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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What’s new: Updates in April and early May reveal:
Group consolidated Funds Under Management “FuM” of US$11.3bn at the end of April 2021 is up 4.0% year to date (Dec20: US$10.9bn).
Strong investment performance across CLIG’s investment strategies, was offset by clients rebalancing, resulting in 3Q net outflow of US$278m.
CLIG continues to maintain an active pipeline across all its major products.
Income net of third-party commissions currently accrues at circa 74 bps (i.e. c. 73 bps
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Forecast beating Final Results
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As midsummer’s day looms (where has this year gone?), there is greater optimism, in general, than may have been anticipated a few months ago. A post-pandemic, ‘vaccine-driven’ recovery demonstrated by increased consumer spending as lockdown measures are lifted has been one of the catalysts. The FTSE 100 has been range-bound in the last month 6,900-7,100. We have seen a combination of broadly positive company results across a range of sectors, further examples of M&A activity and a sequence of ne
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Companies: Hgcapital Trust
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Liontrust has delivered exceptional growth and there is much to be optimistic about, yet it continues to trade on an unexceptional 14x Mar-22e PER. We are expecting no surprises at Finals later this month after a post-period update in late May and supportive markets since. There is opportunity across the fund range (including the established Sustainable strategy) with continuing growth from flows and performance, and potential in recent acquisitions; set against compelling market dynamics. Liont
Companies: Liontrust Asset Management PLC
Avation is a lessor of 45 aircraft to a diversified airline client base of 19 commercial airlines across 15 countries. This morning, the group has provided a solid trading update to 31 March 2021, which points to a continued focus on managing the collection of customer revenue, with rent collections and overall cashflow having improved since the end of H1 2021. The remarketing of the eight returned ATR aircraft has also continued, while net debt reduced by $51.6m in Q3 FY 2021E to $988.1m, with
Companies: Avation PLC
Today's news & views, plus announcements from SSPG, PNL, SHED, TUNG, ANX, BLTG, AVAP
Trident reports that Moxico Resources Plc has recently completed a US$73m equity financing. The proceeds will be used to fast-track development of the Mimbula copper mine in Zambia over which Trident holds a royalty. Mimbula is already producing copper and is in the ramp up stage, but the cash injection will allow Moxico to produce cathode copper onsite via the construction of a new SX-EW plant and Moxico anticipates a significant increase in copper production. As a royalty holder, Trident will
Companies: Trident Royalties Plc
OCI hosted its annual Capital Markets (CM) day on 18 May 2021.With presentations from Oakley Capital and investee companies, as well as Q&A, including the OCI board, it gave a clear view of the prospects of the organisation. We have argued in previous notes that OCI’s outperformance (five-year CAGR NAV total return 16%) is driven by i) high-growth companies and sector champions enjoying structural tailwinds and often digital disruption benefits (2020 average 20% EBITDA growth), ii) repeatable an
Companies: Oakley Capital Investments
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Companies: Finsbury Growth & Income Trust PLC
Urban Logistics REIT (“ULR”) has delivered a watershed year: doubling the portfolio with a disciplined approach focusing on value-add opportunity through reversion and regear. Finals show rental income doubling from acquired assets, with recurring EPS in line with our forecast. EPRA NAV was 6% ahead of N+1Se, as valuation yields tightened. The manager has secured a further c.£150m pipeline of similarly attractive assets. We make a modest upgrade to EPRA NAV on better valuation. We see sustained
Companies: Urban Logistics REIT plc
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Companies: Vp plc