Investment Q&A

 POW is an insurance operator that is trading at 1.2x Price/Book. The insurance industry overall has experienced a tailwind in recent years due to a combination of increasing interest income (which may decline as interest rates reverse) along with a favourable pricing environment due to inflation. Most insurance companies have been doing quite well. That being said, POW is an average operator in the insurance industry (Return on equity around 10% on average over the years). The company is a type of value play with potential for short-term capital appreciation. We prefer to stick with above-average operators in the industry such as TSU, and IFC. We think POW is OK and would be fine owning it, but the others are likely to grow faster. TSU is much smaller and should be sized accordingly.