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RSA Insurance Group

LSE:RSA
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RSA
LSE
£6B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

RSA Insurance Group plc, together with its subsidiaries, provides personal and commercial general insurance products. The last earnings update was 51 days ago. More info.


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RSA Share Price and Events
7 Day Returns
1.7%
LSE:RSA
3.8%
GB Insurance
1.9%
GB Market
1 Year Returns
-16.5%
LSE:RSA
-4.5%
GB Insurance
2.5%
GB Market
RSA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
RSA Insurance Group (RSA) 1.7% 5.3% 3.1% -16.5% 16.5% 13.8%
GB Insurance 3.8% 3.5% 10.1% -4.5% 14.3% 23.7%
GB Market 1.9% 3% 7.9% 2.5% 15.6% 6.8%
1 Year Return vs Industry and Market
  • RSA underperformed the Insurance industry which returned -4.5% over the past year.
  • RSA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
RSA
Industry
5yr Volatility vs Market

Value

 Is RSA Insurance Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of RSA Insurance Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for RSA Insurance Group.

LSE:RSA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 10 analysts.
= Stable Book Value * Return on Equity
= £3.93 * 12.7%
£0.50
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. £3.93
Discount Rate (Cost of Equity) See below 6.9%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:RSA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.725 (1 + (1- 19%) (10.07%))
0.855
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.855 * 6.65%)
6.91%

Discounted Cash Flow Calculation for LSE:RSA using Excess Returns Model Model

The calculations below outline how an intrinsic value for RSA Insurance Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:RSA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (12.7% – 6.91%) * £3.93)
£0.23
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.23 / (6.91% - 1.23%)
£4.02
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £3.93 + £4.02
£7.95
LSE:RSA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £7.95
Current discount Discount to share price of £5.45
= -1 x (£5.45 - £7.95) / £7.95
31.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price RSA Insurance Group is available for.
Intrinsic value
31%
Share price is £5.45 vs Future cash flow value of £7.95
Current Discount Checks
For RSA Insurance Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • RSA Insurance Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • RSA Insurance Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for RSA Insurance Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are RSA Insurance Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:RSA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.32
LSE:RSA Share Price ** LSE (2019-04-18) in GBP £5.45
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of RSA Insurance Group.

LSE:RSA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:RSA Share Price ÷ EPS (both in GBP)

= 5.45 ÷ 0.32

17.17x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RSA Insurance Group is overvalued based on earnings compared to the GB Insurance industry average.
  • RSA Insurance Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does RSA Insurance Group's expected growth come at a high price?
Raw Data
LSE:RSA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.17x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
12.5%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:RSA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.17x ÷ 12.5%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RSA Insurance Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on RSA Insurance Group's assets?
Raw Data
LSE:RSA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £3.90
LSE:RSA Share Price * LSE (2019-04-18) in GBP £5.45
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.51x
LSE:RSA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:RSA Share Price ÷ Book Value per Share (both in GBP)

= 5.45 ÷ 3.90

1.4x

* Primary Listing of RSA Insurance Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • RSA Insurance Group is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess RSA Insurance Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. RSA Insurance Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is RSA Insurance Group expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is RSA Insurance Group expected to grow at an attractive rate?
  • RSA Insurance Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • RSA Insurance Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • RSA Insurance Group's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:RSA Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:RSA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 12.5%
LSE:RSA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts -1.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:RSA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:RSA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 595
2022-12-31 579
2021-12-31 6,665 703 529 5
2020-12-31 6,651 671 517 8
2019-12-31 6,477 578 464 7
LSE:RSA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 7,010 189 326
2018-09-30 7,032 275 315
2018-06-30 7,055 361 304
2018-03-31 7,078 363 287
2017-12-31 7,100 365 269
2017-09-30 7,066 129 194
2017-06-30 7,031 -108 119
2017-03-31 6,925 -72 82
2016-12-31 6,819 -35 45
2016-09-30 6,668 87 85
2016-06-30 6,517 208 125
2016-03-31 6,590 266 98

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • RSA Insurance Group's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • RSA Insurance Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:RSA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from RSA Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RSA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.52 0.57 0.48 10.00
2020-12-31 0.49 0.53 0.46 12.00
2019-12-31 0.45 0.49 0.40 11.00
LSE:RSA Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.32
2018-09-30 0.31
2018-06-30 0.30
2018-03-31 0.28
2017-12-31 0.26
2017-09-30 0.19
2017-06-30 0.12
2017-03-31 0.08
2016-12-31 0.04
2016-09-30 0.08
2016-06-30 0.12
2016-03-31 0.10

