FY2015 will see good returns and special dividends but 2016E outlook is challenging: rates are softening in most lines, investment yields remain low and expectations of a return to more normal losses are rising. We see the gap between valuations and profit/ROE becoming more pronounced, driving our cautious stance. M&A is likely but is possibly moving to cheaper targets? Special dividends will be driven more on claims activity. Against this, global concerns and the sector’s perceived
19 Jan 2016
Mind the gap
Lancashire Holdings Limited (LRE:LON), 562 | Hiscox Ltd (HSX:LON), 1,158 | Jardine Lloyd Thompson Group (JLT:LON), 0 | Novae Group (NVA:LON), 0 | Beazley Plc (BEZ:LON), 659
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Mind the gap
Lancashire Holdings Limited (LRE:LON), 562 | Hiscox Ltd (HSX:LON), 1,158 | Jardine Lloyd Thompson Group (JLT:LON), 0 | Novae Group (NVA:LON), 0 | Beazley Plc (BEZ:LON), 659
- Published:
19 Jan 2016 -
Author:
Joanna Parsons -
Pages:
22
FY2015 will see good returns and special dividends but 2016E outlook is challenging: rates are softening in most lines, investment yields remain low and expectations of a return to more normal losses are rising. We see the gap between valuations and profit/ROE becoming more pronounced, driving our cautious stance. M&A is likely but is possibly moving to cheaper targets? Special dividends will be driven more on claims activity. Against this, global concerns and the sector’s perceived