Intact Financial (IFC.TO)

In Q2 they showed progress in personal auto profit, and their OneBeacon acqusition. Their combined ratio beat guidance. He sees EPS growth. It's very cheap at 13x earnings. It hasn't come off as much as its peers. It's a beacon of safety, a steady Eddy. This is a late-cycle business play. (2.79% dividend yield, Analysts' price target: $112.46)

Insurance companies do better in a rising interest rate environment. It is one of the better stocks in terms of price momentum and it is stable. Valuation, though, is a little high for him at 19 times earnings. They are well within their payout ratio, however. There are no balance sheet concerns, but he can find better alternatives in the space, making it a hold. See his pas picks today for a better alternative.

14x earnings and has historically grown earnings at 12% compounded over the last decade. The market is hardening with price increases to feed margins. They recently acquired an American specialty operation that will be synergistic and will lead to more M&A in the U.S. Also, they outearn their peers wqith 12-14% ROE. They are serial acquirers and will continue this. Have 17% market share. Interest rates will be a further boost. Lots of runway ahead. Lots of good things happening here.

They missed the mark on Q1 on weaker auto and weather. They are modeling growing earnings at 20%. Trading at 11.9 times 2019. Fragmented space. (Analysts’ price target is $107.61)

He does not own it, but he is watching closely with the recent pullback. It is extremely well run, but operates on thin margins. He would wait until after the Ontario election, because insurance rates can be a political football. It has a good long term future. (Analysts’ price target is $108 )

It has superior results to Canadian peers. The accident rate has not been lowering because of backup cameras. Profits will improve and the stock will go up. (Analysts’ target: $107.77).

(A Top Pick June 16/17 - Up 2.7%) Sold around ¾ of his positions. They have some personal auto weakness. Management is committed to turnaround. Good name over time.

He's surprised they've done so well, because they've missed several quarters, partly due to bad weather hurting their bottom line. IFC had great growth through acqusition years ago, but they've been disappointing lately. He'd rather buy a lifeco, not a P&C company,

He prefers this to Manulife. They have been a consistent operator over time. They have gone through some softness in their quarters, especially in their auto division, but he expects them to raise rates soon to address this.

Has been going up for 10 years. It is targeting 10% growth every year. It has pulled back recently but has a steady business model. (Analysts’ target: $110.35).

Switch bank stocks to this company? This is going to be a little more volatile than the banks. It has been a great, long term stock. Every time there is a natural disaster, everyone is worried about what is going to happen, and they just increase their premiums, and make more money the following year.

It is in the top 16% of his database. Earnings growth is expected to be 18% this year. The fundamentals support the break out.