Being a AAMI client (car & house insurance) I received in the mail today an "invititation" to subscribe to the issue, with a guaranteed allocation of about $3,500.
Seems to me the fact that once the "pre-registration" interest period has closed, and they now need to resort to mass mailing the companies clients to offer shares means the float is in trouble.
I have no doubt the recent insurance premium increases will reap substantial profitability increases for the insurance companies. However, I reckon this is now fully factored into the prices.
Summary - stay clear, and if you want to buy in Promina then wait till they list. You may well see a few disapointed stags selling at below issue price.
As an aside, from a Victorian's perspective with a vehicle insured with AAMI, I am puzzled by the following:
(1) I read that because of the abnormally dry weather conditions the roads are not as wet (slippery), and as a consequence there have been a lot less road accidents than normal. (less insurance payouts)
(2) I read the Victorian Police claim that due to measures on their part, vehicle theft's are down some 30% in the past 12 month's. (less insurance payouts)
(3) I receive my car insurance renewal advice from AAMI last week, and see that my premium has been increased by 15% (with no claims, etc in the last 12 mths). (12% above inflation rate)
Notwithstanding conventional logic, 1+2 do not equal 3
