Before getting comfort about the value in this business look at...

Before getting comfort about the value in this business look at the NPV of commissions and administrative fees. They claim the NPV is over $70m. Last year the revenue for these was under $10m. This is not a realistic multiple in my view. They are likely to be using a low lapse rate together with a low discount rate. If you change these either of assumptions you can easily halve the NPV. You then have to factor in risk of losing commissions plus future cost of providing admin services. This $70m NPV May look good on the books, just like intangibles for a brand. But in the end it was what someone will pay for it.

What will another party pay for a $10m cashflow that has requires cost to earn and is likely to decline and is exposed to legislative risk? The share price gives you an idea.

On acquiring St Andrews. Well Freedom have no special skills or value to bring to the table now, if they ever did. So buying St Andrews is unlikely or at best a zero sum game.

If this company was worth even twice what it is to a buyer, you would have seen action by now. There may be action in the background by a buyer or the major shareholder to sell, but it will not reflect an NPV of $70m for the book.

And while looking at risk - who says that funeral insurance is a necessary product? Life insurance is worthwhile as this is about protecting either your own future or those you love and depend upon you. Funeral insurance is basically such a small life insurance policy that most of the premium is spent on marketing, commissions, administration and profit. To do what? Buy a fancier box to burn in. There is a risk it gets banned as it is such poor value for the consumer. It is a product created by the sellers. Major life companies may have come under criticism this year but many do not offer it as a product.