The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
The BoD played a blinder refinancing their debt and extending their maturity by 2 years to 2026, although at the time we were all complaining at the higher coupon. If they tried to refinance now they would be paying closer to 9% rather than the 5.5%.
Insurance companies always have prior underwriting year(s) reserve releases, sometimes they are large sometimes not so due to how much prudence the actuaries have built into their backbook. I doubt their underwriting would only produce a profit of £10m, almost unheard of for the size of book they have. When actuaries reserve they do not do so in a silo, their actuarial central estimates consider what others are doing in the market place, and therefore if Saga's incurred loss ratio went down everyone elses would as well.
Don't forget most of their business is in the food sector, hence defensive in a recession.
Longterm that was the cash consideration, what they acquired was negative net assets, meaning the impact on equity was far higher than the £3m paid. Notwithstanding, it was still a good deal for a fintech.
Or Co-op putting a bid in, since they are finally in the black.
I have very little hope re Carlyle getting this as well Investor6, mainly due to how much the original investors put in and how much the book value is, as well as the upwardsly sloping yield curve.
https://www.carlyle.com/sites/default/files/case-studies/Butterfield_CaseStudy.pdf
Almost all south american countries are red, places like Colombia and Equador have a lower covid fatality rate than the UK since they now have 60%+ vaccine roll-out. Somehow I think this is political or they are afraid of the mu strain.