R&q Insurance Share Discussion Threads

[jonwig] 23/4/2019 16:49

From Sharecast;

Shore capital said the transaction is "a significant milestone" for Randall & Quilter and should be materially positive for profits in 2019.

"The fact that the approval process has taken several months is not unusual, but investors should be reassured that completion is now in sight," said analyst Paul de'Ath.

"The deal itself is the largest legacy transaction the business has been involved in and is likely to have a substantially positive impact on earnings. This announcement, along with the largest ever legacy reinsurance contract announced in 2018 shows the strength of the business model. Its ability to deliver for larger customers bodes well for future transactions of greater scale, in our view.

"R&Q has great opportunities for growth in both of its business lines. The pipeline of potential legacy transactions is very strong as more and more owners of insurance assets are concluding that R&Q would be a better owner of those assets. The programme management business has made an exceptional start in 2018 and we would expect the growth to continue into 2019F and beyond although the earnings on this business will take some time to come through."

[edmonda] 23/4/2019 11:47

Agreed , good to see regulatory clearance given on their acquisition of Global US.

Excellent deal in the opinion of Equity Development, as per this note written after its original announcement:

[red ninja] 23/4/2019 11:42

It is the one.

[jonwig] 23/4/2019 11:36

Isn't this the one whose delay caused a sort-of profits warning late last year? If that's so there should be an immediate profit booked soon.

[speedsgh] 23/4/2019 11:29

Finally!...

Regulatory approval for acquisition -

Further to its announcement on 19 September 2018, Randall & Quilter Investment Holdings Ltd. ("R&Q"), is pleased to announce that its wholly owned US subsidiary, Randall & Quilter America Holdings Inc., has now received regulatory clearance to complete the acquisition of GLOBAL U.S. Holdings Inc. The transaction is expected to close shortly.

[red ninja] 23/4/2019 11:28

The one they were waiting for now approved :-

Randall & Quilter Investment Holdings Ltd.

R&Q receives regulatory approval for acquisition of GLOBAL U.S. Holdings Inc.

23 April 2019

Further to its announcement on 19 September 2018, Randall & Quilter Investment Holdings Ltd. ("R&Q"), is pleased to announce that its wholly owned US subsidiary, Randall & Quilter America Holdings Inc., has now received regulatory clearance to complete the acquisition of GLOBAL U.S. Holdings Inc. The transaction is expected to close shortly.

[speedsgh] 15/3/2019 13:58

Not the easiest finding out info on Brickell Insurance Holdings LLC. All roads appear to lead back to Steven Pasko, founder & managing partner of 777 Partners.

Organisation chart featuring Brickell Insurance Holdings LLC -

[lord gnome] 15/3/2019 13:12

Issuing enough shares to give the yanks a majority holding at a knockdown price is not good news.

[jonwig] 15/3/2019 12:52

Where did these people spring from? (The placing, I assume):

Brickell Insurance Holdings LLC, Wilmington, New Castle County, Delaware, United States.
18,943,031 shares, 9.67%.

Good news, anyway!

[edmonda] 14/2/2019 08:08

good news as AM Best affirms Financial Strength ratings at A- and a- for subsidiaries ASC and AIEL.

Best says levels reflects '' the balance sheet strength of RQIH ...operating performance...business profile.. and enterprise risk management. ''

[topvest] 13/2/2019 09:42

Charles Stanley Direct are normally pretty quick. Personal crest membership.

[3800] 12/2/2019 22:35

Just had another look at selftrade a secure message is now showing.

[alter ego] 12/2/2019 22:28

Some brokers are quicker than others. HL have already invited clients to make their choice.

[3800] 12/2/2019 22:20

Has your broker notified you of this ? I hold mine in a isa with selftrade and so far haven't been notified at all.

[topvest] 12/2/2019 21:45

I've just taken the basic entitlement in the open offer.

[topvest] 09/2/2019 20:38

For what its worth, I also think that they should split R&Q into 2 businesses. There is the capital intensive legacy business and the asset light managing agent business. One is valued based on NAV and dividend, the other on profitability. They don't sit well together.

