berkshiremystery Posted July 27, 2013 Share Posted July 27, 2013 RE: http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/djco-daily-journal-corporation/msg124486/#msg124486 After I logged into the board in the last two days I got a little tsunami wave of private IM responses about my previous post in the DJCO thread about my mentioned little reclusive Canadian gem, a miniature baby-type of Fairfax. The company owners have high integrity and here at the board it was mentioned only once. They are totally reclusive and shun the public light,... the company owners aren't interested in any publicity, thus the shares almost have no liquidity, trade rarely and are still relative way below book value. And this might also be the crucifix of the problem that knowbody from the most knowledgable members here ever discusses this company. I would guess maybe 5-10 people here at the boards are aware of them, of course Norman Rothery, Francis Chou and also Third Avenue know them. This company, an insurance company could probably be mentioned right after Berkshire, Fairfax, Markel and Leucadia. They are E-L Financial Corp of Toronto, Canada, and are only a 5 minute walk away from Fairfax headquarters. The company is run by the reclusive Jackman family from Rosedale, Toronto. I might finally start the thread about http://s17.postimg.org/vd2xi7t17/image.jpg. E-L Financial Corporation Limited. (ELF.TO) the little miracle at 165 University Avenue in Toronto - Since 1969, the company’s book value has risen more than a hundredfold and over more than four decades it has suffered only four money-losing years. - The Toronto-based company doesn’t have a website. It lacks a public relations department. - E-L shares trade infrequently because the wealthy Jackman family of Rosedale, Toronto and a few institutional investors own most of the shares. - Other value investors that are aware of this company include Third Avenue Mgmt. and Chou Associates, according to Bloomberg. Source: E-L Financial's stock price discount a tempting value play May 01, 2012 (Update Sep. 10, 2012) The Globe & Mail http://www.theglobeandmail.com/globe-investor/investment-ideas/e-l-financials-stock-price-discount-a-tempting-value-play/article4104087/ with opinions by our fellow board member Norman Rothery. E-L Financial Corporation (ELF.TSX) @ The Globe & Mail Financials, Quotes... http://www.theglobeandmail.com/globe-investor/markets/stocks/financials/?q=ELF-T ----- E-L Financial Corp. Ltd. (ELF.TO) -Toronto @ Yahoo! Finance http://finance.yahoo.com/q?s=Elf.to&ql=1 E-L Financial Corp. Ltd. (ELFIF) - USA OTC Markets @ Yahoo! Finance http://finance.yahoo.com/q?s=Elfif&ql=1 http://s22.postimg.org/pnva17u9t/image.jpg Headquarters of E-L Financial at 165 University Avenue, 10th Floor, Toronto, ON M5H 3B8 http://s24.postimg.org/mgmg5eu91/image.jpg ----- http://s9.postimg.org/ttwnejkzj/image.jpg http://s23.postimg.org/t3uc123jv/image.jpg Source: http://www.sedar.com/FindCompanyDocuments.do?lang=EN&page_no=1&company_search=E-L+Financial+&document_selection=0&industry_group=A&FromDate=26&FromMonth=10&FromYear=1997&ToDate=26&ToMonth=04&ToYear=2013&Variable=Issuer ----- - E-L Financial's net equity value per Common Share at March 31, 2013 was $790.90. http://finance.yahoo.com/news/e-l-financial-corporation-limited-154021372.html The current market price per Common Share at July 24, 2013 was $645. http://finance.yahoo.com/q/hp?s=ELF.TO+Historical+Prices Link to comment Share on other sites More sharing options...
Guest hellsten Posted July 27, 2013 Share Posted July 27, 2013 Thank you for posting. I will definitely have a closer look at ELF.TO. Stock price is up 60% in one year, so I guess I'm a bit late to the party :'( Link to comment Share on other sites More sharing options...
