Author Topic: Fairfax2019  (Read 20811 times)





valueinvesting101

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Re: Fairfax2019
« Reply #63 on: August 01, 2019, 11:14:26 AM »
Is there disclosure requirement related to Quess shares? It's purchase of around $1.7 million USD. News has pushed price of Quess shares up by nearly 12%.

TwoCitiesCapital

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Re: Fairfax2019
« Reply #64 on: August 01, 2019, 03:18:20 PM »
Wish they'd repurchase their own shares. In USD, they're near the bottom of the 5-year range.

Alekbaylee

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Spekulatius

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Re: Fairfax2019
« Reply #66 on: August 01, 2019, 06:20:29 PM »
Good results overall: https://markets.businessinsider.com/news/stocks/fairfax-financial-holdings-second-quarter-financial-results-1028410155

Almost $6B in debt at the Holding Company, up from $4.8B. This is a pretty substantial leverage.
To be a realist, one has to believe in miracles.

StevieV

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Re: Fairfax2019
« Reply #67 on: August 02, 2019, 06:23:35 AM »
"There were 26.9 million and 27.6 million weighted average common shares effectively outstanding during the second quarters of 2019 and 2018 respectively.  At June 30, 2019 there were 26,881,817 common shares effectively outstanding."

One thing that has confused and concerned me is the share count.  Looking at the release, the June 30, 2018 share count was actually 27.550 million.  In any event, looks to me like about a 2.5% reduction y-o-y.  Seems straightforward to me, but would appreciate any comments as I have found the reporting on this a bit confusing in the past.  I'd be happy with that pace of reduction.  No, it's not Singleton, but meaningful over time.

Also liked that combined ratio has remained at a number that I would consider good.

Lower rates are a challenge for all insurance companies.  I don't see it as any different for Fairfax.

Dazel

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Re: Fairfax2019
« Reply #68 on: August 02, 2019, 06:49:47 AM »


$6b debt at the holding company is net $4b after cash...and the insurance companies do not have a lot of debt as they are strategically being less levered to be able to take advantage of an event, maintain high ratings and once you dividend their access capital to the holding company itís gone...so it does not concern me. Insurance companies are vastly undervalued.


petec

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Re: Fairfax2019
« Reply #69 on: August 03, 2019, 03:38:42 AM »
Standout for me is the extent to which the market is hardening. Anyone know why? We havenít had systematic capital destruction via cats, and rates havenít gone up enough to deny capital to the industry, so why are we entering a hard market?