- The Franklin Small Cap Value Fund's process is built on investing in businesses that we view as having a track record of success, low leverage and attractive risk-adjusted returns.
- According to our analysis, the P&C insurance industry focuses on return on equity, and companies have taken a disciplined approach to product pricing.
- Merger-and-acquisition activity has been an ongoing industry theme and is likely to continue in our view, with strategic rationales including geographic expansion, enhancing distribution, increasing scale and growing product level expertise.
- Over the course of 2020, valuations for P&C insurers as a group have dropped below five-year averages on both a price-to-earnings and price-to-book basis.
For further details see:
A Small-Cap Value Analyst's View On U.S. P&C Insurers