R&q Insurance Share Discussion Threads

[this_is_me] 11/10/2012 20:49

It is hard to get through all the risk of the cleaner cuting a finger and being awarded £2.51 compensation etc. to the real information.

[jonwig] 11/10/2012 15:04

Ah - the payment is approved and here's a circular:



... which is 40 pages and I haven't read! Don't we trust these companies!!

[lord gnome] 11/10/2012 08:00

'The payment of 3.4p per share is anticipated to be made through the scheme on or around 7 November 2012 to those shareholders on the register at 5.00 p.m. on 11 October 2012.'
Taken from the interim results statement. Strangely, there was no official ex-div date, probably because it isn't a dividend. Either the share price has already dropped by the amount of the distribution or we will have a bit of a shock when we wake up tomorrow morning!

[alter ego] 10/10/2012 22:50

I read elsewhere (the IC) that RQIH go xd today

[jonwig] 10/10/2012 19:28

The record date for the capital distribution (3.4p) is 5:00pm tomorrow but no xd flag is showing - maybe it will appear then?
I'm looking here:

[eekorehc] 04/10/2012 15:29

Taken from a tip sheet.

Randall & Quilter Investment Holdings (RQIH) has completed the acquisition of Guernsey domiciled captive insurer, RAB Insurance Ltd at a discount to net asset value – net asset value estimated at circa. £0.95 million based on the latest available management accounts.

RAB has been in run off since October 2011 – with Randall emphasising the acquisition "continues to demonstrate our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business" and that it "further evidences the increasing level of acquisition activity we are seeing as a group" – this being the company's third captive acquisition in 2012 and its second in Guernsey this year.

Shares in Randall currently trade at 106p and the company's joint broker, Shore Capital, continues to look on the money with its assessment; "currently trading at broadly parity to our 2012 forecast net tangible asset value, with a forward yield of 8%, which we view as secure... such a valuation undervalues, in our view, the opportunities that are emerging for the company, the benefits arising from the recent diversification and the quality of management". In the near term a 3.4p per share interim return of cash has been proposed, up from the prior years' 3.2p, and is anticipated to be paid on or around 7th November to shareholders on the register at close on 11th October. As both an income and growth play, the stance remains "buy".

[sogoesit] 04/10/2012 09:26

04 October 2012

Randall & Quilter Investment Holdings plc ('R&Q' or the 'Group') is pleased to announce that it has completed the acquisition of the entire issued share capital of RAB Insurance Limited ("RAB"), a Guernsey domiciled captive insurer, from the owner Drakelow Development Holdings Limited ("DDH").

RAB has been in run off since October 2011 and previously wrote from 1992 employer's liability, product liability and constructors all risks for Roger Bullivant Limited and its subsidiaries, a building foundation company sold by DDH in July 2011. The Net Asset Value of RAB based on the latest available management accounts is estimated at c. £950k and RAB was acquired by R&Q at a discount to net asset value.

Commenting on today's announcement, Ken Randall, Chairman and Chief Executive Officer of Randall & Quilter, said:

"The acquisition of RAB further evidences the increasing level of acquisition activity we are seeing as a Group. It also continues to demonstrate our ability to provide attractive exit solutions for captive owners who have put their captives in run-off or are contemplating ceasing writing new business. This will be our third captive acquisition in 2012 and our second in Guernsey this year."

[sogoesit] 03/10/2012 11:15

Yes, thank you very much jonwig for your insight.
I know little about insurance, although I have been reading up on the complexities (especially how legislation and Solvency Regulations can affect the companies and thence their share price) but a lot befuddles me. However, buying last year at just over 100p, I thought the risk/reward balance was worth making it an income investment. I did not expect any capital growth but I was impressed by management and their stake in the enterprise.
I shall now re-invest last year's and this year's dividends in the company.
Reegards.

