Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on RSA INSURANCE GROUP PLC. We currently have 26 research reports from 3 professional analysts.
|30Mar17 13:55||RNS||Tender Offer|
|30Mar17 13:35||RNS||Result of Tender Offer|
|24Mar17 09:51||RNS||Availability of Guarantor Accounts|
|23Mar17 18:16||RNS||Listing Particulars - SEK Tranche|
|23Mar17 18:15||RNS||Listing Particulars - DKK Tranche|
|22Mar17 14:34||RNS||Annual Financial Report|
|21Mar17 12:57||RNS||Tender Offer - Replacement|
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Research reports on
RSA INSURANCE GROUP PLC
RSA INSURANCE GROUP PLC
Ministry of Shocks
27 Feb 17
The Lord Chancellor and the Ministry of Justice have rocked non-life insurers this morning by cutting the discount rate used to calculate personal injury losses (known as the Ogden) from 2.5% set in 2001 to MINUS 0.75%. The negative discount rate will be a huge blow to insurers, many of whom had been expecting a cut +1.0%. EY had predicted a cost to the industry of £2.9bn for -0.5% and £3.8bn for -1.0%. Some insurers have been quick to respond such as Admiral whilst RSA has already indicated that any impact will be negligible given the relatively small size of its motor book of business. We are awaiting an update from Direct Line later today whilst Esure have indicated a small impact (£3m) along with a comment that in 2016 it has been trading ahead of expectations. Hastings have yet to comment.
A cost killer
24 Feb 17
RSA released a third year of positive earnings, but at just £20m, below our expectations. Written premiums in Scandinavia were up 7.1% to £1,721m. The same trend was observed in Canada, where premiums were up 6.1% to £1,443m as reported. UK premiums reached £2,588m, -0.6% yoy. Ireland’s premiums were up 17.2% to £306m. The investment result stood at £298m, with investment income of £369m partly offset by investment expenses of £12m and the unwinding of the liability discount of £59m. The investment portfolio grew 5.1% during 2016 to £13,643m, with an average book yield down by 0.3% to 2.5%. The group’s operating profit was £655m, up 25.2% yoy. The combined ratio stood at 93.8% (vs. 96% in 2015). The solvency II coverage ratio stood at 158%, at the upper end of the 130-160% target range. The company decided to propose a final dividend of 11p/share.
Panmure Morning Note 23-02-2017
23 Feb 17
RSA has reported 2016 results that were well ahead of forecasts with a headline Operating Result of £655m (+25%) which compared to our close to consensus forecast of £631m. The results were driven by a record underwriting profit at £380m (+73%) reflected in a COR of 94.2% (2015: 96.9%). The final dividend was 11.0p/share (2015: 7.0p) making a full year dividend of 16.0p/share (2015: 10.5p) well ahead of consensus at 15.1p/share. We like what Stephen Hester is doing at RSA and view the recent announcement of the disposal of the UK legacy book as a great deal but, in our view, this good news is now all in the share price. Following a strong run and the shares trading at 2.1x NTAV we believe that the shares are fully up to speed with a bid for RSA highly unlikely given the current valuation. Hold.
Panmure Morning Note 08-02-2017
08 Feb 17
RSA has announced the disposal of its £834m UK legacy book of pre 2005 insurance liabilities. Not a major surprise given previous comments but we think investors should welcome the move as it removes another uncertainty and makes the investment case even clearer and simpler. The impact will be to reduce NAV, increase Solvency II capital, lower 2016F basic earnings but leave Operating earnings unchanged in 2016. We expect the additional capital released to be used to pay down expensive debt thus increasing EPS in the future and this improving the dividend story. We maintain our Hold recommendation but increase our target price to 600p/share from 575p previously.
Panmure Morning Note 03-11-2016
03 Nov 16
RSA has delivered a good Q3 IMS with Net written premium down 5% reflecting disposals but core premiums were up 6% on a continuing basis whilst the Net Asset Value ex goodwill (NTAV) has reduced from 326p/share at 30 June to 312p/share at 30 Sept, reflecting negative pension fund movements (IAS 19 basis). On this basis the shares are trading at 1.7x NTAV which we view as being close to fair value. The YTD performance is described as strong and ahead of management’s expectations. However, the share price has rallied well since we upgraded our recommendation to Buy in the summer but on the downside we believe that in doing so it has materially reduced the possibility that the company will be bid for. We maintain our 575p/share target price but lower our recommendation from Buy to Hold.
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.