Guest ajc Posted July 27, 2013 Share Posted July 27, 2013 Thanks, berkshiremystery. Now I'm just hoping it doesn't end up on the front page of some well-known business paper in the Sunday edition! (DJCO up 10% in 3 days, I'm still slowly bashing my head against the desk for having bumped your post on that...) Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Thanks, berkshiremystery. Now I'm just hoping it doesn't end up on the front page of some well-known business paper in the Sunday edition! (DJCO up 10% in 3 days, I'm still slowly bashing my head against the desk for having bumped your post on that...) I have researched probably over 50-100 web links about them,.... Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Since E-L Financial in Toronto doesn't maintain a website, someone might only get the annual reports in hardcopy form directly at: E-L Financial Corp. Ltd. 165 University Avenue 10th Floor Toronto, ON M5H 3B8 Phone: 416-947-2578 Fax: 416-362-2592 ----- Or from the Canadian type of EDGAR database at SEDAR.com Company Search: E-L Financial Industry Group: All Document Selection: All Sorted: By Issuer Date From: October 26 1997 Date To: April 26 2013 Search results 1-100 Annual Reports PDF-files ----->>>> http://www.sedar.com/FindCompanyDocuments.do?lang=EN&page_no=1&company_search=E-L+Financial+&document_selection=0&industry_group=A&FromDate=26&FromMonth=10&FromYear=1997&ToDate=26&ToMonth=04&ToYear=2013&Variable=Issuer ----- SEDAR.com - Search for Canadian Public Companies Main Search Form http://www.sedar.com/search/search_form_pc_en.htm ====== Empire Life annual reports --->>> http://www.empire.ca/consumer/about-us/annual-report/en/ Link to comment Share on other sites More sharing options...
NormR Posted July 27, 2013 Share Posted July 27, 2013 Shhh, stop hyping my stocks. ;) It will be interesting to see what they do with the cash they get from The Dominion. Also, the stock split at Algoma Central was unexpected. I wonder if we might see one at the ELF. Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Shhh, stop hyping my stocks. ;) It will be interesting to see what they do with the cash they get from The Dominion. Also, the stock split at Algoma Central was unexpected. I wonder if we might see one at the ELF. I know,... they will get something like $1.1 billion... Travelers to buy insurer from Canada's E-L Financial for $1.1 billion Reuters - June 10th, 2013 http://finance.yahoo.com/news/travelers-buy-insurer-canadas-e-134954682.html U.S. insurer Travelers Co Inc (TRV.N) said it would buy Dominion of Canada General Insurance Co from E-L Financial Co Ltd (ELF.TO) for about $1.1 billion to boost its presence in Canada. ============= Of course their subsidiary companies Dominion of Canada General Insurance Co and also Empire Life maintain some web presence with some interesting company information also about ELF. --- Empire Life @ Wokipedia.org http://en.wikipedia.org/wiki/Empire_Life The Empire Life Insurance Company (Empire Life or Empire Vie) is a Canadian life insurance and financial services company with its headquarters in Kingston, Ontario, Canada. It was incorporated in 1923 and is a subsidiary of E-L Financial Corporation Limited of Toronto, Ontario, Canada. In 1968, E-L Financial Corporation Limited [2] acquired 94% of the outstanding shares of Empire Life. In 1987, E-L Financial acquired The Montreal Life Insurance Company, as well as the life insurance operations of The Dominion of Canada General Insurance Company, and adopted the marketing name of Empire Financial Group. --- Empire Life & E-L Finincial Corp Ltd. Family Tree Chart of Corporate Structure.... http://www.empire.ca/consumer/about-us/our-company/corporate-structure/en/ http://www.empire.ca/resources/images/assets/FamilyTreeEN.jpg Link source: http://www.empire.ca/resources/images/assets/FamilyTreeEN.jpg Company History Overview ... http://www.empire.ca/consumer/about-us/our-company/our-history/en/index.html Significant events in Empire Life history --------------------------------------------- 2011 New visual identity introduced 2009 Surpassed $8.5 billion in assets under management 2008 Launch of Class Plus—segregated fund with guaranteed minimum withdrawal benefit (GMWB) 2008 The Company celebrates 85th anniversary 2007 In October, surpassed $1 billion in gross segregated fund sales (year-to-date)—a company record 2006 Marketing name change from Empire Financial Group to Empire Life 2002 Amalgamation with Concordia Life Insurance Company 2000 Assumption of annuity and registered retirement income fund (RRIF) block of policies of Coopérants, Mutual Life Insurance Society 1997 Acquisition of Colonia Life Insurance Company (name changed to Concordia Life Insurance Company) 1997 Assumption of deferred annuity block of policies of Allstate Life Insurance Company of Canada 1995 Agreement to administer and assume deferred annuity and RRIF block of policies of Confederation Life Insurance Company 1993 Acquisition of non-participating individual insurance policies of The Citadel Life Assurance Company 1992 Acquisition of a block of group business of The Metropolitan Life Insurance Company 1987 E-L Financial Corporation Limited