R&q Insurance Share Discussion Threads

[geraldus] 09/9/2020 15:02

Non reg RNS today.Heavyweight brought into run the E&S division stateside.Have high hopes for this.Mid October for results.

[red ninja] 08/9/2020 10:53

Another legacy agreement :-

[red ninja] 26/8/2020 10:34

Looks like another good move for program management and see a couple of 100 k buys today.

Presumably this news flow is helping J O HAMBRO CAPITAL MANAGEMENT LIMITED sell some more of their holding.

[geraldus] 26/8/2020 06:14

Non-reg RNS out this morning.Stateside rollout.

[red ninja] 21/8/2020 08:40

Well World Marine & General Insurance Company has been in runoff since 2001 so that suggest it is the rump of the fund left to run off. Inceptum Insurance Company was placed in runoff in 2009 also suggests it is the rump of the fund left to run off.

They do sometimes mention a legacy runoff's size ie Grobal Re their largest to date was $80 million. I believe normally the run offs they have acquired have been small to medium which would seem the case this year as they I don't seem to remember them telling us any of them are large.

They raised 100 million at the disappointing price of £1.35 a share earlier this year so I don't believe they are in urgent need of funds.

Hopefully the next placing will be at a higher price otherwise it will tend to inhibit share price growth.

[geraldus] 20/8/2020 19:10

Well,with all these acquisitions on the way,will they passing the hat around for what must be a fifth time,I've lost count.

[edmonda] 20/8/2020 11:20

Yes - a busy week for them ! But underpins forecasts and evidences the scale of opportunities out there for RQIH

As noted above , Equity Development update out , following thorough analysis published in July. Free access here

[speedsgh] 20/8/2020 10:24

Latest Equity Development research note...

Strong Program growth, healthy Legacy pipeline -

[jonwig] 20/8/2020 06:16

Another!



About the tenth this year.

[red ninja] 19/8/2020 08:13

Numis: Randall & Quilter ahead on long-term targets
Investment business Randall & Quilter (RQIH) is on track to hit its long-term targets and Numis says there is ‘significant future value creation’.

Analyst Nick Johnson retained his ‘buy’ recommendation and target price of 190p on the shares, which were trading at 156p yesterday.

Johnson said the group’s new underwriting deal with MGA was displaying ‘strong momentum’ leading to a ‘further material increase in scale’ and it had also brought forward its planned entry into the US ‘excess and surplus’ reinsurance market to the fourth quarter of this year.

‘We think Randall & Quilter is firmly on track to achieve its longer term goal of $1.5 to $2bn of contracted annual premium income by 2022/23, which forms the basis of significant expected future value creation from high quality recurring commission revenues,’ he said.

hxxps://citywire.co.uk/funds-insider/news/the-expert-view-marks-and-spencer-persimmon-and-capita/a1391731

[jonwig] 19/8/2020 07:30

Breezer - yes, that makes sense!

Every day’s a school day.

[breezer_42] 19/8/2020 07:29

They're usually subject to NDAs, which whilst frustrating is not something management have any control over.

[lord gnome] 19/8/2020 07:16

You are spot on jonwig. I have just checked back through recent announcements and no numbers are ever given. For some strange reason that had passed me by and I had mistakenly thought that basic outlines were provided detailing price paid and assets transferred. Every day's a school day.

[jonwig] 19/8/2020 07:01

Ha - do they ever give numbers?

[lord gnome] 19/8/2020 06:48

Disappointing absence of any numbers attached to this latest deal.

[jonwig] 19/8/2020 06:18

Another legacy deal, and

"we are pleased to report that we have a healthy pipeline of opportunities and a number of further transactions which are nearing completion. We therefore look forward to announcing further legacy transactions over the course of the next few weeks."

[red ninja] 17/8/2020 10:43

Mmm they are talking about recurring revenues on these deals so the more they clock up it should really start to add to the bottom line.

It has been said that one day program management may become the main revenue earner surpassing legacy runoff.

There have been some big buys to day 144,149 and 151,089 so someone with deep pockets is liking the story.

[harleymaxwell] 17/8/2020 08:58

I guess one of the main points is that the insurance market is turning positive ie rates increasing so R+Q will benefit from that ...

[red ninja] 17/8/2020 08:35

Yes, it's great to see, they have been predicting rapid growth in Program Management and they are living up to that prediction.

It would be nice to see some share price growth of the back of good new like this.

[this_is_me] 17/8/2020 06:38

The programme management has really taken off and looks like it is also becoming a real profit driver as it builds scale.

[jonwig] 17/8/2020 06:18

Program Management update:



Growing like mad, but will it be profitable over the full year? In June they hinted yes:

Program Management is highly scalable, and with its current scale largely absorbing its fixed overhead (on both an Economic and IFRS basis), we expect a large portion of our future Commissions from new business to show up as profit in 2020 and beyond.

[chuckol] 10/8/2020 13:48

Can jonwig not speak for himself?

[red ninja] 10/8/2020 12:39

Reading the RNS I think it made it clear that there was not really a capital gain from the merger, but the advantage to RQIH holders was gaining a share in what appears a fast growing business ie

"In the year to 31 December 2019 Tradesman generated earnings before interest, tax depreciation and amortisation of $8.06m, an increase of 99% from 2018."

I don't think Jonwig has done anything other than draw this to the boards attention.

[brummieloser] 10/8/2020 10:29

As ever jonwig didn't do his homework before ramping. I'm grateful to petomi for doing proper research and he is very knowledgeable in any case.

[petomi] 10/8/2020 09:55

Agreed it reads like a good deal but although they paid only $25m for Sandell they valued the net assets at £40m sterling in the 2019 accounts (see note 29) and took the bargain purchase gain to income that year. So very roughly the deal only supports the book value they have already recognised - indeed may be less depending what they have extracted from Sandell since acquisition.

Not being negative since it appears there are good commercial benefits to the deal as they outline.

Not an easy company to understand but LT returns have been good and the year end presentation explains why they can be considered undervalued agaisnt peer group metrics.

hxxp://www.rqih.com/investors/shareholder-information/investor-presentations/

As RN says price has been dull for a while. I wondered if they should have a new repurchase program (last was very modest less than £2m) but I expect they think they can deploy capital more efficiently in growing the business
GLA