Canadian Life Companies Split Corp T.LFE.PR.B

Still trading at a 20% discount to NAV!!!

[slst]

With the Rally in the Insuramce space, am not sure why this continues to lag so much   

The prefferred shareholders get a generous dividend while A shareholders get all the upside.  "Triple" the actual % increase in the underlying stocks   

Of course the reverse is true if things go south.   Good luck longs.  We have the wind in our sail.

[mouserman]

I think the payout history of LFE , is one of the reasons for the discount. That being said i think the upside for LFE is greater than for FFN which trade at a premium with a similar UNIT NAV. LFE is not the same animal as LCS tho, as they have some banks included in their holdings. These holdings are minor tho, and the big 4 CAD lifecos are still their main holdings.  Low interest

[mouserman]

On top of the bank exposure in LFE, another negative is the high payout to the preferreds. Paying out 8% to the preferreds somewhat  limits how quickly the the UNIT NAV can grow. LCS in comparison only pays out just over 6%  to preferreds and that is paid quarterly rather than monthly. As well when and if LFE gets to 15$ distribution rate , the payout to commons is also a higher monetary

[slst]

Brilliant comparative analysis.   It explain a lot for me.  Thanks a bunch.