[jonwig] 03/10/2012 08:44

Pay-date isn't until 7 Nov, so cheapo brokers (like mine, T D Direct) still have time to let you make your choice. I imagine the 'default option' will be to take income.

Sogoesit - if you take income, you'll have some tax to pay as a HR payer. If you take capital, you might have some CGT depending on your good fortune in the current year!

As for RQIH and "will it ever be a capital grower?", it's not something I would particularly hope for or expect.
Insurance is highly cyclical (though different underwriting cycles are a bit jumbled with this company), and investment returns (mostly bonds) are pretty low. What they seem to be good at is managing run-off situations by buying assets and managing them cheaply thus squeezing out capital.
And there might be defensive merits - if equities generally take a fall, there's no obvious reason why RQIH and such things as Lloyds syndicate managers should suffer. Your 7% should be pretty secure.

[sogoesit] 02/10/2012 17:22

Well, I have an "Income Portfolio" where this stock sits, amongst other income generators, so I like to get the compounding effect going and, given my dealing costs are low enough, I then re-invest when I have gathered enough dividends.
I think, too, that this is an "income stock"... will it ever be a capital grower? I doubt it.

I ask myself, and anyone who may wish to respond, whether the capital return feature helps my cause or the likely cause of capital growth.... I don't think so on first glance (but I do pay higher rate tax which is "morally repugnant" in my view).
Personally I also like to see, and control, cash in the hand.
(Hoping my broker, as well as yours Joan, will fly that paperwork over to me in the not too distant future!)

[alter ego] 02/10/2012 16:42

"The Return of Value, details of which are outlined in a circular posted to shareholders today, will give shareholders the option of receiving their payment as capital or income and provides a more flexible and efficient mechanism of returning capital. The payment of 3.4p per share is anticipated to be made through the scheme on or around 7 November 2012 to those shareholders on the register at 5.00 p.m. on 11 October 2012."

So you can elect to take the dividend as income (subject to income tax rules) or as capital (subject to capital gains tax rules). If you elect for income and you pay higher rate tax, you will have to pay a bit more tax on the dividend you receive and declare it on your tax return. If you elect for capital, the amount returned to you reduces the cost of each share by the amount returned. When you sell the shares, any capital gain made will be based on the lower share price (you need to keep records so you can correctly calculate this and fill in your tax return). All IMO, no advice intended.

[joan of arc] 02/10/2012 16:25

Sogesit, I am in the same situation.

[sogoesit] 02/10/2012 15:34

Indeed.... although why my broker cannot get the details to me of this JaKey share scheme is beyond me.... well it seems beyond them, not me... if you get my drift!
Thanks for the info. all above players!

[stemis] 18/9/2012 09:05

If you read the exchange between jonwig and I you will see I was talking about TAWA!!

[alter ego] 17/9/2012 22:16

Quite; a rose by any other name.....

[lord gnome] 17/9/2012 21:03

It never ceases to amaze me how some people can maintain that this company doesn't pay a dividend.

[koolio] 17/9/2012 18:45

We have been notified that Randall & Quilter Investment Holdings plc (Randall & Quilter) has proposed a return of value subject to approval at a General Meeting to be held on 11 October 2012.

PLEASE NOTE WE MUST BE IN RECEIPT OF YOUR INSTRUCTION BY 23 OCTOBER 2012

TERMS OF THE RETURN OF VALUE

Shareholders will receive one J share or one K share for each ordinary share held on the register at close of business on 11 October 2012 by electing for either one or a combination of the following options:

Option 1 – J Share Capital Alternative

Receive GBP0.034 in cash by way of Capital Repayment for each J Share held.

The payment under the J Share Capital Alternative should be generally treated as capital for UK tax purposes.

AND/OR

Option 2 – K Share Dividend Alternative (Default Option)

Receive GBP0.034 by way of a Special Dividend for each K Share held.

The payment under the K Share Dividend Alternative should be generally treated as income for UK tax purposes.