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • RSA Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess RSA Insurance Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
RSA Insurance Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare RSA Insurance Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • RSA Insurance Group has delivered over 20% year on year earnings growth in the past 5 years.
  • RSA Insurance Group's 1-year earnings growth is less than its 5-year average (21.2% vs 70.8%)
  • RSA Insurance Group's earnings growth has exceeded the GB Insurance industry average in the past year (21.2% vs 5.3%).
Earnings and Revenue History
RSA Insurance Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from RSA Insurance Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:RSA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,010.00 326.00
2018-09-30 7,032.00 315.00
2018-06-30 7,055.00 304.00
2018-03-31 7,078.00 286.50
2017-12-31 7,100.00 269.00
2017-09-30 7,065.50 194.00
2017-06-30 7,031.00 119.00
2017-03-31 6,925.00 82.00
2016-12-31 6,819.00 45.00
2016-09-30 6,668.00 85.00
2016-06-30 6,517.00 125.00
2016-03-31 6,589.50 97.50
2015-12-31 6,662.00 70.00
2015-09-30 7,868.50 157.50 234.00
2015-06-30 6,835.00 -43.00 -590.00
2015-03-31 7,082.50 -83.50 -295.00
2014-12-31 7,330.00 -124.00
2014-09-30 7,889.00 -321.50 596.00
2014-06-30 8,111.00 -507.00 598.00
2014-03-31 8,410.50 -411.00 303.00
2013-12-31 8,710.00 -315.00 8.00
2013-09-30 8,883.00 10.00 7.00
2013-06-30 9,056.00 335.00 6.00
2013-03-31 8,964.50 323.00 6.00
2012-12-31 8,873.00 311.00 6.00
2012-09-30 8,838.00 301.00 3.00
2012-06-30 8,803.00 291.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • RSA Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • RSA Insurance Group used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.
  • RSA Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess RSA Insurance Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
RSA Insurance Group has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is RSA Insurance Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up RSA Insurance Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • RSA Insurance Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • RSA Insurance Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of RSA Insurance Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 10.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from RSA Insurance Group Company Filings, last reported 3 months ago.

LSE:RSA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,251.00 560.00 807.00
2018-09-30 4,251.00 560.00 807.00
2018-06-30 4,286.00 663.00 793.00
2018-03-31 4,286.00 663.00 793.00
2017-12-31 4,102.00 564.00 1,066.00
2017-09-30 4,102.00 564.00 1,066.00
2017-06-30 4,080.00 666.00 780.00
2017-03-31 4,080.00 666.00 780.00
2016-12-31 3,847.00 1,319.00 1,010.00
2016-09-30 3,847.00 1,319.00 1,010.00
2016-06-30 4,274.00 1,261.00 1,328.00
2016-03-31 4,274.00 1,261.00 1,328.00
2015-12-31 3,771.00 1,265.00 869.00
2015-09-30 3,771.00 1,265.00 816.00
2015-06-30 3,846.00 1,249.00 881.00
2015-03-31 3,846.00 1,249.00 881.00
2014-12-31 3,933.00 1,542.00 1,073.00
2014-09-30 3,933.00 1,542.00 1,011.00
2014-06-30 3,840.00 1,602.00 1,144.00
2014-03-31 3,840.00 1,602.00 1,144.00
2013-12-31 3,014.00 1,610.00 1,162.00
2013-09-30 3,014.00 1,610.00 1,162.00
2013-06-30 3,762.00 1,611.00 1,332.00
2013-03-31 3,762.00 1,611.00 1,332.00
2012-12-31 3,879.00 1,607.00 1,329.00
2012-09-30 3,879.00 1,607.00 1,329.00
2012-06-30 3,849.00 1,610.00 1,376.00
  • RSA Insurance Group's level of debt (13.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (53.3% vs 13.2% today).
  • Debt is well covered by operating cash flow (33.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.6x coverage).
X
Financial health checks
We assess RSA Insurance Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. RSA Insurance Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.85%
Current annual income from RSA Insurance Group dividends. Estimated to be 6.03% next year.
If you bought £2,000 of RSA Insurance Group shares you are expected to receive £77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • RSA Insurance Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • RSA Insurance Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:RSA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:RSA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.41 2.00
2022-12-31 0.40 2.00
2021-12-31 0.35 12.00
2020-12-31 0.33 15.00
2019-12-31 0.28 14.00
LSE:RSA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.210 4.044
2019-02-27 0.210 4.049
2018-03-21 0.196 3.326
2018-02-22 0.196 3.114
2017-03-22 0.160 2.581
2017-02-23 0.160 2.692
2016-03-24 0.140 2.705
2016-02-25 0.140 3.100
2015-08-06 0.070 1.621
2015-03-24 0.020 0.463
2015-02-26 0.020 0.471
2014-08-07 0.000 0.000
2014-03-25 0.000 0.000
2014-02-27 0.000 0.000
2013-02-21 0.366 6.501
2012-02-23 0.458 8.119
2011-04-14 0.441 7.517
2011-02-24 0.441 6.569
2010-04-12 0.413 6.489
2010-02-25 0.413 6.495
2009-08-06 0.395 6.319
2009-04-20 0.386 6.176

