LSE:RSA

Stock Analysis Report

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Executive Summary

RSA Insurance Group plc, together with its subsidiaries, provides personal and commercial general insurance services. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


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 more volatile than 75% of UK stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: RSA's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of UK stocks.


Market Performance


7 Day Return

-0.09%

RSA

-0.7%

GB Insurance

-1.7%

GB Market


1 Year Return

21.7%

RSA

-3.9%

GB Insurance

-8.6%

GB Market

Return vs Industry: RSA exceeded the UK Insurance industry which returned -3.3% over the past year.

Return vs Market: RSA exceeded the UK Market which returned -7.7% over the past year.


Shareholder returns

RSAIndustryMarket
7 Day-0.09%-0.7%-1.7%
30 Day0.2%4.3%3.4%
90 Day57.7%25.7%14.5%
1 Year23.2%21.7%0.3%-3.9%-4.9%-8.6%
3 Year17.9%8.2%-1.8%-19.6%3.7%-9.0%
5 Year92.4%67.2%35.5%0.07%47.1%13.7%

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

Valuation

Is RSA Insurance Group undervalued compared to its fair value and its price relative to the market?

30.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RSA (£6.78) is trading below our estimate of fair value (£9.69)

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 (22x) compared to the GB Insurance industry average (16.4x).

PE vs Market: RSA is good value based on its PE Ratio (22x) compared to the UK market (23x).


Price to Earnings Growth Ratio

PEG Ratio: RSA is poor value based on its PEG Ratio (1.4x)


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).


Next Steps

Future Growth

How is RSA Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RSA's forecast earnings growth (16.1% per year) is above the savings rate (1%).

Earnings vs Market: RSA's earnings (16.1% per year) are forecast to grow slower than the UK market (26.7% per year).

High Growth Earnings: RSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RSA's revenue (1.3% per year) is forecast to grow slower than the UK market (6.5% per year).

High Growth Revenue: RSA's revenue (1.3% 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 (12.8%).


Next Steps

Past Performance

How has RSA Insurance Group performed over the past 5 years?

32.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RSA has high quality earnings.

Growing Profit Margin: RSA's current net profit margins (4.7%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: RSA has become profitable over the past 5 years, growing earnings by 32.1% per year.

Accelerating Growth: RSA's earnings growth over the past year (21.6%) is below its 5-year average (32.1% per year).

Earnings vs Industry: RSA earnings growth over the past year (21.6%) exceeded the Insurance industry -7.6%.


Return on Equity

High ROE: RSA's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is RSA Insurance Group's financial position?


Financial Position Analysis

Short Term Liabilities: RSA's short term assets (£7.4B) exceed its short term liabilities (£3.5B).

Long Term Liabilities: RSA's short term assets (£7.4B) do not cover its long term liabilities (£12.5B).


Debt to Equity History and Analysis

Debt Level: RSA's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: RSA's debt to equity ratio has reduced from 32.5% to 13% over the past 5 years.

Debt Coverage: RSA's debt is well covered by operating cash flow (44.5%).

Interest Coverage: RSA's interest payments on its debt are well covered by EBIT (15.5x coverage).


Balance Sheet


Next Steps

Dividend

What is RSA Insurance Group current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RSA's dividend (2.36%) is higher than the bottom 25% of dividend payers in the UK market (1.54%).

High Dividend: RSA's dividend (2.36%) is low compared to the top 25% of dividend payers in the UK market (4.54%).


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 (26%), 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 (64.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Stephen Alan Hester (60 yo)

6.92yrs

Tenure

UK£4,060,000

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 ($USD5.52M) is above average for companies of similar size in the UK market ($USD2.63M).

Compensation vs Earnings: Stephen Alan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Alan Hester
Group Chief Executive & Director6.92yrsUK£4.06m0.099%
£ 6.9m
Charlotte Jones
Group CFO & Executive Director2.75yrsUK£1.81m0.0042%
£ 291.9k
Scott Egan
Chief Executive of UK & International and Executive Director5.25yrsUK£1.99m0.021%
£ 1.5m
David Germain
Group Chief Technology Officer4.17yrsno datano data
Kerry McConnell
Director of Investor Relationsno datano datano data
Charlotte Heiss
Group General Counsel & Company Secretary4.83yrsno datano data
Natalie Whitty
Communications Directorno datano datano data
Karen Caddick
Group HR Director1.67yrsno datano data
Kenneth Norgrove
Chief Executive Officer of RSA Group Scandinavian Business2yrsno datano data
David Coughlan
Managing Director - UK Personal Lines4.67yrsno datano data
William Rufus McDonnell
Group Chief Risk Officer6.08yrsno datano data
Ralph Daals
Group Chief Auditor5.58yrsno datano data

4.4yrs

Average Tenure

51yo

Average Age

Experienced Management: RSA's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Alan Hester
Group Chief Executive & Director6.92yrsUK£4.06m0.099%
£ 6.9m
Charlotte Jones
Group CFO & Executive Director2.75yrsUK£1.81m0.0042%
£ 291.9k
Scott Egan
Chief Executive of UK & International and Executive Director5.25yrsUK£1.99m0.021%
£ 1.5m
Sonia Baxendale
Independent Non-Executive Director1.83yrsUK£73.00k0.00064%
£ 44.9k
Enrico Tommaso Cucchiani
Independent Non-Executive Director6.08yrsUK£87.00kno data
Martin Strobel
Senior Independent Director1.42yrsUK£122.00k0.0012%
£ 81.4k
Martin Scicluna
Chairman of the Board8yrsUK£435.00k0.0014%
£ 96.8k
Clare Bousfield
Independent Non-Executive Director0.75yrno data0.00055%
£ 38.6k
Alastair William Barbour
Non-Executive Director9.25yrsUK£121.00k0.0012%
£ 81.4k
Kath Cates
Independent Non-Executive Director7.33yrsUK£102.00kno data

5.7yrs

Average Tenure

58yo

Average Age

Experienced Board: RSA's board of directors are considered experienced (5.7 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: 1710
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£7.016b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RSAI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
RSALSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
SUA2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
RSALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
RSNA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 2008

Biography

RSA Insurance Group plc, together with its subsidiaries, provides personal and commercial general insurance services. It operates through Scandinavia, Canada, and UK & International segments. The company o...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 01:33
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.