Wont be fully imputed, as they have tax losses for Africa.
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Wont be fully imputed, as they have tax losses for Africa.
Market Cap of only $300m. You could get 20% of VGL for $100m, so which offers the best T/O target? Loaded with cash too, ChCh claims no longer an issue and 97% settled for Gabriel and the Auckland floods, policy discount remediation almost done, a great IT platform, Suva hub significantly reducing costs, exited the fraught jurisdictions of PNG, the Solomons and Vanuatu, rapid increase in GWP, increasingly efficient business - what's not to like?
Although TWR are currently doing very well, you will notice everyone qualifies their enthusiasm for the future with a comment something like "fingers crossed no massive event happens". This is the great uncertainty for any investor in insurance, massive events are guaranteed to happen, sometime.
I agree we say that, even i did so earlier today.
But the large event allowance factored into FY25 and FY26 is the most it has even been. And compared to its competitors TWR is trading on a much lower multiple.
So a large event can come but still the SP is undervalued.
This is my reservation with TWR as well. All those La Nina storms just nailed them. Better times ahead as we move to El Nino but then there's a fault line to become active at any time. All the risk in one geographic basket is a worry.
Whatever the market thinks, I personally can't see a reason to sell my holding.
TWR will do 9-10cents eps this year and then there's the potential for that again depending on how much of the large event is used.
The solvency margin is $117m so TWR is going to be sitting on a huge pile of cash looking for a home. Maybe end of year div of 5 cents and $30m buy back depending on the large event utlisation?
Just like with 2CC you can sit and collect large distributions knowing the balance sheet is strong and the SP is undervalued.
Lastly the SP is in a solid uptrend.