Partnership Share Discussion Threads

[nerdofsteel] 09/4/2014 02:48

I think the comment "we will just carry on" is nothing short of wreckless

[scrapheap] 03/4/2014 16:02

Another relevant article too from Money Marketing:

Ernst & Young head of insurance advisory EMEIA Shaun Crawford says: "This will force insurance companies to reboot and look again at their business models.

"Lots of providers will be thinking very carefully about their D2C proposition as a result of the Budget announcement. This is a massive opportunity for this sector."

Partnership, which saw a 60 per cent fall in its share price after the Budget, says City analysts have got it wrong. Managing director of retirement Andrew Megson suggests much of the coverage has underplayed the desire for people to have a security of income in retirement.

He says: "As this bombshell dropped anybody who could read a paper was picking up the consumer facing press and saw complete freedom with no risk.

"Do we think the City have got it wrong? Absolutely. It will take some time to right that but our fundamental business is sound and we will just carry on."

[scrapheap] 03/4/2014 15:36

Email from Partnership to IFAs includes this:

Following the Budget, Partnership has been on the front foot in both the trade and consumer press, boldly reaffirming the fact that, regardless of the proposals, annuities are going to remain a core element in retirement income planning.

Since those announcements, indeed, press coverage has become much more positive as commentators reconfirm exactly what benefits annuities are designed to provide.

[scrapheap] 02/4/2014 15:11

Partnership has hired Costas Yiasoumi to the newly-created role of director of defined benefit (DB) solutions as part of plans to strengthen its enhanced bulk annuity business.

Partnership wrote £84m in bulk annuity business in 2013 (PP Online, 19 March), and announced a landmark £33m medically underwritten buy-in with an anonymous construction firm earlier this year (PP Online, 27 January).

[topvest] 01/4/2014 21:01

I think it will be closer to 1 in 2 personally. Annuities is the only safe bet for most, unless they want to sponge off the state.

[actybod] 01/4/2014 12:32

Interesting that MGM research (straw poll) suggested around 40% would still be interested in annuities - perhaps not quite as bad as first feared by the markets (must admit that stat did surprise me)

[scrapheap] 01/4/2014 09:02

I did have a theory that a fund manager or 2 might have a punt on these 2 stocks once the Q1 end was over - don't want them showing up in your portfolios for that period as suggests you had them when they tanked but with the Q1 end, might be a window to buy some to see how things go from here...

Always looking for the positive straws!

No evidence at all so far, also what's up with JRG directors buying in the market but nothing from PA. at all - they aren't in a closed period.

[hpcg] 31/3/2014 12:41

Unlike July probably worth an investment now. I threw a chunk of change down last week and so far so good. Irrespective of the budget announcement the chart since listing shows how dangerous it is to buy anything from Private Equity.

[sos100] 31/3/2014 08:07

decent start,charts staring to look better.

£1.50 this week would be nice..

[scrapheap] 30/3/2014 19:37

Was this reported on here from the IC?




IC VIEW:

Some level of annuity market shrinkage looks inevitable and that presents challenges - especially for such players as Just Retirement and Partnership Assurance. But there's also some truth to Partnership's assertion that the guaranteed income that comes with an annuity "will remain an important financial solution" for many. On that basis, it's far from clear that the worst case - the near-death of the annuity market - is inevitable. Moreover, it's also unlikely that those who appear the most exposed won't diversify or innovate to make their offering more attractive - after all, and as Jonathan Howe, the UK insurance specialist at accountancy firm PwC, points out, "there are thriving life insurance industries around the world without compulsory annuity purchases". Accordingly, and while some share price correction at Just Retirement (136p) and Partnership (119p) may well have been warranted, the scale of slide - shares in both now trade well below reported embedded value - looks overdone. For those with patience, and an appetite for risk, buying at these depressed levels could prove lucrative.

[actybod] 28/3/2014 12:32

Towers Watson indicate deal sizes in the UK bulk annuity and longevity swap markets will continue to grow this year (more transactions than £1bn). This is where I see the change in the model for PA as it exploits this growth area further to counteract the fall in new business for annuities.

[actybod] 28/3/2014 09:52

Thanks - Yes no impact on PA.

Talk of Zombie funds

(Thanks DJ)

[scrapheap] 28/3/2014 09:35

It's not a major issue at all for JRG or PA. as far as I'm aware - they are at the decumulation stage of pensions and not the accumulation stage which is what the telegraph and FCA review is on about?

[muffster] 28/3/2014 08:28

Dj, it is.

[django 2012] 28/3/2014 08:26

my be the news of FCA potential review into old insurance policies.

[hassani2] 28/3/2014 08:10

I though some RNS on it's way

[actybod] 28/3/2014 08:05

Mini shake?

[sos100] 28/3/2014 08:04

wtf just happened?

[poppabear4u] 28/3/2014 07:23

I don't understand the differential in share price between Partnership and Just Retirement. According to the published results for end 2013, Partnership had IFRS equity of c£600m (~£1.50 per share) and embedded value of £520m (£1.30 ps). JR had IFRS of £800m (£1.60 ps) and EV of £892m (£1.80 ps). JR's EV assumption about future bond spreads is a lot lower than Partnerships so much more prudent. Both companies seem to be being valued assuming no new business so JR ought to be trading 10% to 30% above Partnership.What am I missing? I am thinking of taking a punt on one of these but not sure which one?Anyone help?

[sh0wme] 28/3/2014 07:16

Ive just seen a reply from Chris Rhodes, investor relations.posted below.

Thanks for the email – we did discuss the merits of putting the announcement out as an RNS given the unusual circumstances we find ourselves in, but felt the deal was very much ordinary course of business, was in line with the comments we made at the full year results announcement (that the DB pipeline remained strong), and the RNS we did put out post the Budget, where we commented that we did not believe the DB bulk market would be affected.

There was felt to be no regulatory requirement to RNS the deal, and the danger then of RNS'ing this one deal was that it would precedent the need to issue a statement for every deal we do – again, we feel this is ordinary course.

I think in other announcements to market we have been very clear in explaining the opportunities open to us, including DB, but you are right in saying that the company does have several routes to market, and the budget announcements potentially open up several more.

In terms of announcing a change to strategy, it is not clear to us as yet that the budget changes necessarily need to change our strategy – it is very early days, but as and when we have some greater clarity on the likely impacts of the budget announcements we will update the market.

Regards

Chris

[tsmith2] 27/3/2014 17:34

250k UT - nice

[tsmith2] 27/3/2014 17:12

Good recovery during the day, stands us well for tomorrow