Randall & Quilter (RQIH) delivered a strong performance in 2016, thanks to a solid contribution from legacy transactions and a sharp increase in investment income. Managing insurance portfolios in run-off generated income of £22.8m, up from £7.5m a year earlier. Notable acquisitions included Royal London’s UK insurer, Aegon’s non-life insurance book and the reinsurance business of SIMIA, a professional indemnity mutual for UK solicitors.
R&Q Insurance Malta continued to expand, with a growing number of interested parties looking to divest run-off books as a result of increased running costs associated with the implementation of Solvency II. The Malta operation is also writing business, which is then reinsured, thereby generating an additional commission stream. The group's balance sheet was also strengthened by a share placing in February which raised around £17.9m.
However, the US business generated higher operating losses as a result of further investment in the healthcare unit, while underwriting management fee revenue slipped from £24m to £21.3m, mainly as a result of lower fees relating to the run-off syndicate.
Analysts at Numis are forecasting statutory pre-tax profits for the year to December 2017 of £10.3m and net tangible assets per share of 90.3p.
| RANDALL & QUILTER (RQIH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 132.5p | MARKET VALUE: | £116m | |
| TOUCH: | 131-134p | 12-MONTH HIGH: | 140p | LOW: 85p |
| DIVIDEND YIELD: | 6.5% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 108p* | NET CASH: | £75.7m | |
| Year to 31 Dec | Gross premiums (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 6.2 | 16.8 | 22.4 | 8.4 |
| 2013 | 9.1 | 11.3 | 11.9 | 8.4 |
| 2014 | 24.8 | -2.3 | -6.3 | 8.4 |
| 2015 | 29.3 | 2.8 | 4.2 | 8.4 |
| 2016 | 53.4 | 8.5 | 11.7 | 8.6 |
| % change | +82 | +200 | +179 | +2 |
Dividend paid via the issue and repurchase of shares. Final distribution of 5.2p payable on or around 8 Jun *Includes intangible assets of £33m or 38p a share | ||||
