RSA Insurance Group
Market Cap
UK£7.1b
Last Updated
2021/04/13 19:27 UTC
Data Sources
Company Financials +
Executive Summary
RSA Insurance Group plc provides personal and commercial general insurance products. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet and fair value.
Similar Companies
Share Price & News
How has RSA Insurance Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RSA is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 0% a week.
Volatility Over Time: RSA's weekly volatility has decreased from 7% to 0% over the past year.
Market Performance
7 Day Return
0.06%
RSA
0.5%
GB Insurance
1.5%
GB Market
1 Year Return
84.0%
RSA
43.8%
GB Insurance
24.9%
GB Market
Return vs Industry: RSA exceeded the UK Insurance industry which returned 43.8% over the past year.
Return vs Market: RSA exceeded the UK Market which returned 24.9% over the past year.
Shareholder returns
| RSA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.06% | 0.5% | 1.5% |
| 30 Day | 0.8% | 1.8% | 3.0% |
| 90 Day | 0.6% | 7.3% | 3.8% |
| 1 Year | 86.3%84.0% | 50.2%43.8% | 30.7%24.9% |
| 3 Year | 13.1%6.0% | 8.3%-10.4% | 15.3%1.6% |
| 5 Year | 64.4%45.2% | 40.1%4.5% | 41.3%14.4% |
Long-Term Price Volatility Vs. Market
How volatile is RSA Insurance Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 months ago | Simply Wall St
Key Things To Understand About RSA Insurance Group's (LON:RSA) CEO Pay Cheque6 months ago | Simply Wall St
If You Had Bought RSA Insurance Group (LON:RSA) Stock Five Years Ago, You Could Pocket A 25% Gain Today7 months ago | Simply Wall St
Do Its Financials Have Any Role To Play In Driving RSA Insurance Group plc's (LON:RSA) Stock Up Recently?Valuation
Is RSA Insurance Group undervalued compared to its fair value and its price relative to the market?
23.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RSA (£6.83) is trading below our estimate of fair value (£8.9)
Significantly Below Fair Value: RSA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RSA is poor value based on its PE Ratio (22.1x) compared to the GB Insurance industry average (15.7x).
PE vs Market: RSA is good value based on its PE Ratio (22.1x) compared to the UK market (26x).
Price to Earnings Growth Ratio
PEG Ratio: RSA is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: RSA is overvalued based on its PB Ratio (1.6x) compared to the GB Insurance industry average (1.4x).
Future Growth
How is RSA Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
21.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RSA's forecast earnings growth (21.8% per year) is above the savings rate (1%).
Earnings vs Market: RSA's earnings (21.8% per year) are forecast to grow faster than the UK market (20.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: RSA's revenue (0.5% per year) is forecast to grow slower than the UK market (6.4% per year).
High Growth Revenue: RSA's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RSA's Return on Equity is forecast to be low in 3 years time (12.6%).
Past Performance
How has RSA Insurance Group performed over the past 5 years?
26.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RSA has a large one-off loss of £140.0M impacting its December 31 2020 financial results.
Growing Profit Margin: RSA's current net profit margins (4.9%) are higher than last year (4.9%).
Past Earnings Growth Analysis
Earnings Trend: RSA's earnings have grown significantly by 26.3% per year over the past 5 years.
Accelerating Growth: RSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: RSA had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the Insurance industry average (-13%).
Return on Equity
High ROE: RSA's Return on Equity (7.7%) is considered low.
Financial Health
How is RSA Insurance Group's financial position?
Financial Position Analysis
Short Term Liabilities: RSA's short term assets (£5.5B) do not cover its short term liabilities (£7.9B).
Long Term Liabilities: RSA's short term assets (£5.5B) do not cover its long term liabilities (£8.1B).
Debt to Equity History and Analysis
Debt Level: RSA's debt to equity ratio (18.7%) is considered satisfactory.
Reducing Debt: RSA's debt to equity ratio has reduced from 33.4% to 18.7% over the past 5 years.
Debt Coverage: RSA's debt is well covered by operating cash flow (65%).
Interest Coverage: RSA's interest payments on its debt are well covered by EBIT (21.5x coverage).
Balance Sheet
Dividend
What is RSA Insurance Group current dividend yield, its reliability and sustainability?
2.34%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RSA's dividend (2.34%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).
High Dividend: RSA's dividend (2.34%) is low compared to the top 25% of dividend payers in the UK market (4.18%).
Stability and Growth of Payments
Stable Dividend: RSA's dividend payments have been volatile in the past 10 years.
Growing Dividend: RSA's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (25.9%), RSA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: RSA's dividends in 3 years are forecast to be covered by earnings (66.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Stephen Alan Hester (60 yo)
7.17yrs
Tenure
UK£4,942,000
Compensation
Mr. Stephen Alan Michael Hester has been Director at Royal & Sun Alliance Insurance Plc since December 31, 2019 and serves as its Chief Executive Officer. Mr. Hester has been the Group Chief Executive Offi...
CEO Compensation Analysis
Compensation vs Market: Stephen Alan's total compensation ($USD6.79M) is above average for companies of similar size in the UK market ($USD3.55M).
Compensation vs Earnings: Stephen Alan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: RSA's management team is considered experienced (4.7 years average tenure).
Board Members
Experienced Board: RSA's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
RSA Insurance Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: RSA Insurance Group plc
- Ticker: RSA
- Exchange: LSE
- Founded: 1706
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Market Cap: UK£7.081b
- Shares outstanding: 1.04b
- Website: https://www.rsagroup.com
Number of Employees
Location
- RSA Insurance Group plc
- 20 Fenchurch Street
- London
- Greater London
- EC3M 3AU
- United Kingdom
Listings
Biography
RSA Insurance Group plc provides personal and commercial general insurance products. It operates through Scandinavia, Canada, and UK & International segments. The company offers a range of personal insuran...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 19:27 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.