In the 3Q, FFH’s book value grew around 16.4% compared to $762 at the beginning of this year (adjusted for the $10 dividend paid). Its gross premiums written growth is around 5%, and its combined ratio is 95%, reflecting good underwriting margins. The company experienced a significant tailwind as FFH’s investment portfolio earned meaningfully better interest income. If rates stay where they are for longer, FFH could perform well from here. The price/book is still at only 1.0x, which is lower than peers and its historical averages over the last few years (ranging from 0.8x to 1.4x). We think it is still cheap and would be willing to add some here.
5i Research Answer: