Wintaai Holdings Ltd (not listed)

[This2ShallPass]

Is there any way we can invest in Wintaai?

[Parsad]

10 hours ago, This2ShallPass said:

Is there any way we can invest in Wintaai?

 

Generally, it's when any existing shareholder wants to sell some of their stake...often for some liquidity.  Francis does not usually raise any money...the company tends to generate more cash flow than he can even put to work presently.  Perhaps one day, if he goes public it will be widely accessible, but that might me some time away.

 

It really is his personal wealth vehicle and he had invited a handful of friends/associates to invest in the beginning.  Like over 95% of the money was his own.  So if he's smart, he will keep it private and away from the unnecessary regulations and requirements of a public company.  And Francis is very smart! 

 

I would imagine the only reason he might even consider going public is for his estate and heirs.  It would be easier to sell small amounts of a public company for estate planning, rather than chunks or all of the private company.  Cheers!

[jfan]

10 hours ago, This2ShallPass said:

Is there any way we can invest in Wintaai?

Mcelvaine funds owns wintaai shares

[mananainvesting]

Does anyone have Wintaai 2024 annual report/annual letter? 

[Parsad]

Stonetrust upgraded to an A rating!  Cheers!

 

AM Best Upgrades Credit Ratings of Stonetrust Insurance Group’s Members

[jfan]

Courtesy of Tim mcelvaine

[Eldad]

20 hours ago, jfan said:

Courtesy of Tim mcelvaine

Wish that fund was about 50% Wintaai. Probably will be in a few years. Then he can be like that Berkshire billionaire that put all his BRK stock in a closed end fund. Boulder Fund I think. 

[jfan]

2 hours ago, Eldad said:

Wish that fund was about 50% Wintaai. Probably will be in a few years. Then he can be like that Berkshire billionaire that put all his BRK stock in a closed end fund. Boulder Fund I think. 

That's based on book value. I think this could be easily 2x that number, and that would be still conservative.

[Eldad]

10 minutes ago, jfan said:

That's based on book value. I think this could be easily 2x that number, and that would be still conservative.

Ahh interesting. Thanks 

[anshulp]

On 4/5/2025 at 11:30 PM, jfan said:

Mcelvaine funds owns wintaai shares

can't buy in if your american  

[Parsad]

Wintaai's June 2025 highlights...notice shareholder equity is about the same as last year...the reason:  They paid a $30M dividend to shareholders!  Great combined ratios across the board as well.

 

I kind of wish Francis stayed a part of Fairfax on a full-time basis!  One of the few "real deals" in the investing world.  I think he would have fit perfectly into Berkshire as well!  

 

Also, there are no restrictions shareholders selling their units with each other...as long as Francis signs off on it.  Cheers!

 

 

Wintaai Financial Highlights June 2025.pdf

[Parsad]

Wintaai's September 2025 Update, as well as their new venture Win Re.

 

For those that have a good grasp of insurance, but really want to understand the nitty gritty side of an insurance operation, Francis' letters are a must read!

 

You'll also understand what makes Francis so special as an investor/operator...few have that type of skillset!  Cheers!

 

 

Wintaai Financial Highlights September 2025.pdf 2025 Q3 Win Re update.pdf

[Hektor]

10 hours ago, Parsad said:

Wintaai's September 2025 Update, as well as their new venture Win Re.

 

For those that have a good grasp of insurance, but really want to understand the nitty gritty side of an insurance operation, Francis' letters are a must read!

 

You'll also understand what makes Francis so special as an investor/operator...few have that type of skillset!  Cheers!

 

 

Wintaai Financial Highlights September 2025.pdf 499.94 kB · 26 downloads 2025 Q3 Win Re update.pdf 246.78 kB · 20 downloads

Thanks for posting these, @Parsad. Another mini Berkshire (or mini Fairfax) in the making, I guess.

[anshulp]

Thanks for sending - always interesting to give these a read. 

[Parsad]

Wintaai Holdings 2025 Annual Letter

 

With Berkshire and Fairfax's letters, readers had a very good lesson around how insurance companies are operated, float, underwriting, investments, etc.  But Francis' Wintaai letters do a terrific job in how to build an insurance company essentially from the initial acquisition of an entity. 

 

Results for 2025 were terrific and you don't want to extrapolate results into the future, but this really reminds me of when I first saw Fairfax acquire Fairfax Asia and Mr. Athappan was building out this little insurance powerhouse with amazing underwriting.  Francis also has the investment side down pat and is proving to be a terrific leader of his team!  Cheers!

 

Wintaai Holdings Ltd. Annual Letter (2025).pdf

[jfan]

Francis also started a reinsurance business as well. Here is the annual letter. 

