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Commuters walk across London Bridge toward the City of London on September 15, 2020.
justin tallis/Agence France-Presse/Getty Images
RSA Insurance was the standout U.K. blue chip stock on Tuesday, as the insurer said a higher court ruling on business interruption insurance was favorable enough for it to resume paying dividends.
RSA Insurance RSA, +6.42% shares rose as much as 6% as the insurer estimated the additional financial impact of Tuesday’s judgement to be approximately £104 million on a gross basis across its portfolio of relevant business interruption policies. After the application of its catastrophe reinsurance protection, RSA estimates the impact of this judgement to be around £85 million, and that number will reduce further because the loss will be covered by the group-wide aggregate reinsurance program.
Third quarter trading across the RSA Group to date has been strong, the insurer added. The interim dividend will be 8 pence, up from 7.5 pence last year.
The case was brought by the U.K. Financial Conduct Authority, on behalf of the insurers. Hiscox HSX, +16.40%, a component of the mid-cap FTSE 250 MCX, +0.69%, shot up 16% as it estimated additional COVID-19 claims arising from business interruption to be less than £100 million net of reinsurance.
The FTSE 100 UKX, +1.22% overall rose 1.2%, as the market warmed to another strong showing on Wall Street, as well as upbeat economic data out of China.
Ocado Group OCDO, +4.96% was another standout, rising 5% after reporting a boost in its U.K. venture from switching its grocery provide to Marks & Spencer MKS, +4.53% from Waitrose. Demand for the new range is driving both an increase in the number of products in customer baskets and strong forward demand, Ocado said.
Ocado expects a full year EBITDA of at least £40 million, which was ahead of the FactSet-compiled estimate for £28 million.
Watches of Switzerland slumped after Apollo Global Management sold a 33 million share stake at a 7% discount to Monday’s close. Apollo still has a 28% stake in the retailer.
