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Great-West Lifeco Inc. (GWO $60.41)
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Sun Life Financial Inc. (SLF $88.53)
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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH $2,324.00)
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Intact Financial Corporation (IFC $260.65)
Q: I am considering adding an insurance company. Do you think the insurance sector will do well in the next 5 years and which would be your favourite company? A short explanation of your choice would be appreciated.
5i Research Answer:
We think the sector outlook is decent. Maybe not exciting, but solid. In addition, the sector is priced well, which allows for a bit of a cushion even in an-already conservative (generally) sector. We would rank: SLF, IFC, FFH, GWO but would be happy with any. SLF is large, cheap and ultra conservative so it is often our favourite. IFC is more expensive but could grow faster (lower yield also). FFH is interesting, but is a bit different as it owns lots of other companies. It is cheap (recent comments posted). GWO is fine but simply less interesting than the others and has a bit of negative momentum right now.