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.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 3 How the language you speak changes your view of the world
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...