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of RSA Insurance Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess RSA Insurance Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can RSA Insurance Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. RSA Insurance Group has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of RSA Insurance Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stephen A. Hester
COMPENSATION £4,068,000
AGE 57
TENURE AS CEO 5.2 years
CEO Bio

Mr. Stephen A. M. Hester has been the Group Chief Executive Officer of RSA Insurance Group plc since February 05, 2014. Mr. Hester has over 30 years' experience in financial services and FTSE100 companies with expertise in transforming the performance of businesses. Mr. Hester served as Group Chief Executive of National Westminster Bank plc until September 30, 2013. Mr. Hester served as Group Chief Executive Officer of The Royal Bank of Scotland Group plc (also known as RBS Group) for Coutts & Co. from November 21, 2008 to October 01, 2013. He served as Group Chief Executive of NatWest Markets Plc (formerly known as Royal Bank of Scotland Plc) since October 1, 2008. He served as Chief Operating Officer of Santander UK Group Holdings plc since February 2003, Group Finance Director and also served as its Chief Financial Officer. Mr. Hester served as the Chief Executive Officer of The British Land Company Public Limited Company from November 2004 to November 15, 2008 and previously served as its Co-Chief Executive Officer since July 2004. He served as Chairman and Chief Executive Officer of The British Land Corporation Ltd. He served as Chief Financial Officer of Abbey National Financial Products. He held a number of senior roles at Credit Suisse First Boston in London and New York including chief financial officer, Head of fixed income and co-Head of European Investment Banking. He served as a Non-Executive Deputy Chairman and Director of NRAM plc from February 2008 to October 1, 2008. He has been an Executive Director of RSA Insurance Group plc since February 5, 2014. He has been a Non Executive Director of Centrica plc since June 1, 2016 and has also been its Senior Independent Director since October 01, 2016. He served as an Executive Director of The Royal Bank of Scotland Group plc from October 1, 2008 to October 1, 2013. He served as an Executive Director of Santander UK Group Holdings Plc since May 13, 2002. He served as Director of The British Land Company PLC since November 12, 2004 and National Westminster Bank plc until September 30, 2013. He served as Director of Abbey National Treasury Services plc. Mr. Hester serves as a Trustee of the Foundation and Friends of The Royal Botanic Gardens, Kew Foundation. He has wide-ranging experience, particularly in customer-facing businesses, together with recognised expertise in transforming business performance. He has a deep knowledge of operating within highly regulated businesses and over 30 years’ experience in financial services and FTSE 100 companies. He studied Economics at University of Oxford.

CEO Compensation
  • Stephen A.'s compensation has been consistent with company performance over the past year.
  • Stephen A.'s remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the RSA Insurance Group management team in years:

3.6
Average Tenure
50
Average Age
  • The tenure for the RSA Insurance Group management team is about average.
Management Team

Stephen A. Hester

TITLE
Group Chief Executive & Director
COMPENSATION
£4M
AGE
57
TENURE
5.2 yrs

Scott Egan

TITLE
Group CFO
COMPENSATION
£2M
AGE
47
TENURE
3.5 yrs

David Germain

TITLE
Group Chief Technology Officer
TENURE
2.4 yrs

Kerry McConnell

TITLE
Director of Investor Relations

Charlotte Heiss

TITLE
Group Chief Legal Officer & Company Secretary
TENURE
3.1 yrs

Natalie Whitty

TITLE
Communications Director

David Coughlan

TITLE
Managing Director - UK Personal Lines
TENURE
2.9 yrs

William R. McDonnell

TITLE
Group Chief Risk Officer
TENURE
4.3 yrs

Ralph Daals

TITLE
Group Chief Auditor
TENURE
3.8 yrs

Darren McKenzie

TITLE
Chief Operating Officer of UK & Western Europe
AGE
50
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the RSA Insurance Group board of directors in years:

4.8
Average Tenure
57.5
Average Age
  • The tenure for the RSA Insurance Group board of directors is about average.
Board of Directors

