TWR - Tower Insurance.

[peat]

Lloyds insurance methods and re-insurance are not the same thing though Ratkin.
Lloyds style of insurance as you said allowed unlimited liability for its names.
Re-insurance is the placing of specified limited risks with another insurer who is larger, and not exposed to the same risks due to location etc.

[winner69]

Insurance make most of their money from the investment of premiums ..... the insurance margin at the end of the year is the icing on the cake.

One of the big exposures that insurors have globally is that catastrophic events are now happening more often in centres of larger populations .... ie claims in total are tending to far higher than they have been in the past (eg Chch will cost more than Gisborne which cost more than Edgecumbe etc). Some studies show that globaly total reserves held by insurance companies are probably totally inadequate if this trend continues .... unless premium rise off course

[Anna Naum]

Trading halt

[ratkin]

Any ideas?

[Jaa]

They have long flagged their intention to make some acquistions at the right price.

Shouldn't need a trading halt to announce a profit upgrade (or downgrade!) surely.

[ratkin]

Not many clues from the shareprice , one would suspect if it was very good
or very bad then we would of seen more price change over the last week.

Could be somethin g to do with GPG but then they would be halted too wouldnt they?

[Lego_Man]

Not many clues from the shareprice , one would suspect if it was very good
or very bad then we would of seen more price change over the last week.

An acquisition, you'd have to think.

[Anna Naum]

Takeover of Fidelity Life

[Jaa]

NZHerald is describing it as a hostile bid but I'm with you Belgarion. One would think they have spent the last year twisting the major shareholders arms and must have at least the 53% the family trust owns in the bag? Some shareholders obviously wanted to sell out and other's prefered to continue to hold hence the split cash/share offer?

From Fidelity's website:

Fidelity Life is a unlisted company. Shareholders number approximately 150 with about 53% of shares on issue owned by a single family trust. The company maintains its own share register and keeps a list of persons who have indicated an interest in buying or selling shares. For further information please contact the Company Secretary.

Recent trades are:

2010

Trade date Number of shares Price per share
01/06/2010 200 $80.00
24/03/2010 2000 $76.95
23/03/2010 1300 $77.00
21/02/2010 100 $70.00
21/01/2010 200 $76.95

2009

Trade date Number of shares Price per share
30/11/2009 300 $76.95
30/11/2009 200 $76.00
21/05/2009 246 $70.00
30/04/2009 500 $70.00
27/04/2009 300 $70.00
21/04/2009 500 $70.00
31/03/2009 4000 $70.00
26/03/2009 1000 $70.00
23/03/2009 560 $70.00
23/03/2009 560 $70.00
23/03/2009 560 $70.00

[Jaa]

TWR's PE ratio is only about 8.4 and has NTA of $1.40'ish and is yeilding 9.9% ... A buy? ... Given GPG's got to do something with their 30% ... A screaming buy? ... Sometimes I just don't get markets!

This is what I have been asking myself!

The extra stat I will throw in is their earnings have grown an average of 19.5% year on year for the last four years.