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.
elephant appealThe first 23 lots in our charity auction have now gone. But there are 22 more still up for grabs
The magicians using online collaboration to push boundaries
Jennifer Lawrence attacks mass media again over body image
Jennifer Lawrence: 'It should be illegal to call someone fat on TV'
Sun will 'flip upside down' within weeks, says Nasa
Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
DNA from a 50,000 year old toe shows Neanderthals were highly inbred
Devyani Khobragade: India-US row escalates over arrest of diplomat in New York
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Ian Watkins: Police probed over earlier allegations as paedophile Lostprophets singer sentenced to 35 years for child sex offences
- 4 Christmas comes early: Justin Bieber is 'retiring from music'
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
- < Previous
- Next >
iJobs Money & Business
£60000 - £75000 per annum + Bonus and Benefits: Harrington Starr: A leading au...
£25000 - £32000 per annum: Harrington Starr: Junior Business Analyst - Banking...
£25000 - £35000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Implementation...