Analyst CommentAs can be seen, IFC came into the conversation quite a bit when he was discussing DFY.
Last stock in the clip. . GLTA Disclosure: I own both companies.
https://www.bnnbloomberg.ca/video/stephen-takacsy-s-top-picks~2655198
DFY is Canada’s seventh-largest property and casualty insurance company. Roughly 70 per cent of its policies are personal (auto, property and pet insurance) and 30 per cent commercial, mainly in Ontario. Roughly 60 per cent of its personal insurance is auto and it is looking to add more home and other types of insurance. It demutualized around 18 months ago by listing on the TSX, so it is not very well known compared to Intact Financial which is the number one player in Canada and also listed on the TSX. Despite growing faster than Intact and releasing strong results, its stock only trades at 14X earnings. It also trades at around 1.5X book value, a significant discount to Intact at 2.2X. Now that it is demutualized, it’s allowed to use its balance sheet to do mergers and acquisitions. With the recent pull-back, this is a great entry point to buy a fast-growing well-managed P&C company.