Rsa Insurance Group Ld Share Discussion Threads

[montyhedge] 19/12/2013 11:01

Six weeks ago bid rumours, now bidders they can save £1 billion, January sales will be on. RSA will be bid for.

[hvs] 19/12/2013 11:01

A bargain or a CAN OF WORMS ???

[montyhedge] 19/12/2013 10:55

That was only six weeks ago, lol

[montyhedge] 19/12/2013 10:55

They were thinking about a bid at 150p, now they can get a bargain at 105p.

[mr.elbee] 19/12/2013 10:36

Deloittes...oh dear!

[hvs] 19/12/2013 10:29

You mean more new business in Ireland ? Very profitable.

[envirovision] 19/12/2013 10:18

I imagine the regulator is all over this now, they wont mess around they will shut new business down if they have to until reserves are restored.

[cumnor] 19/12/2013 10:07

SP performing like deeply discounted RI imminent? imo

[dope007] 19/12/2013 10:04

How as those paper profits for those boasting? I hope they sold like portside did. Today they still can sell for a profit.

[hvs] 19/12/2013 09:52

Is this what we call a right RORAL mess like at the right Royal Bank of Scotland
aka Goodwin ?

The CITY does a good job.

First it was £ 150 mill then £ 250 mill then £ 500mill now is ita Billion ?

Ah well its only shareholders and savers money.

[cumnor] 19/12/2013 08:46

Hints of corruption and possible outright fraud here imho. Astonishing how such huge sums could be 'overlooked' by highly paid individuals and so called experts in the field. Going from huge surplus to suddenly needing to raise 1 BLN needs answers quick if there is to be any trust in blue chips or the regulator. imo dyor

[portside1] 19/12/2013 08:44

dutch yes reading that it more than stinks

[portside1] 19/12/2013 08:42

not looking good will we fall to below 50p

[dutch123] 19/12/2013 08:39

There is a smell here that is getting stronger by the day!!

Top shareholders in RSA are demanding explanations from the insurer's former auditor Deloitte for failing to spot accounting irregularities at its Irish arm which have damaged investor confidence in the FTSE 100 company.
Four of RSA's largest 15 institutional investors said they were turning their attention to the role of Deloitte after their pressure on RSA led its chief executive Simon Lee to quit last week.

One shareholder called on the UK's auditing watchdog, the Financial Reporting Council, to investigate.
People familiar with the situation said the FRC was monitoring the situation closely and could launch a formal investigation into RSA and Deloitte's failure to spot the problems in Ireland.
However, the FRC said no formal investigation was under way.
Investors said concerns they had raised about Deloitte's independence from RSA last year have deepened since the group issued three profit warnings in the past six weeks which have seen the insurer's shares fall 30 per cent.
Over those profit warnings, RSA has revealed accounting irregularities in Ireland and that it needs to strengthen its reserves by £200m in the country. Analysts have warned the group needs to raise up to £1bn to shore up its finances. The insurer is expected to slash its dividend and dispose of various assets. Bankers warn it is vulnerable to a takeover bid.
While scrutinising its accounts, Deloitte was paid £10m by RSA for management consulting, as well as tax and other advice. This compared with less than £6m in auditing fees.
The ratio of the non-audit bill to audit payments that RSA paid Deloitte was almost three times the average for FTSE 350 companies.
Deloitte said: "We are no longer auditor to RSA and it would not be appropriate to speculate on the detail behind recent statements. Deloitte is committed to delivering the highest quality audit services."
Some shareholders said they were not jumping to conclusions. One top 10 investor said: "Deloitte need to explain why they missed this. This is not a matter for a formal investigation by the FRC at this stage. But it could come to that, if there are not answers."
A fund manager at one of RSA's biggest institutional investors said: "We would like a clear explanation over why these accounts were signed despite this big black hole . . . There are question marks over the audit committee at RSA too."
The committee has been chaired by Alastair Barbour since June 2012. RSA has said it was looking at "at claims and finance issues" in the Irish business.
RSA replaced Deloitte, its auditor since 2007, with KPMG in May. At the time, the insurer said the "perception" of the independence of Deloitte as its auditor could be impaired, after the firm was appointed to advise on a technology project on top of initial work it conducted the previous year.
One top 20 investor said: "This should be a huge issue. You shouldn't have the consultancy tail wagging the audit dog."
Martin Scicluna, who became RSA's chairman at the start this year, chaired Deloitte from 1995 to 2007. His career at Deloitte spanned 36 years.
RSA's accounts for last year were signed off "for and on behalf" of Deloitte by David Barnes, senior statutory auditor.
Richard Houghton, finance director, has said RSA is "investigating the booking of large losses within claims and the timing of the recognition of earned premiums".
"The questions largely relate to the last two years, although there is some evidence going back into earlier years," he said.
RSA declined to comment on Wednesday.
Shares in RSA fell 1.85p to 90.55p on Wednesday. After the market closed Moody's, the credit rating agency, placed the insurer's A2 rating "on review for downgrade"

