Spain Fund
04 Mar 2015
Re: Earnings growth of 50% for 2015? Sold HSBC for small profit, going ex-dividend tomorrow but maybe this afternoon across the pond. Back to only one share owned, mistake in Saga but waiting on 50 free shares in May. When stock market has the almighty crash, I main invest my overall profits.
Ingenious Solutions
03 Mar 2015
Re: Earnings growth of 50% for 2015? Out of the frying pan at least.
Spain Fund
03 Mar 2015
Re: Earnings growth of 50% for 2015? Sold out 27th Feb at 429.58 to switch into HSBC but may not stay. What's the bottom here? (apart from 0)
Ingenious Solutions
01 Mar 2015
Re: Telegraph- Questor For once I agree with Questor but I won't be following his advice. These standout in my portfolio like an unsightly blot on my copybook but I made an agreement with myself that I would give them five years to turn around. (anyone thinking that it can be achieved overnight is kidding themselves). Besides, they're down by so much (25%) that they're now worth very liitle and not worth selling. I've still got 4 of my five year moratorium to go so I'm still holding.
schwee
01 Mar 2015
Re: Earnings growth of 50% for 2015? Agent XBecause CEO is not interested in running RSA as an insurance co such as the Pru/L&G.Strategy is to sell enough of the periphery subsidiaries, in the hope that one of the big boys is tempted to take out the rump.My guess is that nobody will want to play that game, and the Board will have to appoint a genuine insurance bod at vast expense to transform the core business in the UK.
nk1999
27 Feb 2015
Telegraph- Questor "Sell RSA as the spring cleaning continues: Stephen Hester’s spring clean at RSA is approaching its second spring, and the cobwebs are taking longer than expected to remove in many corners of the insurance business. The company formerly known as Royal & Sun Alliance returned to profit in 2014, after a loss and a whopping accounting hole in 2013, yet the value of new premiums written and investment returns were weak. RSA’s combined ratio came in at 98.8%, meaning the firm is only just squeezing out money from the insurance policies it writes, once claims have been paid and other expenses taken care of. While this is an improvement on 2013’s ratio of 99.4%, and suggests that the price war in U.K. insurance is becoming slightly less punishing on the companies involved, it means RSA is nevertheless a couple of good thunderstorms away from a loss in its core car and home insurance units. In forecasts published in December, analysts at Nomura said RSA was much more dependent on investment income than other general insurers, with 68% of its expected 2015 income coming from its portfolio rather than its premiums. Mr Hester is targeting returns on equity of between 12% and 15%, but for 2014 the reported figure was just 3.6%, and the target appears to have slipped into at least next year, along with meaningful dividend growth. However, there are signs of renewal within the business. RSA’s international businesses that remained after a slew of asset sales are performing well, with premiums in Scandinavia up 3% once currency movements are excluded. Last summer, Questor moved to a sell rating as Mr Hester’s balance sheet surgery delivered sluggish results. ‘s token dividend is not enough to tempt us back into the fray, not while the turnaround plan has so many hurdles still to clear. RSA at 429.1p. Questor says “Sell”. "
Agent X 20
26 Feb 2015
Re: Earnings growth of 50% for 2015? 400p being effectively 80p (in real money) The faithful here are being sorely tested.. (yet again) So Aviva can do it.. L&G can do it.. but RSA... woof.. woof.... ....bark.yes.. a 2p divi... 20p drop in the share price... as per Be Bop Deluxe..... its a fair exchange...
LoadsaDosh2
26 Feb 2015
Re: Earnings growth of 50% for 2015? Too early to buy yet; think they will go down to 400p. 2p div is a pittance.
