We've seen dodgy tactics before from directors (ie. Bellamy's & Aconex), but I don't think this is the case here. I think the whole selling down has mostly stemmed from poor decision making/judgment at worse.
If we look at the business itself, it is very sound. Good product mix, and lower expected costs from Eco of Scale in the next few years, whilst they continue to bear no risk in the ever problematic claims space. FIG will overtake CommInsure as the second largest in the Direct Life Insurance space quicker than what everyone expects. As such, I, along with others I have spoken to, will be in your boat where we will be sitting back and holding for the next few years.
For those looking at short-term SP, Mgmt continue to stress that the recent issues with sales/leads will be rectified by year end, so expect slightly better figures for half year-end. In saying that, if they miss we will all be in big trouble.
FIG Price at posting:
52.0¢ Sentiment: Buy Disclosure: Held
