Rsa Insurance Dividends - RSA

Rsa Insurance Dividends - RSA

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Rsa Insurance Group Plc RSA London Ordinary Share GB00BKKMKR23 ORD GBP1.00
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
-12.30 -2.79% 429.20 411.90 429.30 427.10 441.50 16:35:11
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Rsa Insurance RSA Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

loganair: Forget gold and Bitcoin! I’d invest in this FTSE 100 stock to get rich and retire early RSA: Insurance business RSA (LSE: RSA) is another FTSE 100 share that could deliver impressive total returns in the long run. Its recent trading update showed that it is making progress in its aim to improve the customer experience. It has also delivered improved underwriting results, despite market conditions being competitive. The stock is forecast to post a rise in net profit of 8% in the next financial year. Since it trades on a price-to-earnings (P/E) ratio of 12.1, it seems to offer good value for money at the present time when compared to its wider sector. This suggests that it may deliver a rising share price over the coming years. Furthermore, RSA is expected to raise its dividends per share by around 11% in the next two financial years. This puts it on a forward dividend yield of 4.6% from a shareholder payout that is expected to be covered twice by net profit. Therefore, it could become increasingly attractive from an income investing standpoint, which may lead to greater investor demand for its shares. As such, now could be the right time to buy it as its growth and income investing prospects look set to improve.
loganair: Is FTSE 100 faller RSA Insurance a top buy after 9% plunge? Shares in RSA Insurance Group (LSE: RSA) fell by 9.9% in morning trading Friday, as the FTSE 100 insurance giant revealed a disappointing third quarter. Heavier-than-expected UK losses have led to an underwriting loss for the quarter, leading chief executive Stephen Hester to tell us that “actions to improve in the UK are well under way,” while the company reported a strong period in its international business. Problems in the UK stem partly from bad weather losses, but RSA’s motor and marine insurance sectors have been suffering too. But on the upside, UK household and commercial property insurance saw improvements. Although reported pre-tax profit should be ahead of last year, on an underlying basis it’s expected to come in below 2017’s result — and that was put down “primarily to elevated weather costs.” Buy or sell? What does all this say about RSA as an investment, and has it hit Mr Hester’s “best-in-class ambitions” for the company? Well, the first thought that strikes me is that insurance companies are in the business of shouldering risk for their clients, so when things go bad it’s the company that takes the hit and not the person with a wind-blown tree crushing their car, or whatever calamity it is. So investors should expect to see quarters like this, which are pretty much inevitable for any insurance company. And as an investor who likes the insurance business myself, I’d be looking to top up on share price drops like this. On the whole, I still see RSA as a solid long-term investment.
loganair: Barrie Cornes, equity research analyst at Panmure Gordon, noted that the profit warning was a “bit of a blow” and expected RSA’s shares to be “under pressure” today. He commented: “RSA is a well-run business and non-life insurers will of course be subject to large weather losses from time to time. “Although the share price has come off Summer highs where we viewed them as being priced for perfection, we still think that they are fully valued.” Equity Analyst Robert Stephen said "the prospects for the RSA share price in the near term could be uncertain. Investors have reacted negatively to today’s update, and this could cause further declines in the company’s valuation over the short run." "In the long term, I feel that the company has a sound strategy through which to generate improving financial performance. It has a P/E ratio of around 12 at the moment, and is forecast to post double-digit EPS growth in the next financial year." "As a result, it seems to offer good value for money to my mind, while a forward divided yield of 5.5% for next year means it could also have income investing appeal in the coming years."
loganair: If Allianz decides to make a bid for RSA it seems to me a realistic offer would be between 750p and 800p or around a 10% to 20% premium from where the current share price is. Overall I will be very happy to take an offer between 750p and 800p.
loganair: It seems to me, until some thing major happens, the share price of RSA is going to struggle to get above 700p and will likely trade side ways in the 600p to 700p range. 700p takes the share price back to where it was in 2011 and in old money, before the 1 to 5 share consolidation is only 140p, when years ago the share price was over 600p in old money or £30 in to days share price.
loganair: RSA has been told only a full sale will get best value for shareholders and selling bits of the business is not now beneficial. Berenberg said today: ”The pension liability and loss of diversification benefits in its capital model mean disposing of any remaining operations is unlikely to be beneficial for RSA shareholders.” Berenberg said in its note that chief executive Stephen Hester had hinted RSA’s different parts of the business together, when compared to peers, meant a valuation of £8.50 on share price, valuing the company at £8.7bn. The firm is currently trading at £6.34, with a market capitalisation of £6.51bn. But Berenberg said Hester way of valuing the business - called sum-of-the-parts - was ‘likely unattainable without a bid forthcoming’. Elsewhere, Berenberg praised Hester’s transformation of the business and said it can double 2017 earnings to £540m by 2019, hitting an impressive combined ratio in the low 90s. The bank analysts at Berenberg said RSA can now concentrate on operational improvement. “All the boxes have been ticked; the balance sheet is in good order, leverage is at a suitable level; the company has a clear and rational footprint; and its operations are underwriting profitability,”; Berenberg said.
