R&q Insurance Share Discussion Threads

[red ninja] 07/12/2020 12:30

I must admit I have some qualms about the loan rate an a higher debt gearing is obviously more risk so I appreciate why many investors have taken money off the table.

However, I believe that Randall, Quilter, Spiegel all seem like reasonable professionals and the are all holding RQIH paper.
I don't believe they have any reason to rip off/sabotage the company as has been suggested.

I also note this is an unsecured loan (ie it will be a few % dearer than a secured one) and the last cash raising at 135p a share was not any better value for shareholders IMV.

Also there is a real chance that we may see higher inflation in the US/EU and UK as we spend spend spend on Covid alleviation.

If inflation goes higher this loan will not be so expensive in real terms.
The loan is not leading to more dilution another advantage.

Thus I continue to hold although I have been wrong before.

[this_is_me] 04/12/2020 11:01

They have been paying out money to shareholders regularly.

My small investment has doubled in value since I invested back in 2016.

I don't see why 'return of capital' can't continue for the foreseeable future.

[lord gnome] 04/12/2020 08:45

Yes, jonwig. The inevitable takeover (as I see it) was also why I was holding. Having seen the last two fundraising deals however, I would not be at all surprised if the sale is also a stitch-up.

[jonwig] 04/12/2020 08:40

Lord G - probably wise: I halved my holding first thing.
There's still the possibility of a takeover, which is a big part of my strategy.

[lord gnome] 04/12/2020 08:38

I'm out. That was another red flag for me. I didn't like the last equity placing and now this. Looks like I am not alone. Lots of other sellers beat me to it this morning. GLA.

[my retirement fund] 04/12/2020 07:33

Tells you everything you need to know about them really. Keep bargepole firmly in hand and find yourself a more credible listed company who's directors interests are more closely aligned with ordinary shareholders.

[lord gnome] 04/12/2020 07:27

Steep? It's effing ridiculous. They could have raised money at less than half that rate. Note that the funds are being raised in a private placement so they have almost certainly given one of their mates a very good mates rate. This is milking profits from ordinary shareholders and on £100 millions it will cost us about £3-4 millions annually. A disgrace.

[jonwig] 04/12/2020 07:21

Issued $107.75m of 13-yr sub notes.
The Notes will be due in December 2033 and can be called after 5 years at par. The coupon has been set at a rate of 3-month US dollar LIBOR, subject to a 0.5% floor and 2% cap, plus a margin of 6.75% for the first ten years and 8.25% thereafter. The Notes will be issued in a private placement.

That's a steep rate to pay, surely?

Debt: Equity is now around 198:394 = 50%. Is that getting a bit high?

[geraldus] 04/12/2020 07:18

More funds for more fire power.Should go down nicely.

[geraldus] 30/11/2020 18:57

Just received my meaty divvy.

[red ninja] 13/11/2020 14:36

I see a 500k + 250k buys have gone through, a fund/ or someone with deep pockets still accumulating.

[topvest] 08/11/2020 16:43

I agree - I think a takeover in the next year or two is quite likely.

[gswredland] 08/11/2020 09:01

Thanks for your views guys

[gswredland] 08/11/2020 09:00

Thanks for your views guys

[jonwig] 08/11/2020 07:14

There's an up-to-date list of major shareholders here:



US insurer Brickell took a stake (subs for new shares) in March 2019. Hudson Structured Capital Management is a US asset manager specialising in insurance. The Randall family at about 6% is no longer a blocking share.

Like others, I wouldn't be at all surprised to see some M&A, especially since Messrs R and Q are of pensionable age and taking a smaller part in daily management.

[lord gnome] 07/11/2020 22:42

RQIH has been moving across the pond bit by bit for some time. It won't be long before the rest goes. It will be bought out sooner rather than later. At least, that's what I reckon.

[geraldus] 07/11/2020 12:06

Yes,better to reap the benefits of the masterplan coming to fruition than to be plucked before ripening.

[red ninja] 07/11/2020 10:48

I would have thought that the recent rise here is related to takeover of RSA and before that Hastings Group.

Maybe some investors are thinking the LSE/Aim insurance sector in the UK is relatively cheap compared with North America and maybe more insurance companies will attract a bid.

A lot of RQIH business is US based and with its growth strategy it could be a target.

However, having held this share for a good few years I would rather hold RQIH while the growth strategy is enacted rather than take an opportunistic bid.

[geraldus] 07/11/2020 09:17

Undervalued and overlooked.

[gswredland] 07/11/2020 08:55

Why is this taking off?

[geraldus] 07/11/2020 08:50

Very quiet here but this could be ready for take off. Gla.

[red ninja] 30/10/2020 10:30

Riverman, thanks for that information.

[riverman77] 29/10/2020 19:15

Regarding the earlier post about JO Hambro - they are seeing big outflows so it will be driven by this, rather than any negative views on the stock. Based on their fund commentaries, they are actually very bullish on RQIH so they are probably reducing this position very reluctantly.

[geraldus] 29/10/2020 19:09

Had a small top up today.I find RQIH hard to resist.

[harleymaxwell] 26/10/2020 19:10

one reason to like this stock is that on a down market day or doesn't really move in the same way .