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 25 research reports from 3 professional analysts.
|23Feb17 07:15||RNS||Directorate Change|
|23Feb17 07:00||RNS||Final Results|
|08Feb17 15:30||RNS||Director/PDMR Shareholding|
|08Feb17 07:00||RNS||RSA announces disposal of UK Legacy liabilities|
|01Feb17 16:45||RNS||Total Voting Rights|
|31Jan17 11:15||RNS||Notice of Results|
|11Jan17 15:15||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
RSA INSURANCE GROUP PLC
RSA INSURANCE GROUP PLC
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.
Panmure Morning Note 10-08-2016
10 Aug 16
Following the better than anticipated interim results we believe the market expectations for underlying EPS are too low and that they will need to be revised upwards. We have decided to get off the fence and whilst we believe that the trading environment remains challenging we also think that the market has not factored in the benefit of self-help actions currently underway. These actions have led us to increase our 2016/17 underlying EPS forecasts by 16% and 11% respectively, allowing us to upgrade our recommendation to a Buy (from Hold) and increase our target price to 575p/share (from 470p/share).
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
Industry fundamentals remain positive
21 Feb 17
The Biotech Growth Trust (BIOG) is a specialist vehicle, aiming to generate long-term capital growth via investment in global biotech stocks. Following a particularly volatile period for the biotech industry, where concerns about drug pricing and investor risk aversion have weighed heavily on stock prices, the managers are hopeful that greater clarity regarding US healthcare policy will lead to continued improved performance of biotech stocks. Industry fundamentals remain attractive, including continued innovation and valuations are very supportive, which offers the potential for higher industry merger and acquisition activity.
Lloyds, Best Of The Banks
23 Feb 17
Lloyds Banking Group PLC (LLOY) reported a strong result for FY-16, which has allowed it to pay a special dividend, plus has encouraged the UK government to reduce its stake in the bank to below 5%. Lloyds’ acquisition of the MBNA credit card business is proceeding on track, with all key M&A metrics being well satisfied. The outlook for Lloyds’ capital base, its profitability and thus the dividend prospects have all improved. This encourages us to ascribe a Buy rating to the stock, with a target price of 80p per share, derived from a prospective Price / Book value of 1.3x and a P/E ratio of 13x which we think are justifiable ratios.
Middle Britain growth
21 Feb 17
The Company has achieved our 2017 estimate in 2016 with EBITDA of £2.2m, up 37% on 2015. We upgrade our estimates by 10% at the EBITDA level in 2017. If the shares traded even at the lower end of comparators, they would trade at 17p. We expect the share price to reach our upgraded 17p price target in the short term. Few companies enjoy the unique positioning which Lighthouse has to benefit from the assets of Middle Britain.
Marked confidence in profitability resilience
22 Feb 17
LBG posted a good set of results at the operating level. Management showed its confidence in the group’s ability to protect its indecent profitability levels over the next three years by recommending an increased ordinary dividend and the payment of a special dividend, and by setting a stable return on required equity objectives.
N+1 Singer - Morning Song 21-02-2017
21 Feb 17
Abzena (ABZA LN) Contract bookings strong; US costs higher than expected | City of London Investment Group (CLIG LN) Earnings and interim dividend in line, some modest growth in FuM | dotdigital Group (DOTD LN) Good H1; broadening avenues of growth | Grafenia (GRA LN) Weak print volumes | Vernalis (VER LN) Interims highlight increasing Tuzistra™ scrip volume