A GLIMPSE AT THE INSURANCE INDUSTRY
Conduit Capital is a really small (market cap of around R300m) insurance company that some investment houses really love, Cannon Asset Managers being one of them. For me valuing insurance companies is always very tricky, but the recent results from Conduit have a great explanation of not only how the business works but also on how to put a value on the business. This valuation comes in at around R370m implying a share price discount of almost 20%. Now, sure, maybe the directors are being overly optimistic in their valuation, but it is still well worth a read even if only to understand how insurance companies work; and directors that frankly explain what’s happened and how the business works always get my support.