RSA Insurance Group
Market Cap
UK£4.4b
Last Updated
2020/07/14 20:54 UTC
Data Sources
Company Financials +
Executive Summary
RSA Insurance Group plc, together with its subsidiaries, provides personal and commercial general insurance services.
Rewards
Risk Analysis
No risks detected for RSA from our risk checks.
Snowflake Analysis
Good value with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.6%
RSA
0.8%
GB Insurance
-0.7%
GB Market
1 Year Return
-29.1%
RSA
-24.8%
GB Insurance
-15.7%
GB Market
Return vs Industry: RSA underperformed the UK Insurance industry which returned -25.1% over the past year.
Return vs Market: RSA underperformed the UK Market which returned -14.9% over the past year.
Shareholder returns
| RSA | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.6% | 0.8% | -0.7% |
| 30 Day | 4.4% | 4.5% | 0.6% |
| 90 Day | 17.9% | 20.3% | 11.3% |
| 1 Year | -28.1%-29.1% | -17.0%-24.8% | -11.7%-15.7% |
| 3 Year | -28.2%-34.0% | -13.0%-28.0% | -4.3%-16.1% |
| 5 Year | 10.0%-3.8% | 3.7%-22.3% | 13.5%-11.9% |
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
3 weeks ago | Simply Wall St
Here's What We Think About RSA Insurance Group plc's (LON:RSA) CEO Pay1 month ago | Simply Wall St
Those Who Purchased RSA Insurance Group (LON:RSA) Shares Three Years Ago Have A 40% Loss To Show For It2 months ago | Simply Wall St
RSA Insurance Group plc's (LON:RSA) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?Valuation
Is RSA Insurance Group undervalued compared to its fair value and its price relative to the market?
43.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RSA (£4.23) is trading below our estimate of fair value (£7.53)
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 (13x) compared to the GB Insurance industry average (10.2x).
PE vs Market: RSA is good value based on its PE Ratio (13x) compared to the UK market (15.4x).
Price to Earnings Growth Ratio
PEG Ratio: RSA is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: RSA is good value based on its PB Ratio (1.1x) compared to the GB Insurance industry average (1.2x).
Next Steps
Future Growth
How is RSA Insurance Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RSA's forecast earnings growth (11.4% per year) is above the savings rate (1.2%).
Earnings vs Market: RSA's earnings (11.4% per year) are forecast to grow slower than the UK market (21.6% per year).
High Growth Earnings: RSA's earnings are forecast to grow, but not significantly.
Revenue vs Market: RSA's revenue is expected to decline over the next 3 years (-1% per year).
High Growth Revenue: RSA's revenue is forecast to decline over the next 3 years (-1% 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?
44.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RSA has high quality earnings.
Growing Profit Margin: RSA's current net profit margins (4.9%) are higher than last year (4.7%).
Past Earnings Growth Analysis
Earnings Trend: RSA has become profitable over the past 5 years, growing earnings by 44.4% per year.
Accelerating Growth: RSA's earnings growth over the past year (3.1%) is below its 5-year average (44.4% per year).
Earnings vs Industry: RSA earnings growth over the past year (3.1%) underperformed the Insurance industry 4.2%.
Return on Equity
High ROE: RSA's Return on Equity (8.8%) 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 (£5.2B) do not cover its short term liabilities (£7.6B).
Long Term Liabilities: RSA's short term assets (£5.2B) do not cover its long term liabilities (£8.0B).
Debt to Equity History and Analysis
Debt Level: RSA's debt to equity ratio (21.2%) is considered satisfactory.
Reducing Debt: RSA's debt to equity ratio has reduced from 39.1% to 21.2% over the past 5 years.
Debt Coverage: RSA's debt is well covered by operating cash flow (52%).
Interest Coverage: RSA's interest payments on its debt are well covered by EBIT (16.1x coverage).
Balance Sheet
Next Steps
Dividend
What is RSA Insurance Group current dividend yield, its reliability and sustainability?
6.81%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RSA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RSA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RSA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RSA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: RSA is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RSA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Stephen Alan Hester (60yo)
6.42yrs
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 ($USD5.09M) is above average for companies of similar size in the UK market ($USD3.07M).
Compensation vs Earnings: Stephen Alan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 6.42yrs | UK£4.06m | 0.096% £4.2m | |
| Group CFO & Executive Director | 2.25yrs | UK£1.81m | 0.0041% £180.4k | |
| Chief Executive of UK & International and Executive Director | 4.75yrs | UK£1.99m | 0.020% £861.3k | |
| Group Chief Technology Officer | 3.67yrs | no data | no data | |
| Director of Investor Relations | no data | no data | no data | |
| Group Chief Legal Officer & Company Secretary | 4.33yrs | no data | no data | |
| Communications Director | no data | no data | no data | |
| Group HR Director | 1.17yrs | no data | no data | |
| Chief Executive Officer of RSA Group Scandinavian Business | 1.5yrs | no data | no data | |
| Managing Director - UK Personal Lines | 4.17yrs | no data | no data | |
| Group Chief Risk Officer | 5.58yrs | no data | no data | |
| Group Chief Auditor | 5.08yrs | no data | no data |
3.9yrs
Average Tenure
51yo
Average Age
Experienced Management: RSA's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Director | 6.42yrs | UK£4.06m | 0.096% £4.2m | |
| Group CFO & Executive Director | 2.25yrs | UK£1.81m | 0.0041% £180.4k | |
| Chief Executive of UK & International and Executive Director | 4.75yrs | UK£1.99m | 0.020% £861.3k | |
| Independent Non-Executive Director | 1.33yrs | UK£73.00k | 0.00064% £28.0k | |
| Independent Non-Executive Director | 5.58yrs | UK£87.00k | no data | |
| Senior Independent Director | 0.92yr | UK£122.00k | 0.0012% £50.8k | |
| Chairman of the Board | 7.5yrs | UK£435.00k | 0.0014% £60.4k | |
| Independent Non-Executive Director | 0.25yr | no data | no data | |
| Independent Non-Executive Director | 8.75yrs | UK£121.00k | 0.0012% £50.8k | |
| Independent Non-Executive Director | 6.83yrs | UK£102.00k | no data |
5.2yrs
Average Tenure
58yo
Average Age
Experienced Board: RSA's board of directors are considered experienced (5.2 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.
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£4.379b
- Shares outstanding: 1.03b
- Website: https://www.rsagroup.com
Number of Employees
Location
- RSA Insurance Group plc
- 20 Fenchurch Street
- London
- Greater London
- EC3M 3AU
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RSAI.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| RSA | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| SUA2 | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| RSAL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| RSNA.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Oct 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 offers a range of personal insurance products, including home, car, pet, and travel insurance products directly to its customers, as well as through brokers and agents. It also provides commercial insurance products, such as property, vehicle and fleet, professional liability, and indemnity and travel insurance, as well as marine, renewable energy, construction and engineering, and rail insurance for small to medium sized enterprises, multinational companies, and sole traders. The company was formerly known as Royal & Sun Alliance Insurance Group plc and changed its name to RSA Insurance Group plc in May 2008. RSA Insurance Group plc was founded in 1710 and is headquartered in London, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/14 20:54 |
| End of Day Share Price | 2020/07/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.