loganair: Barrie Cornes, analyst at Panmure which has a hold rating on the stock, said RSA's recent strong share price performance had cut the chances of an offer for the company after rival insurer Zurich (ZURN.S) abandoned a bid in 2015. RSA said it would pay an interim dividend of 6.6 pence, up 32 percent but below a forecast 7 pence. Hester told a media call the company was still on track to offer further cash to shareholders in 2018 through special dividends or share buybacks. "The dividend upgrade we forecast did not occur," KBW analysts said in a note, though they reiterated their outperform rating on the stock.
fenners66: I think there is room for the dividend yield to rise here without necessarily a rise in the share price, after all traditionally the yield was higher than it is now.
dutch123: THIS ANNOUNCEMENT IS NOT AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND THERE CAN BE NO CERTAINTY THAT AN OFFER WILL BE MADE. FOR IMMEDIATE RELEASE 25 August 2015 RSA Insurance Group plc Update regarding Possible Offer for RSA Insurance Group plc ("RSA" or the "Company") The Board of RSA (the "Board") announces that it has received a revised proposal from Zurich Insurance Group ("Zurich") regarding a possible all cash offer for the Company at 550 pence per ordinary RSA share (the "Possible Offer"). In addition, under the terms of the proposal, RSA ordinary shareholders retain the right to receive the 3.5 pence interim dividend announced by RSA on 6 August 2015. The Possible Offer is conditional on, amongst other things, due diligence and the recommendation of the Board. The Board has indicated to Zurich that it would be willing to recommend an offer at the level of the Possible Offer to RSA shareholders subject to the satisfactory resolution of the other terms of the offer. Accordingly, the Board is in discussions with Zurich in relation to these terms. As required by Rule 2.6(a) of the Code, Zurich is required, by not later than 5.00 p.m. on 25 August 2015, to either announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer. With the consent of the Takeover Panel, RSA has agreed to an extension of the relevant deadline under Rule 2.6(c) of the Code until 5.00pm on 22 September 2015 to enable the parties to conclude their ongoing discussions. This deadline may be extended further with the consent of the Takeover Panel, at RSA's request, in accordance with Rule 2.6(c) of the Code. Zurich has reserved the right to make an offer for RSA at any time, with a value less than 550 pence per ordinary RSA share (less any dividends declared, made or paid, other than the 3.5 pence interim dividend announced by RSA on 6 August 2015):
spob: December 13, 2013 6:08 pm RSA looks in need of fresh capital By Alistair Gray and David Oakley FT A decade ago RSA earned the nickname Rapidly Shrinking Assurance when it sold off big chunks of its operations, helping revive the fortunes of the then-troubled insurer. On Friday, after RSA issued its third profit warning within a month, investors were left asking whether another bout of slimming down would work this time. More ON THIS STORY RSA warns as losses at Irish unit mount Video Crisis at RSA Lex RSA – not so assured Ireland poised to exit EU bailout RSA's Irish expansion runs out of luck ON THIS TOPIC European storm to cost insurers €1.4bn Lombard RSA / Thomas Cook / bricks RSA Irish chief resigns amid probe Questions linger over regulation as RSA Ireland chief exits IN INSURANCE Regulators warn on insurance accounting Ward joins Brit as owners eye exit Prudential raises dividend expectations Swiss Re hunt for Admin Re partner continues The UK's biggest non-life insurer by market capitalisation, whose chief executive Simon Lee finally stood aside on Friday after months of questions about his future, looks like it needs fresh capital. Richard Houghton, finance director, says the group's capital position is "adequate" but adds: "We want to be in a far more comfortable position." "Adequate isn't good enough," says Barrie Cornes, analyst at Panmure Gordon. Most big listed UK insurers hold at least £1.5bn more than the funds required by regulators but RSA is now estimated to have a surplus of little more than £600m. How RSA will shore up its balance sheet is less clear than its need to do so, however. "They are caught between a rock and a hard place," as one top 10 investor in RSA sums up the mounting problems at the insurer. For some companies needing to raise cash, the answer would be simple enough – launch a rights issue. However, given the weakness of RSA's shares – which fell 7 per cent on Friday – and that the group is so out of favour in the City, its board may struggle to successfully go cap in hand to shareholders. Martin Scicluna, chairman, appears to recognise this – at least for now. "We will do everything necessary to ensure our capital is strong, and is perceived to be strong," he says. But he adds that RSA has "no current plans" to raise fresh capital from shareholders. His problem is that few of the alternatives look particularly palatable. Although Mr Scicluna would not spell it out on Friday, it now looks highly likely that RSA will cut its dividend for a second consecutive