It's a question of sustainability with Royal & Sun ... Can it keep punching out these kind of earnings or is it using good news from the past couple of years to supplement earnings? |
People who were buying into the stocks on the broad run of premium rises have been slightly disappointed by the renewal season. The U.S. catastrophe-hit areas have risen significantly, whereas other areas haven't risen by much or have been flat. |
The market is obviously buying the higher-than-expected headline but for me its still looks expensive. |