Good trading statement from the point of view premiums overall up and hurricane costs revised down. Should see the price move positively today continuing that trend. I note the Luxembourg office is up and running for post Brexit requirements.
Well something's going on! Surely this rise can't just be on the back of the Novae takeover. IMO Hiscox will be the last of the lLloyds syndicates to succumb (if ever). By far my largest holding so very happy. Just waiting for some news to break.
Aki Hussain has been poached from the UK part of Pru to be the Hiscox CFO. One of the few situations where I've actually crossed paths with someone who's been appointed to Board level of a share I've had an interest in.
Suffice it to say (and all IMO), Hiscox has just gone right down my potential investment list.
"LSE:HSX:Hiscox has revealed an upturn in first-half performance, showing how the Â£2.6 billion specialist insurer's strategy is bearing fruit. While the approach of the American hurricane season can still in the chairman's words, "deliver some ..."
Just looking at the decrease value of my holdings today. The answer is definitely no! I am 8.5% down from when I bought HSX 12 days ago. after the consolidation. Now waiting for the cash back tomorrow which might make the holding just break even. So why are shareholders voting for this?
Companies pursue Share Consolidation primarily to increase the companys share price so as to generate greater interest in the companys shares, in particular from institutional investors who may have a mandate to only invest in shares above a certain price point.
This resolution was then passed as amended. Shareholders have accordingly approved the proposed Return of Capital by way of a special distribution to Shareholders of 45 pence per ordinary share and a further amount of 15 pence per ordinary share, instead of the payment of a final dividend for the financial year ended 31 December 2014.
As a result of the passing of the resolutions at the EGM the Company will issue to Shareholders on the register at 4.30 p.m. on 25 March 2015 either one E share of par value 0.01 pence in the capital of the Company ("E Share") or one F share of par value 0.01 in the capital of the Company ("F Share") per Existing Ordinary Share and the 88 for 100 Share Capital Consolidation will be implemented with respect to Shareholders. Further details of the resolutions are set out in the Circular.
I understand certain types of stock can be cyclical and, despite the risk business, insurance shares are often purchased as defensive stocks in a bear market. However these have fallen over 10% recently although the results weren't exactly disastrous.
Around 50% of my holding is in insurance stocks (both underwriters and brokers) and it seems this market is not exactly flavour of the month..
Surely it can't be just the expectation of a year of heavy losses (the law of averages etc.).
Does anyone have any views?
With the drop today I would put it somewhere below that but I think we should wait until the second week in April before it settles down. I think all those who thought they would make a quick buck with the divi will affect the price until then, what with the end of the tax year approaching.
Have to say I have been in since IPO and seen massive increase in value, gradual increase in dividends and benefitted from two share consolidations. In my view a winner all round.
Thanks for your thoughts - that's sort of what I figured. Never understand why people "buy for dividend" - seems to me that they are just getting their own money back as price should drop by same amount. Special divi was 36 p plus what would otherwise have been normal divi of 14p. So, with share consolidation, if you thought fair price was 660 pre-consolidation, what is equivalent now? Still 660?
If you held 1000 shares pre capital restructure they would have been worth £ 7000.
You now have 890 at c707 ie £6292 plus you have £ 500 in special dividend - total £ 6792.
So not so good.
I believe a realistic price pre capital restructure would have been around 660p as the price would have been pushed to 700p by buyers looking to get the dividend. So they would have been worth around £ 6600 at that time, therefore we are probably a few quid better off.
Following the capital restructure and payment of special divi, what's the net effect on price per share for Hiscox? I thought it was neutral but having tried to do the maths not so sure. So how does current price of 722 compare to price before this action of c. 700?
It was always going to happen today as it was the last day on the register to be eligible for the 50p per share Return of Capital. Let's see what the price is early April which, IMO, should give a true value.of the share.
"Estimates of the damage caused in the recent weeks of floods and storms will rise after the weekend's further tumultuous conditions.Although there is a wide range of estimates, the cost of clearing up the damage after rain fell on water-logged ..."
Think this could just be investor's confidence in them as they are one of the best performing companies in the sector over the last few years. I have various holdings in these Lloyd's vehicles, with Hiscox being the largest, as well as London Market insurance brokers, with broker JLT also being an excellent performer.
The management in Hiscox appears to be very strong with very clear goals. Read up on Chief Exec Bronek Masojada for a further insight.
I think you'll find cash will be sent out on either 26th April or 3rd May, depending on the tax year you chose for redemption. If you elected to receive dividends on the B shares the cash will also be sent out on 3rd May
I'm guessing the three options we've got for getting the capital should all gross the same, so if we're invested in a SIPP (or an ISA), option (i) (redeem on the first redemption date) seems the obvious choice to me simply to get the cash a little earlier.
Clearly option (iii) (dividend) is for anyone who would prefer a dividend than a capital gain for tax purposes and I guess option (ii) (redeem on the final redemption date) is for anyone who would rather take a capital gain in 2013/14 than in 2012/13.
Important message from the Financial Conduct Authority:
Posting inside information that is not public knowledge, or information that is false or misleading, may constitute market abuse.
This could lead to an unlimited fine and up to seven years in prison.
If you have any information, concerns or queries about market abuse, click here.
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited.
You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong.
Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.
The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements.
Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in.
Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.