SHAREHOLDERS WHO DO NOT MAKE A VALID ELECTION WILL BE DEEMED TO HAVE MADE AN ELECTION FOR THE K SHARE DIVIDEND ALTERNATIVE IN RESPECT OF ALL OF THEIR SHARE ENTITLEMENT. SHAREHOLDERS WHO MAKE A PARTIAL ELECTION FOR THE J SHARE CAPITAL ALTERNATIVE WILL BE DEEMED TO HAVE ELECTED FOR THE K SHARE DIVIDEND ALTERNATIVE FOR ANY REMAINING SHARE ENTITLEMENT.

MORE INFORMATION ABOUT THE RETURN OF VALUE

The cash proceeds from Options 1 and 2 are expected to be received on or around 7 November 2012. We will aim to release these funds to your account within five business days of receiving the proceeds.

The J shares and K shares have not and will not be admitted to trading on any stock exchange.

OPTIONS

OPTION 1 - ELECT TO HAVE YOUR J SHARES REPURCHASED BY THE COMPANY AT GBP0.034 PER J SHARE.

[lord gnome] 17/9/2012 18:30

No dividend?

[stemis] 14/9/2012 12:40

As you say, great discount. But no dividend, so doesn't tick all the boxes for me. Haven't really looked at it in detail.

[jonwig] 14/9/2012 12:24

Stemis - I didn't have in mind the whole company, as 'incubator' seems off-target for RQIH anyway.
There might be some bits, though - TAW has lots of bits!

More to the point: would you buy TAW, thinking of the asset discount?
I wouldn't touch it, if only because of the 71% stake you draw attention to.
That sort of situation looks a prime case for a potential de-listing if they don't receive decent bids.

[stemis] 14/9/2012 11:12

The deferred assets are consideration due from the sale of CX Re.

Can't see RQIH going for Tawa. Even on a tangible nav basis, TAWA is valued at $172.5m. Market cap is £49.3m, which is just less than RQIH's. Financiere Pinault own 71%. Why would they sell at anything other than a significant premium. Out of RQIH's financial range.

[jonwig] 13/9/2012 18:12

Would RQIH be interested in Tawa [TAW], post #214?

Well, on the face of it, net assets are 113p/sh against share price of 43.5p.

All I've looked at is the bare statement of 23/03 (FY to 31/12/11). I'd be inclined to subtract the goodwill, the deferred assets (not explained) leaving about 68p/sh.

Is the 'incubator' division properly valued? the last time I heard that word was in dot.com times.

And debt with re-insurance isn't comfortable for me.

Also, these small re-insurance companies - isn't that a contradiction in terms? - And I see they are experiencing above-expected calls.

No doubt RQIH could cherry-pick some stuff at the right price, and I'm sure they would look.

B P Marsh [BPM] might have been interested at one time, but that has a for sale sign now, as well.

[red ninja] 11/9/2012 22:31

C

Its the standard capital or income dividend choise at the aforementioned 3.4p a share.

Market still wary of RQIH as share price doesn't seem overly rich...

[cestnous] 11/9/2012 09:34

Had this yesterday

Terms: RETURN OF VALUE The Company is proposing to make a return of cash to Shareholders through a
Return of Value scheme. Shareholders will receive one Entitlement Share for each Existing Ordinary Share held
by them at the Record Date. Each Entitlement Share will entitle holders to receive a Capital Repayment of 3.4
pence per share or a Special Dividend of 3.4 pence per share. The Return of Value requires the approval of
Shareholders, which will be sought at a General Meeting to be held on 11 October 2012. Relative Details and
Dates: 11 October 2012 General Meeting; 16 October 2012 Record Date. You are not required to take any action
at this time. Further information may follow in due course.

[jonwig] 10/9/2012 14:31

Amazing - I'd never even heard of Tawa [TAW] till now!

Thanks, tv, will look, but RQIH won't want to pay a penny over the odds!