brings together through merger and acquisition activities The Empire Life Insurance Company, The Montreal Life Insurance Company and the life insurance section of The Dominion of Canada General Insurance Company; adopt marketing name of Empire Financial Group 1970 Life insurance business in-force grows to $1 billion 1968 E-L Financial Corporation Limited is formed as holding company of Empire Life 1963 Empire Life acquires first computer 1957 Empire Life begins selling Group products 1936 Merger with Mutual Relief Life Insurance Company; Head Office moves from Toronto to Kingston, Ontario 1934 Acquisition of The Canadian Order of Odd Fellows insurance portfolio 1929 Merger with The Commonwealth Life and Accident Insurance Company 1926 The Company expands outside Ontario by opening a Branch Office in British Columbia 1923 The Empire Life Insurance Company is founded by Milton Palmer Langstaff in Toronto, Ontario ===== Dominion of Canada General Insurance Company @ Wikipedia.org http://en.wikipedia.org/wiki/The_Dominion_of_Canada_General_Insurance_Company ----- Dominion of Canada General Insurance Company http://www.thedominion.ca/ http://www.thedominion.ca/Mobile/Contact-Us.aspx Link to comment Share on other sites More sharing options...
Liberty Posted July 27, 2013 Share Posted July 27, 2013 Looked at them a couple years ago but passed. Maybe I shouldn't have :-\ Link to comment Share on other sites More sharing options...
Guest ajc Posted July 27, 2013 Share Posted July 27, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. Nope, I haven't been to any AGM's and I don't know the Jackman's personally, but if you search on the web about them, you will find a lot of info about them. ---- E-L Financial is owned by the Jackman family from Rosedale in Toronto. List of Canadians by net worth @ Wikipedia.org http://en.wikipedia.org/wiki/List_of_Canadians_by_net_worth Richest Canadians (2011 statistics) No. 58 Hal Jackman $1.06 billion "Hal" Jackman" Henry Newton Rowell "Hal" Jackman @ Wikipedia.org http://en.wikipedia.org/wiki/Hal_Jackman Henry Newton Rowell "Hal" Jackman, OC, O.Ont, CD (born June 10, 1932 in Toronto, Ontario), served as the 25th Lieutenant Governor of Ontario from 1991 to 1997. He is the son of former Member of Parliament Harry Jackman and philanthropist Mary Rowell Jackman. His mother was the daughter of another former Member of Parliament, Newton Wesley Rowell. His sister, Nancy Ruth, is a philanthropist who was appointed to the Senate in 2005. http://www2.macleans.ca/wp-content/uploads/2008/12/ted19.jpg Source:http://www2.macleans.ca/wp-content/uploads/2008/12/ted19.jpg and @ http://www2.macleans.ca/2008/12/09/ted-rogers/ ----- His father was... Harry Jackman Harry Jackman @ Wikipedia.og http://en.wikipedia.org/wiki/Harry_Jackman Henry Rutherford "Harry" Jackman, OC (November 5, 1900 – November 22, 1979) was a Canadian politician and successful entrepreneur. He represented the electoral district of Rosedale in the Canadian House of Commons from 1940 to 1949. In business, Jackman built the Empire Life group of financial service companies during the Great Depression. ----- They have a family foundation that is donating a lot to Toronto art institutions and Hal's daughter Victoria Jackman is the executive director. Hal Jackman Foundation http://www.haljackmanfoundation.org/ Victoria Jackman (Executive Director) http://www.haljackmanfoundation.org/contact-us/ ----- Design Exchange Black and White gala Oct. 30, 2010 - The Globe & Mail http://www.theglobeandmail.com/news/toronto/design-exchange-black-and-white-gala/article1370824/ Gala honouree designer Bruce Mau with Victoria Jackman, executive director of the Hal Jackman Foundation ----- Victoria Jackman (executive director) http://www.gettyimages.de/detail/nachrichtenfoto/executive-director-of-the-hal-jackman-foundation-nachrichtenfoto/83595753 ----- Great Spaces: inside the home of Victoria Jackman and Bruce Kuwabara Toronto Life http://www.torontolife.com/style/toronto-homes/2010/12/07/great-spaces-inside-the-home-of-victoria-jackman-and-bruce-kuwabara/ ----- Birth of a Museum @ Bloor Street West, Toronto http://www.batashoemuseum.ca/media/background/birth_of_museum.shtml Mrs. Sonja Bata, Founding Chairman of the Bata Shoe Museum, and The Honourable Hal Jackman, then Lieutenant-Governor of Ontario, cutting the cake at the public opening of the Museum. May 6, 1995. ===== An Hour with the Honourable Hal Jackman March 7, 2013 Interview for Dolce Mag http://www.dolcemag.com/successstories/an-hour-with-the-honourable-hal-jackman/13526 Quote: “I have no regrets about anything I've done. I think I'd do it all the same ” ----- Hal Jackman: Too much gloom Dec 30, 2008 Interview http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=a5cf8087-2722-4be5-aca1-23040b3d8925 ----- Black missed his calling: Jackman National Post http://www.financialpost.com/story.html?id=d6226a8a-c05c-497a-b928-8b44c2faf86c&k=89554 ----- Henry N. R. Jackman gives largest donation in the history of the Faculty of Law University of Toronto http://news.utoronto.ca/henry-n-r-jackman-gives-largest-donation-history-faculty-law ----- Link to comment Share on other sites More sharing options...
