RE: Price Rise4 May 2024 15:22
This isn't really a traditional insurance company any more - it's a bulk annutiy company where large UK pension schemes move mostly pension (but some deferred) liabilities to them and pay a premium for doing so. The gilts crises actually accelerated this process as it actually increased funding for most UK schemes to the such an extent that many more can now afford to undertake these transactions. The growth and success here is being underplayed due to recent accounting changes which force annutity companies to recognise profits through the P&L over time rather than one lump which is why they now focus on operating cash generation rather than eps - and it will be generating op cash broadly equivalent to its market cap over the next 3 years!!. The market believes that the dividend is unsustainable, but I believe the opposite - that it will continue to grow from here. I suspect the stock is indeed a ripe target for someone, though not convinced it's WB as this is a different area of insurance than he is familiar with. Overall - very strong buy!!