UK 05:23 Tuesday, 20 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
RSA (RSA), once gloriously known with Shakespearean imagery as Royal Insurance and Sun Alliance, - before the sum of the parts were merged and reduced down to a mere abbreviation - has announced a rights issue to ensure that it has enough capital in the balance sheet to keep regulators content. It is not a share that I have bothered to look at previously, but the scent of rotted shareholder value draws me in for a closer look.
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Comments
Libero
Robert,
I posted this on Malcolm’s insurance-related article yesterday but I don’t know why I didn’t also post it here. What do you think of Novea?
“Hi Malcolm, Have you had a look at Novea? It’s a non-life insurance company that is looking cheap.
Their preliminary results state that profit before tax has risen 7.2%, EPS grew 13.6%, and their insurance operation is increasingly profitable with their combined ratio dropping to 85.7% for 2013.
Their P/E ratio is 11.6, below the sector average of 13 or so. If we then take its liabilities and cash into account, Novea looks even cheaper seeing as the company’s EV/EBIT ratio of just 7.1
Combine that with its market-beating combined ratio and a yield of ~4% for last year (over 7% if you count the special divi) and Novea is looking fairly undervalued at a first glance.
Well worth a look for those hunting for a low risk high-yield investment, don’t you think Malcolm?”
Please bear in mind that Novea has risen 20p since I posted that yesterday so it’s slightly inaccurate now but the point still stands – Novea looks good, and I’d be interested to hear your thoughts.
Kind regards,
Libero
Libero
Actually have you seen CSN’s amazing results whereby their profit before tax has more than tripled?!
CSN’s EPS has risen to 42.98 and therefore is trading at a P/E ratio of 7.2 – well below the market and sector average!
And it has very little exposure to the annuities market because it stopped writing such business years ago.
CSN is an absolute gem!
Tom Winnifrith
But shares off 7%. We tipped this stock on Nifty Fifty last year but banked a 47% gain (offer to bid) at 338p in Jan. Even at 300p not sure I see compelling value
T
Libero
Tom,
I totally disagree with you there.
CSN was dragged down prior to today’s news because of the changes to the annuity market. But that was totally unjustified because CSN hasn’t been in the annuity market in years therefore has next to no exposure there.
Today it’s fell down to 294p at one stage due to the news that the FCA are going to investigate life insurance policies from 1970 to 2000 and the whole sector got hit.
But, after today’s results that profit before tax has more than tripled in the last 12 months, CSN is trading well below its peers. The P/E ratio is rock bottom, it’s market cap is just 6 times the profit before tax, etc.
It fell to 294p this morning but it shall re-rate back upwards the rest of the day, and has considerable upside potential.
It’s by no means the most undervalued stock on the market etc & I know it’s contrarian but I think CSN is very compelling at this price.
Kind regards,
Dan