R&q Insurance Share Discussion Threads

[this_is_me] 07/2/2013 21:55

If the P/E ratio is very low then share buy backs are great because the company is in effect investing in its own shares when they are seriously undervalued. The problem can arise that those running the company might be good at doing so but are almost certainly not nearly as good at investment and often get their timing wrong and invest in the company's shares when they are overpriced. So caqlled professionals are also generally good at sales and not so good at investing, otherwise they would be concentrating on investing on their own account loke we do, so their advice is useless.

[red ninja] 07/2/2013 20:34

Well they say generally share buy backs are bad for investors. In the 2011 case it seemed to generally allow the chief holders to sell their shares at higher than market prices and once the company buy back stimulus was removed share price crashed.

[lord gnome] 07/2/2013 17:12

speedsgh - funny you should mention that. Do recall that a similar thing happened when the company bought back some of its own shares from a distressed shareholder back in 2011 and the Randalls sold a few of theirs as well - see link below. Just take a look at how the share price was run up ahead of the buy back and how it fell back afterwards. Does it remind you of anything recent?

[jonwig] 07/2/2013 16:34

speedsgh - we all love a good conspiracy, don't we!

But post #258 suggests that a recent broker upgrade and the TW tip (he has lots of disciples I believe) provided the up-spike which the Randalls decided to take advantage of.

The very positive thing was that millions of shares were absorbed so easily!

[speedsgh] 07/2/2013 14:56

If I was a cynic, I might suspect that the share price has been walked up recently to facilitate the Randalls' large share disposals a few days ago. Surely not. That would be a bit out of order, wouldn't it? Lucky we live in such an honest upright society.

[jonwig] 02/2/2013 11:15

Thanks for that - I'm sure increased deal activity spurred the rise in the first place, but then this 'great rotation' thing will have got anything yielding over 7% 'safely' in demand.

[lord gnome] 22/1/2013 16:26

Still moving up!

By the way speedsgh - pity I didn't follow swan368's tip on CICR :-(((

[speedsgh] 18/1/2013 21:36

If you check out swan368's profile + all his posts, you'll see how many threads he has been pumping CICR on in the last few days. Sorry, no choice but to...


swan368 - 18 Jan'13 - 20:02 - 254 of 254 0 0 (Filtered)

[lord gnome] 15/1/2013 11:35

Spot on adam - today's RNS confirms that Phoenix are out.

[cestnous] 14/1/2013 14:50

And it's my birthday!


Back to sleep now.

[jonwig] 14/1/2013 14:38

Oh dear, will this holding start to get interesting? I do hope not, I was hoping for a quiet 2013.

(We don't actually have enough information about the trade, yet.)

[adam] 14/1/2013 13:52

Looks like Phoenix cleared out as trade of 1,925,548 goes through at 106.25.



So we know the seller. Who is the buyer?

[speedsgh] 14/1/2013 13:41

Shame. I quite like investing in a dead corpse. Wonder what's piqued interest?

[lord gnome] 14/1/2013 13:27

Sudden surge in volume with a couple of big trades going through followed by a welcome tick up or two. We have a pulse.

[jonwig] 08/12/2012 15:47

Equity Development's regular round-up, page 2:

Randall & Quilter have announced, as hoped for, the launch of a new Lloyds syndicate which will write SME and niche personal lines property and associated liability business through Managing General Agents with a balanced portfolio in the USA, UK, Europe and the rest of the world, and between catastrophe-exposed and non-cat localities. Syndicate 1991 will have an initial capacity of £77m, of which R&Q is providing 20%, two major reinsurers 15% each and individual investors 50%. Among the latter is Michael Deeny, a member of the Council of Lloyds and a former Chairman of the Association of Lloyds Members who will also be joining the group as a Non-executive Director. R&Q should benefit from management fees as well as its share of syndicate profits.

As for no share price reaction, I'm almost pleased at that as I've been adding to my holding at reasonable prices and can do again.

Another thing might be relevant - the sort of business RQIH is involved in should be fairly uncorrelated with other financial assets. That's always a worthwhile thought for holders of equities and bonds like myself.

[topvest] 07/12/2012 17:16

Yes, they seem to be very active in developing their business this year. Hopefully this will lead to good results in the coming years. Quite a positive development this one.

[18bt] 07/12/2012 17:11

Amazed no share price reaction to today's announcement. Seemed material to me one way or another!

[alter ego] 28/11/2012 10:17

thanks for that jonwig
the deal should generate value for shareholders.
that's the bit that matters.

[jonwig] 28/11/2012 06:57

Equity Development note (p3):

Randall & Quilter have extended their range of domiciles further by acquiring
(subject to approval by the Finnish regulator), Alma Insurance, a Finnish
reinsurance company that has been in run-off since 1989 for £4.4m cash, a
discount to its estimated (adjusted) NAV.
Alma had net insurance reserves of £1.6m in its latest accounts, so assets are
more than three times claims reserves but the negative real interest rates in
financially sound countries like Finland result in interest and investment income
falling short of management costs, so NAV is liable to shrink. Assuming that R&Q
use their skills and some economies of scale to reduce ongoing costs and
accelerate claims settlements, the deal should generate value for shareholders.

[jonwig] 26/11/2012 07:22

Another acquisition announced, making it the fifth this year. All five done for cash, at a discount to net assets.

They don't always declare the amount paid, but I reckon the total is around £12.5m.

[jonwig] 17/10/2012 11:28

My broker notification appeared this morning (T D Direct).
I chose capital as I need to lose some income, which is eating into my age-related tax allowance. That's only now becoming a problem!

[jonwig] 16/10/2012 12:10

It's now marked as 'XP' which a pleb like me reads as 'XD' - link in post #235.

Not the full drop though.