R&q Insurance Share Discussion Threads

[jonwig] 07/6/2013 10:57

RNS prior to new Bermuda domicile:



I think this should mean RQIH can then be held in an ISA, though transferring-in would mean coping with a large bid-offer spread.

[jonwig] 06/6/2013 07:34

Equity Development on Monday's acquisition:

R&Q have made another acquisition in their core run
-off segment, this time in France: they have purchased from MMA
IARD Assurance Mutuelles 99.9% of its
reinsurance subsidiary, boldly named "La Reassurance
Intercontinentale, for €1.5m and a separate package of
"legacy" reinsurance obligations in run-off and
associated assets for €0.2m. "La RI" has been in run-off since 2010 and mainly
comprises third-party reinsurance contracts with net reserves of c.
€4.1m and net assets of c.€1.8m, so should provide negative goodwill of €0.3m as well as potential synergies through combining the administration of "La RI" with that of R&Q's other French insurers.

[manrobert] 30/5/2013 10:57

i think we can also look fwd to another update from simon thompson shortly as at current level.imos the shares look undervalued

[sogoesit] 24/5/2013 16:06

Many thanks jonwig... glad to see that you\'re a long term investor on this one!
I saw the Times article but it seemed a bit bare to me so will check your insuranceage reference.
Thanks again for the clarifications.
Good weekend to all.

[jonwig] 24/5/2013 12:42

Sogoesit - I'm glad R&Q is working out well for us!

Post #311 has a link which might help with Bermuda.
Also, as Stanmore noted (post #308) it's a specialist domicile for 'Captives' - ie. insurance cos specifically set up to insure the parent company against risks.

R&Q doesn't tell us much about Syndicate 1991, but the Times seems to know something:

The Lloyd's of London insurance market is to gain its first new underwriting syndicate in a year and a half after Randall & Quilter, the specialist investor, unveiled plans for a unit that will start assuming risks in January.

Syndicate 1991 will specialise in providing cover for small and medium sized businesses, as well as niche sporting events such as horse racing track day events. A small amount of insurance for individuals and their properties will also be provided.

A bit more here, as well:

[sogoesit] 24/5/2013 12:16

Much going on with this company.
Since my last post in October '12 where jonwig kindly helped me out I have accumulated twice on this stock, once as a re-investment of past dividends (at 137p... a bit high that...) and once as a new purchase at 107p.
I am not sure what the move to Bermuda does for the company... my understanding is that it is seeking a more favourable jurisdiction and regulatory environment for insurance; to escape the usual european indecisiveness and anti-business climate to do with insolvency regulations. Is that the gist of it?

Anyway, my trust is placed in Messrs Randall & Quilter who, I hope will continue to expand the business and pay me a handsome dividend income into my old(er) age!

However, amongst all this is the creation Of Lloyds Syndicate 191... what is this syndicate going to underwrite as business, since it is not clear to me, other than it being run by an ex manager of "Axis" (whoever they may be)?
I am hoping that this does not take them outside their "experiential" capacities in trying to manage risks they are not familiar with....
Any comments?

[speedsgh] 02/5/2013 08:47

I've no doubt the purchase is even more welcome for his kids!

[manrobert] 02/5/2013 07:51

encouraging director purchase.

[alter ego] 01/5/2013 16:17

quite right too. Lords should know how to spell or they will let the side down.

[lord gnome] 01/5/2013 15:58

I reserve the right to edit my errors to save myself further embarrassment ;-))

[jonwig] 01/5/2013 15:18

Ah, so Lord G was covering his tracks!

[alter ego] 01/5/2013 14:38

Jonwig, I think you're reading the edited version. It originally said "siting", hence the leg pull.

[jonwig] 01/5/2013 11:45

Lord G: "citing" (as also "citation", etc.) is correct.

[lord gnome] 01/5/2013 08:57

Ouch. I'll give myself a yellow card for that one.

[pherrom] 01/5/2013 08:36

It's an interesting cituation.

[lord gnome] 30/4/2013 12:10

IC has updated on RQIH today and maintains the 'BUY' rating, citing expansion plans and broker upgrades.

[alter ego] 29/4/2013 22:56

Interesting, thanks.

[jonwig] 29/4/2013 07:03

Useful article on the results and reasons why they are to move to Bermuda:

[lord gnome] 25/4/2013 20:19

Nice recovery in the share price after the predictable early drop. Onwards and upwards.

[manrobert] 25/4/2013 10:32

bt 5000 at 129.75.p.e 8 and yield of 6 looks very inviting.imo

[stanmore2] 25/4/2013 08:32

My understanding of Bermuda is that it allows American companies to insure themselves outside of America, as it is illegal for them to do so at home. Have been there and it seems a pretty respectable place to me.

[jonwig] 25/4/2013 08:12

Not fallen back enough to persuade me!

Lord G - Bermuda is the world's centre for insurers and re-insurers.
For some reason: the weather?

[lord gnome] 25/4/2013 07:45

Here is the link to Phoenix Asset Management Partners, our new significant shareholder following the placing. Interesting to note that Ken Randall is also selling some of his shares to them conditional on regulatory approval.

[lord gnome] 25/4/2013 07:38

All these developments probably explain the erratic share price movements of late. The final results look good, with historic PE at approx 8.5 and the shares yielding 6.5%. I am not at all sure about the move to Bermuda which, I have always seen as a slightly dodgy place for financial services companies. The placing of new shares begs the question as to why they bought back shares in 2011 at a higher price than they are issuing new shares today! I suspect that I may know the answer to that one. Overall, as long as the business continues to grow and so do my dividends, I can't complain.

Like you, jonwig, I suspect that the share price may fall back temporarily, but the results are good and the future looks bright, so things should sort themselves out over the medium term. If they can't get a good return on the new capital, however, our earnings per share figure is going to be heavily diluted come next results.