ambitious, VS pretty much sums up my thoughts. I thought the result was pretty solid, with a stronger than expected contribution from the wealth segment offsetting the premium funding weakness. Some of that weakness in the premium funding result is attributed costs in getting a distribution agreement with Steadfast. I don't think that's a bad thing given Steadfast's size in the market. The premium market will probably stay soft until the is an uptick in the economy and that could be a good couple of years away. Hopefully the agreement with Steadfast will allow volume growth to more than offset negative premium growth.
The claims against the wealth segment appear to be almost finished with and I don't expect any material impact from them in FY16. I would expect decent growth in the wealth segment for the remainder of FY15 and into FY16 given the market conditions at present.
I'm a bit confused by the tax rate. They have substantial tax losses available but still seem to be paying a reasonable rate of tax
CAF Price at posting:
52.5¢ Sentiment: None Disclosure: Held
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