Fabricio0709 @Fabricio0709: "$00966.HK Taiping Insurance I think this..."

Mexico

$00966.HK (China Taiping Insurance Holdin) Taiping Insurance I think this company is potentially very undervalued for the next reasons: Embedded Value of the company (which is a method of valuation for life insurance companies and is usually considered a conservative estimate of value) is 216,032 Million HKD or 60.11 HKD per share. Also the Tangible Book Value is 21.98 HKD per share. Right now the shares are trading at around 7 HKD. Also when compared to the price multiples of peers/competitors, the company also seems undervalued. Balance sheet is great, they invest the funds from the life insurance in very high credit rated debt securities (mostly AAA ratings). They hold a very low proportion of real estate debt products and this debt products have a very high credit rating. This means that the company's balance sheet is not going to be at least directly affected too much by the real estate sector in China. The undervaluation is huge to ignore so I will be adding this to my position while I continue to look for any risks that I could have ignored. The risks that this company have are more than offset by the big undervaluation there is in the share price. The margin of safety is big enough that any miscalculation won’t matter that much. $01336.HK (New China Life Insurance Co Ltd) $2318.HK (Ping An Insurance) $2601.HK (China Pacific Insurance) $1339.HK (People's Insurance Company (Group) of China) $LNC (Lincoln National Corp) $CS.PA (AXA Group) $AIG (American International Group Inc) $MET (Metlife Inc) $ALV.DE (Allianz SE) $CB (Chubb Corp) $SLF (Sun Life Financial Inc) $PRU (Prudential Financial Inc) $SLHN.ZU (Swiss Life Holding AG) $RGA (Reinsurance Group America Inc) $VOYA.US (Voya Financial Inc) $PRI (Primerica Inc) $MFC (Manulife Financial Corporation) $GL (Globe Life Inc)