They probably do make an economic profit but the way the insurance business works GAAP profits are away.
In layman terms - you acquire a customer at t0 for 100 and over T1 to t5 you’ll make 120 NPV from them. However you must charge the entire CAC today to the P&L. so it shows up as a loss today.
My concern is that these businesses are subscale and the market is large though fairly competitive.
Probably best to sell them as they’re on the verge of making money since these are fairly capex hungry and will be for a while.
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