"Has Berkshire Hathaway sold any of its original investment in Symetra?
Berkshire Hathaway controlled entities continue to hold the original investment of 17,400,000 shares of Symetra common stock and warrants exercisable for the purchase of an additional 9,487,872 shares. Under securities laws, Berkshire Hathaway would be required to file a Form 144 with the SEC announcing any intent to sell shares, prior to or concurrent with a sale, if the amount to be sold by Berkshire Hathaway during any three-month period exceeded 5,000 shares or had an aggregate sales price in excess of $50,000"
I've owned this stock for 2-3 years. So far the returns have been less than stellar. It currently trades at a 50% discount to book value and they're buying back stock which is a game changer-note it was only $4.2 million but I'm expecting that number to climb : "Symetra affirmed its earlier earnings guidance, with expected adjusted operating income per diluted share of $1.30–$1.50 for full-year 2013. The company initiated its stock repurchase plan during the quarter, at a total cost of $4.2 million."
"BELLEVUE, Wash.--(BUSINESS WIRE)--Apr. 24, 2013-- Symetra Financial Corporation (NYSE: SYA) today reported first quarter 2013 net income of $66.0 million, or $0.48 per diluted share, compared with $75.4 million, or $0.55 per diluted share, in first quarter 2012.
Adjusted operating income was $50.4 million, or $0.37 per diluted share, compared with $59.3 million, or $0.43 per diluted share, in the same period a year ago. The after-tax impact of prepayment-related investment income, net of amortization expense, in first quarter 2013 was $7.6 million, compared with $3.6 million in first quarter 2012"
If they start buying back $10 million per quarter this stock could double in less than 5 years and with it the 2% dividend.
Correction-The diluted book value is only 18.32/sh due to the warrants owned by both Berkshire and WTM. Still it's a reasonable value and an excellent hedge against rising interest rates because rising rates will be beneficial to its life insurance business.
Total stockholders’ equity, or book value, as of March 31, 2013, was $3,604.2 million, or $26.10 per share, compared with $3,630.1 million, or $26.29 per share, as of Dec. 31, 2012.
Adjusted book value as converted,1 as of March 31, 2013, was $2,529.2 million, or $18.32 per share, up from $2,477.0 million, or $17.94 per share, as of Dec. 31, 2012.
Stock repurchases during first quarter 2013 totaled 309,000 common shares at an average price per share of $13.46 and a total cost of $4.2 million. At March 31, 2013, there were 9.7 million shares remaining under the repurchase authorization.
Risk-based capital (RBC) ratio for Symetra Life Insurance Company at the end of first quarter 2013 was estimated at 498%. Statutory capital and surplus, including asset valuation reserve (AVR), was $2,222.5 million."