Just Share Discussion Threads

[cjac39] 12/6/2019 22:16

The Qns I would ask would be:

1) how much of the recent capital they have raised have they spent on interest rates falling in past few months?
2) what is their tmtp burn rate vs their in force net profits next 2 years
3) how are they going to be capital neutral in 2022 with cp7/12 uncertainty?

[lovat scout] 12/6/2019 11:38

18BT or anyone else for that matter going to the AGM please ask what the board plan to do for shareholders if the market continues to price the company significantly below asset value - you won’t get a straight answer as the board will hide behind regulations but it will be another shot across the bows.

Edit: CFO appointment ahead of AGM gets rid of one awkward question!

[scrapheap] 12/6/2019 10:17

Why have they retrenched to lifetime annuities, dropped fixed term annuities entirely (leaving L&G hoovering up) and not replicated or innovated like Canada Life's Retirement account which is lifetime annuity ut within a flexi-drawdown wrapper - thus putting even their lifetime annuity product at a competitive disadvantage to that.

More broadly, I think I'm right that a big hit to the P&L was their reducing housing market growth assumptions from a scary 4.0%pa to 3.5%pa - how much more of a hit is there to come!

[18bt] 12/6/2019 09:42

My 3 questions, if I can ask them, will be:
1. Wht didn't they sell the closed PLACL rather than raising debt at 9.375% and equity at a 61% discount to year end NAV?
2. Why were the directors incentivised on return on capital rather than on shareholders' equity?
3. Why is the Board convinced of the relative efficiency of distribution via the Hub versus 3rd party distribution and would the Group as a whole not make greater returns by reducing the scale of the Hub companies? The Hub seems to have lost over £10m last year, but I am told they can claim this has been reduced to break even as they are now subsidising out of the Life Co by paying higher commissions.

Happy to ask any better questions that people may have, but I won't get a chance to ask that many I suspect.

[cjac39] 12/6/2019 09:03

can we give you some questions to ask??

[robsy2] 12/6/2019 08:59

Nice one 18BT! I would be interested to hear what you make of it all.
Best
R2

[robsy2] 12/6/2019 08:59

Nice one 18BT! I would be interested to hear what you make of it all.
Best
R2

[scrapheap] 12/6/2019 08:54

Please do!

[18bt] 12/6/2019 08:39

Concerted effort by NEDs in advance of the AGM tomorrow - perhaps they are expecting some stick. I intend to attend and give them some ...

[tsmith2] 12/6/2019 08:21

more director buying duly noted

[topvest] 11/6/2019 19:58

About time. Encouraging though.

[bolador] 10/6/2019 12:54

And another..

[scrapheap] 10/6/2019 12:12

Good to see a non-exec buying in too....

[bolador] 10/6/2019 10:55

With one director, David Richardson taking up his option stock 360k and paying the income tax and NI that comes with it (?) things look a little better especially as the take up adds to his substantial holding of 500k plus. Index selling over, stock creeping up..everybody pretend we are not watching..

[cjac39] 08/6/2019 21:47

not really. what matters is the value of the business. i dont care what the muppet ftse250 managers have got wrong. the pra can ask for more solvency capital. they can also inflate liabilities. but nonetheless if you look through assets over liabilities that are already super conservative its 2-3x here

[davr0s] 08/6/2019 21:33

It doesn't matter if they understand or not - what matters is they are choosing to not accumulate shares here and that's all that matters

[cjac39] 08/6/2019 21:21

mostly i suspect its because they dont understand life insurance, bought into the ifrs profits mirage, and now are too embarrassed to invest at precisely the time they should

[davr0s] 08/6/2019 20:56

Personally won't touch a share making multi year lows - it means that the big boys have been selling out and not stepping up, for whatever reason. Until that situation changes I'm going to remain on the sidelines

[cjac39] 08/6/2019 20:36

ive just bought in here for first time. can anyone explain why a co with assets over liabs of 1.7bln can be valued at 450mln odd? solvency ii issues look to me like timing issues rather than liabilities being under valued so presumably if they shut down to new business as they should then its just a 2-3x value uplift?

[rjmahan] 07/6/2019 12:57

Suggestion that falls may be due to PRA review of matching adjustment - mentioned in review - wasnt RNS'd

[bolador] 07/6/2019 09:43

Robsy2 yes and on it goes, earn a tenner receive a fiver net spend five pounds on petrol, receive one pound's worth net after VAT, Excise etc, so tax 80% on a slurp of fuel but then the oil companies, explorers, refiners, wholesalers and retailers also pay their taxes . Then if you have any shares in those you could get a dividend. The dividend, ? Well that is mostly taxable.So buy another slurp of fuel with your net dividend proceeds, if not you could buy some socks and pay just twenty percent VAT.Oh dear..

[18bt] 07/6/2019 08:42

Rob - it is pervasive, but at least he didn't pay stamp duty like us mere mortals. ISAs and Pensions are always marketed as "tax free" - they always seem to forget that stamp duty is a tax like any other ...

[robsy2] 07/6/2019 08:13

Quite right. Off subject ,it makes you think about the pervasive nature of tax. He pays tax of roughly 180k, takes the risk, it goes well , shares double, he sells and pays cgt whatever rate that, say 20%. And on it goes..
R2

[tsmith2] 07/6/2019 07:41

Yes but he's meeting he 50% tax from his own pocket so is a measure of confidence?