Answering questions, the CFO said the 'trapped capital' involved a case-by-case consideration. The CEO said SDF's understanding of with whom it was dealing allowed it to decide to what extent it'd take risks.
The SDF organic growth story was said by the CEO to be commercial-in-confidence, as 'others would listen'. SDF amalgamates businesses: this gives it the ability to reduce costs.
Acquisition multiples (10x for 'trapped capital') look good, as out of New York it's 13x at present. The multiple for much larger businesses (15x) in the past (the CFO said) is 'not what you'll see going forward'. Some aggregators in the market have slowed in the last 60 to 90 days, the CEO said.
A couple of insurance 'lines' (not property) is starting to become flat: Marsh brokers has talked about high-end slowing, but for SDF, property insurance is two-thirds of what SDF sells.
SDF Price at posting:
$5.72 Sentiment: Hold Disclosure: Held
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