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RSA had a positive year, despite the pandemic. The underlying pre-tax profit increased by 18.5% to £670m and the group’s operating result was £703m, up 17.7% yoy. The group’s combined ratio was 91.1%. The Solvency II ratio stood at 189%. The insurer announced it will not propose a final dividend for 2020 as this would reduce the cash consideration payable under the terms of the acquisition announced months ago. A catch-up payment after the completion of the transaction remains possible.
Companies: RSA Insurance Group plc
RSA has accepted the £7.2bn takeover by Intact Financial Corporation and Tryg. The insurer was rewarded for its efforts to clean up its portfolios, but the valuation reflects mainly a profitable and rare Nordic business.
RSA received an offer from Intact Financial and Denmark’s Tryg to be acquired for £7.2bn, a very interesting offer for shareholders. If accepted, the group will be broken-up and will be transformed into a pure, and small, UK player.
RSA posted H1 20 underwriting profit at £240m, up 32.6% yoy and a combined ratio of 92.2%. On the operating side, the COVID-19 impact was broadly neutral and the decline in the net result (-11.4% to £140m) was driven by lower investment income following financial market turmoil. We expect higher claims in H2, mainly due to the catching-up in reporting them by policyholders. The insurer did not announce an interim dividend despite the Solvency II ratio being in line with targets.
RSA posted a 1% decrease (as reported) in net written premiums to £1,521m. Only Canada was not concerned by this trend. The insurer announced a double-digit growth in its operating profit and a Solvency II ratio at 151%, including the 2019 final dividend payment. No significant impact of COVID-19 on figures was observed and the claims frequency until the end of April was normal. The estimated cost until the end of April stood at £25m net of reinsurance.
After a disappointing 2018, RSA recovered in 2019. The underlying pre-tax profit increased by 14.8% to £565m and the group’s operating result was £597m, up 15.4% yoy. The restructured UK & International business performed well with operating earnings of £220m. The combined ratio was 93.6%. The Solvency II coverage ratio stood at 168%, above the targeted range of 130-160%. The insurer announced a final dividend 15.6p/share, bringing the total dividend to 23.1p, up 10% yoy. Our figures will be rev
RSA reported flat net written premiums at £4,864m. As expected, the UK & International segment recorded a scheduled decline in net premiums, and the Scandinavian and Canadian segments recorded growth. The insurer announced an improvement in 9M operating profit and in the combined ratio. The Solvency II coverage ratio was 169% by the end of September. Investors are focusing on the execution of the exit plan from the London market and RSA confirmed that it is on the right track.
RSA posted lower underwriting earnings at £153m. However, we have to take into consideration the impact of the exits of some portfolios which led to a loss of £28m. RSA is preparing a cleaner business for the coming years. The Scandinavian operations posted reduced underwriting earnings, impacted mainly by high claims in Commercial lines. The interim dividend was revised up to 7.5p, +3% yoy. We will adjust our estimates, but the pace of business reorganisation satisfies us.
RSA posted a 3% increase (as reported) in net written premiums to £1,568m. After the difficulties of 2018, the insurer decided to exit unprofitable portfolios and to re-price the risky business. This was reflected in the UK & International figures, with a decline in premiums by 5% but an improvement in the weather ratio. The Solvency II coverage ratio stood at 164%, within the targeted range. Q1 19 achievements are globally positive and no significant changes are expected in our model.
Higher weather-related costs and large loss challenges in Commercial Lines have driven down RSA’s underlying result (-20% to £492m). Scandinavia remains the largest contributor to the Group’s operating earnings (59%). Net profit stood at £326m, lower than our estimates (£355m). The insurer proposed a final dividend of 13.7p (vs. 14.2p expected by us). The capital position was above the targeted range (130-160%) at 170%. In total, RSA’s figures disappointed and confirmed the difficulties in its h
RSA reported a 1% increase in group net written premiums at £4.9bn. The disappointment came from the UK market with lower premiums, a combined ratio at 110% and an underwriting loss of £70m. The pre-tax profit was affected by elevated weather costs. The group’s weather ratio stood at 4.6% vs. a 5-year average of 3.2%. We will lower our estimates.
RSA released declining underlying earnings of 22.9% to £171m. The tough winter increased the group’s weather-related costs to 4.9% vs. 1.2% last year. The bottom line of the insurer benefited from the reduction in interest expenses and the strict control of costs. The investment result declined by 8.1% to £136m, exceeding the year’s guidance (6%) under the weight of the low bond yield environment. The interim dividend was revised up to 7.3p, +11% yoy. Our model is under review.
RSA released its trading update this morning, with declining underlying earnings. The tough winter increased the group’s weather-related costs by 5.1%. The improvement in large losses, attritional loss and controllable expense ratios were not enough to cover this impact. Investment income continued on its downturn trend. Sales were flat (up 1% at constant FX). The good news was its strong capital position, which is a guarantee for the dividend. Model under review.
The record underlying earnings were pulled up by Scandinavian performances (58.7% of the underlying profit). The UK business disappointed, affected by a 102% combined ratio after the US/Caribbean hurricanes and Mexican earthquakes. The main objective for 2018 is to improve this division’s results. The success achieved in the expense savings programme allowed RSA to increase its targets, for a fourth time, to over £450m by 2019. The proposed final dividend is 13p/share, bringing total 2017 divide
RSA released its Q3 17 trading update. Ytd the group’s net written premiums amounted to £5,077m, up 8% yoy (+3% at constant FX). However, this excludes the impact of the LatAm and Russia disposals in 2016. 9M net written premiums in Scandinavia were up 8% to £1,444m (flat at constant FX). The same trend was observed in Canada where net sales increased by 16% at reported FX to £1,194m (up 5% at constant FX). UK premiums reached £2,022m, up 5% relative to 9M 16. In Ireland, sales were flat at £232
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Aviva’s Q1 22 trading update was slightly above our expectations although this remains very much tied to the top-line and profitability could be impacted as of H1. Do the operations really mean that much for the share price with high dividends as a back-up? The latter are expected to continue as the firm has stated that it will release capital above its 180% solvency ratio.
Companies: Aviva plc
Duke has raised £20m in new equity capital, subject to shareholder approval, to fund their continued expansion. The new capital will also support the company's target of increasing their debt facility by a further £25m, and therefore providing a total of £45m of new capital to invest. The increasing scale and diversification of the portfolio is forecast to eventually increase free cash flow per share once full deployment has taken place and will allow Duke to seek a reduction in its debt facilit
Companies: Duke Royalty Limited
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*A corporate client of Hybridan LLP
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