Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BEAZLEY PLC. We currently have 66 research reports from 2 professional analysts.
|06Dec16 04:42||RNS||Director/PDMR Shareholding|
|02Dec16 05:43||RNS||Director/PDMR Shareholding|
|01Dec16 09:03||RNS||Total Voting Rights|
|24Nov16 12:48||RNS||Notification of major interest in shares|
|10Nov16 07:00||RNS||Trading statement for 9 months ended 30 Sept 2016|
|04Nov16 12:17||RNS||Subordinated Debt|
|01Nov16 10:18||RNS||Total Voting Rights|
Frequency of research reports
Research reports on
Cyber drives a major opportunity
05 Dec 16
Beazley gave an encouraging presentation last week on the growth potential in the US, its plans for International and early thoughts on planning for Brexit. Our Neutral stance reflects the challenging trading outlook over the next year, but we consider this a quality insurer and urge investors to pick up stock on weakness for a long term holding. We have been writing about the cyber insurance opportunity since 2013 and Beazley’s position as a class leader. We remain excited about the prospects for cyber, despite the challenges.
The Money Bin
30 Nov 16
In the week to 29 November the FTSE All Share fell 0.7% vs. -1.3% for the Insurance Index and -0.6% for the Lloyd’s Index. The best performer was Novae (+2.1%); Hiscox (-2.4%) was the worst performer. This week we look at Swiss Re’s global review for 2016 and 2017/18 outlook. We note the forecast for further rate softening but that an inflection point is close, albeit this could mean at best flat rates. As we’ve flagged, reserve strength is becoming more concerning. Underwriting profits will fall. The ROE is falling YoY but the Lloyd’s sector continues to offer investors superior returns to the sector average.
The Money Bin
23 Nov 16
In the week to 22 November the FTSE All Share rose 0.4% vs. +1.9% for the Insurance Index and +0.7% for the Lloyd’s Index. The best performer was Novae (+4.4%); Helios (0%) and Lancashire, which went XD its 61p special, (0.1%), were the worst performers. We review the aviation market as it is possible that airline rates will finally stabilise in 2017. It’s a small class today for the sector but any improvement is welcome. Of more interest is the fastgrowing cyber exposure across the aerospace market. We point investors to our latest research on this rapidly developing class, published 17 November.
Non Life Insurance
17 Nov 16
Cyber threats continue to grow. Beazley is a leading cyber insurer with its international BBR product and Novae is well-established in Lloyd’s. Hiscox is moving fast to regain lost ground. It is evident all see cyber insurance as part of their longer-term growth strategy. The downside risk for insurers from the potential catastrophe/connectivity of risk remains, but we believe they are approaching this fast evolving class with care. The growth may not be linear, but we expect cyber insurance to develop into a major class with interconnecting and varied risk/demand across many business lines.
The money bin - Insurance weekly
16 Nov 16
In the week to 15 November the FTSE All Share fell 0.5% vs. +0.3% for the Insurance Index and -1.1% for the Lloyd’s Index. The best performer was Hiscox (+0.8%); JLT was the worst performer (-3.4%). This week we review the Q3 updates from the Lloyd’s/London insurance sector. We upgraded our FY16E PBT forecasts for Beazley and Hiscox and downgraded Lancashire, JLT and Novae. We forecast a 5p special in Q4 from Beazley. FY2016 should be a pretty good year for most – 2017 will be much more challenging for insurers but hopefully JLT will (at last) start report improving returns.
Specialty still rules
14 Nov 16
The Q3 update reiterated the trading position seen at the interims. We nudge up FY16 PBT again to US$271.4m and forecast a special dividend of 5p to take the total for FY16E to 15.5p (yield 4.0%). Our PBT forecasts for 2017-18E are nudged back c2%. We adjust NAV/TNAV and ROE for the debt refinancing (as flagged at H1). The P/B multiple has fallen as a result. Specialty (especially cyber) remains the growth driver as Beazley continues to shift away from the competitive shorter tail lines. We stay at Neutral for now.
VPC Speciality Lending Investments PLC – sticking to your knitting pays dividends
05 Dec 16
A 25% discount on a dividend paying vehicle suggests either (a) lack of belief in the NAV, (b) lack of belief in the dividend, (c) concerns over future delivery, (d) a shareholder’s base not normally exposure to “closed end structures” or (e) some combination of (a) to (d). We had a first meeting with the management team and London representative of VPC Speciality Lending to try to better understand why the share price had fallen quite so much.
N+1 Singer - Grainger - Final results in line, further progress on PRS investment pipeline
01 Dec 16
Grainger has reported FY16 final results this morning with key NNNAV and recurring PBT metrics in line with our forecasts. Sales performance and rental income growth was strong in H2, as previewed in the positive FY trading update driving our 19% PBT upgrade in early October (11/10). The PRS investment pipeline continues to grow now standing at £389m secured and £347m in legals as Grainger pursues an £850m investment target by 2020. A 3.05p final dividend is in line with the revised policy to distribute 50% net rental income. The shares continue to trade on a significant, and unwarranted, 20%+ discount to NNNAV. We reiterate our BUY recommendation.
Better Capital – A tale of two funds
05 Dec 16
Our gut feel on the results is that BCAP’s Gardner disposal feels viable (albeit as a late Q1 transaction). Post Gardner, the exit profile for BCAP’s portfolio is slanted towards the years 2018/19 and not earlier; we view the market’s current pricing as cautious (14% disc to our estimate of FV). In contrast, BC12’s more consumer facing portfolio remains a work in progress and may well offer further disappointment before turning a corner; the market valuation (51% discount to NAV) is cautious but probably fair given the difficulties.
Meeting near-term headwinds
06 Dec 16
In its trading update IFG reported that performance has been in line with management expectations. The cooling effect of market uncertainty on growth in James Hay and financial advice client numbers, together with the impact of low interest rates, remain a near-term head wind for revenues. Even so, with Saunderson House continuing to increase profits, IFG expects to match 2015 earnings. The long-term growth opportunity presented by an ageing population and pension freedoms remains in place and to address this IFG is continuing investment to enhance its service and increase operational gearing.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
05 Dec 16
As we mentioned in our 18 November 2016 note, a continuation vote was expected to be announced before the end of 2016. The announcement last Friday included details of the continuation vote, and in particular, a recommendation by the Directors to replace the June 2015 strategy of selling non-core assets and developing the core projects, with a new strategy of an orderly sale of the Company’s assets, with a target of selling all assets by 31 December 2019 and a distribution policy for returning monies to shareholders following disposals. Alongside these recommendations, there are proposed changes to the remuneration for the investment manager.