Q: Hello, could you please provide your insights on Definity Financial's earnings results? Do you consider it a viable long-term investment? Additionally, if the stock were to be sold in the future, do you have any predictions on potential buyers? Thank you.
5i Research Answer:
If sold, we think SLF would be a natural buyer. Even just consolidating regional offices would provide good cost synergies. EPS of 86c beat estimates of 72c. Revenue of $1.0B beat estimates by 5%. The dividend was raised 16%. Gross premiums rose 8.5%. Combined ratio was 90.6%, with strength in personal property. Book value rose 11%. We would consider the quarter very strong and would endorse the stock. It is more expensive than some peers but the stock has good momentum.