undervalued insurance stock, page-27

I got the 70/30 split from the half year results briefing 22nd August, 42% short tail commercial, 25% long tail commercial, 22% household and 11% motor.

On the reinsurance they certainly appear to have a lot of it. This is great for reducing risk but also makes it less likely there will be good underwriting profits.

Personally this doesn't bother me though as CIX are looking for low risk growth and it means lots of opportunities to take more risk in the future. Same goes for the conservative investment profile and excess capital to fund acquisitions.

The only other potential negative for me is the lack of director shareholdings. There hasn't been a lot of personal investment from what I can see.

Barring no major events in the next 3 weeks and the bond markets stay "relatively calm", then I think it should be a very good result.