R&q Insurance Share Discussion Threads

[jonwig] 04/9/2018 08:28

I think their model goes like this: a firm which owns its own insurer ("self-insuring") will need a large amount of regulatory capital compared to the size of the insurer. Selling it to RQIH releases this burden to the firm, and the insurer, now part of a much bigger insurer, needs less capital so a portion can be released to repay RQIH's interim debt. The released capital is essentially shared between the buyer and the seller.

They did suggest it would be "interim debt". If they intended permanently higher gearing I would be concerned.

[lord gnome] 04/9/2018 07:38

I say it is scary, Jonwig. That's a lot of leverage and it could effect dividend growth. Management hubris? We all know what comes next.

[jonwig] 04/9/2018 07:35

Proposed increase of borrowing powers from £100m to £200m:



With MCap of £210m is this a bit scary? Probably not, as they intend acquisitions from which they could "extract cash". This really does sound like the magic money tree.

Last year's interims were on 4 Sept.

[jonwig] 16/8/2018 14:35

@ Red, speeds - yes, I saw the RNS but didn't really grasp how profitable these things would be. We'll just have to wait for their figures and trust them: something which has done well up to now!

H1 results in about 3 weeks. Might get some guidance.

[speedsgh] 16/8/2018 12:24

Chart is in a well-defined uptrend since Q1 2016. Should be challenging previous Q4 2013 ATH before too long.

[speedsgh] 16/8/2018 12:22

And with this still to come...

"Ken Randall, R&Q CEO and Chairman, added: "These three transactions demonstrate R&Q's ability to provide high quality insurance coverage to MGAs throughout the EU. With a strong pipeline of new partnerships, R&Q is on target to exceed its expectations of at least 15 new program partnerships in Europe and the USA in 2018.

To date R&Q Malta and Accredited have contracted live programs expected to produce in excess of US$200m in annual gross premiums and are on track to more than double this figure before year-end."

[red ninja] 16/8/2018 12:15

All sounds positive :-

Randall & Quilter Investment Holdings Ltd. ("R&Q") is pleased to announce that its wholly-owned European subsidiary R&Q Insurance (Malta) Ltd ("R&Q Malta") has signed three new program underwriting partnerships with European Managing General Agents ("MGAs").

[speedsgh] 22/6/2018 12:11

A couple of large trades gone through in the last 24hrs...

21/6 10:02:59 137,288 @ 172.5
22/6 11:13:26 357,913 @ 172.5

[jonwig] 14/6/2018 14:39

Some sellers seem to have noticed this, but the spread is punishing, and so there's no profit.

Anyway, should get my "divi" on the 18th, Monday.

[jonwig] 12/6/2018 14:35

OK, from the RNS dated 17 May:

Shareholders will be issued one Z Share for each Ordinary Share held by them at 6.00 p.m. on 11 June 2018.

On or around 12 June 2018, the Z Shares will be cancelled pursuant to the Reduction of Capital and holders of the Z Shares will be paid the capital paid up on the Z Shares (being 5.4 pence per Z Share).

Payments in respect of the Return of Capital are expected to be made on or around 18 June 2018.
So the first date (11 June) is definite, and they should have gone ex-roc this morning. Would be nice to think I was getting a freebie of 5.4p!

[jonwig] 11/6/2018 20:18

If I've read the dates right,this should go ex-whatever for 5.4p tomorrow with payment around the 18th.

[topvest] 09/5/2018 21:22

Phoenix have a big holding which is encouraging. They must think its worth £2+. Happy to hold as management are very strong.

[lord gnome] 09/5/2018 18:54

All of a sudden, this is starting to look rather good. Onwards and upwards with no sign of stopping yet. Even at these rarefied levels, the yield based on the bid price of 170 is a non-to-shabby 5.2%.

[red ninja] 03/5/2018 22:31

Late surge takes us into the low 160's. I wasn't expecting that

[speedsgh] 30/4/2018 22:55

Seem to remember that Simon Thompson covered RQIH for a while but think he has since moved on to pastures new. RQIH seem to fly under most people's radar which is fine by me.

[jonwig] 30/4/2018 20:20

IC don't often cover RQIH, but today they say 'buy' with the conclusion:

Randall & Quilter has a strong pipeline of new business and offers an attractive dividend. Overheads are falling after the disposals and more written premiums will boost income. Buy.

They also give Numis' estimates:

Analysts at Numis are forecasting adjusted pre-tax profits for the year to December 2018 of £19.9m and EPS of 13.4p (from £23.5m and 25.4p in 2017).

(Actually the above figures for 2017 are basic, not adjusted!)

[speedsgh] 30/4/2018 17:13

Pleasing looking results. Numis are house broker so TP 195p is perhaps bound to be on the bullish side?

[jonwig] 30/4/2018 14:55

Numis reiterates 'strong buy' tp 195p. Can't find more.

[lord gnome] 30/4/2018 08:19

Evidently the market likes the results. Buyers paying over the odds to buy in any sort of size.

[lord gnome] 30/4/2018 07:49

Yes, decent enough. Strip out the one-off gain from the sale of the Lloyds agency and profits were up by around 15% which, is not to be sniffed at. EPS from the continuing business comes in at around 12.65p which is a rise of just 8%. Outlook statement is positive, but I think the Numis target looks optimistic in the short term - but I could be wrong.

[jonwig] 30/4/2018 07:49

Looks pretty good, even without the exceptional item.

And a Brexit bonus, even? "As a Group we have always seized upon opportunities which inevitably come from market turbulence and this is certainly true today as we witness major upheavals in the global insurance industry - especially those arising out of the challenges posed by Brexit and the emergence of new technologies.

[this_is_me] 30/4/2018 07:43

Better than decent since I bought back in at less than £1 a couple of years ago and the dividend is good.

I might be tempted to add some more shares in this well run company if there is a 'sell on the news' this morning.

[jonwig] 29/4/2018 20:36

Ahead of tomorrow's results, the only broker covering us is (I think) Numis with a target price of 195p on 05/02/18.

[speedsgh] 19/3/2018 09:20

Notice of Results -

Randall & Quilter Investment Holdings Ltd. ("R&Q") announces that it expects to publish its results for the year ended 31 December 2017 on the 30 April 2018.