constructive Posted July 27, 2013 Share Posted July 27, 2013 Since 1969, they have increased book value by 12.2% annualized, correct? Very good but not quite in the league of Berkshire or Fairfax. On the other hand, considering their size and new cash opportunity they might be positioned as well as Berkshire and Fairfax to hit 12% in the future. Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Since 1969, they have increased book value by 12.2% annualized, correct? Very good but not quite in the league of Berkshire or Fairfax. On the other hand, considering their size and new cash opportunity they might be positioned as well as Berkshire and Fairfax to hit 12% in the future. They had in 1969 net common shareholders equity of 21,447,000 and have grown this equity in 2012 to about 2,981,537,000. Maybe not quite impressive as BRK or FFH, but certainly at a good rate. You should note that ELF recently traded not long ago at about half book value, so a hypothetical 10% ROE would translate on half book value to about a 20% return ;) We have seen BAC and AIG some 12-18 months ago on a similar cheap scale with a comparable hypothetical future ROE assumption. Link to comment Share on other sites More sharing options...
mranski Posted July 27, 2013 Share Posted July 27, 2013 I believe they are involved with this company http://www.ucorp.ca/ucl_nh.htm Link to comment Share on other sites More sharing options...
benhacker Posted July 27, 2013 Share Posted July 27, 2013 I think this was covered a few times on the old BRK board... I thought it was covered here by Ron(?), but maybe I was thinking of the reference to Norm's article. I have owned shares since 2010. 50-60% of effective book while their CEFs and hold co buy shares slowly is pretty low risk. They seem kind of like Loews to me. They won't shoot the lights out, but they are shareholder friendly and at a big book discount they will buyback. Low risk good reward and tax efficient. thanks for posting BRK Mystery. Ben Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 Here's some biographical video about Hal Jackman. His son Duncan N. R. Jackman, the current CEO of E-L Financial also speaks in the video about his dad. The Hon Henry N R Jackman - 2005 Champion of Public Education - The Learning Partnership YouTube.com (6:28min Video) http://www.youtube.com/watch?v=FtSNHGdV5A8 http://s15.postimg.org/iqsil2t17/image.jpg http://s17.postimg.org/4boz9p03j/image.jpg http://s24.postimg.org/9idt8nn39/image.jpg Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 27, 2013 Author Share Posted July 27, 2013 I believe they are involved with this company http://www.ucorp.ca/ucl_nh.htm E-L Financial operates as an investment and insurance holding company. It operates in three business segments: - E-L Corporate, - The Dominion and - Empire Life. The Company invests in equities and fixed income securities directly, and indirectly, through pooled funds, closed-end investment companies and other investment companies (E-L Corporate). E-L Corporate investments include: - United Corporations Ltd. (United), - Economic Investment Trust Ltd. (Economic) and - Algoma Central Corp. (Algoma). The investments - corporate portfolio includes short-term deposits, common shares in public and private companies, units in pooled funds and units in a common contractual fund. The Company owns 100% of The Dominion of Canada General Insurance Company (The Dominion) and 80% of The Empire Life Insurance Company (Empire Life). Economic and United are both closed-end investment companies and Algoma is a shipping company. Link to comment Share on other sites More sharing options...
