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  5. FFH: Hi, What is you insight on TSU-T? [Fairfax Financial Holdings Limited Subordinate Voting Shares]
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Investment Q&A

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Q: Hi,
What is you insight on TSU-T? Is it a good and better risk and reward pick after it fall from the highs of C$40 in Insurance business? Is there major problem with its business? Will it recover or its better to go with Intact IFC:T or Fairfax FFH-T?
Thanks
Piyush
Asked by Piyush on April 28, 2025
5i Research Answer:

We like TSU, we have the company in both of our coverage list and in our growth model portfolio. It is a small ($1.8B market cap) specialty insurance name, trading at a reasonable valuation of 12.6X forward earnings. We are encouraged by its price action over the past few weeks, as it has bounced over 20% from its lows. Over the past few years it has been trading in a range between $30 and $50, but its fundamentals have mostly been increasing. There have been a few issues with writedowns in the past couple of years, which set the company back, but overall, it has strong fundamentals.

It is much smaller compared to IFC or FFH, but its growth rate and growth potential are higher in our view. For a high-growth insurance name, we would prefer TSU, but for a steady compounder and a more conservative name, we would prefer IFC or FFH.