LSE:RSA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with acceptable 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


Market Performance


7 Day Return

0.3%

LSE:RSA

-3.4%

GB Insurance

-1.1%

GB Market


1 Year Return

-17.8%

LSE:RSA

-15.0%

GB Insurance

-5.7%

GB Market

RSA underperformed the Insurance industry which returned -14.1% over the past year.

RSA underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -5.3% over the past year.


Share holder returns

RSAIndustryMarket
7 Day0.3%-3.4%-1.1%
30 Day-9.1%-13.1%-4.4%
90 Day-7.1%-10.2%-2.7%
1 Year-14.6%-17.8%-10.8%-15.0%-1.3%-5.7%
3 Year14.0%3.4%15.2%-1.1%17.6%3.9%
5 Year33.9%18.2%23.5%-2.4%26.8%0.1%

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 based on future cash flows and its price relative to the stock market?

37%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

RSA Insurance Group is poor value based on expected growth next year.


Price Based on Value of Assets

RSA Insurance Group is good value based on assets compared to the GB Insurance industry average.


Next Steps

Future Growth

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

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RSA Insurance Group's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

RSA Insurance Group's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).

RSA Insurance Group's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.

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 earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

RSA Insurance Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

62.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 negative, it can't be compared to the 5-year average.

RSA Insurance Group's 1-year earnings growth is negative, it can't be compared to the GB Insurance industry average.


Return on Equity

RSA Insurance Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RSA Insurance Group used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.


Return on Capital Employed

RSA Insurance Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RSA Insurance Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

RSA Insurance Group's level of debt (13.6%) 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 (41.7% vs 13.6% today).

Debt is well covered by operating cash flow (46.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 18.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 12.9x debt.


Next Steps

Dividend

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

5.82%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase RSA Insurance Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

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 (2.08%).

RSA Insurance Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.7%).

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

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Stephen A. Hester (58yo)

5.5yrs

Tenure

UK£4,068,000

Compensation

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  ...


CEO Compensation Analysis

Stephen A.'s remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Stephen A.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.8yrs

Average Tenure

50.5yo

Average Age

The tenure for the RSA Insurance Group management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

57.5yo

Average Age

The tenure for the RSA Insurance Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Stephen A. Hester (58yo)

    Group Chief Executive & Director

    • Tenure: 5.5yrs
    • Compensation: UK£4.07m
  • Karen Caddick (50yo)

    Group HR Director

    • Tenure: 0.3yrs
  • Charlotte Heiss

    Group Chief Legal Officer & Company Secretary

    • Tenure: 3.4yrs
  • Scott Egan (48yo)

    Chief Executive of UK & International and Director

    • Tenure: 3.8yrs
    • Compensation: UK£1.96m
  • Ken Norgrove

    Chief Executive Officer of RSA Group Scandinavian Business

    • Tenure: 0.0yrs
  • Natalie Whitty

    Communications Director

    • Tenure: 0.0yrs
  • David Coughlan

    Managing Director - UK Personal Lines

    • Tenure: 3.3yrs
  • Charlotte Jones (51yo)

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£56.00k
  • David Germain

    Group Chief Technology Officer

    • Tenure: 2.8yrs
  • Kerry McConnell

    Director of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Sonia Baxendale (57yo)

    Independent Non-Executive Director

    • Tenure: 0.4yrs
  • Stephen A. Hester (58yo)

    Group Chief Executive & Director

    • Tenure: 5.5yrs
    • Compensation: UK£4.07m
  • Enrico Tommaso Cucchiani (69yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£85.00k
  • Martin Strobel (53yo)

    Senior Independent Director

    • Tenure: 0.0yrs
    • Compensation: UK£110.00k
  • Martin Scicluna (69yo)

    Chairman of the Board

    • Tenure: 6.6yrs
    • Compensation: UK£427.00k
  • Scott Egan (48yo)

    Chief Executive of UK & International and Director

    • Tenure: 3.8yrs
    • Compensation: UK£1.96m
  • Alastair William Barbour (66yo)

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: UK£115.00k
  • Charlotte Jones (51yo)

    Group CFO & Executive Director

    • Tenure: 1.3yrs
    • Compensation: UK£56.00k

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£5.413b
  • 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

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 products. 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 Analysis2019/08/20 20:45
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.