In the week to 1 May the FTSE All Share rose 1.2% vs. the Insurance Index at +0.5% and 0.9% for the Lloyd’s Index. The best performer was JLT (+2.5%); Beazley (-0.2%) was the worst performer. The Q1 reporting season has begun: newsflow has been mixed with a number of US insurers reporting improved PBT/rates, but also loss creep, higher Q1 losses and warnings from brokers about stalling rate rises ahead of the key Jun/Jul US renewals. The 2018 hurricane season starts 1 June with consensus for sli
Companies: BEZ HUW HSX JLT LRE
In the week to 24 April the FTSE All Share rose 2.6% vs. the Insurance Index at +1.8% and 0.0% for the Lloyd’s Index. The best performers were Helios* (+7.0%) and Beazley (+1.5%); Hiscox (-1.1%) was the worst performer. Following last week’s analysis of the issue of underinsurance with the 2017 cat losses, we look at the growing risk of a Californian earthquake – not necessarily in San Francisco but along the Hayward Fault. Latest analysis suggests an insured loss of cUS$30bn but an economic los
In the week to 17 April the FTSE All Share fell -0.3% vs. the Insurance Index at +0.5% and +0.2% for the Lloyd’s Index. The best performer was Lancashire (+4.0%); Helios* (-2.3%) and JLT (-0.8%) were the worst performers. Swiss Re’s sigma analysis of the 2017 insured losses highlights the material protection gap. It estimates the total insured losses from the 2017 catastrophes at US$144bn vs. total economic losses of US$337bn, giving a cat risk protection gap of US$193bn (57%). Herein lies a pot
In the week to 10 April the FTSE All Share rose 3.0% vs. the Insurance Index at +1.5% and +0.8% for the Lloyd’s Index. The best performer was Hiscox (+3.0%); Lancashire (-2.2%) was the worst performer. We look at the first forecasts for the 2018 hurricane season. These early estimates suggest a slightly elevated level of windstorm activity – and an increase in US landfall probability. Of course, it is the if/where of the latter that holds the greatest risk of insured loss and, in 2018, will be a
In the week to 3 April the FTSE All Share rose 0.4% vs. the Insurance Index at +0.8% and +0.8% for the Lloyd’s Index. The best performer was Lancashire (+2.8%); JLT (-1.9%) was the worst performer. This week we review the 1 April renewals, where prices were as muted as we expected. Ongoing competition dampened rate movements where accounts were loss free. It was always going to be a big ask to get those not affected by the 2017 cats to pay up – and they didn’t. Interestingly, M&A is picking up,
In the week to 27 March the FTSE All Share fell -1.0% vs. the Insurance Index at -1.8% and 0.2% for the Lloyd’s Index. The best performer was Beazley (+4.3%); Helios* (-3.1%) and Hiscox (-1.6%) were the worst performers. We remind investors of the growing cyber hacking threat to energy providers, especially in the US. Several speciality insurers are already teaming up with energy experts, eg Beazley and Energy Insurance Mutual, to look to provide customised cover for this risk but the insured ex
In the week to 13 March the FTSE All Share rose 0.1% vs. the Insurance Index at +1.7% and +3.3% for the Lloyd’s Index. As M&A speculation rose among the Bermudian underwriters, the best performer was Hiscox (+6.4%); Lancashire (-1.3%) wasthe worst performer. We often talk of the band of global specialist (re)insurers that Beazley, Hiscox and Lancashire belong to. In the table below, we rank the key players by market cap (in USD), splitting out the major European players. What stands out is the P
JLT’s FY2017 results were solid with overall good growth in Risk & Insurance and Employee Benefits (EB). The return to 5% organic growth was encouraging. The flagged headwinds and another cost transformation programme have caused some understandable indigestion: we believe the FD will ensure the cost savings are delivered by 2020. We concur that JLT must position itself as a global specialist (which means US expansion and IT systems/data investment) if it is to stay relevant - and continue to co
Companies: Jardine Lloyd Thompson Group
In the week to 6 March the FTSE All Share fell -1.6% vs. the Insurance Index at -2.7% and -0.3% for the Lloyd’s Index. The best performer was Lancashire (+3.3%); JLT (-6.4%) post its FY17 results, was the worst performer. This week we look at the data on actual US property/casualty rate changes in Q4 2017 and Jan 2018. This has a bearing on the outlook for (re)insurers and the drivers behind the latest M&A moves ie the AXA bid for XL Catlin at 1.5x NAV/2.0x TNAV and AIG’s acquisition of Validus
