GWO's recent results have been strong and momentum is improving. Its valuation has been compressing over the years and it now trades at 10.4X forward earnings. Its price to book ratio is at 1.7X, slightly on the higher end, however, not overly concerning. Its free cash flows are strong and its debt levels are quite minimal. Its historically weak sales and earnings growth rates are not great, but going forward it's sales growth is expected to be positive. Being an insurance company, its investment portfolio benefits from high rates, and so any decrease or sudden, unexpected decrease in rates could negatively impact its results. There are also commercial real estate exposures from life insurance companies, and this can pose a risk to its earnings going forward.
We would prefer GWO for its income qualities over its growth qualities. Other insurance names that we like include SLF and IFC.