16:29

They will just cut the dividend

[nigelwestm] 02/5/2008 14:53

I can't believe these shares have been punished so hard, just because of the profit warning! Is the market forgetting that Highway is expected to pay 6p in dividends for this year?

Surely, this well-financed company is not going to cut the dividend just because of one quarter's poor performance! And it's not as if HWY is set to make a loss this year either... Oversold!

[barkjon23] 30/4/2008 13:40

That's a pretty clear profit warning. The shares have held up well - that's the end of that then!

[makingheaps] 29/4/2008 18:08

I think the reduction in investment returns was always on the cards although Q1 was probably a lot worse than expected. The really bad news is the lack of growth in rates whilst claims inflation remains unchanged. This implies maybe a worsening in the loss ratio which tipped 80% last year, the worst for several years. In addition while volume increases at Hero margins will be lower. the reverse was expected. All in all there will be a big dip in earnings. I just hope the dividend is sustainable in the hope of a better 2009. I recently doubled my stake at 67p.

[miamisteve] 29/4/2008 11:07

Well. No real surprises because it was clear that Highway were over weight equities compared to other insurers.

Since the end of Q1, equity markets have put on a further 5%.

[nigelwestm] 29/4/2008 09:41

Trading statement out today. No real surprises... difficult trading in 1st quarter but optimistic for rest of the year...

Shares have weakened somewhat though...

[devonlad] 03/4/2008 08:24

Nice bid premium for Heritage anyway, Highways is ripe for a takeover so the market must be viewing it as the next target!

[shauney2] 02/4/2008 22:04

The rise could well be down to Heritage Underwriters (HUA)

As always with hindsight should have topped up with Hwy on the dip last week.

[ursus] 02/4/2008 16:11

stock shortage i reckon.

[barkjon23] 02/4/2008 16:09

hmm, interesting move up. There'll either be news tomorrow backing it up or a fall back IMHO

[nigelwestm] 02/4/2008 15:32

I wouldn't be so sure about that. Plenty of other shares have moved up sharply recently, which I put down to the fact that it is close to the end of the tax year and people are topping up their ISAs with high-yielding shares like Highway. Abacus (another high-yielding share) moved up sharply the other day, for example.

However, whatever the reason it is welcome...

[devonlad] 02/4/2008 15:21

Takeover bid, must be to move 10% on a day like today with no news!

[tr1] 02/4/2008 15:17

Have another go mitzis!

[mitzis] 02/4/2008 14:39

I've changed my mind...70p.

[mitzis] 02/4/2008 07:45

about 69p I would guess.

[gswredland] 01/4/2008 17:13

bought in earlier today...look good value to me!
70p fairly quickly?