R&q Insurance Share Discussion Threads

[h4lo] 13/4/2011 17:21

Anyone have any thoughts on the relative advantages of taking the dividend or capital return options?

[a0148009] 13/4/2011 08:33

or any mix of both.

AO

[red ninja] 11/4/2011 21:10

Reading the full RNS looks like you can have the choise between income or capital distribution.

[topvest] 11/4/2011 20:57

It's the dividend disguised as a capital return which is more tax efficient for most of us.

[red ninja] 11/4/2011 15:59

No comment on the proposed return of 4.45 pence per Existing Ordinary Share

I guess we've got more than enough capital and provide a return or is this instead of a divi ?

[18bt] 14/3/2011 11:04

Interesting rise today - is this because more insurers will go into run-off? I don't think it is that sort of event for London - but the the sclae of devastation is going to hit some insurance centres outside Japan.

[labatie] 12/3/2011 07:53

This is from the GCI piece on RQIH in September:

"Randall says insurers are now waiting for another 'market-turning event', preferably a massive loss borne by a few but scaring away surplus capital from the market and enabling everyone to impose hefty premium rate increases."

Not nice to think of at present, but it's an ill wind...

[envirovision] 11/3/2011 23:31

I think it was meant as a general comment on insurers crawford. Rather than Randal in particular.

[crawford] 11/3/2011 21:04

freddy,
are u for real, do you really think this company has exposure to Japan?

I'm not an owner, just amazed at the comment!

[alter ego] 11/3/2011 16:56

quite right adam - negligible exposure to current events.

[adam] 11/3/2011 16:15

I thought they bought run-off insurance, i.e. captive insurance.



Controlled Risk and Return

Randall & Quilter is a leader in the management of insurance companies and syndicates in run-off and of captive (re-)insurers and in negotiating the purchase of companies in run-off.


Randall & Quilter Investment Holdings ("R&Q") is one of the leaders in, and one of the creators of, a highly specialised niche in the global (re)insurance market. In the three years since the IPO it has developed and/or acquired specialisations in adjacent niches, broadening the range of services it provides.
We expect it to out-perform the market in the short term but it should not be viewed as a short-term investment. The rewards from its superior claims management and administration skills accrue progressively over a period of years rather than months. So we are more confident about long-term performance which will be less affected by swings in market sentiment or the sterling exchange rate.
R&Q is a lower-risk business than other non-life (re)insurers because (apart from the new Lloyds turnkey syndicate) all its insurance business relates to the past, so it is almost unaffected by future hurricanes and other natural or man-made catastrophes. Although it now has a small and very limited exposure to risks from future events through its investment in the Lloyd‟s syndicate, the principal risk to which it is exposed is that real interest rates remain below zero for a prolonged period.
The current share price of 91p puts them on a discount of 38% to NAV (and over 10% to net tangible assets), a multiple of 9x current year earnings, and only 6.7x forecast eps for 2011, and a yield of more than 8%.
R&Q is a long-term growth company with a below-average PFER and above-average yield, so we consider it to be undervalued (see Valuation section).
Our estimate of a fair price currently and hence our short/medium-term target for the shares is 146p, a 60% premium to the current price, at which level the yield would still be 5%.

[ydderf] 11/3/2011 15:11

chart looks spikey after the investors chronicle inspired run-up. the japanese tsunami causing insurers to take a dive is probably not helping, no hurry to buy above 100p i would have thought.......

[labatie] 09/3/2011 11:44

108p for 5/-.

[azalea] 07/3/2011 09:33

Not to worry, all buys this morning suggests that at the end of the day investors at this level are going to make money.

[this_is_me] 07/3/2011 08:38

After the B share issue you still own the same percentage of the company as you did before so your shareholding has not in any real sense changed. If you can't understand that you should not be investing at all. The whole thing is about the difference between higher rate tax of 40% and CGT of 18%.

[this_is_me] 07/3/2011 08:19

misleading

[labatie] 07/3/2011 08:12

You're not actually answering my point

[envirovision] 07/3/2011 08:01

If you read the post you would have realised I was trying to work out on what substance the alleged dividend yield was coming from since that seems quite possibly miss leading. Certainly in the normal sense of what I and most people would generally term to be a dividend.

[labatie] 07/3/2011 07:35

Why does he still hold shares in a company he evidently believes has defrauded him?

[red ninja] 06/3/2011 14:26

Azalea

Envirovision appears to believe he has been cheated by RQIH management and no one can convince him otherwise.

[azalea] 06/3/2011 10:37

Whilst I do not believe that directors have bought 237,000 shares this past year on a whim, only time will tell.

[envirovision] 06/3/2011 10:18

Well there is nothing in the last report which says they have any intention of paying a normal dividend. They were however keen to champion the B share scheme and share Capital Consolidation arrangement and talked about it in their last half yearly report in a manner as if it was something they expected to continue with.

Not sure if you can really call this prospective yield, very miss leading if you can IMO. I don't know, I mean I have the same sharescope data you have which is based on the house brokers data. I cant imagine the company would have told the house broker they planned on paying a dividend if they had not also mentioned it to the shareholders.

Maybe the house broker feels it is legal to call such an arrangement a "prospective yield"

If so, crazy really since for normal shareholders, as the last experience proves, not only do you end up with less shares, you end up worse off and it end up costing you!

Prospective yield, cheek more like prospective negative yield.

[envirovision] 05/3/2011 23:12

I read that, had to laugh, with respect. Their most prized tipster only pushed these a few weeks ago as one of his yearly value picks so they are hardly going to change their minds are they. In the space of a few weeks are they? I think not.

Wonder where they got the prospective yield of 7.8% from though? Sounds like a lack of research there, since there is no promise or commitment to paying any kind of dividend to that value, certainly not in cash.