NormR Posted July 29, 2013 Share Posted July 29, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. It's essentially a family company and I don't have any particular insight into the clan. As others have pointed out, they seem to be sensible investors but not as good as the folks at FFH/BRK/etc. The company falls into the generally undervalued bucket for me. While I only hold a few shares, I like the company more as time goes on. Just keep in mind that it was much less expensive not that long ago. Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 29, 2013 Author Share Posted July 29, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. It's essentially a family company and I don't have any particular insight into the clan. As others have pointed out, they seem to be sensible investors but not as good as the folks at FFH/BRK/etc. The company falls into the generally undervalued bucket for me. While I only hold a few shares, I like the company more as time goes on. Just keep in mind that it was much less expensive not that long ago. I would in general agree with Norm. Therefore I would put them at the last end/level of the chain of those jockey stocks. I mean on the last level,... in relative long term book value growth over the decades. From 1969 to 2012,... over a hundredfold increase in common shareholders equity ($21M - $2.9B). BRK & FFH were compounding their equity on a much more compressed bases, faster and much steeper. So my overview below applies only for their long term book value growth and their managerial skills of growing BV. 1) BRK 2) FFH, 3) ... LUK & MKL 4) ELF But ELF has been quite undervalued in the last 12 months ($450-550, currently around $645), and were trading way, way below their intrinsic value (book value currently around $790 something, and rising) on a relative bases compared with BRK, FFH. So therefore ELF was only catching up. Of course they are currently not as cheaply anymore. I would consider them for any investors long term watch list, and of course only strike the perfect pitch, if they trade extremly depressed. A family run insurer that might be capable to achive a hypothetical 10% ROE trading extremely below book should give some good margin of safety in certain depressed market situations. Link to comment Share on other sites More sharing options...
StubbleJumper Posted July 29, 2013 Share Posted July 29, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. It's essentially a family company and I don't have any particular insight into the clan. As others have pointed out, they seem to be sensible investors but not as good as the folks at FFH/BRK/etc. The company falls into the generally undervalued bucket for me. While I only hold a few shares, I like the company more as time goes on. Just keep in mind that it was much less expensive not that long ago. IMO, it was much less expensive a couple of months ago because the $1.1B that they'll receive in the fall for the Dominion company is nearly enough to take this sucker private.... So, if they do opt to take the $1.1B, add a wee bit of debt and take it private, what price to they offer? Adjusted BV per share is still north of the current market price. Would the current market price of ~$645+30% do it? That would roughly equate to adjusted BV.... SJ Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 29, 2013 Author Share Posted July 29, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. It's essentially a family company and I don't have any particular insight into the clan. As others have pointed out, they seem to be sensible investors but not as good as the folks at FFH/BRK/etc. The company falls into the generally undervalued bucket for me. While I only hold a few shares, I like the company more as time goes on. Just keep in mind that it was much less expensive not that long ago. IMO, it was much less expensive a couple of months ago because the $1.1B that they'll receive in the fall for the Dominion company is nearly enough to take this sucker private.... So, if they do opt to take the $1.1B, add a wee bit of debt and take it private, what price to they offer? Adjusted BV per share is still north of the current market price. Would the current market price of ~$645+30% do it? That would roughly equate to adjusted BV.... SJ If you have hawk like eyes, you might also see that certain holdings are also quite below their actual intrinsic value. Just have a look at United Corps. ;) ELF owns more than half of United Corporations, a closed end fund that’s been around for almost a century and which is now consolidated at the E-L level. 1st qtr 2013 common equity $860.85 M http://www.theglobeandmail.com/globe-investor/markets/stocks/financials/?q=UNC-T&page=balanceSheet&frequency=QUARTERLY#financials-content July 26, 2013 market cap $769.45 M http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=UNC-T ------ No way that E-L Financial and asset flipper can be used in the same sentence 2013-06-10 NationalPost http://business.financialpost.com/2013/06/10/no-way-that-e-l-financial-and-asset-flipper-can-be-used-in-the-same-sentence/ In what seems like a Buffet-like approach to selling parts of the overall business, E-L announced Monday the sale of its The Dominion of Canada General Insurance Co. to the Travelers Companies Inc. – a $1.125 billion divestiture. “We are extremely proud of what The Dominion team has achieved over the years. We could not be happier that Travelers, a highly respected and well capitalized firm, will be the platform for future growth and success,” stated Duncan Jackman, E-L Financial’s chief executive officer and Hal’s son. The company was formed in 1887. Link to comment Share on other sites More sharing options...
