on first blush. . .. looks OK.however - devil is always in the...

on first blush. . .. looks OK.

however - devil is always in the detail on insurance company reporting.

a couple of observations:

1) Does not look as though they paid too much for the acquisitions they have done. Intangibles on the BS of less than $4 million is at the low end of my expectations.

2) Increase in Gross Premium Revenue from $3 million to $30 million led to improvement in underwriting loss from $10.8 million to $8.2 million. Need to get underwriting loss down to about $6 million for company to break even (as investment income is a positive). Based on metrics so far - looks like this will require GPR of about $50 - 55 million. Natural business growth [pattern for earning premium] will see them get to this level pretty soon.

3) However, insurance companies in this market tend not to trade on PEs of more than about 12x. For CIX to justify market cap of $100 million would need to be making NPAT of $8 million. This is still looking many years away. Based on numbers above - would require more than doubling business from current underlying level.

all up. . . .would not have expected anything better from them than they have delivered here.