R&q Insurance Share Discussion Threads

[lord gnome] 11/10/2018 13:11

This is being caned along with most other AIM stocks. Brutal or what? Never mind, quality will out once normality is restored.

[red ninja] 10/10/2018 23:10

Mmm the fund buying seemed to help push it over £2 so not really surprised it fell when fund buying ended.
Still this seems a good stock to hold in apost Brexit world

[lord gnome] 09/10/2018 15:18

Up like a rocket and down like its stick. How very disappointing. I can think of several reasons for the rise, but none for the fall. Happy to hold, but what a trading opportunity I have missed here.

[edmonda] 09/10/2018 09:07

Cant guarantee every growth stock is a winner, speedsgh, unfortunately. But 22 years of reviewing many more winners than disappointments.

Anyway, please digest and form your own view: after the cracking interims (underlying operating profits +40%)a full research note is now out highlighting the ongoing growth opportunity, low PER (11x) and high 4.7% yield on distribution.

Freely accessible here:

[speedsgh] 09/10/2018 08:56

Have to admit that I am not a great fan of Equity Development. They were big champions of FRP, say no more. Haven't read today's RQIH note yet; look fwd to digesting later.

[jonwig] 09/10/2018 08:46

Good to see. ED used to do a lot of insurance research.

[speedsgh] 09/10/2018 08:33

New research note from Equity Development...

Benefitting from refocus on core operations -

[speedsgh] 01/10/2018 13:48

Nice to see patience finally being rewarded here. Just re-rating in response to the Global Re US acquisition or wonder if the strong share price might presage a new fundraising?


from the recent Interims...

"The Board anticipates trading in the second half of 2018 to be strong and, should the acquisition of Global Re US receive regulatory approval and be completed prior to year-end, expects the full year results will be substantially in excess of market expectations."

"Both legacy and program management pipelines remain strong and the wider industry challenges and resultant changes suggest that demand will continue to grow in both segments."

"The proceeds from these disposals, together with the £47m placing and open offer in November 2017 have been deployed"

[jonwig] 28/9/2018 11:08

Standard Life Aberdeen have declared a notifiable interest: 6,586,434 shares, 5.23%. Previously below threshold.

The only other recent notification was from Phoenix Asset Management last year: 24,390,734 shares, almost 24%.

[lord gnome] 21/9/2018 16:42

A good end to a good week.

[speedsgh] 21/9/2018 16:20

197p paid this pm. Within spitting distance of 200p.

[red ninja] 20/9/2018 12:23

Numis say ADD with new target 210p as of 19/9/18.

[topvest] 19/9/2018 12:32

Possibly, but they do so seem to have put some good deals together which is shown by the share price rise. Have faith in the quality of management here.

[speedsgh] 19/9/2018 11:24

I wonder what the chances are of RQIH tapping the market for further funds?

"The proceeds from these disposals, together with the £47m placing and open offer in November 2017 have been deployed."

[speedsgh] 19/9/2018 11:20

jonwig - Yes, 2014 was a difficult year for them (see below). However, as a stock that hopefully has a relatively low beta to the market & might be considered acyclical & offers shareholders a handsome & steadily growing 'distribution' (I wish they would pay it out as a dividend as opposed to return of capital!), I am inclined for now to continue to hold on. As their results today indicate, their strategy appears to have put them in the right place at the right time. Let's hope they can continue to execute it profitably.

I do find that knowing when to sell/reduce a position is invariably the hardest part, especially a profitable position. There is of course no right answer. One just has to do what hopefully works for oneself.


Nov 2014 Trading Update [profit warning] -

from 2014 Final Results:
"2014 was a challenging year overall, primarily for the reasons detailed in our November trading update. The deterioration in net provisions for asbestos claims in R&Q Re US, the significant legal expenses associated with the recently successfully concluded arbitration of a large life settlement claim in former Syndicate 102, and the failure to secure a number of anticipated service contract wins in the now restructured US service operations were the main contributory factors."

[jonwig] 19/9/2018 10:52

speeds - gosh, that was just a bit of throwaway musing on my part! Their debt is minimal, anyway.

Didn't they go through a bad patch a few years ago with their US operations? When they made changes to their business model was the start of the current improvement. I don't think their ups and downs are equity-correlated. So "acyclic" might be my answer.

[speedsgh] 19/9/2018 10:16

hi jonwig - RQIH listed in Dec 2007 at 125p and, following a brief initial rise, they entered a downtrend bottoming at c90p in H2 2010. They've had their ups & downs since. Would you regard RQIH as acyclic, cyclic or counter-cyclic? Relatively low beta?

[jonwig] 19/9/2018 08:28

speeds - worth remembering that what they do is probably independent of financial markets' performance. In fact, if companies need cash, they might be more likely to unload legacy captive insurers.

On the other hand, they hold £600m of cash and financial assets. Let's hope not much in shares and long-dated bonds.

[speedsgh] 19/9/2018 08:14

Last year's strategy change appears to have put RQIH in a sweet spot for the time being. Having held since 2011 I am trying to resist the temptation to bank some of the sizeable paper profits!

[jonwig] 19/9/2018 07:59

Interim results:



The show stealer is the potential acquisition - The Board anticipates trading in the second half of 2018 to be strong and, should the acquisition of Global Re US receive regulatory approval and be completed prior to year-end, expects the full year results will be substantially in excess of market expectations.

Even if post-year end, it will only delay the uplift into next year.

Break through 200p?

[speedsgh] 07/9/2018 13:34

jonwig - Thanx for reminder re 2017 offer. I should have remembered seeing as I took my full entitlement at 129p! Interesting times.

[jonwig] 07/9/2018 12:35

I think it's a lot higher than that if you adjust for the 2017 offer, which increased the share capital by 40% - plus the regular payments which a lot of investors will have taken in shares.

[speedsgh] 07/9/2018 12:12

Within sniffing distance of 2013/14 ATH. Intriguing set up with Interims due on 19/9.
Wonder how much further this has to run?

"Analysts at Numis [house broker] are forecasting adjusted pre-tax profits for the year to December 2018 of £19.9m and EPS of 13.4p" TP 195p

[topvest] 04/9/2018 20:36

I do trust management to do the right thing. They do have a significant stake and have run the business very well so far.

[lord gnome] 04/9/2018 14:57

Good points. Let's see what happens. The market seems to like it.