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'

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%

Fred - the hanging man is a bluff - unfortunately MAM charts quite often show these - today's low is (I believe) 112.6p

Agreed. It is intra-day and based on 2 deals.

My trading period is generally longer.

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Found notes

Target
28 Sep Exane BNP Paribas Outperform 112.35 133.00 133.00
27 Sep Daniel Stewart Buy 112.35 135.00 135.00
20 Sep Shore Capital Buy 112.35 - -
11 Sep Panmure Gordon Hold 112.35 110.00 110.00