R&q Insurance Share Discussion Threads

[red ninja] 06/3/2020 10:15

I see the price has taken another step downwards.

I seem to recall that the last fund raising was sold to US investors ?
I wonder if this is US investors selling off stock in a state of panic from US market falls yesterday.

To me it seems this share is safer than most as the legacy run off business is not really related to how the economy is doing.

[riverman77] 29/2/2020 11:24

Unless they've completely changed their positioning since then, it should be a case of reinvesting any matured bonds into similar instruments, probably at a slightly lower yield. The downside on short dated, investment grade FRNs should be pretty minimal so not too concerned with investment losses.

[jonwig] 29/2/2020 07:24

riverman - the 2018 AR says that 74% of their investment portfolio has a duration of less than 2 years, and the largest single investment type is US floating rate notes. (The total return was 1.2%, or 0.9% on a different measure.)

Such a portfolio needs continuous turnover and replacement at ever-lower interest rates. It will be interesting to see how the 2019 returns compare. (Results due in April.) The worries are really about 2020 returns, and I guess equities will be irrelevant.

[riverman77] 28/2/2020 19:58

I remember reading in a recent report that they had significantly de-risked the investment portfolio, i.e cut most of their equity exposure and mainly in highly rated credit (I think they give a breakdown if you need more details) - if that's still the case then the portfolio should be holding up OK.

[lord gnome] 28/2/2020 19:07

Yes, good point.

[jonwig] 28/2/2020 18:45

Maybe investment returns will be a problem: it's happened before I think.

[lord gnome] 28/2/2020 18:37

It was walked up on relatively small volume and it's fallen back on even less. It's a thinly traded stock where movements become exaggerated. Nothing fundamental has changed. Normal service will be resumed in due course. I would add more, but my cash is limited and the current range of options to buy good quality stocks at bankruptcy sale prices is just too great. I'm spoilt for choice.

[alter ego] 28/2/2020 16:22

Thanks Jonwig, thought I must have missed something as you've echoed my own thoughts. Agree the spike was a bit OTT but that's what a national newspaper tip does for the share price

Added some today. Happy to sit back and collect the dividends/return of capital.

[jonwig] 28/2/2020 16:18

Can't think of one!

The legacy business ought to benefit: companies having problems more likely to ditch their captives.
Program underwriting? Can't see how the volume of insurance business will fall.

Folks just sell stuff in markets such as this. (But the spike to 224p was a bit improbable.)

[alter ego] 28/2/2020 15:37

Down about 30% since year high of 224. What's the possible impact of Covid-19 on this business?

[alter ego] 21/2/2020 15:44

yes, other posts like this have been removed by ADVFN

[speedsgh] 21/2/2020 15:34

WARNING. Do not click on link in post 753. Spam. Possibly malware. Same post on multiple threads.

[red ninja] 21/2/2020 15:11

Despite announcing more legacy deals and a program underwriting partnership this year, we still seem to be heading to test the 145-150 level again.

[jonwig] 15/1/2020 09:38

Lord G - both R and Q are quite senior, and R has said he's winding down. Insurers are always on the consolidation trail and this one could be a catch.

[lord gnome] 15/1/2020 09:19

I read this as someone not getting the job they wanted / expected. Someone else has been brought in and so they are moving on. Happens all the time.Incidentally, am I the only one who thinks this will be bought out by the yanks eventually? It looks to be moving across the pond bit by bit.

[metis20] 15/1/2020 07:30

Interesting that Roger Sellek leaves so soon after Monday's news -

"The Board of Directors of Randall & Quilter Investment Holdings Ltd., the non-life legacy insurance investor and capacity provider of U.S. and European MGA program business, today announces the appointment of William Spiegel as Executive Director and Deputy Group Chairman, effective immediately.

William's appointment forms part of R&Q's management succession plan and he will assume the position of Executive Group Chairman when R&Q co-founder, Ken Randall, steps down in around 12 months, after 29 years at the helm."

[jonwig] 15/1/2020 07:08

Rather disturbing news. He'd only been there for six months!

The Board of Directors of Randall & Quilter Investment Holdings Ltd., the non-life legacy insurance investor and capacity provider of U.S. and European MGA program business, today announces the resignation of Roger Sellek as Executive Director and Joint Chief Executive Officer, effective immediately.

Ken Randall, Group Executive Chairman, said: "On behalf of the Board we thank Roger for his contribution to R&Q and wish him every success in his future endeavours."

[red ninja] 14/1/2020 20:04

The new guy seems to have lots of experience hopefully he can build on rqih's sucess.

5 million shares is quite a golden welcome.

[jonwig] 13/1/2020 07:54

New executive appointment ... He will focus on the strategic development and expansion of the Group as it builds on its recent outstanding financial performance in the thriving legacy and rapidly growing program management businesses in the U.S. and Europe ... and more appointments to come.

Both sectors have lots of potential, and one broker analyst said last year that program management will end up as the larger one.

[red ninja] 04/1/2020 10:43

Of course that makes sense.

[jonwig] 03/1/2020 08:04

The $19.3m of reserves are there to absorb future expected claims. These will reduce as the insurer winds down.

[red ninja] 03/1/2020 06:32

I saw the $0.6m NAV gain, but putting that against last year "Distinguished Re recorded a loss of $3.4m". I was not sure if there would be another loss this year. Thus not totally clear what the gain in the long run might be.

Maybe, they finished trading last year so no loss this year ?

[jonwig] 02/1/2020 12:26

Yes, I saw that. As I read it, the 'net assets' are an actuarial guess as to what remains after all expected future claims have been met - ie. $19.3m of them. So an immediate profit ('goodwill on bargain purchase') of $0.6m can be booked. Not huge - that segment was £43m in H1) - but chugging along.

I'm happy to be told my analysis above is wrong!

[red ninja] 02/1/2020 12:11

I see they did another legacy deal last year although as often the possible gain is not always clear :-

30 December 2019

Randall & Quilter Investment Holdings Ltd.

Acquisition of Barbados Insurer

30 December 2019

Randall & Quilter Investment Holdings Ltd. ("R&Q") is pleased to announce that its wholly owned subsidiary R&Q Re (Bermuda) Limited has completed the acquisition of the Barbados insurer, Distinguished Re Ltd. ("Distinguished Re"), formerly known as the Saranac Insurance Company, Ltd., a wholly owned subsidiary of Distinguished LLC.

Distinguished Re participated as a reinsurer of the capacity providers on business written through its sister company, Distinguished Programs, a national insurance programme manager that provides specialized Insurance Programs to brokers and agents with specific expertise in Real Estate, Community Associations, Cultural Institutions and Hospitality & Restaurants.

Distinguished Re had net technical reserves of $19.3m following completion. The cash consideration payable at closing by R&Q is $1. This represents a discount to Distinguished Re's net assets which, following completion were $0.6m. In the year to 31 December 2018, Distinguished Re recorded a loss of $3.4m.

Roger Sellek, Joint Chief Executive Officer of R&Q, commented: "We are pleased to have completed the acquisition of Distinguished Re, providing full finality for the parent Distinguished LLC. The acquisition marks the tenth transaction R&Q has completed in 2019, across five jurisdictions, underlining R&Q's continuing position as a market of choice for a broad range of legacy solutions."