Randy LeClairGreat West LifecoGWO.TOPAST TOP PICKSep 30, 2013

His best guess is that GWO might be the best performer of the 3. Not particularly liquid, but shouldn't be an issue for the retail investor. Insurance companies tend to do well in a rising rate environment, because it tends to discount their liabilities to a degree.

A strong company for a long time. He'd stick with it.

It has done extremely well and has good client retention.

Decent valuation at 6.5x PE, very good yield of about 5.17%. Dividend yield remains stable and sustainable, growing about 3-4%. Higher interest rates are benefitting. Low beta, about 90% of the TSX. 

His preference is for quality. He likes POW, which owns GWO, for dividend growth and share buybacks. AGF.B might have higher return potential because it's smaller with more volatility, but POW will give him a higher Sharpe ratio over the long term because it's not as volatile. 

Prefers the banks to the lifecos, of which he owns none. Lifecos have been sluggish growers. It yields 6%, but share appreciation is better among banks. Other lifecos have overseas operations and therefore more growth.

Done well, 52-week high today. Nice yield of 5.15%. Growth probably mid-high single digits. Somewhat diversified. Prefers MFC, as it's cheaper on price to book and is more diversified, plus Asian exposure gives it more growth potential. Insurers usually do well in this type of environment. Nothing wrong with it.

Great company that is well run.
Does not own shares - instead owns parent company - Power Corporation of Canada.
Only provides exposure to insurance industry.
Safe bet for the long term otherwise. 

Lifecos invest the premiums they receive and are now getting better long term returns of 5 to 6% on bonds that used to pay only 2%. Therefore revenues on premiums have gone up a lot but the market hasn't recognized this yet leading to these companies being under-valued.

Are underperforming and trades at a premium to peers with slower growth. Power Corp is better and cheaper. Prefers lifecos to banks.

Fantastic dividend yield @ ~5%.
Very strong company with excellent fundamentals.
Good price to buy at for long term investor.

Operates under a number of different brands. Note that POW owns about 70% of shares. Growth can be slower than peers, but a steady earner with impressive dividend yield of 5.4%. Trades at a single-digit multiple. Buy and hold for the long term. Very well managed.

Very well run life insurance and wealth management. Very nice dividend, low price multiple. Buying this instead of POW lets you eliminate the holding company variability. The fewer moving parts the better.

Dividend probably safe. Prefers the diversification with POW. Nothing against it, but he'd buy SLF and MFC ahead of this one. Fairly well managed and well capitalized. Good yield.

Inexpensive at 9-10x earnings. Fantastic dividend yield, almost 6%. Peers are pursuing EMs. GWO is doing the opposite, focusing on mature markets. Very well run. Conservative, nice total return.