Q: The 1st Q results looked good, the stock hit a 52 week high, only to completely give up that gain the next day. Would you continue to hold or switch to a different insurance company like TSU or IFC. Any others you would consider superior? John
5i Research Answer:
FFH is a very different animal than some of the other insurers. SLF would still be our favourite (just raised its dividend, also). FFH earnings beat estimates by a nice margin and the stock is very cheap. We think it is generally fine and the stock has been acting much better of late. With a 41% one-year gain the stock can be volatile but we do not see any concerns with the quarter. Insurance sales were higher and investment gains are improving. IFC is interesting but much more expensive. We would see no compelling reason to switch.