Guys, I must say I am very relieved in these numbers. This is...

Guys,

I must say I am very relieved in these numbers. This is the first time in 3 years that mngt has met guidance.

Brief stats.

1. EPS of AUD 46.2 cents
2. Europe is back baby, what a result.
3. Australia doing excellent considering lower LMI premiums, higher than normal catastrophes and increased competition. Most profitable insurer in Australia.
4. US looking a lot better. Broke even this half. I understand the recently sold forced placed insurance business lost circa $70 million which was recorded in the P&L. Going forward, we won't have this drag on earnings.
5. Looks like the other bad performer, US crop insurance is looking ok with 2 months to go to harvest.
6. Asia growing strongly and latin america getting closer to breakeven.

Disregard the recent flatness in share price. There has been increased shorting of the stock this week and an active seller keeping the price down.

My valuation has moved up to $15.75 based on the average of 2015 & 2016 forecast EPS of 92 cents and $1.18 respectively at a PE of 15.

We should get there by October especially if FED raises rates and US hurricane season stays quiet.

Bought more stock today.