Rsa Insurance Group Ld Share Discussion Threads

[loganair] 28/7/2015 15:07

Reporting that Zurich's RSA interest could flush out bids from AXA, Allianz and AIG to name but 3.

[bad robot] 28/7/2015 13:15

RSA Insurance Group plc - Board notes Zurich announcement

RSA Ins Grp Statement re Possible Offer

The Board of RSA Insurance Group plc ("RSA") notes the announcement by Zurich Insurance Group ("Zurich") that it is evaluating a potential offer for RSA. RSA has not held talks with or received a proposal from Zurich and shareholders are advised to take no action.


RSA looks forward to updating the market on trading performance and strategic progress at the interim results announcement on 6 August 2015.


Statement re. Possible Offer

[bad robot] 28/7/2015 13:14

COMPANIESRSA Insurance: no talks held with Zurich
18 minutes ago
URL
RSA is putting out the message that it is business as usual despite a statement from Zurich of Switzerland earlier on Tuesday, confirming that it is examining a potential offer for the FTSE 100 insurer.

RSA has clarified that it has not held talks with, nor has it received a proposal from, Zurich. Its shareholders are therefore advised to take no action.

Zurich issued a statement this morning following a report in th

[loganair] 28/7/2015 12:57

Clearly, there has been discussion of the potential for takeovers within the insurance market in recent months, with a combination of low valuations and new rules regarding cash balances making diversification and mergers a more appealing prospect. And, in the last month, shares in RSA have gradually crept up from less than 400p to 450p prior to today’s announcement from Zurich.

Of course, on the one hand a takeover for RSA would be good news for the company’s investors. It is likely to mean a substantial premium to the company’s share price prior to today’s announcement and, for investors looking for a quick gain, this would be a dream scenario. However, for longer term investors, the company’s new strategy holds considerable promise and it could be argued that there is significant potential for further capital gains in 2016 and beyond without RSA being taken over.

In fact, RSA’s new management team, led by Stephen Hester, is doing a very good job of rationalising the business and shoring up its financial standing. As such, RSA is set to return to profitability in the current year and post earnings growth of 7% next year. This shows that the company is moving in the right direction and, with RSA trading on a price to book (P/B) ratio of just 1.16 even after today’s share price move, it appears to be very cheap at the present time. As a result, share price appreciation over the medium to long term appears to be very much on the cards without a bid.

Furthermore, RSA looks set to become an excellent dividend stock once more, with its shareholder payouts having the potential to increase at a rapid rate over the medium term. For example, it may yield only 2.1% after today’s share price rise but, with dividends being covered almost three times by net profit, there is tremendous scope for their rise moving forward. And, when earnings growth is also factored in, RSA could return to its status as a great income play in the years ahead.

Certainly, the fact that RSA is the subject of considerable takeover speculation shows that the company is turning its fortunes around after the accounting scandal and profit warnings that occurred in recent years. However, there could still be considerable value to be unlocked, which means that investors in the company seem to be in a win-win situation so that they stand to benefit whether a bid is made for the company, or not.

[chancer] 28/7/2015 11:46

6 AUG 2015

Announcement of 2015 Half Year Results

[chancer] 28/7/2015 10:53

Under stock market rules, Zurich must now confirm by 5pm on 25 August whether it will make a formal offer for RSA. Zurich could apply for an extension to this deadline, but if it decides to walk away then it will be blocked from making an offer for the British insurer for at least six months.

[dutch123] 28/7/2015 10:42

hxxp://www.sharecast.com/news/zurich-insurance-mulling-royal-mail-bid/23100216.html SHARECAST HAVE IT AS ROYAL MAIL HAH IT IS ABOUT RSA..INTERESTING READ, IT SAYS £5.50 SEEMS TO BE A FAIR PRICE..£1.10 OLD MONEY, TOO CHEAP.

[skinny] 28/7/2015 10:42

Well done to holders here - I only had a recent S/B from 405p which was closed @500p - about the level that I sold my last actual holding.

[dutch123] 28/7/2015 10:27

£1.25 old money...it was always hovering around there so seems plausible.

