Investment: Britannic is streets ahead
Thursday 17 September 1998
In fact, there are some very good reasons why it is exactly that. First there is the recent takeover of rival London & Manchester by Friends Provident for the very full price of pounds 744m. If other insurers follow the same logic, Britannic will be snapped up.
True, many rivals are puzzled by the big price paid by Friends - even given the unfortunate fact that it was set before the equity markets tumbled. But the deal still gave door-to-door insurers an unfamiliar air of desirability.
Britannic's rivals are struggling. Liverpool Victoria has taken three- quarters of its sales force off the road after discovering they were poorly trained; United Assurance is struggling to rebuild its sales after a huge shake-out.
But Britannic is streets ahead. New business was up 15.6 per cent in the year to June. Its staff have increased their productivity: the man from Britannic now comes equipped with a laptop.
With the benefit of a 7.5 per cent return from pounds 1bn of newly acquired orphan assets, shareholders enjoyed earnings per share up 86 per cent to 84.6p. Operating profit rose 11.2 per cent to pounds 78.2m. Britannic also has the financial strength to weather any more equity market storms.
Britannic shares jumped 48p to 1,281p yesterday, valuing the company at 1.3 times Merrill Lynch's estimate of its book value. Given that London & Manchester was bought for 1.6 times book that's still cheap. Buy.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
iJobs Money & Business
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...