Scott Olsson

Insurance Australia Group (IAG) was a new addition to the Firetrail Australian High Conviction Fund during the quarter. We forecast earnings upside versus current market expectations, driven by pricing power, margin improvement, and robust reinsurance protection. Below, we outline the key drivers behind this outlook. Price increases now translating into higher margins The second half of 2022 was a meaningful period for IAG and the wider Australian insurance industry.

Last year Newmont (NASDAQ: NEM), a large US-domiciled gold miner, paid a 35% premium to acquire Newcrest Mining in a cash and scrip deal. We held Newcrest (ASX: NCM)in the Firetrail High Conviction Fund prior to the bid and maintained our holding in Newmont after deal completion. Newmont’s primary listing is on the NYSE but is now also listed on the ASX through a CDI structure.

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