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$1.3B up for grabs


biaggio
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http://www.financialpost.com/news/grabs/4587022/story.html

 

Any opinions from any of the folks here who invest in insurance/finance companies.

 

In summary a mutual P&C insurance with  ~thousand policy holders and $1.3B in surplus cash that are looking to demutualize.

 

Is this similar to Peter Lynch's investment in small community banks as they went public (described in his second book).

 

 

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Makes a good story but no different to your office pool winning the lottery. If you don't have a ticket - quit the whining & get over it!

 

The reality is that there will be a industry demutualizaton. As with the LifeCo's; time limited  regulatory protection post demutualization, time limited restrictions on the funds (capital requirements), & a lot of whine because of player containment. When the protection ends there will be consolidation.

 

While those without mutual policy holders may be lunch for those with them, its not a done deal.

 

SD

 

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It's incredible that there is controversy as to the owners of the surplus assets, and that the Canadian Association of Mutual companies supports the cash policy holders. Even if they were not informed of alternative policies, they accepted the terms of their policies with all the accompanying constraints.

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