Rsa Insurance Group Ld Share Discussion Threads

[skinny] 09/2/2015 13:34

Probably Deutsche downgrade today :-

Deutsche Bank Hold 438.10 500.00 450.00 Reiterates

[chancer] 09/2/2015 13:31

And the share price once again declines.

Results not as good as expected maybe leaked out or just rumour to not reinstate dividend ?

[loganair] 22/1/2015 17:43

RSA Insurance's shares were given a boost by an upgrade by Credit Suisse from 'neutral' to 'outperform', as the bank delivered an upbeat outlook for the UK insurance sector.

"The fundamental appeal of the UK life and savings companies is underpinned by low interest rate risk, solid growth dynamics and attractive dividend profiles," Credit Suisse said.

The broker reckons that delivery on cost and operating return targets will provide RSA with the capacity for a sharp improvement in capital returns.

The broker added: "Having addressed the structural weakness in the balance sheet, streamlined the strategic focus and embarked on a cost reduction programme, we expect RSA to begin to deliver a return profile more in line with what investors demand from a P&C company."

Analysts have upped their target price to 525p a share from 450p.

[jeffcranbounre] 22/1/2015 17:41

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[loganair] 16/1/2015 21:43

RSA Insurance Group is considering the sale of its Middle Eastern business, people with knowledge of the matter said.

RSA, whose operations span Europe, Asia, Latin America and Canada, is working with UBS Group AG on the potential sale of the unit, which may fetch less than $300 million, the people said, asking not to be identified as the information is private. A sale may kick off as soon as next month, one of the people said.

The business may attract interest from global rivals including France’s AXA SA, Zurich Insurance Group AG of Switzerland and local Middle Eastern firms including Qatar Insurance Co., they said. No final decision has been made and the insurer may choose not to sell the company, they said.

RSA continues to review options for its Middle East business, the insurer said in an e-mailed statement, adding that no decision is imminent and the company is not in discussions with any interested parties.

In the Middle East, RSA operates in Saudi Arabia, the United Arab Emirates, Bahrain and Oman. The unit generated about 150 million pounds ($228 million) in net written premiums in 2013, according to the insurer’s annual report.

Asset Sales:

RSA Chief Executive Officer Stephen Hester, who joined in February last year after an accounting scandal, has been cutting costs and selling assets to bolster the company’s balance sheet. The former banker has sold businesses throughout Asia, the Baltics, Poland, Italy and Canada, reversing a decade of expansion.

The company is currently reviewing its Middle Eastern business, which may lead to a potential sale of the unit, RSA said in a prospectus issued by its Saudi Arabian unit this month.

Representatives for AXA and Zurich declined to comment. Representatives for Qatar Insurance didn’t respond to requests for comment.

[loganair] 11/1/2015 16:46

3 Finance Stocks Set To Soar: Barclays, Aviva And RSA Insurance Group:

RSA

Having endured a tough time in recent years, with allegations of accounting scandals and a share price that has declined by a third in the last five years, things seem to finally be on the up for investors in RSA (LSE: RSA). That’s because the insurance stock is expected to increase its bottom line by 24% in the current year, and by a further 14% next year – both of which are considerably faster growth rates than the wider index and the majority of its sector peers.

Despite this, shares in RSA continue to trade on a relatively low valuation. For example, they have a P/E ratio of just 12.5 and, when combined with such a strong rate of growth, this equates to a price to earnings growth (PEG) ratio of just 0.5, thereby indicating that growth is on offer at a very reasonable price. As such, shares in RSA could reverse the decline of previous years moving forward.

[hvs] 05/1/2015 17:49

It will be .

MONEY FOR OLD ROPE

John Napier - Chairman

GIVE HIM THE SACK

[hvs] 30/12/2014 15:48

HESTER to get a very nice BONUS and PENSION TOP UP ?

Is this true ?

Is it REAL ?

[loganair] 27/12/2014 16:15

RSA is in talks to sell a division which helps employers to comply with industrial safety requirements, the latest in a string of asset disposals since ousting its chief executive last year.

RSA is preparing to offload its Engineering Inspection unit, which provides risk assessments to businesses and a range of consulting services.

The insurance company is in talks with Inflexion Private Equity about a sale of the business, which has been categorised as non-core by Stephen Hester, its chief executive.

Other potential buyers are said to be interested in the business, which is likely to be worth a price in the low tens of millions of pounds, according to an insider.

The unit employs more than 450 engineer surveyors, who carry out more than 2m inspections annually, according to RSA's website.

RSA, which owns the More Than brand, has endured a difficult 12 months, although its shares have begun to recover from their 2013 lows.

Mr Hester has outlined a plan to slash RSA's cost-base by around 10%, which could involve roughly 1000 job cuts.

RSA's restructuring comes as Aviva proceeds with a £5bn-plus takeover of Friends Life.

RSA and Inflexion declined to comment.

