I agree that it does look a bit too expensive, but it has a few...

I agree that it does look a bit too expensive, but it has a few decent growth engines to keep "growthy" investors optimistic;

1. GenLife is one of very few credible players in the tax paid sector (investment bonds, education savings bonds etc). These have become far more attractive to high rate taxpayers since the govt limited how much could be contributed into super. Particularly attractive to those investors who want to keep their affairs simple and couldn't be bothered with running family trusts, bucket companies etc. Relatively good margins on offer for anyone who can achieve scale, and GDG looks like it is one of the front runners to achieve scale with an effective sales team who are driving FUM growth

2. They're trying to break into the annuity business, if they can achieve scale here it is a big segment they could carve themselves into

3. They own half of Lonsec which is experiencing huge growth, particularly in the investment management division, and is probably worth at least double what GDG hold it on balance sheet at (best guess is say $60-75M based on recent market transactions of similar businesses)

4. The head stock GDG have an advantageous tax structure, being one of the last remaining listed Pooled Development Funds...the structure alone is probably worth something if they were to sell it off, as the govt discontinued the program many years ago. Basically means you may no CGT on profits when you sell GDG shares and you can treat any dividends as being fully franked, even if they're not (if I recall correctly, please do your own due diligence!)

I've recently sold as I do think it has gotten ahead of itself, but would consider holding again if the broader market corrected from here and it got hammered.