R&q Insurance Share Discussion Threads

[stemis] 22/6/2015 11:31

As ever it's almost impossible to interpret these results. It's the nature of their business that profits will be lumpy and unpredictable (to shareholders anyway). You either believe Mr Randall and Mr Quilter know what they are doing or go elsewhere. Yield is 6.8% and the outlook is bullish. So far they've never cut the dividend. Historically they have traded between 90 and 180 so relatively low at the moment. So at the moment I hold (from 111p)

[jonwig] 22/6/2015 08:59

On the basis of these results, are they a "hold" at this level?
I think so.

They repeatedly use the phrase:

... the legal costs relating to the recently concluded Syndicate 102 arbitration ...

but I can't find these legal costs actually quantified. Are they within the "Other Operating Expenses" (Note 8) which have increased by £9.7m since last year?
Since the year's loss was £4.5m, would they have made a profit (OK, a reduced one) without that issue?
(I know other one-off issues contributed.)
And tangible NAV would have been 13.5p higher.

Does it all depend on the US Re result being a temporary feature?

[hybrasil] 18/6/2015 09:13

gosh Skyship

Didnt know you were here. Bought some shares based on yesterdays rns.

Will you e mail me as I am not sure I have the right address

[stemis] 17/6/2015 08:58

Looks understatedly reassuring

[jonwig] 17/6/2015 07:09

OK, arbitration more-or-less settled and the group "... looks forward to a much stronger 2015 ..."

Results on Monday (22nd).

[speedsgh] 08/6/2015 12:45

From recent Equity Development note...

A good finish to the season -

Randall & Quilter must be in the running for deal of the week with their acquisition (subject to regulatory approval) of IC Insurance, formerly the captive insurer for Imperial Chemical Industries. IC Insurance has been in run-off since 1996 and now has only some long-tail US Employee Liabilities business and some residual losses from self-insured business and some London Market underwriting, with technical reserves shrunk to £1.9m.

At end-2014 IC Insurance has assets of £22.5m (nearly twelve times it liabilities) and R&Q is paying £17m, so the deal will throw up negative goodwill of £5.5m before expenses. Since the company did not recognise any deferred tax assets in its 2014 accounts the real gain to R&Q may ultimately be more than £5.5m. R&Q aims to achieve a transfer of engagements to R&Q Insurance (Malta) to minimise ongoing costs of managing the gradual run-off of the portfolio of risks.

[skyship] 27/5/2015 07:39

Splashing the cash on a £17m acquisition must surely suggest Management is fairly relaxed about the Syndicate 102/3330 arbitration...

"The consideration payable by R&Q in cash from existing resources and its bank facility with RBS is c. GBP17.0m."

[jonwig] 27/5/2015 07:30

Yes, that's how they make their money. A bit like those house clearance firms, I sometimes think.

We're supposed to be due a statement this month on the Syndicate 102/3330 arbitration. It's unclear to me what the money implications of a result either way would mean.

[my retirement fund] 26/5/2015 11:28

Looks good business assets to own to me.

[jonwig] 08/5/2015 07:12

Simon - good question, which I didn't take into account when buying.

In April last year they said, "The estimated net insurance liabilities as at 31 December 2013 were c.£16.5m." and there's a legal claim they are fighting which should be heard this year.

Apparently a decision on this will be made by the end of May, which will determine the date of releasing the FY results. Of course, the recent share price weakness could be down to uncertainty about the outcome, and I could have walked into a trap ...

[my retirement fund] 07/5/2015 17:47

Well I've dipped my toe in today.Just a modest helping though!

[simon gordon] 07/5/2015 12:03

Hi Jon,

Do you know what the worst outcome on Syndicate 102 could be for RQIH, is it a minor issue or potentially a large liability?

Thanks and I hope you are well.

[jonwig] 07/5/2015 08:22

I bought back in this morning (c. 106p). Expect (hope!) that the recent series of profit warnings are out of the way. They're signalling a better 2015.

[speedsgh] 05/5/2015 14:52

R&Q appoints captive management president -

[speedsgh] 01/5/2015 10:17

Increased my holding on the back of today's announcement.

[speedsgh] 30/4/2015 10:07

No, radio silence from the company on date for Final Results. In view of the recent share price action, I do hope the results haven't been leaked to insiders. That would be most unsporting.

EDIT - Now yielding over 8% on the basis of a maintained final dividend.

[labatie] 30/4/2015 07:58

Has the company said when the figures will be published? I see it was 22nd April last year.

[russman] 29/4/2015 21:59

Looking forward to the figures.

[speedsgh] 28/4/2015 12:57

Not sure I've heard about these 2 snippets of news since the start of the year, although they're probably too small to warrant an announcement...

R&Q acquires Unilever captives -
The Insurance Insider (subscription)-28 Jan 2015

Legacy-to-live carrier Randall & Quilter (R&Q) has completed the acquisition of two Bermuda-based captives from consumer products giant Unilever Group, The Insurance Insider understands.
The captives, Armitage International and Berda Developments, are both in run-off.
It is understood that the self-insurance platforms contain workers' compensation, auto and general liability risks, as well as coverage for the group's product liability.
It is thought that the two captives have a combined asset value of $8mn.

R&Q acquires $4.7mn Scandinavian marine run-off -
The Insurance Insider (subscription)-19 Jan 2015

Legacy-to-live carrier Randall & Quilter (R&Q) has acquired a 30.1mn Danish krone ($4.7mn) book of Scandinavian marine liabilities from Danish insurer Tryg.
The Tryg book, which was put into run-off in 2010, contains marine liabilities dating back to 1998 and provided cover to policyholders in Denmark, Sweden and Norway.
The assets have been transferred to R&Q's platform in Malta but claims will be handled locally by R&Q Triton AS, its office in Oslo.

[stemis] 28/4/2015 12:04

No, I understand all that although most small caps are just covered by the house broker which isn't much different. ED & ER allow management to put analysis into the market which they can't directly. As long as you understand that its basically the views of management, they can be very useful.

[lord gnome] 28/4/2015 11:09

Probably because RQIH stopped paying them. They are both vanity research publishers. They are paid to provide research because the big boys won't give smaller companies the coverage. They provide a useful service, but anything they say should come with a wealth warning. It is hardly objective research. When did they last issue a 'Sell' recommendation?
(Apologies if this sounds overly cynical).

[stemis] 28/4/2015 10:51

Both Equity Development and Edison Research used to cover RQIH but now no longer seem to. Anybody know why?

[my retirement fund] 28/4/2015 10:50

One would expect the natural pessimism of the market and its inherent tendency to overreact, may mean there is still considerable risk here to the downside.I would be surprised if there were not further weakness at the very least and would caution against "going all in"That said good luck to anybody who does.