JRP Group Share Discussion Threads

[18bt] 16/12/2016 09:16

Yes- charts indicating that too. Helped by rising bond yields

[ganthorpe] 16/12/2016 09:08

Looking at the 9 month IMS to 30 Sept suggests that new business could reach £2.5Bill to 31 December , at a 6% margin. This gives a gross margin of £100M which is a good start.
Share price looking good to reach 150P after 12 month IMS?

[scrapheap] 25/11/2016 16:55

can only be positive although I saw a tweet from the Ret Adv man that the proposed comparisons wont be (yet) including enhanced annuities - surely they should use 'illustrative' to highlight their potential value!

[18bt] 25/11/2016 13:15

This is important for JRP: surprised the share price hasn't responded to this and to announcement last week that LV= was leaving the medically underwritten GIFL/Annuity market

[qs99] 14/11/2016 15:52

Banks are on the hoof given yield expectations, JRP IMO hasn't really moved with, do people see that as an opportunity the markets haven't caught up with?

[billys50] 08/11/2016 18:29

Im lost for words on this one guys .Great results .great business model but seems to be tanking ..Heavy invested here ..Any ideas from you tech guys what the hell is going on ..Thanks in advance ..

[scrapheap] 08/11/2016 12:22

ah found it...

hxxps://www.bourse.lu/instrument/bond/summary?cdVal=242337&cdTypeVal=OBL

[scrapheap] 08/11/2016 12:18

anyone know the isin for the bonds?

[scrapheap] 08/11/2016 08:03

I'd have said the same.

[18bt] 07/11/2016 17:16

I'd guess that they could have got the bonds rated, but it was not worth the rating agencies fees as they were being sold to a fairly limited range of holders who will "buy and hold" and whose credit analysis teams are better than the ratings egencies. But haven't spoken to the company to verify that.

[dasv] 07/11/2016 13:33

I'm interested as to why they couldn't get their bonds rated. Why does market see bonds as high risk?

[18bt] 07/11/2016 11:27

They are completely unsecured and unsubordinated, so yes the bonds are high risk. The coupon was higher than I would have liked but it's still a sensible move as they can replace bank debt which doesn't count as capital with something that does thereby increasing the amount of capital to write new business

[dasv] 07/11/2016 11:18

1. Why were bonds unrated?
2. Doesn't 9% indicate a relatively high default risk?
3. unrated + 9% despite capital markets presentation?

"JRP Group plc (JRP) today announces that, following the completion of a successful roadshow, it has raised £250 million of sterling denominated unrated 10 year Tier 2 capital. The bonds will be listed on the Euro MTF market of the Luxembourg Stock Exchange.



The capital that JRP has raised increases flexibility and provides further room for growth at attractive rates of return. It also enables us to repay the senior bank debt, which stood at £98m at the end of June 2016. This debt did not benefit the regulatory capital position of the Group. By increasing its leverage, the Group has further diversified and strengthened its regulatory capital structure. On a pro forma basis, the Group's Solvency II capital ratio at 30 June 2016 would have increased to approximately 151%.



The combination of this increased capital flexibility, the increase in targeted synergies by £5m to £45m per annum, as well as the material improvement in margin as the combined Group sees the benefits of growing markets and a strong competitive position, will ensure that JRP can continue its growth trajectory whilst delivering attractive internal rates of return.

Key terms and conditions:



· £250 million 10 year bullet structure

· Tier 2 qualifying regulatory capital instrument under Solvency II

· Bond issued by JRP, the Group's listed holding company, with a subordinated guarantee provided by Just Retirement Limited, the Group's main operating subsidiary

· Annual interest rate of 9% payable semi-annually in arrears"

[salpara111] 04/11/2016 08:41

Agreed.
I have been looking at investing here but the market is just so negative towards the stock that I will wait until we see a clear reversal.
Underlying net asset value is over 150 so that should in theory provide a floor but clearly the market doesn't agree!
I have set a limit order for 110p. I don't expect it to get filled but just in case.

[king kong dong] 04/11/2016 08:20

This weakness doesnt make any sense....the business looks to be doing well.

General market weakness I suspect....

[18bt] 03/11/2016 08:04

Strong Q3 sales announced and reiterated IFRS margin of 6%. Not sure margin is fully factored in to consensus forecasts for 2017, but need to work that through. DYOR

[scrapheap] 30/10/2016 21:35

I imagine some institutions would prefer the 9% yield as a play in this stock over the ord hence the pull back?

[18bt] 19/10/2016 07:17

Looks like they have raised £250m of Tier2 Capital with bonds yielding 9%. Unsecured and subordinated.

[18bt] 17/10/2016 18:20

Note out from Shore Capital with a target price of 233p. As implied at the investor day it does looks as though they are currently seeking Tier 2 debt. Shoe's comment on this is; "we view the current debt road show (seeking sterling unrated 10 year Tier 2 paper) as an opportunity to enhance its balance sheet fire-power amidst significant growth opportunities in both the individual and bulk annuity markets, as opposed to any comparative weakness against its peers."

[18bt] 05/10/2016 15:17

Amazing that no one has commented on the over 40% share price increase in under 3 weeks since the interims. For any holder, the capital markets day slides on the JRP investor website are well worth reading. The long term structural growth story is still intact, albeit significantly rebased from what was apparetn before the 2013 budget.

[18bt] 15/9/2016 18:26

Shore Capital summary: JRP Group, the recently merged Just Retirement and Partnership, reported an excellent set of interims, which should dispel many, if not all, of the fears in the market over the group's new business prospects, the strength of its balance sheet and the potential from the merger. Whilst we might all argue about what premium a company like JRP should stand on relative to its NAV (IFRS OR EEV), a c37% discount to its IFRS NAV or c58% to its EEV screams value to us. The key financial metrics from the group were either comfortably ahead of consensus, such as new individual annuity business (GIfL) or trading in Q3 to date was well ahead of expectations (such as in bulk annuities).

[scrapheap] 15/9/2016 10:30

JRP would bring a whole new range of business to Royal London - they've got the Scot Prov/Bright Grey life 'wing' and the core pension accumulation and drawdown products but with no obvious overlaps the existing JRP team could continue presumably but under the wing of a mutual. All the push on the RL rebranding in recent years might mean they have their eye on being a 'big boy' one day?

[scrapheap] 15/9/2016 10:23

That's a great shout, a closed book firm would like the discount BUT they are the polar opposite in busines 'mindsets'.