R&q Insurance Share Discussion Threads

[this_is_me] 04/9/2017 06:35

Excellent results. Everything going well and long term prospects are improving.

[jonwig] 29/6/2017 12:35

Around 5.7% of the company, and the share price hasn't missed a beat.
Clearly they've been absorbed easily.

EDIT: another large trade just gone through.

[speedsgh] 29/6/2017 10:32

A couple of large sells by Mr Randall & Mr Quilter...

PDMR Share Dealings -

Kenneth Randall sold 3,631,012 @ 147p = £5.3m
Alan Quilter sold 1,400,000 @ 147p = £2.05m

[jonwig] 27/6/2017 07:27

Fenners,I,m not happy with my reply ... the second bit anyway!

[lord gnome] 27/6/2017 07:18

Clearly you are fenners66. The managing agency was in the books for a mere £1.3 millions (without checking) and they sold it at a profit of over £12 millions. Book value doesn't always tell the full story. Buy this stock and you are buying a steady income stream.

Edit: I assumed that you are referring to RQIH. Were you referring to the disposal? In which case I suggest that the value was in the fact that it gave the purchaser access to Lloyds marketplace.

[jonwig] 27/6/2017 05:51

I suspect 'book value' of assets is a problematic area for IFRS, which doesn't seem to allow valuation of professional expertise. And the 'incentive payments' (I guess about £3.5m) will essentially belong to the managing agency. Look at the capacity of the syndicates under management.

[fenners66] 26/6/2017 19:47

Seems a very high price for very little assets and pro-forma profitability. Are we missing something here?

[ganthorpe] 23/6/2017 08:00

I think the reason for the disposals is called " getting back to your knitting".
The Lloyds syndicate seems to have underperformed since they started it.
Maybe Synergy was sold because there wasn't any.
Bought back in

[lord gnome] 23/6/2017 07:32

Looks to be a good deal at a good price. Hopefully the share price can begin to climb again. It has sold off recently for no real reason that I can fathom.

[jonwig] 23/6/2017 06:09

Sale of Lloyds Managing Agency:



Profit of £12.6m on book value of £1.3m adds over 14p to the net assets per share ... I think! This ought to do something for the share price this morning.

[wjccghcc] 12/5/2017 07:26

By finessing the reinsurance market, they lock in a profitable turn on the business with no risk.

[jonwig] 12/5/2017 07:03

So it's clearly not an "efficient market"!

[wjccghcc] 12/5/2017 06:44

By finessing the reinsurance market, they lock in a profitable turn on the business with no risk.

[jonwig] 12/5/2017 06:33

Today:

Randall & Quilter Investment Holdings Ltd. ("R&Q") is pleased to announce its wholly owned 'A-' A.M. Best-rated, US-admitted insurer Accredited Surety and Casualty ("Accredited") has entered into an agreement to provide a Blanket Vehicle Single Interest Insurance Policy. Accredited will offer and administer the BVSI Policy together with certain subsidiaries of a US financial corporation. Accredited has no net exposure as the transaction is fully reinsured.

A naive question, I suppose, but if you fully reinsure your book, how do you make money?

[jonwig] 10/5/2017 12:53

Can't help, speeds! Though a big insurance merger (involving Lloyd's) is happening:



... insurance is always speculating about mergers, etc.

From my reading, we're "xd" on 1 June and paid around 15 June: 5.2p.

[speedsgh] 10/5/2017 12:20

Definitely something up but can't find any reason out there. Most welcome nonetheless. Somebody seems to be taking advantage of the current strength to offload some which is keeping a lid on the price.

No indications as to the reason for the rise from any of your sources, jon?

[jonwig] 08/5/2017 18:59

Summat's up!

[lord gnome] 20/4/2017 07:50

Good set of numbers, good outlook, a divi increase on a high yield, a positive market reaction this morning, what's not to like. Very happy to hold.

[this_is_me] 20/4/2017 07:06

Yes it depends on your tax position whether you want income or capital gains. Mine are in my ISA so it doesn't matter. The business model has produced lumpy cash gains. I made a lot of money here a few years ago and then sold. I bought a smaller holding last summer. It seems that they are developing another area with a more 'normal' business model which should steady the returns somewhat.

[this_is_me] 20/4/2017 06:35

Very impressive results.

[jonwig] 20/4/2017 06:18

FY results - excellent, as signalled:

as indicated in the recent placing announcement, the Group traded very well in the second half of 2016 with full year profits ahead of Board expectations and significantly higher than the prior year.
...
This profitable trading means that proposed distributions per share have been increased for the first time since 2012 to 8.6p for the full year, a demonstration of the board's confidence in the Group's trading and prospects.
...
The Board has a positive outlook for the current year and was delighted with the support it received from the Group's shareholders in the recent placing to help fund our growth.
...


I'd expect some cash drag in H1 (to end-June) as the placing monies get utilised, and this will affect per-share earnings. H2 should show some improvement.

[lord gnome] 06/3/2017 10:19

In for a few this morning. Mainly for yield, although I think this could just be the right time to buy. Back to 140 on finals if the outlook is as positive as I would hope for.

[wjccghcc] 28/2/2017 10:23

fenners - correct on the EPS.

Fair enough - yes if they didn't pay a dividend they could put that cash towards increased solvency to support the acquisitions - but you could say that about any company which does a placing or rights issue to pay for an acquisition and yet doesn't forego its dividend.