Author Topic: Fairfax 2018  (Read 109365 times)



wondering

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Re: Fairfax 2018
« Reply #431 on: September 04, 2018, 07:13:38 AM »
https://www.theglobeandmail.com/business/article-why-canadas-reputation-as-a-kids-tv-production-powerhouse-is-under/

Interesting article about Fairfax's investment in Boat Rocker Media and the Canadian childrens TV programming industry.

wondering

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Re: Fairfax 2018
« Reply #432 on: September 11, 2018, 02:02:14 PM »
Interesting article about the excess capital in the reinsurance industry.

"We find an asymmetric risk / reward as we move through 2018 windstorm season. We calculate ~$60bn of excess capital in the industry. We believe this surplus capital could result in limited pricing improvement even with a material loss; much like the pricing reaction to 2017 losses. We expect SCOR's shares to be most exposed should a hurricane emerge, given highest disclosed sensitivities and most risk to its buy-back."

https://ftalphaville.ft.com/2018/09/11/1536679537000/When-the-wind-blows-your-money-away/

Cigarbutt

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Re: Fairfax 2018
« Reply #433 on: September 11, 2018, 03:01:35 PM »
Thank you wondering. That was useful.

Here's a recent AMBest report that offers complementary info on different topics including the impact of the ILS market.
http://www3.ambest.com/bestweek/DisplayBinary.aspx?TY=P&record_code=277679&URatingId=2855493

-most relevant pages of the document (3-9 and 34-39).

As you likely know, Markel has been expanding in a big way into the ILS space whereas Fairfax hasn't.

The cat-bond space appears to be a huge success, seemingly may have made the underwriting cycle irrelevant and people involved with transactions are getting comfortable, as most participants no longer require an independent rating agency opinion.

However, in 2017, from adequate sources, the average coupon on the bonds is about 5% and average expected loss stands at 2,7%.

Seems like an awfully thin margin but, so far, so good.

valueinvesting101

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Re: Fairfax 2018
« Reply #434 on: September 20, 2018, 12:09:04 PM »
https://www.fairfaxindia.ca/news/press-releases/press-release-details/2018/Fairfax-India-Announces-an-Agreement-With-Sanmar-Chemicals-Group/default.aspx

As a result of this agreed transaction and positive operational developments at Sanmar, in the third quarter of 2018 Fairfax India will record investment gains of approximately $252 million (INR 18.3 billion), comprised of approximately $190 million (INR 13.8 billion) from common shares and approximately $62 million (INR 4.5 billion) from bonds, an increase in book value per share of approximately $1.62.

gokou3

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Re: Fairfax 2018
« Reply #435 on: September 20, 2018, 04:30:48 PM »
Thanks for sharing.

Per 2018Q2 earnings PR,
"At June 30, 2018 common shareholders' equity was $2,056.2 million, or $13.26 per share"

So adding $1.62 to this would give $14.88, close to the current stock price.  The INR currrency dropped by 5% since June 30, but since with the successful investments in Sanmar and Bangalore airport, i think I can have some confidence in the Indian team's ability to allocate capital.

For this, I just initiated a long position.

chrispy

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Re: Fairfax 2018
« Reply #436 on: September 21, 2018, 04:17:17 AM »
Great update. I think this gain will roughly equal the decrease in BV due to the rupee this quarter. Regardless of the short term currency fluctuations, it is a great sign.

ourkid8

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Re: Fairfax 2018
« Reply #437 on: September 25, 2018, 10:32:46 AM »
https://finance.yahoo.com/news/intention-normal-course-issuer-bid-113000070.html

Under its existing normal course issuer bid, Fairfax has purchased 700,539 of its Subordinate Voting Shares, which included Subordinate Voting Shares reserved for share-based payment awards, through open market purchases on the TSX during the last twelve months at a weighted average price per share of Cdn.$667.29. Fairfax has not purchased any Preferred Shares under its existing normal course issuer bid. (Fairfax has spent  $467,462,669.31 on share repurchases in the last year)




Dazel

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Re: Fairfax 2018
« Reply #438 on: October 03, 2018, 04:17:37 AM »


Excellent buy back prices!

While many do not pay attention to buy backs it is the secret math to a high share
Price over the longer term. Fairfax has reached critical mass....and I believe will follow Singletonís Teledyne model as long as we are cheap.

LightWhale

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Re: Fairfax 2018
« Reply #439 on: October 03, 2018, 04:27:05 AM »