year. We will do everything necessary to ensure our capital is strong, and is perceived to be strong - Martin Scicluna, chairman Even so, cutting the payout will be no panacea for the group's ills. RSA is looking at disposals to shore up its balance sheet. "We've got some excellent businesses around the world, some excellent assets," says Mr Scicluna. "Nothing is ruled in on any countries; nothing is ruled out." All or parts of RSA could be of interest to European insurers such as Zurich or Allianz. Most of the disposal options seem to have big drawbacks for RSA, however. A sale of the Scandinavian business would be likely to bring in the heftiest sum for RSA, but the group is heavily reliant on cash flow from its operations in the region, say analysts at Berenberg. Alternatively, RSA could sell its Canadian or Latin American business for a premium to its book value. However, Berenberg warns RSA would then be shedding some of its brightest prospects. Meanwhile, the likelihood of a single-digit return on equity this year with reduced dividends will be far from pleasing to RSA investors. Several top shareholders welcome Simon Lee's decision to quit – he will receive a year's salary of £824,000 – as they say his position had become untenable. RSA could use his departure as a platform for a turnround, they say. I would like to see some more reassuring comments from the chairman that they are taking action to stop the rot - Leading RSA investor Even so, the mounting problems with its Irish unit, where there are alleged accounting irregularities, and concerns that the books had been signed off by Deloitte, the tax and consulting group, run deep and will not be solved by a simple change at the top. Indeed, even though he has only been in the job for less than a year, there are already question marks over Mr Scicluna's stewardship as chairman. For now though his position looks secure. The disruption caused by forcing him out would risk a further crumbling in the share price. He is now set for a spell lasting several months as an executive chairman while RSA looks for a permanent successor to Mr Lee. The obvious internal candidate for the job, say analysts, is Adrian Brown, who runs RSA's UK business and is temporarily looking after Ireland. Rowan Saunders, chief executive of the group's Canada business, is an outside possibility. Analysts speculated on Friday that RSA could even turn to its former chief executive, Andy Haste. For the time being, the group has indicated that shareholders will need to wait until RSA's full-year results in February to learn about the concrete steps it plans to take to boost its balance sheet. That is not good enough for some. "I would like to see some more reassuring comments from the chairman that they are taking action to stop the rot," says one of RSA's leading 10 investor. "That would be a step in the right direction." Price of debacle While RSA has been at pains to stress that none of its policyholders have been adversely affected by its financial difficulties at its Irish arm, consumers in the Republic could still pay the price of the debacle through higher insurance premiums, write Alistair Gray and Jamie Smyth. The insurer has moved to reassure customers that in spite of the accounting irregularities discovered in Ireland, it is still paying policyholders' claims as normal. Even so, the problems of RSA in Ireland – where it operates the well known brand – are likely to have a knock on effect on the wider insurance market in the Republic. Jonathan Hehir, managing director of, an Irish insurance broker, says: "We have already had customers contacting us looking for an alternative quote after being hit by a 30 per cent increase in their renewal premium." RSA had been aggressively growing in the Republic. Its expansion has kept the market competitive: motor premiums fell by an estimated 10 per cent in the year to October. But some brokers believe a more cautious approach from RSA will contribute to upward pressure on premiums. "We estimate that motor insurance premiums will increase by 10-15 per cent over the next 12 months," says Mr Hehir. Although apparent irregularities in the way RSA accounted for premiums and claims are company-specific, brokers say there is also a wider trend of more frequent and higher-cost injury claims that applies to the insurance market overall. Ciaran Phelan, chief executive of the Irish Brokers Association, says: "There has been a significant increase in claims over the last couple of years and it is inevitable that this will lead to some hardening in rates." Comments Sorted by newest first | Sort by oldest first Reportmfj775 | December 14 10:29am | Permalink After nearly 50 years with the RSA, and having become disenchanted with the terms and conditions of both the RSA Homeowners' policy and its motor policy, I moved my business to the Zurich for my house and to AXA for my car. I not only saved money by my move but the terms and conditions were much better. I tried to point out to RSA the reasons for my move but they ignored me. As a former FTSE finance director I can only say that I am not surprised at their problems.
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