Member Info for RobsonHound

Very much so, actual reported results tend to be drowned by the effect of interest rate changes, on an approx. £100bn annuity book. LGEN publish adjusted operating profit which takes out this effect and is a more meaningful metric. FWIW LGEN share price nearly always falls on results day in my experience. Hope that helps.

Thanks for the blog. Am a relatively new shareholder attracted by the compelling metrics while not really having a deep understanding of the business. The diversification across lines is definitely cause for comfort with the share price not seemingly reflecting the transformation of the business recently. Also in Conduit just up the road in Hamilton!

A really good read as ever.

Agree Shaun but not good enough for the market it seems. Topped up on the fall.

Thanks for the info Dave, if they can hit their £10bn AUM target then looks like big potential. Have dipped a toe

PIC and Rothesay Life, LGEN's two largest competitors in the Pension Transfer world, particularly for £Bn plus cases, both have SCR coverage ratios well over 200% last time I looked. Maybe LGEN doesn't want to fall out of line, particularly for potential mega deals still to come?

With you Shaun, I like the fact Lancashire pay back excess capital to shareholders when they have it, rather than maintaining a stable dividend policy. Swiss Re have reported a benign Q4 for reinsurers (so far) so hopefully a decent 2025 though will expect profits down due to the California wildfires. This Company is also growing its premium income at a rate so big growth potential as well

Good article, enjoyed it. I wonder if you follow Gordon Aitken who covers similar matters. Am on board with the numbers, the challenge for Phoenix is to replace those Heritage cash flows with returns from the open businesses. As you say, BPA expansion can go much of the way but in any event, the cash flows look secure for the visible future, and it feels a rerating is in progress based on 2025 returns.

Thanks, gotta love a stock where the profits go straight through. Will invest.

Hi, quick question if I may as the special dividend hit my radar.

Do normal UK tax rates apply on these shares, i.e. no difference as they're Bermuda based and hence no corporation tax payable? Thanks in advance, very interested as this looks a bit of a cash machine.

Agree Jatw, I rated Just around £2.00 to £2.50 based on PIC's valuation but drifting down. I have too many of these already but might have to buy again soon.

The CSM release is what you expect, they only sold around £1bn of annuity business. The long term value of the company is the capital light savings part. So the CSM will wind down, but it has a long way to go!

Hi, I think your numbers are correct but maybe not the best to focus on. The core operating profit of £1.6bn is a better figure to look at as the basic operating profit. In the accounting treatment, investment variances, mainly through interest rate rises in 2024, are then added on to give the final taxable profit and earnings figures. So, the dividend is comfortably covered in my view. Hope that helps.

There's not many businesses that have 9 years of profits on the books already. THe negative today for me was the reduced margin on PRT business. But I think this was flagged up as the premium being largely gilt backed due to the prevailing tight corporate spreads. In time I'd expect the returns to be enhanced as the gilts get swapped out for corporates. Nice, solid, low risk share.