R&Q Insurance Holdings Ltd (DI) (RQIH)

Sector:

Insurance

Index:

FTSE AIM All-Share

5.51p
   
  • Change Today:
      0.17p
  • 52 Week High: 72.40
  • 52 Week Low: 4.75
  • Currency: UK Pounds
  • Shares Issued: 373.53m
  • Volume: 166,739
  • Market Cap: £20.58m

Randall & Quilter reports record pre-tax operating profit

By Josh White

Date: Monday 24 May 2021

LONDON (ShareCast) - (Sharecast News) - Specialty non-life insurance company Randall & Quilter reported a record pre-tax operating profit in its results on Monday, driven by "strong" operating results across its business segments.
The AIM-traded firm said its pre-tax operating profit was up 102% year-on-year at £16m, which the board put down to a year of accelerated growth across the business.

It said fee income totalled £18.8m in the year ended 31 December, representing 17% of gross operating income.

Operating earnings per share came in at 5.9p, which was an increase of 38%.

Profit before tax was down 21%, however, at £30.2m, which the company said reflected a reduction in net intangibles due to the mix of legacy insurance transactions.

Randall & Quilter said its programme management segment was profitable for the first time in 2020, earning pre-tax operating profit of $3.4m at a 14.3% margin.

A total of 18 new programmes were signed in the year, increasing total programs to 48, driving a 46% increase in gross written premium to $538.9m.

The firm said it was on course to achieve its previously-announced target of at least $1.5bn of gross written premium in 2023.

Its legacy insurance segment, meanwhile, had a "record year", executing on 19 deals and delivering a 46% increase in pre-tax operating profit to £38.1m.

The company said business was continuing to be written at "attractive" returns, with its operating return on tangible equity coming in at 14.8%, and its five-year average return standing at 20.2%.

Randall & Quilter said capital remained "strong", with a preliminary group solvency ratio of 202% against its target of 150%.

The board declared a final cash dividend of 0.2p per share, for a total cash distribution for the year of 4p per share.

It also announced a new progressive dividend policy with a payout ratio of between 25% and 50% of pre-tax operating profit, a proxy of cash earnings, reflecting current growth opportunities and a balance of reinvesting and growing dividends.

The firm said it intended to grow its annual dividend from 4p per share.

A total of £173m of capital was raised for growth during the year, with the company's senior leadership strengthened with key hires including executive chairman, group chief financial officer, chief executive officer of US programme management, and a chief human resources officer.

Randall & Quilter said it expanded its footprint and capabilities by launching a US E&S programme management business, and increased its exposure to fee-related profits through its investment in Tradesman, a managing general agent to which it was providing programme management services.

"We remain in the enviable position of competing in growing markets that offer us the opportunity to reinvest our capital at high rates of return, creating long term shareholder value," said executive chairman William Spiegel.

"With significant growth opportunities in front of us, our business will continue to consume capital over the near term, particularly our legacy insurance business.

"Over time, however, we expect our programme management business to create enough free cash flow to make us capital self-sufficient."

At 0907 BST, shares in Randall & Quilter were down 7.89% at 157.5p.

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RQIH Market Data

Currency UK Pounds
Share Price 5.51p
Change Today 0.17p
% Change 3.18 %
52 Week High 72.40
52 Week Low 4.75
Volume 166,739
Shares Issued 373.53m
Market Cap £20.58m

RQIH Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
73.41% above the market average73.41% above the market average73.41% above the market average73.41% above the market average73.41% above the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Price Trend
98.74% below the market average98.74% below the market average98.74% below the market average98.74% below the market average98.74% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income Not Available
Growth
0.21% below the market average0.21% below the market average0.21% below the market average0.21% below the market average0.21% below the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average

RQIH Dividends

  Latest Previous
  Interim Final
Ex-Div 23-Sep-21 03-Jun-21
Paid 12-Oct-21 24-Jun-21
Amount 2.00p 0.20p

Trades for 28-Mar-2024

Time Volume / Share Price
16:29 2,811 @ 5.02p
15:57 2,000 @ 5.29p
15:51 13,182 @ 5.46p
15:50 55 @ 5.98p
15:50 9,522 @ 5.46p

RQIH Key Personnel

CEO William Spiegel

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