Spain Fund
26 Feb 2015
Earnings growth of 50% for 2015? Bought in at 421.51 From Fool on here:RSA Insurance GroupAlthough RSA Insurance’s (LSE: RSA) results this morning missed forecasts, I believe that investors can take plenty of heart from the firm’s performance during the past year. The business swung back into profit in 2014 as its extensive asset disposal and cost-cutting programme kicked into gear. And with RSA upping its cost reduction target today, to £210m from £180m previously, and continuing to enjoy resurgent performance in key regions, I believe that the bottom line should keep on expanding.This view is shared by the City, with brokers expecting RSA to deliver earnings growth of 50% for 2015, leaving the business changing hands on a P/E ratio of just 12.5 times predicted earnings — a reading below 15 times is generally considered terrific value. And further growth to the tune of 8% is predicted for next year, pushing the earnings multiple to a lip-smacking 11.8 times.Today’s positive results prompted RSA to crank its dividend policy back into gear, with the company rewarding shareholders with a token payment of 2p per share. And the prospect of further strong profits growth is expected to drive the dividend to 17.3p this year and 22p in 2016, figures which create juicy yields of 3.8% and 4.9% correspondingly.
Pay me higher dividends
26 Feb 2015
Dividend Payment Well 2p is a start. Have sold half my holding on recent high (4.60ish). Happy to keep a few shares of this stock in my back pocket hoping for some capital growth[link]
Ingenious Solutions
23 Jan 2015
Re: More Detail on what Credit Suisse sa... "Nestor" was an unwanted prompt from my tablet! Should have said Hester.
Market Guru
23 Jan 2015
Re: More Detail on what Credit Suisse sa... Time will tell whether Hester is gone by then as it will (i.e. time that is), whether RSA still exists in it's current form.My interpretation is that RSA will not exist in it's current form by 2017.Regards, M.G.
Ingenious Solutions
23 Jan 2015
Re: More Detail on what Credit Suisse said Investors expect too much too soon. As the note says "longterm". To me that means years not months. RSA has the customer base, its just got to turn them into a profitable business. I took the decision to hold these and see how Nestor's reforms go, if there's no or insufficient improvement in 3 yrs, I'll pull out. I expect hestor will be long gone by then!
Market Guru
23 Jan 2015
More Detail on what Credit Suisse said RSA Insurance was among the biggest blue-chip risers after Credit Suisse said that investors in the company who are willing to play the long-game would be handsomely rewarded. Stephen Hester, the former boss of Royal Bank of Scotland, was drafted in as chief executive last February to revive the troubled insurer’s fortunes, but many shareholders have been underwhelmed by the pace of change, analysts at the broker said. “Our impression is that the investment community has been disappointed by the lack of apparent progress with RSA,” they told clients. “We believe there was a widely-held perception that the plans to restructure and re-focus the group would provide a quick pay-back profile, similar to Aviva post its dividend cut.” Until Thursday, RSA shares had only gained 5.8pc since Mr Hester’s arrival, adjusting for its £775m rights issue. However, by the close of the trading session the stock had added a further 15p, or 3.3pc on Wednesday’s close, to 466.8p after the Credit Suisse analysts said the market had been wrong to draw the comparison with Aviva. There is a “stark difference between the firms in terms of resolving balance sheet issues,” they argued. “Property and casualty (P&C) peers like Direct Line offer a more plausible template in terms of how the RSA investment case may develop. “Having addressed the structural weakness in the balance sheet, streamlined the strategic focus and embarked on a cost reduction programme, we expect RSA to begin to deliver a return profile more in line with what investors demand from a P&C company: moderate levels of growth, solid and consistent operating earnings, and high cash distributions to shareholders.” Capital returns, either through special dividends or buybacks, are likely in 2016-17, the analysts concluded
nk1999
22 Jan 2015
Credit Suisse "RSA Insurance's shares were given a boost on Thursday by an upgrade by Credit Suisse from 'neutral' to 'outperform', as the bank delivered an upbeat outlook for the UK insurance sector."The fundamental appeal of the UK life and savings companies is underpinned by low interest rate risk, solid growth dynamics and attractive dividend profiles," Credit Suisse said."RSA up 15p today at 466.8p.
