I will let you into a fact. Over the last thirty years, most of the health insurers tried to diversify their income based on their customer base. They tried to sell house insurance, car insurance, CTP, travel insurance, banking products and even full blown wealth management products and advice. Theses failed to make a significant contribution to the bottom line. The business were exited or sold off and joint ventures and marketing arrangements were terminated.
Just because a company has the name and adress of a client, and some information, this does not lead to succesful marketing of other products, even if they have a similar name in their line of business. Health insurance is nothing like car insurance in terms of client relationship or what they expect from a company.
Yet I keep reading about how MPL will make money selling other things. MPL is a great business. It is well run. However, its growth will come from its core business.
MPL Price at posting:
$2.37 Sentiment: None Disclosure: Not Held
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