The 2013 full year preliminary results for RSA Insurance Group plc was announced 27 February 2014.


"3 FOR 8 RIGHTS ISSUE AT 56 PENCE PER NEW ORDINARY SHARE
Further to the announcement on 27 February of its preliminary results for the year ended 31 December 2013, RSA Insurance Group plc ("RSA" or the “Company”) today announces the launch of a rights issue to raise £773 million in proceeds (£748 million net of expenses) (the “Rights Issue”). The Rights Issue is a fully underwritten 3 for 8 rights issue of 1,380,976,863 ordinary shares of 27.5 pence each in the capital of the Company at a price of 56 pence per New Ordinary Share.
The Issue Price of 56 pence per New Ordinary Share represents a discount of approximately 40% to the closing price of 93.4 pence on 24 March 2014 (being the last business day prior to the release of this announcement) and a 32.7% discount to the theoretical ex-rights price based on the closing price on 24 March 2014."

(thanks to skinny for this article)


Bottom chart 'fast stochastic'

26 March: RSA Panmure Gordon: Downgrade to Sell.
TP reduced from 110p to 99p.

Interim Management Statement.

Quarter 1 2012: Continued good organic growth and strong financial position

Net written premiums of £2.2bn up by 5% with all regions delivering good growth
Rating action and increased volumes drive the top line forward
IGD surplus remains strong at £1.3bn; coverage unchanged at 2.0 times
Net asset value per share including IAS 19 of 107p compared with 104p at 31 December 20111
Continue to expect to deliver good premium growth and a combined operating ratio (COR) of better than 95% in 2012

Overview

We have made a good start to the year. Net written premiums for the three months to 31 March 2012 are £2.2bn, an increase of 5% over the first quarter of 2011 (5% at constant exchange), with premium growth driven by 4% rate and a 1% increase in volumes. Total net written premiums including associates are up by 5% (6% at constant exchange) to £2.3bn.
Scandinavia net written premiums of £667m up 1% (3% at constant exchange)2
Canada net written premiums of £303m up 4% (3% at constant exchange)2
UK and Western Europe net written premiums of £937m up 3% (3% at constant exchange)2
Emerging Markets net written premiums of £281m up 20% (21% at constant exchange)2
Associates net written premiums of £78m up 15% (20% at constant exchange)2
Growth has been led by Emerging Markets, which has again been driven by an excellent performance in Latin America, and good performances in Personal lines in Canada and Scandinavia and Commercial lines in the UK. This has been partially offset by reductions in UK Personal Motor and Italy. We continue to benefit from our focus on Specialty and premiums grew by 6% at constant exchange across the Group.
For the full year, we remain confident of delivering good premium growth, a COR of better than 95% and investment income of around £500m.

3 May: RSA: Panmure Gordon reiterates: Sell - TP remains: 99p.

Shore Capital Reiterates it's Buy

Numis Downgrades to Hold Tp 115p.

Espirito Santo Execution Noble Reiterates it's sell Tp 112p.

Oriel Securities Retains it's Hold Tp 110p.

Hargreaves Lansdown's take.

Thanks for those updates skinny. I make that a buy-sell-hold anywhere between 99p and 115p. No ambiguity there then :-))

Going by the past, 99p a good time to wade in.

The 6+ year low is 98.50p.

Current yield (if held) is 9.07%

http://www.guardian.co.uk/business/nils-pratley-on-finance

Trading Statement.

RSA updates guidance following UK weather and Italian earthquake losses
Following the wettest June on record in the UK, RSA today announces that the net loss across the Group’s UK Household, Motor and Commercial Property portfolios from last month’s adverse weather is estimated to be around £40m. Current expectations are that the impact of the continued rainfall experienced to date in July will be around £10m.

In addition, the net loss to the Group in relation to the two earthquakes in the Emilia-Romagna region of Italy in May is estimated to be around £35m.

RSA continues to deliver a strong underwriting performance across its diversified international portfolio. However, reflecting the impact of the above events and assuming a more normal level of weather losses in the second half, the combined operating ratio for the full year 2012 is now expected to be better than 96%.
- ENDS -

July 18: Panmure Gordon reiterates 'Hold'- TP: 99p.

It seems to me that the target has been past.

No Fred it means they think the sp is going to drop and advising their clients to hold on to the stock to make a loss...helpfull advisors. makes a lot of sense doesn't it!

There are a few broker 'recommendations' out today - I prefer :-

Daniel Stewart Retains its Buy Tp 135p :-)

So do I.

Opt,

I haven't got a clue of the "true" potential of any company in the market at the moment.

I am fairly certain that the analysts have the same problem as I do, but to slightly lesser degree,

I hold RSA and a few other high yielder and stopped myself from "churning" for another 6 - 12mths.

Probably wrong, but to keep on one's toes in a market as it is too difficult for me.

TA for me needs a relatively trending market.

Good luck.

Credit Suisse reiterates: 'Neutral' - TP unchanged: 125p.

JP Morgan Cazenove reiterates its Overweight TP unchanged @145p :-)

Half Yearly Report


Solid performance in a challenging environment

Net written premiums of £4.3bn, up by 4% at constant exchange (2% as reported)

Combined operating ratio (COR) of 95.2% with strong performances in Scandinavia and

Canada partially offset by adverse weather in the UK and earthquakes in Italy

Investment income of £267m and operating profit of £316m

IGD surplus of £1.2bn; coverage remains strong at 1.9 times

Upgraded by S&P to ‘A+’ (stable outlook) in February

Interim dividend up by 2% to 3.41p

Good progress on strategic priorities

Another excellent performance in Swedish Personal supported by improved profitability
in Denmark and Norway

Continued strong performance in Canada with double digit growth in Commercial led by
Large and Specialty. Acquisition of L’Union Canadienne will consolidate number 3 market position and bolster footprint in Quebec

Driving growth in UK Home, Pet and Specialty. UK Personal Motor premiums down by 19% as a result of ongoing management actions which deliver a sub-100% COR for the first time in four years
Emerging Markets again achieves double digit growth. Bolt-on acquisitions will position

RSA as a top 5 general insurer in Argentina; Czech operation closed as unable to achieve scale within a reasonable timeframe

Global Specialty lines grew by 6% at constant exchange and by 7% on an underlying basis

Continue to expect overseas operations to be c70% of Group premiums in 2015

Confident of delivering a good full year performance

Following adverse weather in the first half, now expect to deliver a COR for the Group
of better than 96%

Investment income still expected to be around £500m

12 month high today @117.50p

RSA

For me undervalued on forward forecasts and especially yield.

The gap was due to dividend grabbing.

The moving averages are short.

There was a hanging man during mornings dealings, based I think on 2 moderate size deals.

I believe there has been brokers upgrade to 125-130 but can't find it since reading. DYOH

Think SP worth 135.

Bought at 113.5

Year Ending Profit (£m) EPS P/E PEG EPS Grth. Div Yield
31-Dec-12 414.48 11.67p 9.7 n/a -1.96% 9.41p 8.3%
31-Dec-13 485.94 13.68p 8.3 0.5 +17.24% 9.61p 8.5%