Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PARTNERSHIP ASSURANCE GROUP. We currently have 7 research reports from 1 professional analysts.
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PARTNERSHIP ASSURANCE GROUP
PARTNERSHIP ASSURANCE GROUP
Panmure Morning Note 11-3-2016
11 Mar 16
Following the announcement yesterday that the merger with Just Retirement had received regulatory approval we anticipate relatively little interest in the figures today and much more on the outlook for the merged entity. The merger is due to complete in early April now. For the record, the headline IFRS Operating profit at £40m (-37.5%) compared to our consensus at £43m with the slight miss due to some non-recurring assumption changes that have impacted the in force profit. The final dividend of will be based on the Just Retirement final dividend of 1.1p/share adjusted for the merger thus making 0.92p/share for Partnership shareholders or 1.42p for the full year (2014: 1.5p). The Embedded Value (MCEV) NAV at 31 Dec was flat at 144p (31 Dec 2014: 144p) per share lower than our 154p per share forecast partly reflecting lower profitability that we had anticipated. The Solvency II coverage ratio was 144% better than we believe many will have anticipated, with an economic surplus of £178m. Slightly disappointing figures but largely irrelevant given the merger.
Panmure Research - Partnership Assurance Flash 23-11-15
23 Nov 15
Just Retirement and Partnership have announced a delay to their planned nuptials. Just Retirement intends to delay the posting of the shareholder circular until the regulator (the PRA) has commented on its internal model, along with all the other insurers, in early December. Whilst it will only postpone the anticipated completion date a few weeks from late December into January we think it is disappointing given that the PRA timescale has been known about for many months. Separately following the detailed full year sales guidance provided by Partnership we are cutting our 2015F full year sales forecast from £602m to £558m which has led us to cut our 2015F IFRS Operating EPS to 9.6p/share from 10.8p/share previously. The valuation remains highly attractive with the share price at a 13% discount to our forecast Embedded Value at 31 Dec 2015 of 154p/share.
Panmure Morning Note 20-11-15
20 Nov 15
Partnership has announced the name of its partner in the US to launch a medically underwritten immediate annuity comparable to Partnership's UK Care annuity. It is Genworth, the market leader in Long Term Care (LTC) with c25% of the US LTC in force policies. Genworth will bring brand, market leading expertise, an existing operating platform and distribution in the US. We are not adjusting our forecasts at this stage but believe that this is very positive for the longer term outlook of Partnership/JRP post the merger with Just Retirement. The product will be launched in Q1 2016. The valuation remains compelling on both Partnership and Just Retirement and we consequently maintain our Buy recommendation and 165p/share target price.
Panmure Morning Note 05-11-15
05 Nov 15
Partnership has delivered a solid sales performance with sales at £109m (+22%) in Q3 following the introduction of the pension changes in April with good guidance for H2 (+10% on H1) and still on track to deliver £200m of Bulk sales (£92m at 9M stage with a further £60m of ‘exclusives'). Total sales in Q3 at £109m (+22%) was largely in line with consensus at £119m but below our £153m forecast reflecting lower hard to forecast Bulk sales at £24m (Q3 2014: £nil). The Bulk sales at £24m compared to our £60m forecast and consensus at £30m. Individual annuity sales at £68m (flat) compared to our £77m forecast and consensus at £73m. Following the share price fall we have upgraded our recommendation to Buy from Hold and note that the shares are now trading at a 10% discount to 30 June EV of 147p/share. In our view the shares should be trading at a premium rather than a discount to EV given the value of its new business. Buy. We anticipate that the proposed merger with Just Retirement will complete by 2015 year end.
Panmure Morning Note 11-08-15
11 Aug 15
We are surprised by today's announcement that Partnership and Just Retirement are to merge. It's an all share agreed merger whereby each PA share will be exchanged for 0.834 new shares in Just Retirement. In effect this equates to PA being taken out at c166p per share, although we think JR's share price will be under pressure today. The top jobs (CEO and FD) have been retained by JR's management team with PA's CEO Steve Groves stepping down. There are expected to be cost synergies of c£40m pa and the cost of achieving this is c£60m. Lastly there will be an equity raise of £150m. We are slightly sceptical of the reasons for the merger (Synergies, BPA scale etc) and take PA to a Hold recommendation and lower our target price to 165p per share from 175p previously.
Panmure Research - UK Insurance 27-07-15
27 Jul 15
Following a strong performance in 2012/13/14 and Q1 2015 the insurance sector has traded sideways in Q2 reflecting difficult investment markets, tough trading conditions and uncertainty ahead of the introduction of Solvency II. We believe that Solvency II will have a relatively muted impact on the sector and welcome its introduction if only so that the debate can move on. We are not anticipating any major surprises with the interim results that kick off on Tuesday 28th July with Jardine Lloyd Thompson. In our view the three main areas of interest will be 1) the potential impact of Solvency II on all insurers 2) impact of changes to the individual annuity market 3) recent management changes in the sector.
Another positive verdict
20 Mar 17
Burford’s results for 2016 produced another outstanding set of figures. Revenue grew by 60% to $163.4m with strong growth in the litigation finance business and an additional boost from a secondary sale in the Petersen case. On an underlying basis net income grew to $114m, a 75% increase despite the investment in growing capacity which increased costs. A combination of ongoing investment and gains and increases on valuation saw the fair value of the litigation assets increase 67% to $559m, underpinned by a growth in invested capital to $394m. With the results statement there was an announcement of a further sale of 9% of the Petersen case at a valuation of 20 times the cost of investment.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.