wisdom Posted January 20, 2017 Share Posted January 20, 2017 http://finance.yahoo.com/news/fairfax-may-sell-25-percent-indias-icici-lombard-114458793--sector.html Link to comment Share on other sites More sharing options...
benhacker Posted January 20, 2017 Share Posted January 20, 2017 Fairfax may redeploy some of the proceeds to fund its $4.9 billion takeover of Swiss insurer Allied World <AWH.N>, a source said. ? Raising more capital for a deal they shouldn't have needed to raise capital for, that they already are raising capital for by paying at least partially in equity and selling minority interests in the acquisition. I find Fairfax's capital allocation continuing down a path that leads me to raise an eyebrow... Understand of course the above is rumor only (and of course we don't know the magnitude of what part of the Lombard sale goes toward AWH...) but still... I like Fairfax, but with the complexity of their business and the recent actions, trading at ~1.5x TBV, I think they are inviting negative press. Link to comment Share on other sites More sharing options...
wisdom Posted January 20, 2017 Author Share Posted January 20, 2017 They added to ICICI Lombard at a value of $2.5B 15 months ago. They are cashing out between $3.2-$4 Billion 15 months later and buying an insurer that they will control in Europe and potentially starting another insurer in India focusing in an area they already operate in - Thomas Cook. I understand P&C isn't as good a business in India. They may have realized this and decided to specialize in India. Is that bad capital allocation? Link to comment Share on other sites More sharing options...
benhacker Posted January 20, 2017 Share Posted January 20, 2017 wisdom, my comment wasn't criticizing their investment in ICICI... I think that was clear. Link to comment Share on other sites More sharing options...
caprivenky Posted January 21, 2017 Share Posted January 21, 2017 Does anybody know ,what was their investment cost in icicle Lombard in 2001 Link to comment Share on other sites More sharing options...
caprivenky Posted January 24, 2017 Share Posted January 24, 2017 found the answer fairfax bought 35% stake in ICici Lombard over years for 347 million. now they are selling 25% of the stake for 1 billion$ not bad Link to comment Share on other sites More sharing options...
giofranchi Posted January 24, 2017 Share Posted January 24, 2017 found the answer fairfax bought 35% stake in ICici Lombard over years for 347 million. now they are selling 25% of the stake for 1 billion$ not bad +1 They have been harshly criticized for their investments in equities recently: well, it seems that at least some of them are turning out to be quite profitable! Cheers, Gio Link to comment Share on other sites More sharing options...
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