R&q Insurance Share Discussion Threads

[speedsgh] 20/1/2017 11:10

RQIH have certainly been a lot more active on the news front in the past 6-12 months. Let's hope it translates into increased profits, capital returns & share price appreciation!

[jonwig] 20/1/2017 07:20

Issue of $20m USD subordinated notes:



Confirms that they expect further business expansion this year.

[maffs1] 06/1/2017 14:42

The market seems to have finally responded. I agree that the comment is significant...R&Q aren't known for their hyperbole!

[jonwig] 06/1/2017 07:32

Prescient of you, maffs, number eight:



And a more upbeat comment then usual:

"This novation caps off a fantastic year of legacy transactions for R&Q, with prospects for 2017 looking even brighter"

[maffs1] 05/1/2017 15:44

Yes, jonwig, there does seem to be a lot of business going on at the moment. Assuming they are all good deals, then this could be a transformational time for Randall. Companies simply want rid of these old insurance vehicles and I suspect there is not a lot of competition to buy them, so R&Q will hopefully be picking up some bargains.
We'll see!

[jonwig] 05/1/2017 15:15

Another acquisition announced, that's seven in the past two months (though they aren't all called acquisitions).

This ought, in good time, impact bottom line and balance sheet.

[jonwig] 03/11/2016 07:21

Interesting. I've just looked back to the H1 stage:

Our UK Legacy portfolio comprises exposure to asbestos and other long term liabilities arising from Employers’ and Public Liability policies written over the past 50 years. The UK Legacy underwriting result for H1 2016 was a loss of £5m (H1 2015: £14m loss) primarily reflecting operating expenses incurred.

So it's actually quite a small division. A reasonable size for us to swallow.

[hybrasil] 03/11/2016 07:12

See this mornings statement from rsa. We continue to explore transactions concerning our legacy liabilities.
Up rqihs alley.

[stemis] 02/11/2016 13:30

Still yields 6.25% in a market hungry for yield

[jonwig] 01/11/2016 15:02

With a book value of about 96.7p (adjusted for payout due) and not much in terms of forex gains since last accounting date (30/06) this is getting a bit ahead of events, maybe?

(I'm not complaining!)

[jonwig] 27/10/2016 06:39

It might actually benefit from a global slowdown (which I think quite possible). Companies will want to get rid of their captive insurers on the cheap to free capital and people. And the Malta operations will be EU-based.

The problems it faces will be purely around the insurance industry, as with the US business a couple of years ago.

[hybrasil] 27/10/2016 05:55

Nearly up to its price when it floated 9 years ago. Based on what it is paying out now as opposed to then then share price should be £2.50

[jonwig] 28/9/2016 18:14

Still a way to go before the name change to QRIH.

[speedsgh] 28/9/2016 15:45

Director/PDMR Shareholding -

The Company has been notified that on 28 September 2016 Kenneth Randall, the Company's Chairman and Chief Executive, sold 200,000 of his holding of 2p ordinary shares in the Company to Alan Quilter, the Company's Chief Operating Officer, at the rate of GBP 1.225 per share. Mr Randall now holds 16,035,446 ordinary shares which represents 22.25% of the Company's issued share capital. Mr Quilter holds 4,246,456 ordinary shares, representing 5.89% of the Company's issued share capital.

[hybrasil] 24/9/2016 06:58

I think this is massively undervalued
It came to the market 9 years ago at 125p a share. Things are way better now than then I suspect that the annual return of capital(which I love because it's. Cgt as opposed to income tax and it's giving me 8%) means it does not come up on people's radar. £2 is my target

[jonwig] 23/9/2016 12:15

That's true but I still like to muse on possible outcomes!

From my limited understanding, the net assets of $5.3m include future insurance provisions at what is probably a realistic valuation (since it's in run-off). These could potentially increase or decrease.

[stemis] 23/9/2016 11:16

I think its almost impossible to know the real value in these acquisitions. You either content yourself with the attractive yield and faith that management know what they are doing or you don't hold the shares...(imo)

[jonwig] 23/9/2016 07:24

Recent rise maybe caused by a leak of the acquisition just announced: net assets of $5.3m for a cost of $2.1m.

Perhaps at some stage we'll see another "Goodwill on bargain purchase" in the accounts - of $3.2m or so? Or maybe the capital will be released over time?

[3800] 21/9/2016 19:59

yes, if it carries on like this they will be back to what I paid for them soon.

[speedsgh] 21/9/2016 19:13

Chart looks promising for first time since start of 2014.

[jonwig] 05/9/2016 15:16

Interesting thanks.

It's actually on the website:

The Part VII Transfer of the general insurance and general inwards reinsurance business of Guardian Assurance Limited to R&Q Insurance (Malta) Limited was sanctioned by the High Court of Justice on 1 September 2016 and became effective on the same day.

But not mentioned in the results, or any earlier RNS. Not big enough? Maybe an RNS in due course.

GI seems to be mostly property and casualty, but I've no idea of its size, and nobody else seems to have this news:

[speedsgh] 05/9/2016 13:59

R&Q seals Guardian Assurance Part VII transfer -

Randall & Quilter (R&Q) has completed a Part VII transfer of Guardian Assurance's UK P&C business to its Maltese operation, CFO Tom Booth has confirmed.

Speaking to The Insurance Insider following R&Q's first-half results, Booth said the scheme of arrangement, which went through the UK courts on Thursday (2 September), was the last step in bringing the book to finality.

[jonwig] 05/9/2016 07:27

Really interesting H1 results today:



With NAV per share of 98.1p and even higher profitability expected in H2, the question is, what premium can the share price command? I'd expect a bit of an uplift, anyway!

This caught my eye: "Goodwill on bargain purchase of £2.7m arising from three completed legacy acquisitions, mainly out of the Bermuda based M&A operation."

I was unfamiliar with the term, and it increases profits. In fact it turns out to be the same as negative goodwill, as explained clearly here:



And, usefully, a 3.4p payout suggesting a yield of 7% or more for the full year.

[hybrasil] 01/9/2016 18:55

Jonwig. That's what brought me here. Regular capital repayments as opposed to income suit me very well(after that horrible recession and not a few losses!)