R&q Insurance Share Discussion Threads

[jonwig] 08/5/2015 07:12

Simon - good question, which I didn't take into account when buying.

In April last year they said, "The estimated net insurance liabilities as at 31 December 2013 were c.£16.5m." and there's a legal claim they are fighting which should be heard this year.

Apparently a decision on this will be made by the end of May, which will determine the date of releasing the FY results. Of course, the recent share price weakness could be down to uncertainty about the outcome, and I could have walked into a trap ...

[my retirement fund] 07/5/2015 17:47

Well I've dipped my toe in today.Just a modest helping though!

[simon gordon] 07/5/2015 12:03

Hi Jon,

Do you know what the worst outcome on Syndicate 102 could be for RQIH, is it a minor issue or potentially a large liability?

Thanks and I hope you are well.

[jonwig] 07/5/2015 08:22

I bought back in this morning (c. 106p). Expect (hope!) that the recent series of profit warnings are out of the way. They're signalling a better 2015.

[speedsgh] 05/5/2015 14:52

R&Q appoints captive management president -

[speedsgh] 01/5/2015 10:17

Increased my holding on the back of today's announcement.

[speedsgh] 30/4/2015 10:07

No, radio silence from the company on date for Final Results. In view of the recent share price action, I do hope the results haven't been leaked to insiders. That would be most unsporting.

EDIT - Now yielding over 8% on the basis of a maintained final dividend.

[labatie] 30/4/2015 07:58

Has the company said when the figures will be published? I see it was 22nd April last year.

[russman] 29/4/2015 21:59

Looking forward to the figures.

[speedsgh] 28/4/2015 12:57

Not sure I've heard about these 2 snippets of news since the start of the year, although they're probably too small to warrant an announcement...

R&Q acquires Unilever captives -
The Insurance Insider (subscription)-28 Jan 2015

Legacy-to-live carrier Randall & Quilter (R&Q) has completed the acquisition of two Bermuda-based captives from consumer products giant Unilever Group, The Insurance Insider understands.
The captives, Armitage International and Berda Developments, are both in run-off.
It is understood that the self-insurance platforms contain workers' compensation, auto and general liability risks, as well as coverage for the group's product liability.
It is thought that the two captives have a combined asset value of $8mn.

R&Q acquires $4.7mn Scandinavian marine run-off -
The Insurance Insider (subscription)-19 Jan 2015

Legacy-to-live carrier Randall & Quilter (R&Q) has acquired a 30.1mn Danish krone ($4.7mn) book of Scandinavian marine liabilities from Danish insurer Tryg.
The Tryg book, which was put into run-off in 2010, contains marine liabilities dating back to 1998 and provided cover to policyholders in Denmark, Sweden and Norway.
The assets have been transferred to R&Q's platform in Malta but claims will be handled locally by R&Q Triton AS, its office in Oslo.

[stemis] 28/4/2015 12:04

No, I understand all that although most small caps are just covered by the house broker which isn't much different. ED & ER allow management to put analysis into the market which they can't directly. As long as you understand that its basically the views of management, they can be very useful.

[lord gnome] 28/4/2015 11:09

Probably because RQIH stopped paying them. They are both vanity research publishers. They are paid to provide research because the big boys won't give smaller companies the coverage. They provide a useful service, but anything they say should come with a wealth warning. It is hardly objective research. When did they last issue a 'Sell' recommendation?
(Apologies if this sounds overly cynical).

[stemis] 28/4/2015 10:51

Both Equity Development and Edison Research used to cover RQIH but now no longer seem to. Anybody know why?

[my retirement fund] 28/4/2015 10:50

One would expect the natural pessimism of the market and its inherent tendency to overreact, may mean there is still considerable risk here to the downside.I would be surprised if there were not further weakness at the very least and would caution against "going all in"That said good luck to anybody who does.

[speedsgh] 27/4/2015 17:11

From the interims...

"The faster than expected settlement of US asbestos claims may impact reserve setting at the year-end given a reliance on 'survival ratios'. We have engaged independent actuarial consultants to perform a granular ground up analysis on a number of key accounts. Whilst this initial analysis has yielded favourable results to date, we should caution that some deterioration may materialise, though this would be largely mitigated by the reinsurance coverage." - Whilst I'm certainly no expert in this field, the last sentence above sounds mildly reassuring.

Re outlook (at the time of the interims)...
"The second half of the year is expected to be considerably stronger, driven by increased service and fee income. As a consequence, we still anticipate that our full year results will meet market expectations, although this is inevitably contingent on completing a number of well progressed legacy transactions before year end." - Proof of meeting expectations will naturally be in the pudding!

[lord gnome] 27/4/2015 16:28

I sold out last time around when the bid hit 113p. I will keep this on my watch list because of the divi, but I would like to see some closure to the asbestosis claim that started the last fall.

[speedsgh] 27/4/2015 12:06

From the Trading Update on 12 March...



"Further to the announcement made by the Board on 13 November 2014 concerning the revision downwards to management's expectations for full year pre-tax profits, the Directors confirm that they currently expect that the Group's pre-tax result for the year ending 31 December 2014 will be in line with these revised expectations.

The current year's trading has started well and the Board remains positive about prospects for 2015 with a strong legacy acquisition pipeline and good progress on new business generation in the service business."

The market does not appear to be buying into RQIH's previous assurances re current year's trading + prospects, although recent volume has been low. RSI on the floor but MACD continues to head south.

Can't see a Financial Calendar on the RQIH website - Final Results were 22/4 last year so would expect an announcement soon.

EDIT - So long as business is steady + the current 8.40p dividend is maintained + sustainable, the yield has to look tempting for income seekers at the current level. 115p offer = 7.3%

[speedsgh] 21/4/2015 11:52

So long as the dividend is maintained + the outlook is steady, I will be willing to continue to stick with my reduced holding.

[stemis] 21/4/2015 11:00

Forecasts seem to be a small loss and a held dividend of 8.4p.

[speedsgh] 14/4/2015 18:21

Share price fall not overly encouraging in view of proximity of results (last yr on 22/4).

[speedsgh] 02/3/2015 15:21

Thanks for replies. I suspected as such seeing as a formal rns re takeover offer would have had to have been issued otherwise. Rns is poorly worded but think I was also being a bit dim this morning!

Wonder if we'll get a Trading Update this yr (last yr on 28/2) or whether they'll just hop straight to finals in April?

[coolen] 02/3/2015 14:30

Yes, badly written. They should not refer to "the business" in one instance and "this business" in another.

Each should be clearly identified.

[effortless cool] 02/3/2015 13:29

Definitely just RQMS.

[alter ego] 02/3/2015 13:28

I believe the phrase "large established underwriting group" means Hiscox not R&Q so they are saying that selling the marine business is the best deal and they can achieve greater value than keeping it as part of the Group.