[portside1] 19/12/2013 08:35

more bad news to be given out today .
sell sell sell it I not going to be good news
you have been told CNBC tv

[sawadee3] 19/12/2013 08:13

Bagged more, not as good as those at 82p but still good for the future of my SIPP :-)

[wllmherk] 18/12/2013 23:16

thanks Kiwi

wllm

[diku] 18/12/2013 23:00

The other 11 are fast asleep!!....

[kiwi2007] 18/12/2013 22:57

Top shareholders in RSA are demanding explanations from the insurer's former auditor Deloitte for failing to spot accounting irregularities at its Irish arm which have damaged investor confidence in the FTSE 100 company.

Four of RSA's largest 15 institutional investors said they were turning their attention to the role of Deloitte after their pressure on RSA led its chief executive Simon Lee to quit last week.

One shareholder called on the UK's auditing watchdog, the Financial Reporting Council, to investigate.

People familiar with the situation said the FRC was monitoring the situation closely and could launch a formal investigation into RSA and Deloitte's failure to spot the problems in Ireland.

However, the FRC said no formal investigation was under way.

Investors said concerns they had raised about Deloitte's independence from RSA last year have deepened since the group issued three profit warnings in the past six weeks which have seen the insurer's shares fall 30 per cent.

Over those profit warnings, RSA has revealed accounting irregularities in Ireland and that it needs to strengthen its reserves by £200m in the country. Analysts have warned the group needs to raise up to £1bn to shore up its finances. The insurer is expected to slash its dividend and dispose of various assets. Bankers warn it is vulnerable to a takeover bid.

While scrutinising its accounts, Deloitte was paid £10m by RSA for management consulting, as well as tax and other advice. This compared with less than £6m in auditing fees.

The ratio of the non-audit bill to audit payments that RSA paid Deloitte was almost three times the average for FTSE 350 companies.......more...


I'm amazed that only 4 of the largest 15 shareholders want an answer from Deloitte !

[diku] 18/12/2013 22:19

Nearly every 5 years markets go through a deeper correction...so early 2014 will be the 5th anniversary of the market lows of 2009 to all time highs now....could be in for very interesting 2014...

[jonntara] 18/12/2013 22:11

Looking at the Dow Jones we may get a Santa rally after all

[dope007] 18/12/2013 20:42

Agreed warrenty. MY ISA's are mostly cash. All I do is short term small trades in spread. Done OK trading the VIX recently, closing my long yesterday.

[jonntara] 18/12/2013 20:36

Personally I am not sure how it will turn out. I am currently 90% long in equities which means I am either hopeful for the future or greedy and currently I am not sure.The magic of the down turn is working even though it is not pleasant to experience. Was looking at sourcing options for some production - our in-house UK factory or Asian 3rd party. The UK factory is cheapest because it is efficient and also because we are not suffering 25%pa wage growth. So there are some fundamentals underpinning the start of the recovery. I am thinking of late spring next year to change my allocation to a more balanced one. Feels right to me, but who knows maybe I am being greedy.

[warranty] 18/12/2013 20:04

I totally agree Dope, the world is kidding itself at the moment. The debt has gone nowhere, real earnings are falling and even more debt is being racked up with this latest ridiculous housing bubble. Equities are due a huge fall at some point and I'm just keeping my main pot of money for when the s__t hits the fan which it surely will. If I can keep nipping quick 10-15% nibbles until then I'm happy with that. In and out and no long term holds on anything for me just now.