The Freedom Insurance Group Ltd (ASX: FIG) share price has jumped 7% to 80.5 cents in morning trade.
This means the shares of the life insurance products provider have rallied an incredible 130% since listing on the ASX at 35 cents per share at the end of last year.
What happened?
As you might have guessed from its share price performance, since listing on the ASX Freedom Insurance has provided positive update after positive update.
In fact, in less than six months the company has upgraded its full-year guidance twice.
Whilst today's update was not necessarily an upgrade, management advised that it now expects sales and pro-forma earnings to hit the upper-end of its FY 2017 guidance range.
Current full-year guidance is for sales between $59 million and $64 million, and EBITDA between $18 million and $21 million.
According to management the positive outlook reflects strong performance across the business combined with improved operating efficiencies.
Should you invest?
I have been very impressed with Freedom Insurance and continue to believe it is a great investment option despite its incredible 130% share price gain.
At present the company has a 10.7% market share of direct life insurance sales in Australia. This is up sharply from 5.1% a year earlier and puts it third on the list behind CommInsure by Commonwealth Bank of Australia (ASX: CBA) and TAL Life with their 12.1% and 25.8% share, respectively.
Freedom has a medium-term goal of becoming the second largest participant in the direct life insurance market for sales, and the way it is going I wouldn't be at all surprised to see it surpass CommInsure next year.
In my opinion this makes it a great option for buy and hold investors. In light of this I would put it up there with Suncorp Group Ltd (ASX: SUN) as a standout pick in the insurance industry.
