In a higher rate environment Warren Buffet says it’s good for insurance companies. I have been looking at a few, more specifically Manulife . It looks very cheap but it has gone no where .
Manulife recently had earnings and from what I can digest it was a decent report. They are buying back shares, consistently raising the dividend each year. Which is currently 6%. They are growing revenues, expanding in Asia. A growth forecast of 12%. Every year they are increasing book value currently at 1.0x, earnings per share increasing each year currently at 6.7 . Net income increasing each year . They have a low P/E of under 5. A fair value 60% higher than current share price . By all metrics they are very undervalued. Warren Buffet says higher interest rates are great for insurance companies. Due to the fact that insurance companies hold a lot of bonds to cover claims . There stock has been range bound for the last 10 years. A 5 year return of 1.0% not including dividends. I have recently purchased shares but I am debating
Thank you for your time and insight !
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