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Fairfax Financial Holdings Limited Subordinate Voting Shares (FFH)
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Intact Financial Corporation (IFC)
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Trisura Group Ltd. (TSU)
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Definity Financial Corporation (DFY)
Q: I am looking at the insurance industry for my next purchase in a non registered account , mainly consisting of banks, utilities, telecoms, REITS.
Which of these three offer the best growth potential over the next 5 years and why ? I can handle moderate risk. Which offers the best entry price ? Are there other CDN listed insurance companies I should consider ?
Thanks. Derek.
Which of these three offer the best growth potential over the next 5 years and why ? I can handle moderate risk. Which offers the best entry price ? Are there other CDN listed insurance companies I should consider ?
Thanks. Derek.
5i Research Answer:
DFY (property and casualty insurance) – consensus growth estimate over the next few years 6%-8%
IFC (property and casualty insurance and auto insurance) - consensus growth estimate over the next few years 6%
TSU (specialty insurance) - consensus growth estimate over the next few years 10%-12%
TSU has the best growth, as the company reinvested the majority of its earnings back, and volume growth in TSU’s recent quarters is quite healthy. TSU has the strongest growth, but we think IFC could be the most balanced name between capital returns and growth.
Best entry price: TSU - $37, IFC - $242.
Other CDN-listed insurance companies like FFH (run by the CEO who used to be considered as Warren Buffet of Canada)