Rsa Insurance Group Ld Share Discussion Threads

[hvs] 02/2/2014 11:15

lol !!!!!!

There is NO LONG TERM in the CITY.

Gives me my BONUS NOW.

[gutterhead] 02/2/2014 00:44

Short tern misery, long term joy

[diku] 01/2/2014 22:06

You is wait long time get your bonus...Board get bonus first!...

[hvs] 31/1/2014 09:46

Stuff the divi , give me my BONUS.

[jonntara] 31/1/2014 06:20

I understand the recently discovered black holes amount to around £200m. So the dividend would cover all of that in a year, but if older underlying issues add another £300m of funding requirement then clearly it doesn't.

[keifer derrin] 31/1/2014 05:07

last year they paid out a total of 7.31p per share and they have 3,668.91m shares so that comes roughly to a payout of 270m quid for the year - all the info is in the financials section on advfn.

[wllmherk] 30/1/2014 22:01

Hi Jon,

I'm not so sure passing on the dividend would save enough capital. Most commentators suggest a funding gap of £500m, the dividend doesn't come close to that I don't think, happy to be wrong though. Does anyone know how much the dividend cost the company last year ? :-)

wllm

[jonntara] 30/1/2014 21:25

From what I can see pausing the dividend for a year would more than close up all the recent losses. Even if they restart the dividend at a lower level the shares could be back up above where we are now just by removing the uncertainty and the chatter on the capital position. Basically just like aviva where a smaller business that is well capitalised is worth more than the old larger business that paid more dividends.

[wllmherk] 30/1/2014 20:57

With January out the way, well almost, February should clarify management plans to improve the capital position of RSA. The current CEO has been reported as not wishing to pursue a rights issue for fear of diluting existing shareholders, therefore, selling off assets would be the next logical path to go, but, that could hit future earnings and the assets being sold may not fetch the price the company wants. Could RSA issue corporate bonds or a debt for equity swap as an alternative means to raise capital. Would welcome the thoughts of others ?

wllm

[hvs] 29/1/2014 16:38

CLUELESS IDIOTS in CHARGE

Thats what the CITY LIKE

Reember Knighted FRED ?

U gets a Knighthood if you fills the RIGHT POCKETS

[dutch123] 27/1/2014 15:42

By Motley Fool | Mon, 27th January 2014 - 09:22

RSA Insurance Group plc (LSE:RSA) (NASDAQOTH: RSAIF.US) just cannot seem to get things right. After surviving near bankruptcy back during 2003, a decade later the company is once again teetering on the brink of disaster thanks to dodgy accounting.

In particular, RSA has found evidence of misleading accounting at its Irish division, which included the misreporting of claims, costs and premiums as a result of collaboration between some executives. All in all, RSA's management found a £200 million hole in its accounts and was forced to issue two profit warnings in the space of a month as a result.
Downgraded

Unfortunately, there could be bigger troubles ahead for RSA. You see, about half of RSA's business comes from customers who require the company to have a credit rating 'A', at least. With RSA's recent troubles, the company has been downgraded by Standard & Poor's credit rating agency to 'A-', the next level is 'BBB+' - below the 'A' threshold many customers require.

Moreover, RSA has been put on watch for further rating action within 90 days, which could imply the company is in line to be downgraded to BBB+. If this is the case, it is likely that RSA would lose half of its business overnight.
Strapped for cash

With RSA teetering on the brink of another rating action, City analysts have estimated that the company requires an additional £500 million to continue operating and avoid further scrutiny by credit rating agencies. Sadly, this implies that a rights issue could be on the cards and a dividend cut is also likely. However, analysts believe that RSA is unlikely to sell off some of its international business as this would hit profits, putting the company's dividend under further pressure.
Takeover or break up?

As RSA teeters on the brink there is speculation that the company will become the prey of a larger rival. Indeed, City analysts now believe that RSA could be worth more if it was taken over and broken up. In particular, it is estimated that RSA's break-up value could be in the region of 129p per share.

Actually, it has been widely speculated that Finnish insurance group Sampo, could make a swoop and then sell-off anything it does not want. With assets within Scandinavia and the Baltic's, RSA could be a great fit for Sampo.
Foolish summary

So overall, with a rights issue and dividend cut likely in the near future, I feel that investors cannot trust RSA again just yet.

One of RSA's most attractive qualities is its dividend yield, which currently sits at 6.2%. However, with this payout set to come under pressure as the company struggles for cash, it could be time to reevaluate RSA's position in your portfolio.

[dope007] 27/1/2014 11:09

No it ain't gutterhead

[hvs] 27/1/2014 08:08

Nothing is built into the share price

Watch out when they report. Is it a total train wreck ?

Get PWC in as mismanagers have NO CLUE.

Give me my NOPNUS the FAT SALARY is not enough.

FAILURE PAYS.

[gutterhead] 26/1/2014 22:58

No div already built into current share price.

[diku] 26/1/2014 22:55

You have your bonus yet?....or you not working in City...

[hvs] 26/1/2014 18:10

Was it 5 profits warnings and the CITY LOVES this stock.

An IDIOT from ASIA is lining up a BID. Get in QUICK.

Give me my BONUS stuff the divi.

[portside1] 26/1/2014 17:55

div to be stopped to help fill the debt . no divs for the next 18 months at least . these will now fall . sell sell sell.

[diku] 25/1/2014 19:46

What is this tentative approach?...just don't tell Monty!..

[warrenbuffet2] 25/1/2014 17:35

FT market report...RSA squeezed up 2pc amid renewed gossip of predatory interest from an Asian peer,with the group said to have rejected a tentative approach.

[keith95] 22/1/2014 14:40

Sold some at 102.5 a week or so ago and bought back in at 99.5 this morning .. sold a bit early ... but 2% profit gets the average down :)

[keith95] 22/1/2014 14:16

Look at the Stan shareprice yesterday when takeover talk hit the news ....

Great if long :)

[diku] 22/1/2014 13:56

Hillarious though...

[wllmherk] 22/1/2014 12:51

hvs
are you drunk ?

wllm

[hvs] 22/1/2014 12:28

WASIT 3 OR 4 PRITS WARINGS AND A bid

lETS HAVE A lughh