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.
N+1 Singer - Uncovered Gems - Speed Dating Lunch - A Famous Five for the future?
12 Apr 17
On Friday we hosted our third “speed dating” lunch with the management of five very interesting and contrasting companies not under our formal coverage: Be Heard, Byotrol, Gfinity, Oxehealth and Plant Impact. Each company gave a concise and punchy overview of its business and investment case to a group of fund managers, before rapid fire Q&A. Below we summarise our thoughts on each company with more details inside the note, plus some relevant slides. We believe that all five companies are well-managed and well worth a closer look - we intend to repeat this efficient and popular format for engaging with management teams.
24 Apr 17
Lok’nStore* (LOK): Growth supported by a strong balance sheet (CORP) | Mortice* (MORT): UK acquisition (CORP) | Avacta* (AVCT): Another milestone – 1st non-therapeutics licence (CORP) | Petra Diamonds (PDF): Trading update and Q3 results (BUY) | Nasstar* (NASA): Growth and margin focus (CORP)
Non Life Insurance - Growing impact of hacks on share prices
18 Apr 17
Our November 2016 Cyber report flagged the growing impact of cyber attacks on quoted companies, noting that Yahoo’s breach would inevitably negatively impact Verizon’s offer price, which it did. A report by CGI and Oxford Economics has found that, to date,severe hacks on UK companies permanently reduced their share price by 1.8% - or approximately a £120m hit to MCap for a FTSE 100 firm. With GDPR coming into effect next year, we expect more headlines. That has got to be good for cyber insurers and cyber security firms.
Small Cap Breakfast
24 Apr 17
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
N+1 Singer - Small-cap quantitative research - Growth style screen revamp and 10 focus stocks
06 Apr 17
We have reviewed the performance of our consistent growth screen since the previous refresh on 27 September 2016 and revamped the selection parameters to focus more on forecast sales and EPS growth going forward. In the period under review the consistent growth style screen outperformed the small-cap benchmark by c. 6% and underperformed the microcap index by a similar amount. Interestingly, although growth doesn’t always seem to be defensive as might be expected, however it appears right to buy growth on dips caused by or coincident with wider market volatility. In the new forecast growth screen we take a close look at 10 focus stocks. We will monitor performance and refresh it in three to four months time.