[hvs] 15/12/2014 15:43

Anyone seen HESTER with his PENSION TOP UP ?

[hvs] 01/12/2014 17:08

Its BONUS time and more FREE shares soon.

Not to mention PENSION TOP UP time.

FAILURE is rewarded very very well in THE CITY

ah well ITS ONLY OTHER PEOPLES MONEY

[loganair] 01/12/2014 16:58

Following two years of colossal earnings drops, RSA Insurance Group has embarked on an extensive restructuring package to reinforce the balance sheet and bolster earnings. This programme has seen the business divest businesses from China to Italy, Hong Kong to Poland, and most notably includes the $460m sale of its Canadian Noraxis division in April.

These measures are not a magic wand, however, particularly as the effect of these sales are hampering revenues. But following an anticipated 18% earnings decline this year, to 28.9p per share, RSA is predicted to punch a 25% bounceback in the following 12-month period, to 36.1p.

Consequently a rather unappealing P/E multiple of 16.4 times for this year predicted earnings falls to just 13.1 for 2015.

[hvs] 01/12/2014 14:51

Oh Dear Oh Dear

Hester is here.

Why this drop.

[hanse495] 01/12/2014 14:07

Why the big drop in share price today?

[chancer] 26/11/2014 14:53

£6:00 will be the old equivalent of £1:20.
Equivalent to a 30% increase from current price.

[hvs] 23/11/2014 14:03

HESTER is BRILLINT

They CITY shysters LOVE him.

WE will se £ 6.00 soon.

Its ONLY OTHER PEOPLES MONEY.

[loganair] 23/11/2014 11:47

I am hoping for the RSA share price to fall a little as I would like to pick up a few more at between 400p and 430p.

[optomistic] 23/11/2014 11:22

Well at least 3 analysts out of that lot will be right in their presumptions....but which ones?
Load of guess work!

[tfergi] 19/11/2014 13:03

When are RSA forecast to start paying dividends again ?

[hvs] 17/11/2014 17:32

BUY BUY BUY

CITY SHYSTERS LOVE IT.

[hvs] 07/11/2014 12:41

Like BONUS and PENSION TOP UP u mean ?

[chancer] 07/11/2014 12:11

At least they tell the truth, unlike Tesco.

Overheads reduced and returning to customer focus service. I remember ADT many years ago took this stance before finally being taken over by TYCO.

It is best to repair the leaking bucket rather than constantly adding more water that just leaks out.

[loganair] 07/11/2014 11:57

Admiral Group edged lower after publishing its third quarter update this morning, reporting a 5% fall in UK car insurance turnover, despite a 5% increase in the number of customers!

However, the damage had already been done to Admiral’s share price earlier this week, when peer Esure Group reported an 8.8% fall in UK motor premiums, despite customer numbers remaining unchanged.

RSA Insurance Group has also fallen 7% this week, partially because of dismal UK motor numbers, but unlike its two peers, it isn’t dependent on this market, and is showing signs of recovery elsewhere.

Turning point?

However, the best time to buy is often at the point of maximum bad news, and there are some signs we may be reaching this point.

Admiral’s colourful CEO, Henry Engelhardt, said this morning that “Prices in the competitive UK car insurance market appear to be stabilising after a period of rapid deflation.”

Mr Engelhardt’s comments are backed up by the latest figures from the AA’s British Insurance Premium Index, which reported a £6 — or 1.2% — increase in the average premium during the third quarter.

However, the AA’s latest report also noted that the average car insurance premium is still 14.4% lower than at the same time last year — good news for drivers, but bad news for investors in Admiral and Esure, as continued price pressure could threaten the special dividends shareholders have become used to receiving.

Today’s best buy?

Admiral and Esure are dependent on the UK car insurance market, which is likely to make them more volatile, over the medium term, than an international general insurer such as RSA.

However, consensus forecasts for Admiral and Esure are still pricing in special dividends for 2014 and 2015, giving prospective yields of around 8% for both companies. These make RSA’s 2015 prospective yield of 3.7% seems puny, but it’s worth remembering that without special dividends, Admiral and Esure would offer similar yields.

I believe RSA is a better long-term buy than the two car insurers, thanks to its size and diversity.

However, shares in both Admiral and Esure have fallen by 20% since July, and Admiral, in particular, appears to be well positioned to benefit from any upturn in motor premiums, and would be my pick for a medium-term trade.

Admiral and Esure's regular use of special dividends is a dilemma for investors: how reliable are these discretionary payments, which significantly increase both firms' yields?

[loganair] 07/11/2014 11:13

Canaccord Genuity lowered its rating on RSA Insurance Group from a Hold to a sell rating in a research note issued to investors on Friday and currently has £4.40 price target on the stock.

Deutsche Bank, which repeated its ‘hold’ recommendation, cautioned investors: “Weaker than expected top line growth negates the impact of planned cost savings and puts further upwards pressure on the expense ratio near-term.”