[topvest] 09/2/2019 20:17

Well 153p is significantly in excess of book value. I think its a good deal that raises NAV. The 200p+ share price had got a bit carried away in my view.

Then again, I'm not looking to invest much more here as its quite a capital intensive business.

You might find this interesting. I still hold some shares in AHCP which owns ASTA CAPITAL which are much more successful at managing syndicates than R&Q (C£5-6M profit per annum). Page 12 shows their position versus Randall & Quilter.

ASTA could potentially be in play through its shoot out clause as three holders own 30% each. I wonder whether R&Q might be interested in picking up a stake and merging it with its own business?

ACHP are looking to exit their 30% in 2019, either imminently or through the shoot out clause in mid-2019.

www.ach-plc.com/assets/Uploads/contentblocks/pdfs/Presentation-to-the-ACHP-AGM-GE-26jun18-v3.pdf

ACHP has been a disappointing investment for me, albeit it does own 30% of a very good company ASTA Capital so I'm hoping that I will get my back soon + maybe a nice premium. A tie-up with R&Q would be perfect, but maybe just wishful thinking!

[lord gnome] 09/2/2019 18:47

I can't agree topvest. It is a massive dilution. They are giving away 52% of the company at a hefty discount. We were over £2 a share not so long ago. All we get is a paltry 1 for 28 in the open offer.
Why not announce the completion of the US deal, push the share price up and have a decent placing and open offer from there? Shareholders should get at least as many shares as placees.
I am also not happy about the failure to announce the big loan fundraising before Christmas at what amounts to junk bond rates.
Whatever deals they are doing, they had better be world class.

[topvest] 09/2/2019 18:29

Well I think they have handled it pretty well and issued the shares with fairly minimal dilution given the size of the deal. If Phoenix are supporting it then that’s good enough for me. I’m happy to just take a few in the open offer. It’s a far better deal than a dilutive rights issue!

[jonwig] 08/2/2019 09:30

Circular:



Includes quite a bit on how they earn their money, timing of receipt, etc.

(Incidentally, is the shutdown causing delay in the Global Re approval?)

[dangersimpson2] 07/2/2019 11:42

I agree retaining capital rather than distributing it over the last few years wouldn't completely fund the whole of their recent expansion but it would have reduced the capital requirements and made the raises less dilutive. It is still cash that is return to all shareholders and then raised from a select few at a discount. It is only market optics - investors in insurance companies live to receive income - that means they pay out a regular distribution.

[jonwig] 07/2/2019 09:39

@ danger #664 - retain dividends? 2017 distribution was 8.9p so a similar one for 2018 full year would cost £11.2m. Sums involved here are a lot larger. And capital releases should also be much larger in the future, even when spread over more shares.

[lord gnome] 07/2/2019 08:59

Badly handled in the extreme. It's as if they deliberately set out to screw their PIs. Tomorrow the share price will recover when news of the completion of the Global Re acquisition is released (conspiracy theorist? Moi?).

Why US investors? Won't British Institutions stump up?

[speedsgh] 07/2/2019 08:45

Hmm. Not the news I was expecting next from RQIH. Placing representing 52% of already issued share capital prior to the placing; that's a fair old chunk. Would agree that this appears to have been handled poorly with little regard being given to non-institutional investors i.e. you & me. And still no indication on when the acquisition of Global Re US will complete. I was expecting that news next. Original delay announcement suggested completion in "early 2019". Much to mull over.

[jonwig] 07/2/2019 08:18

This_is_me - I'm not sure if the dividend will be affected. If they mean to use the money to make ready purchases below book value they'll immediately release negative goodwill to distribute as return-of-capital.

Presumably it's that which persuaded them to take out the short-term USD bridging loan which they had already planned to repay through a share issue once the market wobble had stabilised.

So in that case the share issue was a good move. It just lacks execution and transparency.

Incidentally the record date for the o-o has already passed.