R&q Insurance Share Discussion Threads

[this_is_me] 20/3/2013 08:58

The share price has a history of sharp swings but seems to be bouncing around in a trading range at present.

[lord gnome] 14/3/2013 11:16

Snap, this_is_me. My running yield on these is now 9.69%. Which is nice. I had hoped for more, but 5p will do this time around. I can't get too greedy.

[this_is_me] 14/3/2013 08:35

Even with the share price rise it is a good yield and still undervalued. I am getting close to 10% on my origonal buying price from about 3 years ago.

[jonwig] 14/3/2013 08:03

Return of capital again:



Amount 5.0p.

Last year was 4.9p (April) and 3.4p (November).

Results for year expected to be 'in-line' ... whatever that means as only one broker covers and is forecasting 8.67p total.
From memory, they always perdict 'in-line'.

[lord gnome] 12/3/2013 07:50

Looking strong again. I think we can look forward to a good run through to results next month. The Directors won't be dumping more shares for a while as we are now in the closed period. I expect a decent set of results, with an increased dividend, plus a positive outlook statement to see us up to around 150. Which would be nice.

[lord gnome] 14/2/2013 18:46

Looks like I was wrong in post 283. It only took 24 hours.

[lord gnome] 13/2/2013 15:23

10,000 shares sold by a non-executive director and the mkt cap of the coy plunges by 5%! I can only wish that I had that sort of influence over the market. It just goes to show how sensitive the market is to Director selling. The worst looks to be over and L2 is improving now (4v4 at 125/130). A couple of days and we'll make up today's fall.

[adam] 11/2/2013 11:50

yes, quite respectable and increasing too.

However, where were these people when it was 90p?

I also sold out now but don't see a spike down. Can see it range trading 120-140. I also sold on the previous spike and was pleasantly surprised to get a second bite at the cherry. A third seems unlikely!

[alter ego] 11/2/2013 11:46

the chart tells me that this has just been tipped by IC as undervalued :-)
The chart doesn't tell me whether it will remain more realistically valued.

[this_is_me] 11/2/2013 11:38

A yield of over 6% is still excellent.

[stemis] 11/2/2013 10:55

The dividend yield on this is now down to 6.2% and it's trading at a healthy premium to net asset value, so I'm out. My experience of RQIH is that these spikes are usually followed by a fall. If its falls below 110p I'll look to get back in.

[lord gnome] 11/2/2013 09:43

I defy any chartist to make any sense out of this chart.

[this_is_me] 11/2/2013 08:21

Nice start to the week.

[lord gnome] 08/2/2013 17:39

Spot on alter ego.

[alter ego] 08/2/2013 16:32

I haven't done the arithmetic but suspect it's the current yield divided by the price he paid.

[adam] 08/2/2013 16:14

Running yield is now 9.04%

eh?

How did you get that running yield?

[lord gnome] 08/2/2013 16:11

Snap. Bought in at 91.25 in Dec 2010. Running yield is now 9.04%. It's nice to get one right now and then. Smug Git ;-))

[this_is_me] 08/2/2013 15:19

So am I! I got mine at 90p over two years ago so I am glad to see a decent capital gain to go with the dividends.

[lord gnome] 08/2/2013 15:16

So now we know it was Henderson Global that bought all the shares. As they have gone all in one lump (almost) it certainly won't have done anything to aid liquidity. Henderson must have been happy to take them and at 110 they are already sitting on a nice paper profit.

[18bt] 08/2/2013 11:04

Of course the Randall's selling plus the IC note will be a welcome boost to the liquidity in these shares which will help institutional investors

[18bt] 08/2/2013 11:04

Of course the Randall's selling plus the IC note will be a welcome boost to the liquidity in these shares which will help institutional investors

[gary1966] 08/2/2013 11:00

Thanks IC. Put these on my watch list a couple of days ago and was happy to watch them drift more before taking a position.

GLA

[cestnous] 08/2/2013 08:34

Dim problemo my Lord

[lord gnome] 08/2/2013 08:28

Thanks for that cestnous. I wondered what had sparked the buying spree this morning.

[cestnous] 08/2/2013 08:04

From I.C

RANDALL & QUILTER (RQIH)
Aim: Insurance
Share price: 120p
Bid-offer spread: 118p-120p
Market value: £59.6m
Website:rqih.com
Founded in 1992 by executive chairman and chief executive Ken Randall and finance director Alan Quilter, Randall & Quilter (RQIH) is a specialist in managing the run-off of insurance companies and Lloyd's of London syndicates that have stopped underwriting new contracts, but have already settled liabilities arising from policies written.
This is a huge market estimated to be worth nearly £30bn in the UK alone - accounting for 15 per cent of the non-life insurance market - and in excess of $500bn (£316bn) globally. Managing the run-off of insurance companies and Lloyd's of London syndicates is also hugely profitable, which explains why Randall & Quilter's (R&Q) board has been able to pay out over 23p a share of dividends in the past three years. It's a sizeable operation, too, employing 400 professionals based in the UK, US, Bermuda and continental Europe, offering a wide service capability in both the 'live' and 'run-off' insurance markets. R&Q currently has a portfolio of 10 companies in run-off with net assets of £85.9m and owns a Lloyd's authorised managing agency and manages Lloyd's syndicates 102 and 3330, which are both in run-off.
R&Q's insurance investment business was the star performer in the first half of 2012, doubling operating profits to £6.47m, but the company's insurance services unit also makes decent returns from its principal activities of claims management, accounting, regulatory returns and reinsurance management. Profits here were up by 18 per cent to £2.3m in the same period. So, once you deduct central overheads and contributions from a couple of smaller divisions, the bottom line is that R&Q reported a 50 per cent hike in adjusted pre-tax profits to £4.6m in the first half of 2012. On the same basis, analysts at Numis Securities are looking for full-year pre-tax profits of around £9.2m and EPS of 13.4p, which will support a very progressive dividend policy: R&Q paid out dividends of 8.3p a share last year through share schemes, up from 7.65p in 2011 and 7.1p in 2010. To put that into perspective, at 120p, the shares are currently offering a chunky 6.9 per cent historic yield covered 1.6 times by forward earnings. They are modestly rated, too, on a PE ratio of nine. True, Mr Randall and his son both sold 1m shares each this week at 110p, but they still retain combined stakes of over 19m shares, or 38.2 per cent of the share capital, so I am not concerned by this selling.
The investment case is even more compelling when you consider that £13m of the company's net assets of £72.6m are in effect in the price for nothing. On a bargain rating of 0.95, and with the high-yielding shares trading 14 per cent below book value of 139p, R&Q is significantly undervalued. Buy.