Ann: Insurance update, page-104

IMO, SIQ is cheap when you look at forecast earnings multiples, but that's perhaps justified in order to take into account the risk of regulator enforced compensation to those who were sold junk insurance. And if this practice was common in the industry, and went back to at least a decade ago, the costs of compensating all customers could be substantial. Maybe I'm too bearish because I was a Clydesdale Bank shareholder and found out first hand how much pain regulators can inflict in the case of mis-sold junk insurance, but I do think it's worth considering.