In the week to 27 February the FTSE All Share rose 0.5% vs. the Insurance Index at +1.9% and +1.3% for the Lloyd’s Index. The best performer was JLT (+5.6%); Helios* (-3.7%) and Beazley (-1.6%) were the worst performers. This week we review the FY2017 results from Beazley, Hiscox and Lancashire. Beazley reported the highest PBT and ROE (8.7%), helped by a strong investment yield. Lancashire’s loss was expected given its higher cat/reinsurance exposure and the 2017 losses. Hiscox was hit by FX lo
FY17 PBT (Norm) was broadly in line at £191.5m/EPS 58.5p. The 34.0p dividend was slightly better than we forecast. The story has always been about FY19 and beyond, when US Speciality comes on line as a profit stream, but (new) headwinds in FX and IFRS15 will act as a drag on revenue. JLT is also to embark on a Transformation Programme to cut costs by £40m by 2020. The strategy to create a global specialist broker makes sense/offers upside - but it’s all about delivery given another deferral of r
In the week to 20 February the FTSE All Share rose 1.3% vs. the Insurance Index at +1.2% and -1.9% for the Lloyd’s Index. The best performer was JLT (+0.2%); Lancashire (-14.6%) was the worst performer, reflecting the (overdone in our view) share price fall post its FY17 results. This week we look at the wide range of combined ratios being reported for 2017. The variation reflects the portfolio split, (short/long/cat etc), as well as the quality of underwriting (cf Aspen closing its unit). NB a
In the week to 13 February the FTSE All Share rose 0.4% vs. the Insurance Index at +3.6% and +2.7% for the Lloyd’s Index. The best performer was Beazley post its FY17 results (+4.8%); JLT (-0.6%) was the worst performer. We review the recent Alpha (Lloyd’s) Market Analysis. It reports a wide range of rate rises for most short tail lines at January 2018 and suggests there is potentially more to (gradually) come despite a ‘disappointing’ reinsurance renewal. This supports our view of rates: we con
In the week to 6 February the FTSE All Share fell -5.8% vs. the Insurance Index at -3.4% and -5.3% for the Lloyd’s Index. The sector was inevitably caught up in the recent market correction, but valuations remain pretty robust. The best performer was Beazley (-3.6%); Hiscox (-7.0%) was the worst performer. The FY17 results season has kicked off: Beazley reports today, then Lancashire and Hiscox. We provide a broad comparison of the three insurers to highlight their differences – and a guide as t
In the week to 30 January the FTSE All Share fell -1.8% vs. the Insurance Index at +0.7% and -0.1% for the Lloyd’s Index. The best performer was Hiscox (+1.8%); JLT (-3.4%) was the worst performer. Allianz’s 2018 Risk Barometer reviews perils from more of an insurer viewpoint than the WEF survey. For the first time, BI and Cyber risk exposure are seen virtually on a par. Following the 2017 losses, natural catastrophe risks are back in the top three. Fear drives demand: encouragingly these are ma
Research Tree provides access to ongoing research coverage, media content and regulatory news on Jardine Lloyd Thompson Group.
We currently have 145 research reports from 2
TMT Acquisition (TMTA.L) has joined the Main Market (Standard) pursue opportunities to acquire businesses in the technology, media and telecom sector. Raised £5m, mkt cap £5.5m.
NMCN Plc has left the Main Market (Premium) following the appointment of administrators.
What’s cooking in the IPO kitchen?
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive
Companies: SEE FST ORCP DNL FDBK 8091 IGP
At its recent Capital Markets Day (30 Sept), NewRiver set out its objective to “own and manage the most resilient retail portfolio in the UK”, focused on three core sectors of retail parks, shopping centres and regeneration assets. With valuations stabilising and liquidity returning to the market, its objective is to be achieved through the recycling of some two-fifths of its portfolio over the medium term, which will be able to generate stable income, capital growth and deliver a ‘Total Account
Companies: NewRiver REIT plc
Companies: Civitas Social Housing Plc
No Joiners Today.
