R&q Insurance Share Discussion Threads

[edmonda] 01/2/2023 08:19

As well as the first acquisition by R&Q's new JV with OBRA Capital that shows the significant potential for other similar deals, @RQIH won 7 new programs in December.

Equity Development's fair value is now 155p/share, as you can read in a new research note freely accessible here:

[my retirement fund] 17/1/2023 08:05

Off to the races here, shame I was left in the starting gate.

[red ninja] 06/1/2023 12:23

RQIH alive and kicking and involved in legacy product liability claims relating to coal dust, asbestos, silica, and other exposures. I hope they have calculated the claims correctly given the problems they have had before with asbestos. :-



R&Q Insurance Holdings Ltd. ("R&Q") and Obra Capital, Inc. ("Obra") are pleased to announce that they have acquired, through a newly formed joint venture, a wholly owned subsidiary of global safety equipment manufacturer MSA Safety Incorporated ("MSA Safety").

The acquired subsidiary (the "Company") holds legacy product liability claims relating to coal dust, asbestos, silica, and other exposures. MSA Safety contributed approximately $341 million in cash to the Company, in addition to related insurance assets, and the joint venture contributed $35 million.

As a result of the transaction, R&Q will provide claims and management services and Obra (recently rebranded from Vida Capital) will provide investment management services to the Company. The transaction has enabled MSA Safety to remove all legacy cumulative trauma product liability reserves, related insurance assets, and associated deferred tax assets of the divested subsidiary from its balance sheet.

As the transaction concerns non-insurance legacy liabilities, it will not be ceded to Gibson Re. The structure of the joint venture and the related exposures in this transaction result in reduced counterparty credit risk for R&Q, and therefore means that the fees will be lower than those earned from Gibson Re.

William Spiegel, R&Q's Executive Chairman said: "We are pleased to form a joint venture with Obra to acquire and professionally manage these legacy liabilities, providing MSA Safety with a complete finality solution. This is an exciting transaction for R&Q, showcasing the capabilities, reputation and innovation of our Legacy Insurance business. This will see our reserves and non-insurance liabilities under management increase to over $1 billion, comprising two pools: traditional insurance reserves via Gibson Re, and non-insurance legacy liabilities. This furthers our strategy of becoming a leading manager of legacy liabilities and reflects our ability to execute transactions that match different legacy liabilities with the right form of capital."

Andrew Pinkes, R&Q's Chief Executive Officer of Legacy Insurance said: "While we have been providing Legacy Insurance solutions to insurers, reinsurers and corporate captives for decades, this transaction opens up a new growth avenue in providing similar services for non-insurance, corporate liabilities. This transaction is a strong demonstration of R&Q's expertise in underwriting and managing long-tailed liabilities, as well as our innovative approach to structuring and delivering comprehensive finality solutions."

[my retirement fund] 18/12/2022 19:53

No you are correct EI, there is no way to attribute a valuation to the book, its for professionals only and even they don't seem to have the faintest idea!

[essentialinvestor] 18/12/2022 00:10

Looked at this following Simon mentioning but found it too difficult
to discern a valuation. Perhaps for those who work in this sector or have
specialist knowledge it may be easier to take a view.

[archy147] 16/12/2022 07:56

Less than 584k shares in total changed hands over the last 2 days. I smell BS.

[simon gordon] 16/12/2022 07:49

Specto,

I worked through the bet and changed my mind. That's gambling. It was a loser.

Merry Xmas!!

[spectoacc] 16/12/2022 07:20

300k at 55.5p @SG? That's some turnaround from your many, many posts recently!

[my retirement fund] 15/12/2022 20:17

50/50 gamble

[red ninja] 15/12/2022 19:45

You are too generous or plain crazy !

[my retirement fund] 15/12/2022 19:38

Could be tempted here at 30p.

[red ninja] 15/12/2022 19:31

Well that explains the mini-crash today.

[archy147] 15/12/2022 15:27

Thanks for the response Simon - that's a lot of shares you hold!

Touching new all-time lows here, time for a top up??

