Q: Could you please comment on Intact Financial earnings ? Were there any details about their liability estimates for L.A. wildfires ?
How is the current valuation and would you be comfortable to add some shares at current levels, for 3-5 years hold ?
Thank You
How is the current valuation and would you be comfortable to add some shares at current levels, for 3-5 years hold ?
Thank You
5i Research Answer:
EPS of $4.93 beat estimates of $4.18 and revenues of $5.76B missed estiamtes of $5.93B. Its combined ratio was solid at 86.5%, mostly due to solid underlying results across all lines of business. Its ROE was 16.5%, and it incurred $1.5B in catastrophe losses from several natural disasters over the past year. There were no mentions of the LA wildfires in its earnings. As a shareholder, we would be very pleased with these results and the market seems to like the results. It trades at 17.5X forward earnings, on the higher end of its historical average, but the company continues to execute and both margins and free cash flow are great. We would be comfortable slowly averaging in here for a long-term hold.