gubu
02 Nov 2015
worth another look this one is worth looking at again I would think, possibly drip feeding in as performance evolves over 2015-2016they have had a bad 6 months in H1 2015 because they expect claims to increase and have set aside larger provisions. Both 2015 and 2016 are expected to be poorI think one issue is that with yields so low everywhere these days, this is being factored into the courts awards system so a much higher initial capital sum payout is required upfront to give the same level of annual income to accident victims etc.On the other hand premiums have been pushed up an average 8%, and they have had an injection of capital (bonds) amounting to €70m from Fairfax, convertible at €8.50 a share so that will be about 8.2m new shares or about 25% dilution in time, but it helps them meet capital requirements, added to the proceeds of almost €50m from divesting property assets so a little risky if claims turn out higher than the provisions but if Fairfax are putting in €70m that is encouraging especially given the backdrop of a recovering economyany views?