Martin Scicluna

TITLE
Chairman of the Board
COMPENSATION
£427K
AGE
68
TENURE
6.3 yrs

Stephen A. Hester

TITLE
Group Chief Executive & Director
COMPENSATION
£4M
AGE
57
TENURE
5.2 yrs

Scott Egan

TITLE
Group CFO
COMPENSATION
£2M
AGE
47
TENURE
3.5 yrs

Jos Streppel

TITLE
Independent Non-Executive Director
COMPENSATION
£94K
AGE
69
TENURE
7.5 yrs

Alastair William Barbour

TITLE
Independent Non-Executive Director
COMPENSATION
£115K
AGE
65
TENURE
7.5 yrs

Kath Cates Shailer

TITLE
Independent Non-Executive Director
COMPENSATION
£94K
AGE
55
TENURE
5.6 yrs

Martin Strobel

TITLE
Independent Non-Executive Director
COMPENSATION
£110K
AGE
52
TENURE
2.9 yrs

Isabel Hudson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£101K
AGE
58
TENURE
1.9 yrs

Enrico Tommaso Cucchiani

TITLE
Independent Non-Executive Director
COMPENSATION
£85K
AGE
68
TENURE
4.3 yrs

Charlotte Jones

TITLE
Non-Executive Director
COMPENSATION
£56K
AGE
50
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess RSA Insurance Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. RSA Insurance Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Should You Know About The Future Of RSA Insurance Group plc's (LON:RSA)?

RSA Insurance Group plc's (LON:RSA) latest earnings announcement in December 2018a … signalled

Simply Wall St -

How Does RSA Insurance Group plc (LON:RSA) Fare As A Dividend Stock?

Historically, RSA Insurance Group plc (LON:RSA) has been paying a dividend to shareholders. … Does RSA Insurance Group tick all the boxes of a great dividend stock? … Check out our latest analysis for RSA Insurance Group

Simply Wall St -

How RSA Insurance Group plc (LON:RSA) Could Add Value To Your Portfolio

is a company with great financial health as well as a. … Below, I've touched on some key aspects you should know on a high level … If you're interested in understanding beyond my broad commentary,

Simply Wall St -

Was RSA Insurance Group plc's (LON:RSA) Earnings Growth Better Than The Industry's?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Did RSA beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 71%, indicating the rate at which RSA is growing has slowed down

Simply Wall St -

RSA Insurance Group plc (LON:RSA): Is Growth Priced In?

Looking at RSA Insurance Group plc’s (LON:RSA) fundamentals some investors are wondering if its last closing price of £5.228 represents a good value for money for this high growth stock. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … The excitement around RSA Insurance Group's growth potential is not unfounded

Simply Wall St -

RSA Insurance Group plc (LON:RSA) Is Trading 25.51% Below Its True Value

Insurance stocks such as RSA are hard to value. … This is because the rules banks face are different to other companies, which can impact the way we forecast their cash flows. … Industry-specific factors, such as gross written premiums are crucial in understanding how insurance companies make money.

Simply Wall St -

Why Fundamental Investors Might Love RSA Insurance Group plc (LON:RSA)

is a company with great financial health as well as a. … Below is a brief commentary on these key aspects … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Does The Hype Around RSA Insurance Group plc's (LON:RSA) Growth Justify Its October Share Price?

RSA Insurance Group plc (LON:RSA) is considered a high growth stock. … View our latest analysis for RSA Insurance Group? … Analysts are predicting good growth prospects for RSA Insurance Group over the next couple of years

Simply Wall St -

Why RSA Insurance Group plc's (LON:RSA) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … Hester's Compensation Compare With Similar Sized Companies. … Our data indicates that RSA Insurance Group plc is worth UK£5.6b, and total annual CEO compensation is UK£5m.

Simply Wall St -

What Do Analysts Think About RSA Insurance Group plc's (LON:RSA) Future?

In June 2018, RSA Insurance Group plc (LON:RSA) released its earnings update. … with earnings expected to grow by a high double-digit of 72.58% in the upcoming year, … 5-year average growth rate of -5.86%.

Simply Wall St -

Company Info

Description

RSA Insurance Group plc, together with its subsidiaries, provides personal and commercial general insurance products. 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. In addition, the company offers risk management solutions for the food and drink, infrastructure and utility, and real estate sectors, as well as care homes, hospices, residential homes, and day care centers and others. 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.

Details
Name: RSA Insurance Group plc
RSA
Exchange: LSE
Founded: 1710
£5,562,623,669
1,019,916,331
Website: http://www.rsagroup.com
Address: RSA Insurance Group plc
20 Fenchurch Street,
London,
Greater London, EC3M 3AU,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE RSA Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK RSAI.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB SUA2 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE RSAL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK RSNA.Y SPONSORED ADR Pink Sheets LLC US USD 17. Oct 2008
Number of employees
Current staff
Staff numbers
12,244
RSA Insurance Group employees.
Industry
Property and Casualty Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:40
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2019/02/27
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.