I think we both agree that CVW is a bargain as a result of the recent sell down, and its ability to reprice these old policies. Just depends on what restrictions they have about repricing these policies. I dont disagree with you that these old policies are superior to customers, but they are terribly priced and bordering on unaffordable.
I recently just cancelled my own overpriced age 65 IP policy @ $6k py for a 2 yr IP product with 60 day wait and a high value TPD product: total cost $1.5k. I know these two product combos arent mutually exclusive but its a risk im willing to take. Shock horror, this was against the advice of my advisor. So I cancelled him too. The point is, from an insurers perspective like Clearview, I agree with your comment. If they can reprice these old policies to make them sustainable and if people really want those policies they wont lapse on reprice. This should solve many of their current profitability issues. Under aasb 17, I think they would be required to ensure that cross subsidies across books of business dont exist and so that that old books losses dont impact the rest of the portfolio.
It was enough for my to tip add to my holding anyway. I've got $4k+ extra in the bank now as a bonus!
CVW Price at posting:
32.8¢ Sentiment: Buy Disclosure: Held
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