In_the_dark_yet_again
08 Nov 2018
Half Year results LSE:BEZ [link] The trading statement reads pretty well - last year’s catastrophes become this year’s premium hikes. I’m a little surprised there wasn’t a positive market reaction but then maybe it was expected. The decline in investment returns is quite severe but then being very heavily invested in fixed interest securities when interest rates are rising is never going to be pretty. At least the average duration of the assets is relatively short which will limit the downside. Overall I read the statement as pretty solid, very decent - far from spectacular but as much as I could reasonably hope for. Regards, ITDYA
In_the_dark_yet_again
24 Jul 2018
Half Year results LSE:BEZ @Greyinvestor BPM as in B P Marsh and Partners? Possibly a fine business but not sure how it’s comparable to a Lloyds insurer. I know they have been acquiring/investing in insurance businesses but it’s the Lloyds insurers I want - it’s been a rocky ride at times but over the years they have been kind to me (although them all getting taken-over probably helps) RQIH was on the horizon but they seem to have two businesses, both a little bit of new underwriting but mainly running down legacy business. Not sure it’s a good mix - diversification yes but I don’t need a business to do that for me, I can do it easily buy buying different shares. In the ‘managing legacy’ sector it’s always been Chesnara for me although it has completely stalled recently - couldn’t hold the £4 plus price and very much stuck 375 give or take. To me it looks the opposite of Theresa May; this one really is strong and stable! Like I say I’d rather have shares in two companies, each specialising in one thing rather than one trying to do both - makes it easier for me to bail out of the part I don’t like should that event occur. Thanks for the comments though. LSE:LRE interims due Thursday; I’m hoping for no surprises but who knows? Regards, ITDYA
Greyinvestor
20 Jul 2018
Half Year results I’ve only glanced at the results, because they very much confirm my previous views. I think that RQIH and BPM represent better value in the same sector. I have bought a sizeable holding in each of them. I still believe that BEZ is well run but overpriced. There is a ‘one off’ hit to investment income as a result of rising interest rates. This will in time be replaced with higher earnings. On the catastrophe and reserve release side, I would expect worse claims and lower reserve releases but also rising income and margins. This makes it difficult to foresee the outcome. Maybe a worse year followed by a better one? So in summary, in my view the price should correct down (by at least 20%), then start rising. It won’t, of course, because the market is so overvalued.
In_the_dark_yet_again
20 Jul 2018
Half Year results LSE:BEZ [link] Maybe @Greyinvestor knew something we didn’t. These numbers do not make pretty reading, very difficult to find anything positive in them. Top line growth, yes but margins significantly down. A combined ratio of 95% is pretty thin. I like growth but not if it means buying loss making business. They are confident(??) enough to raise the interim dividend from 3.7p to 3.9p (payable 30 Aug, XD 2 Aug) but it’s only just covered. I’m going to sit tight and hope they can improve the margins going forward - it does happen in this business; one year you have loads of heavy claims which enables you to drive up premiums in the following year. Trouble is last year had heavy claims so this year they should have been upping margins - clearly not from these numbers. I shall read what LSE:LRE and LSE:HSX have to say when it’s their turn to report. Regards, ITDYA
In the dark yet again
27 Apr 2018
Re: Quick comment Aviva? Not a huge believer in charts but 1,3,5 years, pretty much any timeframe you can pick says saty with BEZ[link]
aspace
26 Feb 2018
Re: Special dividend ?? The existence of special dividends has inflated the dividend yield in prior years. That will not apply going forwards as a special was not declared. So for 2017 we get interim dividend 3.7p already paid + second dividend of 7.4p to be paid shortly = 11.1p. On the current share price that makes 11.1p / £5.30 = 2% dividend yield. Whereas last year we got first interim 3.5p + second interim 7p + special 10p = 20.5p which produced a yield of around 5%. Last year's jump in the share price plus the halved dividend yield supports Greyinvestors' case that these shares have become a bit pricey, at least for an insurance company where catastrophe risk is ever present.
aspace
12 Feb 2018
Re: Quick comment Hmmm, if Beazley is "brilliant company with great management" then I'd rather stay with it.
aspace
08 Feb 2018
Re: Ah well Yeah sorry about the special dividend mate. The good news is Beazley have proven they are well managed even in a difficult year, which is exactly what any investor wants in an insurance company. Definitely a long-term hold for me. Now we can look forward to "double digit growth" going forwards.
Warren Buffoon
08 Feb 2018
Ah well Ah well..... sold 'em now.Trebled in four years I've had them. Can't be bad ....
Warren Buffoon
08 Feb 2018
Re: Special dividend ?? Oooh - er . . . .
takeiteasytoo
08 Feb 2018
Re: Special dividend ?? Why would you expect to receive a special dividend when the profits and EPS are down approx 45%? Regular dividend is up in line with the company's published aim on flotation and underlying growth remains strong so no problems here for me. 'Special' will return when merited.
Warren Buffoon
08 Feb 2018
Special dividend ?? What?? No special dividend ??
aspace
09 Jan 2018
Insurance liabilities evaporate in 2nd half?? The table on page 3 of the interim report shows how the sector has been hit hard by declines in premiums across all of Beazley’s insurance divisions, with only a glimmer of good news in speciality insurance such as cyber risk. Here is the link:[link] risk is even growing in my area of work with companies concerned both by cyber breaches (internal or external) and data breaches under the more stringent General Data Protection Regulation (GDPR) coming into effect in a couple of months’ time. One thing I didn’t understand from Beazley’s interim report was the increase in insurance liabilities in the first half appears to go into reverse in the second half of the year, by comparing this year and last year’s figures in the cash flow statement. What causes this evaporation of insurance liabilities in the second half of the year? Is this an accounting trick or is there a genuine underlying business reality?
aspace
09 Jan 2018
Re: Why the price rise? So much for the short-lived price spike on very weak volume. I wondered if Berkshire Hathaway might have been interested but that is unlikely as Beazley is a mere 3.5 billion dollar sparrow that is probably not worth their trouble given the possible competition problems that could arise.
aspace
30 Dec 2017
Why the price rise? Nice to see the price going up, but cannot see why the sharp increase in the last few days. Two possibilities come to mind: Firstly its reliable history of generous dividends and secondly its attraction as a possible takeover target. I would be sorry to lose this dividend baby, as I lost Amlin in 2016 when it was taken over by Mitsui. But cannot see any news about Beazley on Google. Maybe someone knows something we don't. Anyone got any ideas what might be going on?
