Q: Intact has been losing ground since the end of July and I can't find any news that might suggest a weakening of fundamentals. Any reason that you may be aware of?
Thnx,
GM
Thnx,
GM
5i Research Answer:
Insurance stocks in general have seen pressure recently, due to a combination of factors such as: they are traditionally defensive stocks (lagging in a strong momentum market), rates are declining which can impact their investment portfolios, and the insurance industry is transitioning into a 'hard' market (from previously a soft market). We think in a different market environment, these names can do quite well.