StubbleJumper Posted July 29, 2013 Share Posted July 29, 2013 Thanks NormR and berkshiremystery, ELF seems like a really interesting idea. I was just wondering if either of you have attended any of their annual meetings and maybe met the owners and management? If so, it'd be much appreciated if I could get either of your (or anyone else's) impressions of them. It's essentially a family company and I don't have any particular insight into the clan. As others have pointed out, they seem to be sensible investors but not as good as the folks at FFH/BRK/etc. The company falls into the generally undervalued bucket for me. While I only hold a few shares, I like the company more as time goes on. Just keep in mind that it was much less expensive not that long ago. IMO, it was much less expensive a couple of months ago because the $1.1B that they'll receive in the fall for the Dominion company is nearly enough to take this sucker private.... So, if they do opt to take the $1.1B, add a wee bit of debt and take it private, what price to they offer? Adjusted BV per share is still north of the current market price. Would the current market price of ~$645+30% do it? That would roughly equate to adjusted BV.... SJ If you have hawk like eyes, you might also see that certain holdings are also quite below their actual intrinsic value. Just have a look at United Corps. ;) ELF owns more than half of United Corporations, a closed end fund that’s been around for almost a century and which is now consolidated at the E-L level. 1st qtr 2013 common equity $860.85 M http://www.theglobeandmail.com/globe-investor/markets/stocks/financials/?q=UNC-T&page=balanceSheet&frequency=QUARTERLY#financials-content July 26, 2013 market cap $769.45 M http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=UNC-T ------ No way that E-L Financial and asset flipper can be used in the same sentence 2013-06-10 NationalPost http://business.financialpost.com/2013/06/10/no-way-that-e-l-financial-and-asset-flipper-can-be-used-in-the-same-sentence/ In what seems like a Buffet-like approach to selling parts of the overall business, E-L announced Monday the sale of its The Dominion of Canada General Insurance Co. to the Travelers Companies Inc. – a $1.125 billion divestiture. “We are extremely proud of what The Dominion team has achieved over the years. We could not be happier that Travelers, a highly respected and well capitalized firm, will be the platform for future growth and success,” stated Duncan Jackman, E-L Financial’s chief executive officer and Hal’s son. The company was formed in 1887. You're bang-on. ELF has a number of securities that it knows well and could purchase that are currently selling for well below BV/IV. Their own shares are what I suggested, but United and Economic chronically sell at a significant discount to a sum-of-the-parts market valuation. Link to comment Share on other sites More sharing options...
StubbleJumper Posted November 8, 2013 Share Posted November 8, 2013 So ELF has announced a $75 special dividend, which should account for roughly $300m of the $1.1B that they're getting from the sale of the Dominion. After blowing $300m on a special dividend, it now seems unlikely that the Jackmans will try to use the Dominion sale proceeds to take ELF private. Yesterday the common shares closed at $740/sh. The share price is getting perilously close to adjusted book value. I'm thinking that this might be a good time to sell as I can't see much potential for the remaining lifeco plus the cash being valued much above book. Anyone else selling? SJ Link to comment Share on other sites More sharing options...
NormR Posted November 8, 2013 Share Posted November 8, 2013 Well, it traded at 1.4 times tangible book value in 2006, according to S&P Capital IQ. But discounts have been more common. Link to comment Share on other sites More sharing options...
StubbleJumper Posted November 8, 2013 Share Posted November 8, 2013 Well, it traded at 1.4 times tangible book value in 2006, according to S&P Capital IQ. But discounts have been more common. True, valuations were a bit steeper in the past. I guess I'm looking at Empire Life from the perspective of reasonably plausible levels of interest rates over coming years. But, who knows.... Link to comment Share on other sites More sharing options...
benhacker Posted November 8, 2013 Share Posted November 8, 2013 I blew out all my ELF yesterday. I think my average was in the $400-425 CAD. Felt like the right time to sell. I like the company, but was only a ~2% position or so and I didn't have high conviction without the massive P/B discount. Ben Link to comment Share on other sites More sharing options...
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