Francis said the returns were only satisfactory for him and that he could do much better. 

2025 Win Re Annual Update.pdf

[jfan]

On 4/3/2026 at 11:02 PM, Parsad said:

Wintaai Holdings 2025 Annual Letter

 

With Berkshire and Fairfax's letters, readers had a very good lesson around how insurance companies are operated, float, underwriting, investments, etc.  But Francis' Wintaai letters do a terrific job in how to build an insurance company essentially from the initial acquisition of an entity. 

 

Results for 2025 were terrific and you don't want to extrapolate results into the future, but this really reminds me of when I first saw Fairfax acquire Fairfax Asia and Mr. Athappan was building out this little insurance powerhouse with amazing underwriting.  Francis also has the investment side down pat and is proving to be a terrific leader of his team!  Cheers!

 

Wintaai Holdings Ltd. Annual Letter (2025).pdf 727.03 kB · 46 downloads

LRIE and LHC have a bit of an accounting peculiarity that is a bit difficult from the outside to pick apart. 

 

His 2023 letter describes that LHC derives its revenue from LRIE's Gross Written Premium (ie before reinsurance ceded). LHC's fee to LRIE is 20% of GWP. 

 

His 2024 letter describes an accounting rule change in revenue recognition, where LHC's fee is still based on GWP, but it must be recognized over the policy term. This would create a deferred revenue liability item on the balance sheet. This would suggest to me that if they have multi-year policies, that the cash earnings will be greater than GAAP net earnings (assuming minimal working capital). Without the cash flow statement or balance sheet, I can't interpolate the exact number. In addition, it had assumed some premiums in 2023 that had lower Attorney-in-fact fees.

 

Using a very rough approximation with the disclosures given, the LHC fee % of GWP were:

2023 - 11.2%

2024 - 11.5%

2025 - 18.9%

 

It's not quite their originally stated 20%, but it is close, which I assume might be related to not issuing multi-year policies (my guess).

 

Finally, in 2023's letter, Francis gives us his forecast for LRIE and LHC as shown below:

 

As a comparison to actual results:

LRIE GWP

2023 - $45,945

2024 - $163,416

2025 - $204,165

 

LHC Total Revenue / Operating Income / Pre-tax Income (inclusive of investments and financing/other expenses)

2023 -  $5,141 / ($3,798) / ($3,792)

2024 - $18,892 / $4,127 / $4,249

2025 - $38,515 / $17,526 / $18,341

 

Actual results lag his forecast, primarily driven by less GWP (?more competition).

 

If I adjust their 2025 numbers to "more reflect" their cash earnings, LHC made the following:

1) 20% x $204,615 = $40,923

2) less operating expense of $20,989 = $19,934 (operating margin of 48.7%)

3) add net gains on investment of $8,178 = $28,112

4) less interest expense, bad debt, and other income of $7,362 = $20,750 (pre-tax income)

5) assuming a total Florida tax rate of 26.5% (I might wrong here) = $15,251 (after-tax income)

 

What is this worth?

a) 10x cash earnings ~ $150 Million

b) 15x cash earnings ~ $228 Million

c) 4x revenue ~ $163 Million

 

Wintaai's share (90% ownership)

a) $135 Million

b) 205 Million

c) $147 Million

* on a $9 Million Wintaai America's initial investment

 

There are 5,506,360 Wintaai Holding shares at year end 2025. This would peg the per-share value of LHC between $24 to $37/share. 

 

*As per Francis, to add to more accounting/auditing peculiarities, LRIE is consolidated at net asset value into Wintaai holdings but this makes no economic sense because the net asset value represents policyholder contributions (not Wintaai equity). 

 

 

 

Edited April 7 by jfan
Wintaai American owns LHC which in turns holds 90% of LRM (that runs LRIE)

[jfan]

My back of the envelope Stonetrust valuation

 

 

 

 

[Parsad]

Summary of Francis' Presentation at the Ben Graham Ivey Conference:

 

Cheers!

Ivey's 2026 Ben Graham Conference_ Francis Chou Details Three Big Returns In Insurance Vehicles Using Grahamian Principles.pdf

[jfan]

Q1 Shareholder letters from Wintaai and WinRe

 

TDLR:

1) Wintaai purchases Topa Insurance Group

2) WinRe is raising capital for those interested. 

 

From the NAIC website #18031 (Topa)

Assets $143M

Liabilities $85M

Capital Surplus $59M

 

Homeowner's multiple peril $73M

 

3 year Net Income

2025 - $18M

2024 - ($11M)

2023 - ($32M)

2026 Q1 Wintaai Financial Highlights March 2026.pdf 2026 Q1 Win Re update.pdf