Cambria Autos has left the AIM following a takeover.
What’s cooking in the IPO kitchen?
Light Science Tech Holdings, the controlled environment agriculture technology and contract electronics manufacturing Group to join AIM. Raising £5m. Expected mkt cap £17.4m. Due 15 Oct.
Harmony Energy Income Trust to join the Specialist Fund Segment of the Main Market raising up to £230m. The Company's investment objective is to provide investors with an attractive and susta
Companies: VRS ORPH SNG MRL EBQ AVG
No Joiners Today.
No Leavers Today.
What’s cooking in the IPO kitchen?
Gymshark has started to put together plans for a stock market listing according to City A.M. The company hit a £1bn valuation just over a year ago and boasts customers in more than 130 countries. Gymshark was founded by teenager Ben Francis in 2012 in his parents’ garage with products that appeal to Gen Z consumers. Timing TBA
Rubix Group Holdings, the market leading pan-European distributor of industrial main
Companies: ZOO CUSN ECHO IDEA PURP TEK
Liontrust has delivered yet another record quarter with £1.1bn net inflows, besting the prior record in Q1 (+£1bn). This has driven AuM to £35.7bn (+6% qoq), alongside positive performance – ahead of our £34.5bn Q2e. Economic Advantage (“EA”) and Sustainable Investment lead the way, with EA through £10bn now. We have reason for optimism in MultiAsset with a face-to-face roadshow in progress. We upgrade EPS by +3% in FY22e which annualises to +4-5% in outer years. We note that Liontrust has derat
Companies: Liontrust Asset Management PLC
Companies: Plus500 Ltd.
Trident Royalties Plc (AIM: TRR) has, this morning, highlighted the news released by Lithium Americas Corp. (NYSE/TSX: LAC) with respect to its Thacker Pass Lithium Project located in Nevada, USA. Lithium Americas has more than doubled its M&I resource to 13.7Mt Lithium Carbonate Equivalent (LCE) and increased the Phase 1 capacity to a target of 40ktpa Lithium Carbonate (up from 30-35ktpa) and Phase 2 target to 80ktpa (from 60ktpa).
This is material for Trident, which holds 60% of a LOM unca
Companies: Trident Royalties Plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
Companies: AMYT BAG BVC BRSD CLG CML FBD GDWN INV MACF MNZS MIO NRR NSF NBI MATD PREM QFI RUA SCS STVG SUR SNX UPGS VAST VLS
No joiners today.
No leavers today
What’s cooking in the IPO kitchen?
Bens Creek Group to join Aim. Bens Creek, together with its subsidiaries, will, on Admission, own and operate a metallurgical coal mine located on 10,000 acres in the southern part of the state of West Virginia and eastern edge of the Commonwealth of Kentucky, in the central Appalachian Basin of the eastern United States of America. The Mine's operations are located primarily in Mingo County, West Virginia. The
Companies: CZA AXS ALS NSCI TAL SIM SPO THX
Today's news & views, plus announcements from LXI, ATM, LINV & GOOD.
Companies: AfriTin Mining Ltd. (ATM:LON)LendInvest PLC (LINV:LON)
Today's news & views, plus announcements from NWG, WPP, SMDS, BDEV, CSP, EMG, HICL, QTX, RLE, MTEC, BOOM, CAPD & THG.
Companies: Barratt Developments PLC (BDEV:LON)HICL Infrastructure Company (HICL:LON)
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
Companies: AEMC BVC BAG BRSD BWNG CBOX CEG CTG CLG CML CRPR DNK EML ESC FAR FA/ GPH INSE MTW MOTR MMAG NRR NESF NMCN NSF OTMP OBD SAVE SCS STVG SNX SYS TMG TGL VLS VOG WYN
The Property Franchise Group (TPFG) is the UK’s largest property franchise business and manages the second largest estate agency network and portfolio of lettings properties in the UK, following its acquisition of Hunters in March 2021. The Group benefits from a high quality of earnings given the visibility and recurring nature of lettings revenue. While H1'21 results were characterised by an extremely strong sales market given the Stamp Duty holiday, we would expect to see lettings revenue comp
Companies: Property Franchise Group PLC