R&q Insurance Share Discussion Threads

[hybrasil] 24/9/2016 05:58

I think this is massively undervalued
It came to the market 9 years ago at 125p a share. Things are way better now than then I suspect that the annual return of capital(which I love because it's. Cgt as opposed to income tax and it's giving me 8%) means it does not come up on people's radar. £2 is my target

[jonwig] 23/9/2016 11:15

That's true but I still like to muse on possible outcomes!

From my limited understanding, the net assets of $5.3m include future insurance provisions at what is probably a realistic valuation (since it's in run-off). These could potentially increase or decrease.

[stemis] 23/9/2016 10:16

I think its almost impossible to know the real value in these acquisitions. You either content yourself with the attractive yield and faith that management know what they are doing or you don't hold the shares...(imo)

[jonwig] 23/9/2016 06:24

Recent rise maybe caused by a leak of the acquisition just announced: net assets of $5.3m for a cost of $2.1m.

Perhaps at some stage we'll see another "Goodwill on bargain purchase" in the accounts - of $3.2m or so? Or maybe the capital will be released over time?

[3800] 21/9/2016 18:59

yes, if it carries on like this they will be back to what I paid for them soon.

[speedsgh] 21/9/2016 18:13

Chart looks promising for first time since start of 2014.

[jonwig] 05/9/2016 14:16

Interesting thanks.

It's actually on the website:

The Part VII Transfer of the general insurance and general inwards reinsurance business of Guardian Assurance Limited to R&Q Insurance (Malta) Limited was sanctioned by the High Court of Justice on 1 September 2016 and became effective on the same day.

But not mentioned in the results, or any earlier RNS. Not big enough? Maybe an RNS in due course.

GI seems to be mostly property and casualty, but I've no idea of its size, and nobody else seems to have this news:

[speedsgh] 05/9/2016 12:59

R&Q seals Guardian Assurance Part VII transfer -

Randall & Quilter (R&Q) has completed a Part VII transfer of Guardian Assurance's UK P&C business to its Maltese operation, CFO Tom Booth has confirmed.

Speaking to The Insurance Insider following R&Q's first-half results, Booth said the scheme of arrangement, which went through the UK courts on Thursday (2 September), was the last step in bringing the book to finality.

[jonwig] 05/9/2016 06:27

Really interesting H1 results today:



With NAV per share of 98.1p and even higher profitability expected in H2, the question is, what premium can the share price command? I'd expect a bit of an uplift, anyway!

This caught my eye: "Goodwill on bargain purchase of £2.7m arising from three completed legacy acquisitions, mainly out of the Bermuda based M&A operation."

I was unfamiliar with the term, and it increases profits. In fact it turns out to be the same as negative goodwill, as explained clearly here:



And, usefully, a 3.4p payout suggesting a yield of 7% or more for the full year.

[hybrasil] 01/9/2016 17:55

Jonwig. That's what brought me here. Regular capital repayments as opposed to income suit me very well(after that horrible recession and not a few losses!)

[jonwig] 01/9/2016 12:38

It's never been a 'leaky' stock, but the attraction of the regular payouts (call them dividends?) may have caught on. (Maybe stock screens won't highlight it because the dividend yield will show as zero.)

[speedsgh] 01/9/2016 12:08

Wonder if someone is in the know or just rising in expectation of positive interims on Monday (5/9)? Volume has picked up a bit since mid Aug but nothing substantial so more likely the latter than the former?

[this_is_me] 01/9/2016 11:21

I bought back in a smaller holding at the end of July when the price started to move up again. If the yield stays high I will be happy and if the share price doubles I wsill be delighted!

[jonwig] 08/8/2016 06:49

Considering the nature of their business, it's unlikely Brexit will figure hugely, though Lloyd's has expressed some concern at business levels.

More serious, I think, will be the absolutely pathetic investment returns. (2015 1.1%, 2014 2.5%, ... 2016 0.0%?)

[value hound] 08/8/2016 06:22

Results on 5th Sept and, more to the point, no Brexit-related warning on trading.

[my retirement fund] 07/7/2016 09:45

seems to be holding up well so far

[jonwig] 25/6/2016 13:58

I don't really feel we do - investment returns (govt bonds) have been lousy for years. Isn't that it, in spades from yesterday?

Will the EU ban any operations originating from Bermuda? That would scupper any chance of US/EU deals. Maybe they should say something, but initial market reaction is no real prompt. And we're only one day into a two-year plus process.

[red ninja] 25/6/2016 11:56

Mm, Brexit has done us no failures. We could do with a company statement on /brexit effect on company ....

[jonwig] 22/6/2016 17:44

Someone has faith:

Phoenix Asset Management rises to 10,125,117 shares (14.05%).

Whatever the operational successes, investment returns must be awful!

[speedsgh] 27/4/2016 14:58

Appears to have broken out of downtrend in place since Q1 2014 which has seen a halving of the share price.

[skyship] 25/4/2016 11:13

HY - Well done & a great relief I'm sure - they've looked a bit of a basket case for quite some time!

[hybrasil] 25/4/2016 09:27

very,very pleased with this.

[jonwig] 25/4/2016 06:16

Whew! Corner turned? 8.4p pa for the forseeable.

2016 should see a continuation of the Group's return to profitability, though with the usual bias towards the second half of the year. It is expected that book value will increase modestly during the year even after strong cash distributions to shareholders, which will be maintained at current levels, absent unforeseen circumstances.
...
We look forward to 2016 and beyond with confidence, having delivered a significant improvement in the financial performance of the Group during the second half of 2015 and through a renewed focus on those core areas of the Group with the greatest growth potential.

[jonwig] 25/4/2016 05:55

Digital Look has these forecasts -

............. Revenue .. PBT ....... eps ..... div
2015-12-31 .. £70.61m .. £3.20m .. -10.60p .. 8.40p
2016-12-31 .. £72.90m .. £8.27m ... -2.30p .. 8.40p

- which looks rubbish to me. (They list revenue in previous years as comprising only net written premiums, but for the above they include other income. And positive profits translate to negative eps. The "dividend" is probably realistic.

The single broker covering it is Numis, with a share price target of 110p. Would suit me for now!

[hybrasil] 20/4/2016 04:34

Results due next week