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'

Citigroup Neutral 88.23 95.20 96.00 96.00 Reiterates

Nomura Neutral 88.23 95.20 96.00 89.00 Reiterates

Goldman Sachs Neutral 89.43 89.55 84.33 92.00 Retains

Results of Rights Issue

RSA Insurance Group plc (the “Company” or “RSA”) today announces that the 3 for 8 Rights Issue of 1,380,976,863 New Ordinary Shares at 56 pence per New Ordinary Share announced on 25 March 2014 closed for acceptances at 11:00 a.m. (London time) on 9 April 2014. The Company received valid acceptances in respect of 1,321,235,690 New Ordinary Shares, representing approximately 95.67 per cent. of the total number of New Ordinary Shares to be issued pursuant to the fully underwritten Rights Issue.

Share Consolidation

RSA Insurance Group Plc has announced the terms of a Consolidation. Shareholders as at close of business on 9th May 2014 will receive 1 new Share in place of every 5 Shares held, subject to Shareholder approval at the Annual General Meeting to be held on 9th May 2014. New Shares following the Consolidation are expected to be credited to portfolios on 12th May 2014.

RSA announces £300m sale of operations in the Baltics and Poland

RSA Insurance Group plc announces that today it reached agreement, subject to regulatory approvals, to sell each of Lietuvos Draudimas AB (Lithuania), AAS Balta (Latvia), the business of the Estonian branch of Codan Forsikring A/S (together RSA’s operations in the Baltics), and Link4 Towarzystwo Ubezpieczen Spolka Akcyjna (Poland) to Powszechny Zakład Ubezpieczeń sa (PZU).

Assuming each of the four transactions completes (and subject to the adjustments described below), RSA will receive total aggregate consideration of approximately €360m (£300m) payable in cash. The transactions are expected to add around £200m to the Group’s tangible net assets, improving the Group’s capital strength.

Subject to obtaining relevant regulatory approvals in the respective countries, each transaction is expected to complete during the second half of 2014.

1st Quarter results

Underlying trading in line with our expectations; underlying premiums down 4%1

Tangible equity of £2.5bn including rights issue proceeds

Good progress on our action plan: rights issue completed; disposal of Baltics and Polish operations announced; other portfolio actions underway

Trading update

Underlying net written premiums down 4%1 (down 9%1 at headline level) as we see the effects of our portfolio action plan and a more disciplined underwriting approach across all regions.
Underlying profit trends broadly in line with our expectations. Good results in Scandinavia; Weather impacts in the UK, Ireland and Canada, as previously reported.
Capital metrics at 31 March 2014 (adjusted for impact of rights issue proceeds): IGD surplus c.£1.2bn with coverage of 1.8 times; ECA surplus c.£1.3bn with coverage of 1.5 times.
Tangible equity £2.5bn, including rights issue proceeds (31 December 2013: £1.7bn).
Strategic update

Good progress in executing our action plan as we look to tighten the strategic focus of the Group, build capital strength, and put in place building blocks to improve business performance.
Rights issue completed.
Announced disposal of operations in the Baltics and Poland.
Making good advances with portfolio actions.

Consolidation
12th May 2014
1 new share in exchange for every 5 shares held

To sell or not to sell!

Skinny, I have rarely (can't remember when) been fortunate with shares that have consolidated in the past, it always seemed that it was an exercise to transfer ownership of shareholders money. I hope that this RSA consolidation is going to prove different as I have great faith in the current management...or should I say I have my fingers crossed that the management will do better for us...

I have generally had the same experience as opto.

Me also and I've just sold having suffered held since 2011.

Started trading these early 2004 and always made a little on them.

Current holdings from early 2013...under water on this lot...but traveling hopefully :-)

Broker

There is also - Deutsche Bank Hold 487.15 481.50 88.00 440.00 Reiterates

Disposal

RSA announces sale of its majority-owned Canadian insurance brokerage business
for an aggregate price of CAD $500m

RSA Insurance Group plc announces that today it reached agreement to sell its shareholding in Noraxis Capital Corporation, its Canadian insurance brokerage business, to a subsidiary of Arthur J. Gallagher & Co.

The total aggregate price for the business is CAD $500m. After minorities, and including estimated excess working capital, RSA is expected to receive cash consideration of CAD $441m (£238m) subject to closing adjustments on completion. The transaction is expected to close within two months and is subject to certain regulatory approvals. The transaction is expected to result in a gain on sale of approximately £140m and is expected to add approximately £225m to the Group’s tangible net assets, improving the Group’s capital strength.

Citigroup Neutral 490.20 490.20 480.00 501.00 Reiterates

Interim Result 07 August.

Half-yearly Report

Trading results

Capital metrics at 30 June 2014 (pro-forma for announced disposals): IGD surplus c.£1.7bn with coverage of 2.2 times; ECA surplus c.£1.3bn with coverage of 1.5 times.

Tangible equity £2.6bn (31 December 2013: £1.7bn); £3.1bn pro-forma for announced disposals.

Net written premiums of £3.9bn down 9%1 (down 3% underlying) reflecting our portfolio action plan and a more disciplined underwriting approach.

Foreign exchange movements, notably the strengthening of Sterling during the first half, drove reported premiums down 16%.

Headline underwriting profit £2m after absorbing losses in Ireland and charges elsewhere for prior year reserve additions.

Current year underwriting profit of £87m excluding Ireland (H1 2013: £80m excluding Ireland); underlying current year loss ratio of 58.5% excluding Ireland, 1.2pts better than prior year (H1 2013: 59.7%).

Underlying current year profit trends broadly in line with our expectations including aggregate weather and large loss performance at a Group level. Good results in Scandinavia; Weather impacts in the UK, Ireland, and Canada; Latin America impacted by Chile earthquake, as previously reported.

Ireland underwriting loss of £64m as clean-up continues. Our goal is to return Ireland to profitability in 2015.

Prior year loss of £21m excluding Ireland (H1 2013: £98m profit ex Ireland, included margin release ex Ireland of £42m). Various clean-up adjustments including reserve additions in the UK and Scandinavia.

Net gains of £142m includes only £17m from announced disposals (Latvia) with the balance expected in H2 2014 or early 2015. Gains offset by £133m ‘one-off’ charges including £57m write down of Ireland goodwill and intangibles.

Pre-tax profit was £69m (£45m from continuing operations).
Strategic update

Good progress on our Action Plan as we tighten strategic focus, build capital strength, and put in place the foundations to improve business performance.
Agreed disposals of Baltics, Poland, Noraxis and China operations with total proceeds of £591m.

Rights issue proceeds and disposal gains substantially rebuilding tangible equity. Pension plans now moved into IAS 19 surplus of £50m.
Tangible equity to premiums ratio of 33%2 (31 December 2013: 19%). Expect to advance to a healthy level within our target range of 35-45% over the next 18-30 months.

Focused on laying the foundations for future business performance. Also engaged in further and more detailed and ambitious strategic challenge of the business.
Existing plans include target gross annualised cost reductions in excess of £180m (excluding disposals).

Targeting dividend restart with 2014 full year results.

Regulator warns British insurers over reserves

A good rise this morning but no accompanying news to show the reason?
Skinny often comes in with a clue...any guidance today Skinny?