Rsa Insurance Group Ld Share Discussion Threads

[harleymaxwell] 15/8/2019 13:40

Perky today.Insurers seeing rates up

[loganair] 01/8/2019 22:28

Peel Hunt analysts reiterated their “Buy” rating on the stock, saying that “RSA’s main catalyst is its ability to turn around the commercial lines business ... and possibly carve out the unit as a separate business within the group.”

RSA said it would pay an interim dividend of 7.5 pence per share, from last year’s 7.3 pence.

[fenners66] 17/7/2019 12:03

Wow this board is quiet for such a large company.
Still here goes.
Anyone know why the shares are on such a slide today?

[loganair] 05/4/2019 17:01

Barclays Capital reaffirms its overweight investment rating on RSA Insurance Group PLC (LON:RSA) and raised its price target to 585p.

Goldman Sachs reaffirms its buy investment rating on RSA Insurance Group PLC (LON:RSA) and cut its price target to 641p (from 664p)

[loganair] 07/3/2019 09:43

RSA shares gain as UBS turns positive on the stock:

UBS raised its rating on the stock to ‘buy’ from ‘neutral’; and lifted its target price to 600p from 550p.

RSA Insurance Group (LON:RSA) is well placed to deliver against lower consensus market expectations as it undergoes a significant year of restructuring, UBS said upgraded its recommendation on the stock.

RSA said it had taken actions to address the underperforming areas of the business and expects a “good recovery” in 2019.

The broker said that since its last note on RSA, consensus forecasts for earnings per share (EPS) in 2019-20 have fallen by about 4% while the stock trades at a 30% discount to its synthetic sum of the parts valuation.

UBS also noted that RSA has announced comprehensive remedial actions across the UK book.

“We now find RSA well placed to deliver vs. lower expectations; UBSe 2019-21E EPS is 2-10% ahead of consensus; we believe gradual delivery can help close RSA's execution discount.

“We see this as an attractive entry point to a stock with attractive assets, defensive characteristics, self-help and an improving dividend yield underpin.”

UBS said it attributes less execution risk to companies that are restructuring and shrinking to greater profitability than those seeking to grow.

It said 2019 represents a “significant year of restructuring for RSA” and thinks the company is well placed to deliver on the back of major re-underwriting, re-pricing and enhanced reinsurance purchasing.

“We also note UK household trends appear to be stabilising, and there is a pricing tailwind in the London Market,” UBS added.

Earnings volatility stemming from the London Market business has sparked concerns around RSA’s ability to lift its payout ratio beyond the 40-50% target.

In that context, UBS thinks it is positive RSA has shed 50% of its London Market book and reinsured more out. The investment bank reckons lower volatility should help RSA lift the payout ratio.

“Execution is key here, but we expect remedial actions to kick in through 2019. Our 2019 dividend per share expectations are in line, but we're 3% ahead in 2020 and at an estimated 70% pay-out by 2023.”

[harleymaxwell] 06/3/2019 22:14

Couple of massive buys today.....

[harleymaxwell] 01/3/2019 19:33

Good recovery - weeding out some of the poorly performing parts and this cud be snapped up by a competitor.

[loganair] 13/11/2018 19:19

RSA cuts some London-based global business in profit pursuit:


RSA plans to pull out of several international business lines run out of London which it says are unlikely to produce the returns which the British insurer is seeking following a September profit warning.

Closing International Construction, International Freight and Fixed Price Marine Protection and Indemnity Insurance was part of efforts to streamline international exposure and improve underwriting, pricing accuracy and risk management, RSA said.

The decision to ditch the businesses followed RSA’s assessment that they were “unlikely to satisfy the Group’s profitability requirements in the foreseeable future”.

RSA said it would instead focus instead on International Hull, International Cargo and Transportation, International Property and International Engineering and Renewable Energy.

International Marine Cargo and International Marine Transportation would be restructured into a single unit under new leadership and exposures would be cut “significantly” to focus on areas where sustained profitability could be achieved.

RSA said it expected to reduce premiums written through the London Market by around a third year on year in 2019.

[loganair] 02/10/2018 13:46

UBS today reaffirms its neutral investment rating on RSA Insurance and cut its price target to 600p (from 635p).

Deutsche Bank today reaffirms its hold investment rating on RSA Insurance and cut its price target to 610p (from 650p).

[loganair] 01/10/2018 11:45

BERENBERG RAISES RSA INSURANCE TO 'BUY' ('HOLD') - PRICE TARGET 657p

[pvee] 29/9/2018 17:35

Newbie here since the drop on Friday as I'm looking to move into more 'stable' sectors if the market goes belly-up.

Recognised a name that was familiar but didn't think anything more about it until today wheen I did a bit of basic research and lo and behold, a name at the top which hasn't filled me with confidence in the past. I hope I'm wrong


Royal Bank of Scotland

In November 2008, he left British Land and replaced Fred Goodwin as Chief Executive of the RBS Group. Hester was paid an annual salary of £1.1million by RBS.[8] Alongside this, he took home £1.5m in bonus and pension payments in 2010.[9] In 2012 he was offered a bonus of just under £1 million, but following some considerable pressure from politicians and the public, he declined the bonus.[10] Later in 2012, in June, he declined his bonus for the following year after RBS' computer problems.[11]

In December 2009, the board of RBS, in which the British government had an 84% stake, threatened to resign unless they were permitted to pay bonuses of £1.5bn to staff in its investment arm.[12] The matter received heavy criticism because it followed a £50bn taxpayer bailout of the banking sector.[citation needed] The Chancellor of the Exchequer, Alistair Darling, said he would not be "held to ransom".[13]

On 12 June 2013 Royal Bank of Scotland announced that Hester would be stepping down as CEO in December 2013, after five years with the bank. He had been brought in to help restructure the bailed-out bank in 2008, at the beginning of the global financial crisis. His leaving package would be in excess of £1.6m.[14]

[par555] 28/9/2018 15:02

Poor results put down to " primarily due to elevated weather costs " rings rather similar to the excuse put forward in an attempt to justify a proposed 20% increase in my home insurance premium a few months ago despite no changes in levels of cover or excess. That excuse was " national increase in escape of water claims ". Wouldn't negotiate so I found commensurate cover at reduced price with another insurer.How many other customers had the same experience and took similar action I wonder ?

[loganair] 28/9/2018 13:37

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.

[beckaroo] 28/9/2018 11:32

I don't understand why they are blaming the weather in the UK in Q3. Surely the weather was perfect with very few rainy or windy days. Why were weather losses big? Fires?

[lodgeview] 28/9/2018 11:22

Profit warnings come in threes. I'm short here.

[loganair] 28/9/2018 10:54

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."

[rumpy pumpy] 28/9/2018 10:24

Well that's overdone

[harleymaxwell] 17/8/2018 16:30

Nice spike.Bid coming from Allianz maybe?

[blobby] 02/8/2018 10:02

Interims today and a good increase in the interim dividend. Profitability seems OK but I'm a little worried about the reduction in business:

"Net written premiums ('NWP') of £3,219m down 5%"

[red army] 22/6/2018 12:06

Understood but there is always a premium to pay.

[loganair] 22/6/2018 11:40

RA - I do not see such a high value on RSA.

I understand RSA has a Future Cash Flow Value of around 775p.

[red army] 22/6/2018 11:25

The chart is suggesting £12 which would be my target.

[loganair] 20/6/2018 09:56

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.