R&q Insurance Share Discussion Threads

[spooky] 06/9/2021 08:16

Have to be honest here, i'm not a great fan of a strategy rejig being announced on the same day as the release of optically poor interims.

[geraldus] 06/9/2021 07:01

Yes,pulled that out of the hat.Await broker comment.

[jonwig] 06/9/2021 06:39

HY results:



Is this (Gibson Re) as big a deal as it looks?
They seem to be forecasting PBT of $90m from 2023, which would be eps of something like 20p/sh (or more - depends on tax position). And it reads as a confident prediction without the usual hedging around.
Future dividend stream a lot higher as well.

[geraldus] 03/9/2021 11:24

Interims on Monday plus Investor Meet.

[geraldus] 14/8/2021 12:55

Apparently over doubts they qualify for IHT tax relief. - That's a relief.

[geraldus] 14/8/2021 12:07

I see Questor has this as a sell today.

[geraldus] 04/8/2021 15:51

This is looking hot to trot at last.

[superadams] 04/8/2021 13:23

Topped up at under 170p. Gonna sit back and wait for the ride now.

[edmonda] 04/8/2021 11:43

Lots of excellent commentary posted above on Program Management, and RQIH have made public an impressive 6 months for PM with Fee Income +135%. Ahead of interims in Sept Equity Development retais a 240p/share fair value.

New research note is freely accessible here:

[speedsgh] 04/8/2021 11:30

New Equity Development research note...

Growth momentum is gathering pace - [...]

[red ninja] 01/8/2021 10:47

William Spiegel on Directors Talk (more condense than Investor Meets Company) worth a listen :-

[red ninja] 29/7/2021 15:08

There is synergy between the Programme Management and the Legacy Run Off.

The idea is the increasing profits from the Program Management will be used to acquire
more legacy run off insurance funds as legacy run off is capital hungry.
Currently the Legacy Run Off has been funded by equity issues which is dilutive or unsecured debt issues. In the future hopefully Programme Management should provide increasing funds for this as profits from this side of the business grow.

[superadams] 29/7/2021 14:41

Many thanks Breezer and Red Ninja. I am a holder but am tempted to build my position now you guys have made it clear what they do. The Program management looks a brilliant idea. Sort of white label insurance.

[red ninja] 29/7/2021 12:03

Investor Meets Company has the presentation of the last results William Spiegel (CEO) and Tom Solomon (CFO) explain some of what RQIH is about and where it is going.

[red ninja] 29/7/2021 11:59

Mmm, it's true that Programme Management is growing quickly, but RQIH has two main businesses Programme Management and Legacy Run Off.

I believe Legacy Run Off is still the largest business in term of profits and capital employed although that may change in the years to come.

In Legacy Run Off, they take over old insurance business and the related assets and they then process them to clear remaining claim, litigation issues at the end of the process there should be a net cash pile.

Generally they are looking for around 15% return on legacy run off so they build that in to the price they pay for an old insurance business in run off. They may in the end make a little bit more or less than 15%. Legacy run off ties up cash which can be released when the run off is complete.

[breezer_42] 29/7/2021 10:36

Superadams - Program Management is pretty simple. R&Q has regulatory approval to write insurance pretty much worldwide, so anyone who wants to start a new consumer-facing insurance business without wanting to spend the money and time to clear the massive regulatory hurdles and become an insurer can just do so under R&Q's umbrella. R&Q charges them 5% of the premium for this - e.g. if your house insurance costs you £100, R&Q will get £5.

It then re-insures most of this risk so it's not on the hook itself.

It's capital light, well protected by regulation and reputation (huge barriers to entry), and growing fast in a massive market.

This is the key business frankly, as with $1.5bn of Gross Written Premium (conservatively) expected in 2023, that's $75m of fees R&Q earns, most of which will feed through to operating profit - Probably about $50m. Look at adj. group operating income in FY20: £16m...so we have a group that is easily on track to more than triple its EBIT in a couple of years.

[alter ego] 29/7/2021 10:06

I see mainly off book trades being reported this morning using London Stock Exchange reporting of trades. Not entirely sure what the mechanism is but it's described as OTC (over the counter) trading. Anyone better informed?

[40 fathoms] 29/7/2021 09:38

Superadams, I agree with your view it is not the most straight forward business model or narrative to unpick and no doubt that puts many people off.

Maybe someone should have a word with IR, they don't appear to understand the power of the word "disruptive " ... If they plaster that everywhere we would no doubt see a better price reaction to an excellent business update.

[superadams] 29/7/2021 09:16

I think the simple answer is that most people, including me, don't really have a clue what the company does and how it makes its money.

[red ninja] 29/7/2021 09:05

Good programme management update, but it would be nice to have a bit of market recognition.

[alter ego] 29/7/2021 07:25

agree. happy to hold

[40 fathoms] 29/7/2021 07:21

A fantastic update, hard not to be happy with that. Another stock on AIM that is astonishes me that no one really follows. When you look at the dross that seems to get people excited and then you look at something like this which grows like a weed and is market dominant in a highly protected and regulated niche ... I just shake my head.

[edmonda] 29/7/2021 06:58

Another encouraging update today, on Program Management division where the Chairman says there is 'continued strong momentum and growth' . Its now up to 67 progams and $1.8bn Contracted Premium.

All flagged up in Equity Development's recent research note, and underpins their 240p / share fair value (versus 165p last close). Read it here:

[red ninja] 17/7/2021 08:09

Bricknell Insurance Holdings have cut their holding by 3.8341 % and the price has not crashed so looks like another big player has picked them up maybe in an agreed direct
sale :-



Note, Bricknell Insurance Holdings is a vehicle of 777 Partners (777 Partners is a Miami based private investment firm that invests across a number of high growth attractive verticals with a strong focus on financial services).

hxxps://www.777part.com/about-us/

[speedsgh] 29/6/2021 10:45

Distribution of Annual Report & Accounts -

Direct link to RQIH 2020 annual report -