Q: Why has Intact fallen sharply in the last few months?
5i Research Answer:
Insurance companies have recently fallen or traded sideways for the past year or so, as expectations for rate cuts can impact their investment returns, and as these are more 'defensive' names, the market has been trading defense for growth over the past year. We continue to like IFC for a long-term hold, but until there is a risk rotation that takes place, we think IFC likely trades flat. Although, we still view it as one of our long-term, high-quality plays that can benefit when growth stocks stop working.