[blueteam] 28/7/2015 10:09

£6.50 being talked about, so plenty of upside

[loganair] 28/7/2015 10:01

The cash-rich group confirmed speculation this morning that it was considering a bid for the group, which employs 1,500 staff in Liverpool at its Old Hall Street offices and its More Th>n general insurance operation.

The group put a statement out this morning, saying: “Zurich notes the recent market speculation in relation to RSA Insurance Group PLC and confirms that the company is evaluating a potential offer.

“This announcement does not amount to a firm intention to make an offer and there can be no assurance that any offer will be made.”

However, stockbroker Panmure Gordon said it believes an offer will be made.

Analyst Barrie Cornes said today: “Zurich Insurance has confirmed that it is considering a possible bid for RSA following the recent press speculation that has seen RSA’s share price move up very quickly in the last week or two from sub 400p/share to 438p/share.

“While there is, of course, no certainty that a bid will be forthcoming we think that one is likely.”

Zurich has until August 25, to make a firm offer or announce that it does not intend to make an offer.

But Mr Cornes believes now that Zurich has broken cover, it could force other bids into the open.

“We think that RSA is now effectively in play.

“We believe that others will now place the slide rule over the company that has, for many many years, been a perennial takeover story.

“We think that RSA’s core businesses of UK, Canada and Scandinavia all hold attractions, while the Latin American business could be sold off for circa £400m to £500m as has been speculated previously.

“We think that AXA or a number of other US and European insurers could be interested.”

Reports claim that Zurich, worth around £30bn, could bid up to £5.5bn for RSA.

Analysts claim Zurich has around £2bn in surplus cash and could take on debt of up to £3.2bn.

New European rules governing how much money insurers must set aside to protect against potential market shocks has already prompted some deals as the industry seeks to diversify operations, and analysts expect more.

RSA, which is valued at around £4.45bn, has declined to comment.

Shares in RSA were up 12.4% at 490 pence in early trading, while Zurich shares were down 2.4%.

In February this year RSA announced full results that showed it had returned to profit.

Net written premiums were down 8% to £7.5bn, reflecting its disposals strategy under chief executive Stephen Hester to offload non-core businesses and bolster its financial base, while profit before tax came in at £275m, compared with a £244m loss last year.

Shore Capital analyst Eamonn Flanagan said Zurich had looked at RSA in the past and has money to spend.

He said that an outright sale of RSA was preferable to speculation that it could be broken up.

“We haven’t been keen on the break-up story on RSA due to the pension scheme deficit ... but a bid for the whole group is a story with legs,” he said.

[chancer] 28/7/2015 09:59

As the Carpenters song says "we have only just begun"

[mali7] 28/7/2015 09:43

Nice to be in since long time, but what target do we have of the bid price?

[optomistic] 28/7/2015 09:38

...so much for my thoughts on takeover speculation! Just for once it's so nice to be wrong :-)))

[onlyonestorm] 28/7/2015 08:47

Pretty quiet here considering!

[bigman] 28/7/2015 08:25

yabba dabba doo........

[optomistic] 27/7/2015 16:27

...well that puts paid to takeover speculation!

[chancer] 26/7/2015 10:45

RSI(14) 69.184 Buy
STOCH(9,6) 75.752 Buy
STOCHRSI(14) 95.822 Overbought
MACD(12,26) 7.295 Buy
ADX(14) 53.134 Buy
Williams %R -5.329 Overbought
CCI(14) 119.4135 Buy
ATR(14) 8.6574 High Volatility
Highs/Lows(14) 25.3104 Buy
Ultimate Oscillator 62.742 Buy
ROC 12.045 Buy
Bull/Bear Power(13) 33.5140 Buy

[alimo] 25/7/2015 13:00

5000+ trades on Friday - is that right and if so whats going on?

[optomistic] 24/7/2015 17:03

CC2014, what else could be the reason for the rise, nor I would think the forthcoming results and a massive dividend increase...we should be so lucky!
Maybe a bid but I reckon 550 would clinch the deal...every little helps :-)