R&q Insurance Share Discussion Threads

[speedsgh] 27/4/2015 17:11

From the interims...

"The faster than expected settlement of US asbestos claims may impact reserve setting at the year-end given a reliance on 'survival ratios'. We have engaged independent actuarial consultants to perform a granular ground up analysis on a number of key accounts. Whilst this initial analysis has yielded favourable results to date, we should caution that some deterioration may materialise, though this would be largely mitigated by the reinsurance coverage." - Whilst I'm certainly no expert in this field, the last sentence above sounds mildly reassuring.

Re outlook (at the time of the interims)...
"The second half of the year is expected to be considerably stronger, driven by increased service and fee income. As a consequence, we still anticipate that our full year results will meet market expectations, although this is inevitably contingent on completing a number of well progressed legacy transactions before year end." - Proof of meeting expectations will naturally be in the pudding!

[lord gnome] 27/4/2015 16:28

I sold out last time around when the bid hit 113p. I will keep this on my watch list because of the divi, but I would like to see some closure to the asbestosis claim that started the last fall.

[speedsgh] 27/4/2015 12:06

From the Trading Update on 12 March...



"Further to the announcement made by the Board on 13 November 2014 concerning the revision downwards to management's expectations for full year pre-tax profits, the Directors confirm that they currently expect that the Group's pre-tax result for the year ending 31 December 2014 will be in line with these revised expectations.

The current year's trading has started well and the Board remains positive about prospects for 2015 with a strong legacy acquisition pipeline and good progress on new business generation in the service business."

The market does not appear to be buying into RQIH's previous assurances re current year's trading + prospects, although recent volume has been low. RSI on the floor but MACD continues to head south.

Can't see a Financial Calendar on the RQIH website - Final Results were 22/4 last year so would expect an announcement soon.

EDIT - So long as business is steady + the current 8.40p dividend is maintained + sustainable, the yield has to look tempting for income seekers at the current level. 115p offer = 7.3%

[speedsgh] 21/4/2015 11:52

So long as the dividend is maintained + the outlook is steady, I will be willing to continue to stick with my reduced holding.

[stemis] 21/4/2015 11:00

Forecasts seem to be a small loss and a held dividend of 8.4p.

[speedsgh] 14/4/2015 18:21

Share price fall not overly encouraging in view of proximity of results (last yr on 22/4).

[speedsgh] 02/3/2015 15:21

Thanks for replies. I suspected as such seeing as a formal rns re takeover offer would have had to have been issued otherwise. Rns is poorly worded but think I was also being a bit dim this morning!

Wonder if we'll get a Trading Update this yr (last yr on 28/2) or whether they'll just hop straight to finals in April?

[coolen] 02/3/2015 14:30

Yes, badly written. They should not refer to "the business" in one instance and "this business" in another.

Each should be clearly identified.

[effortless cool] 02/3/2015 13:29

Definitely just RQMS.

[alter ego] 02/3/2015 13:28

I believe the phrase "large established underwriting group" means Hiscox not R&Q so they are saying that selling the marine business is the best deal and they can achieve greater value than keeping it as part of the Group.

[speedsgh] 02/3/2015 12:53

Struggling to get my head around today's announcement. Have they had a takeover offer for the whole company or are they just talking about RQMS which has now been sold? I have read rns several times but still confused. Might just be Monday morning fogginess? Would appreciate anyone else's take on it.

Completion of Sale -

"Following a full evaluation process, the Board has determined that the growth potential and value of the business is significantly greater for a large established underwriting group than for the Group itself. This has been reflected in an offer for the business which the Board believes delivers the best value for shareholders."

[envirovision] 13/11/2014 08:36

So they bought a pig that they cant get rid of, hmmm

Also recent market conditions, all very sketchy stuff. Sounds like they are paving the road for further profit warnings ahead there then.

I suspect this has a lot further to fall then, probably a good decision, I wont be buying!

[jonwig] 13/11/2014 08:34

Is this the third "restatement"? I think so.

The question is, have they spelled out all the problems and cleared the decks? I assume they know that would be the wise approach.

[lord gnome] 13/11/2014 08:11

Ouch! I'm out.

[coolen] 26/8/2014 22:41

Any chance their dividend pledge is because they've promised it to
their fund manager backers ?

But if EPS well-covers the divi, then great !

[speedsgh] 26/8/2014 12:38

"We remain committed to maintaining total distributions to shareholders of 8.4p per share for 2014 and, as operational progress converts into revenue and profit growth, to resuming growth in annual distributions from 2015 onwards."

Bought these for the long term income so, all things being well, will be happy to see dividends start to grow again next year. Happy to sit tight for now + add if these should get oversold at any point.

[lord gnome] 26/8/2014 08:09

Yes, a disappointment to me. I can't see the share price doing anything positive for some time.

[this_is_me] 26/8/2014 08:05

I don't think that you can value the company in the same way that you can most companies since here results depend on what deals can be made. These do not come in a steady predictable manner. Results have always been up and down (but more up than down) over the years.

[jonwig] 26/8/2014 07:37

H1 results are here in the header, but they haven't appeared where I normally look (Investegate).

I don't think the market is going to like them: headline loss of £0.3m seems unexpected to me, though there's an IFRS profit of £0.484m.

The say: The second half of the year is expected to be considerably stronger, driven by increased service and fee income. As a consequence, we still anticipate that our full year results will meet market expectations, although this is inevitably contingent on completing a number of well progressed legacy transactions before year end

That little word "still" and the qualification "although" sound like a massaging down of expectations. At present these seem to be £8.46m pre-tax profit for 2014 and £12.26m for 2015, which is a bit far ahead!

The proposed "dividend" of 3.4p, being uncovered, will reduce NAV yet more and make the share price too far ahead of events.

[lord gnome] 04/7/2014 08:22

Nice acquisition and the market seems to agree. I think the trick here will be how much they can leverage the acquisition and develop other business lines in the US market.

[18bt] 04/7/2014 08:02

9x EBITDA looks a little expensive but 1.2x NTA looks more reasonable. Still this is the sort of business which should produced stable returns.

[jonwig] 04/7/2014 07:35

It does: I've an idea that $25m is a lot larger than their usual target size. RQIG themselves have a MCap of $190m or so.

[this_is_me] 04/7/2014 07:31

That looks like a good acquisition.

[chector177] 02/7/2014 16:24

nice move up today, any ideas why?

[chector177] 03/6/2014 08:10

I mis-read it first time.