[mcmather] 15/12/2022 12:02

ouch; no real volume either (in that initial 15 mins).

[sspurt] 13/12/2022 13:09

Numis note out with 87p target.

[simon gordon] 13/12/2022 06:55

Morning Archy,

I posted my experience because of your comment:

"Simon, I hope you're right here, GLA!"

You may read what I post on this thread and think he knows what he's talking about. When I'm as clueless as most other outside observers who are not working in the company and even working for the company you may know even less as you are in a corporate trance.

I post my thoughts on the thread to challenge my thinking and test my greed and fear levels.

At the moment I've got 584,000 shares at an average of 61p. I'm not as heavy as before because I now realise it could be a total wipe out if something else blew up on the balance sheet.

[archy147] 12/12/2022 21:55

Simon i have no idea what to make of your post 1387.

On the one hand, you're very candid about making losses here and elsewhere (which is pretty unusual, most posters prefer to blow their own trumpet, or say nothing). On the other, the scale of your investments seems, well, a little bit crackers.

RQIH makes up about 2% of my overall portfolio. How much does it make up of yours?

[simon gordon] 12/12/2022 21:18

Chelverton UK Equity Growth Fund - November 2022:

The Fund participated in the rally. Its largest contributors to returns were Accesso Technology, after a strong trading update, and Alpha Financial Markets on the back of strong interim results, which caused analysts to upgrade forecasts. Sigmaroc and Alpha FX both continued to rally after their late October trading updates. There were very few material negative detractors to returns in November. GB Group continued on a downward trend, after its October trading update signalled a slower rate of organic constant currency growth, and R&Q fell back in the absence of any news-flow.



-----

One fundie who was in RQIH, Howay Investments, looks to have closed down as the fund got battered in the storm in H1 2022. Many of the holdings halved. SUPR was one of the favs. Been a brutal year.

[simon gordon] 12/12/2022 16:36

Archy,

I was confident before Brandywine and Brickell. That was a lucky escape. I had 408,000 and had I held on I'd be down 408K. I was very relieved to get out at 162p on the Brickell news for a 78.7K loss. I then tried to trade it before the takeover vote and lost 15K on that trade when Brickell pulled their offer.

You never know what can come from left field and wreck a business. A contract goes wrong, look at TRB who've screwed up a big contract and the share has halved. MJH, which I went into after RQIH, today had it shares suspended because the CFO has been cooking the books, I got in at 37p and out at 27p and was glad, if I'd held I be sitting tonight thinking I might lose it all. The CFO helped build Hastings Insurance, he wasn't a mickey mouse character but holders could be looking at a wipe out. Directors were buying shares and it was supposedly trading ahead of expectations and the ESG business was booming.

Getting hit on RQIH and MJH are probably my two worst trades I've ever experienced. 200K loss. Fortunately, I got a chunk of it back on Lettuce Truss's gilt meltdown.

It's not impossible that the balance sheet blows up again and you lose it all in RQIH.

Don't bet the farm, unless you are ready to lose it all.

This is a gamble, as is trading the markets!

Xx

[archy147] 12/12/2022 16:06

I just managed to pick up slightly under 20k @ 61.8p.

Thankfully, the spread has narrowed considerably this afternoon.

Simon, I hope you're right here, GLA!

[spectoacc] 12/12/2022 12:02

It's worse, if you're going for any size (eg 50k). MMs tend to quote outside the bid/offer on it.

[archy147] 12/12/2022 09:24

Was thinking of buying here this morning but am facing a bid price of 60.6, vs offer of 63.3 so no transaction for me.

WTF is going on here, is the spread always so big (nearly 5%)?

[simon gordon] 12/12/2022 06:37

William Spiegel outlines some potentially bearish points in this video presentation for the 2022 Interims, starts at the 15 minute mark:



Two mains one look to be:

1. Soft Legacy market due to heightened competition.

2. Claims inflation leading to the need to reserve more.

If it takes longer to fill Gibson RE it will bleed for longer. It's forecast to make a Pre Tax Operating Loss in 2022 of $28m, $8m loss in 2023 and $11m profit in 2024.