R&q Insurance Share Discussion Threads

[red ninja] 09/4/2020 15:26

server trouble duplicate

[red ninja] 09/4/2020 15:25

RQIH is "headquartered and operating in Bermuda with extensive operations in the US and Europe". Thus surely RQIH is not subject to the PRA which is a part of the bank of England.

[rik shaw] 09/4/2020 07:16

Trouble is the PRA used the wording 'distribution' rather than dividend...

[jonwig] 09/4/2020 06:27

No announcement about covid but there's something on the website which says nothing about the impact on their business (thankfully!):



FY results were on 29 April last year. If they are told not to pay a dividend (as per other insurers) their obvious retort will be, "But we don't pay a dividend, sir."

[red ninja] 28/3/2020 12:04

I see the max that RQIH have paid for shares has been 125p (average) on 17/3/20.

I wonder if that is there upper purchase limit, or close to it.

[red ninja] 17/3/2020 11:57

From the interims :-

"Our Program Management Business is growing strongly as we continue to expand our relationships with business producers and mainstream reinsurers and we have good visibility of future commission earnings. The onboarding process for newly agreed programs in Europe is a little slower than we had originally expected, however, the Program segment of our business is expected to move into profit by the middle of 2020 with anticipated strong earnings growth thereafter."

[jonwig] 17/3/2020 07:27

Meanwhile business as usual:



This could be quite large.

[red ninja] 16/3/2020 13:16

Yes, added a few today on that basis.

[alter ego] 16/3/2020 12:30

I take comfort from the fact that they know their own business better than anyone and are buying back their own shares.

[red ninja] 16/3/2020 09:25

A market statement would have helped assuming the company has no problem with it’s high grade security investments or run offs.

Otherwise looks like many investors will sell on a take no chances basis.

I note in the interims they stated :-

"We have overhauled our investment portfolio by disposing of almost all equity investments,"

However, they may have re-entered the markets as some equities must be resilient to the corona virus crisis, but be at very good value because of it.

[jonwig] 16/3/2020 08:06

Share repurchase program:

Randall and Quilter Investment Holdings Ltd. announces that from today until 27 April 2020 it will commence a programme to purchase up to £2 million of the Company's ordinary shares of 2 pence each.
The Programme will be funded by the Company's cash reserves. Any shares repurchased by the Company will be held in treasury.

Total shares is 201.1m.

[jonwig] 15/3/2020 12:29

Equities were 4% of its investments in 2018, so that's OK. but corporate bonds were 32% which is OK if they were investment grade (they don't say). The current market won't show in the 2019 figures, of course.

Any other factors? A recession may mean less new business for the program underwriting?

[alter ego] 15/3/2020 12:12

That's my take jonwig. So apart from general "sell everything" mood, is there anything else RQIH is vulnerable to? Haven't worked that out yet.

[jonwig] 15/3/2020 11:35

alter ego - thanks for that. So from this point of view, RQIH isn't much impacted, if at all. As we've seen they never give much detail about their individual deals.

[alter ego] 14/3/2020 16:03

jonwig, Red Ninja, re business interruption cover, there’s a item, in the Independant, which suggest Covid - 19 may not produce a large number of claims. See

[jonwig] 10/3/2020 11:52

As I suggested earlier, RQIH might just be getting dragged down by the sector, and we don't know much about what's under the bonnet of its policies.

[red ninja] 10/3/2020 11:49

Jonwig,

So presumably the pandemic (business interruption clause) is going to have a direct cost to the legacy runoff policies although what that cost will be is probably a bit intangible at this moment in time.

I mean Italy seems the worst affected country and I'm not sure what RQIH's exposure to that country will be if any.

[jonwig] 10/3/2020 11:20

Business interruption - insurance after a disaster such as a fire, earthquake, pandemic, failure to receive deliveries, etc.

[red ninja] 10/3/2020 11:15

Not sure what business interruption clauses would mean.

Most office workers can manage with the phone, e-mail, and skype.

Working from home is also possible if they have something like a citrix setup so not sure if they would be badly affected by business interruption clauses.

[jonwig] 09/3/2020 06:41

IC has an article about weakness in the general insurance sector mostly business interruption clauses, travel) and has a chart:



So that, presumably, is why this share is weak. Whether it has any specific issues we'll have to wait and see (FY results end-April, and they don't seem to dotrading updates).

[red ninja] 06/3/2020 10:39

Strangely there seems no really volume for sale at 150 on the HL platform.

I just tried and can only buy 3 otherwise I have to set a limit order.

[jonwig] 06/3/2020 10:28

Yes, could be US holders taking money home. They seem to do that when they panic.

Net result could be stronger USD (though it's been weak recently). And I don't see how this business can be affected, either. Companies in trouble will be more willing to get rid of captives.