Pinned straw:
Hi @THOR , @Garfield and @thunderhead who hold SDF and @raymon68 who has posted about SDF, what are your thoughts on the acquisition of Sure Insurance. I have held SDF IRL for some time now as a recommendation from another service and without doing a deep dive into them I have always been impressed by management producing a steady flow of positive results. The chart below shows everything you usually want to see - bottom left to top right. I like the fact that they are not an insurance company (subject to natural disasters) but more of a clip the ticket broker. The founders of Sure are retaining 30% of the company which should drive continued motivation to do well. They expect the acquisition to to be immediately EPS accretive
For more detailed info - SDF Investor-Presentation Nov 2023.PDF
Hi @nessy,
I haven't had a chance to assess it yet, but given the track record of the board and management here, I have little reason to doubt that the transaction has sound underpinnings. Like you said, those charts say it all.
I will chime in with some thoughts once I have mulled over the details.
Looks good to me, continuation of the inorganic strategy. I was expecting a US acquisition though but good to see it's a relatively safe australian acquisition which they have a good history of.
At least there was an earnings upgrade to boot - if only small.
I think SDF has benefited from the 'buy insurance' due to the higher bond yield thematic even if they don't benefit from that as a broker. So might reverse a bit now that inflation is falling, as bond yields fall, and they get lumped in that bucket.
They have benefited from the 'hard' premium cycle of course which is probably the more fundamental concern if this moves to a softening cycle.