An under-valued book value and consistent dividend yield make Family Guardian Insurance Company Limited (FAM) a steady investment avenue in the Bahamian marketplace.
Minimal price movements have been the name of the game for the company.
While the major buy-in from Sagicor Capital Life Insurance Company Limited in 2005 has yet to make any major impact on the company, it's certainly something to keep an eye on going forward, according to Jamaal Stubbs, senior analyst at CFAL.
The 20 percent equity interest in FAM was an alliance intended to bring the local company new technology, a wider range of life insurance and wealth accumulation products and services, and an avenue to take advantage of joint marketing and sales initiatives.
FAM has indeed recently completed an information technology system update, according to industry reports.
The process should allow the firm to process claims more swiftly and improve the software linked to medical facilities.
"When clients put in claims, it helps give you a quicker turnaround and keeps customer satisfaction high," Stubbs said.  "It helps clients know they'll be reimbursed in a good amount of time and helps assess liabilities better."
Minimizing disputes and ensuring efficiency are other benefits to the update.
"To an extent, it helps settle disputes or at least cuts down on time, and time is money," Stubbs added.
Sagicor, a large regional player in the industry, could be seen as providing continued stability for the firm.
That said, Stubbs said the introduction of foreign entities can also have backlash in terms of customer service and what role the newcomer will have, although there is no reason at this point to have those worries for FAM.
Thus far, the company has performed "in line with the market".
"It tends not to be too active.  They had some changes in price last year, near the end of the year, and it had a slight uptick.  Typically it has hovered in the $5 to $6 level, even prior to the financial crisis," he said.
Another reason for stability is the core ownership.  Established in the 1960s, FAM has three key equity owners that control approximately 48 percent of the shares.
Dividends remain consistent for any prospective investors.
Consolidation is also a buzz word on the minds of insurance companies of late, and FAM is no exception.  The stronger capital case you have, the stronger you are to protect against "external shocks", Stubbs noted.
The firm experienced some major medical problems among clients in years past that administered these kinds of shocks.
In terms of total benefits and expenses, they increased by $7.64 million, or 10.5 percent as of September of last year.  This spike was due mostly from a 13.87 percent rise in "policyholder benefits".
It's not necessarily a bad thing, the CFAL analyst noted, as it indicates FAM is writing new business in a tough economic climate.

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