Q: Thinking of starting a position in P&C insurers. Would DFY be a good choice for growth? How has DFY performed since demutualization? Intact is certainly growing great but is it expensive? I already own MFC & SLF would adding a P&C be too concentrated?
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5i Research Answer:
We like DFY and think it or TSU would be a good diversifier within the insurance industry. DFY has executed well since going public and the main detractor would really be that it has a bit of a premium valuation. The recent quarter looked fine and the company raised the dividend.