Friends Fair Value 153p?

From the FT

These were another set of better-than-expected figures from a group that has quietly been achieving its targets. The shares have more than doubled since March when the FTSE100 sank to 3,287 and the market got in a lather about the solvency of life offices.

Having demutualised in 2001, Friends is thinly capitalised compared with its largest quoted competitors. But as these concerns have receded, Friends Provident shares have outperformed the sector and on Tuesday closed 2p higher at 134½p.

That is still below their embedded value of 153p, and makes it the only large life office trading at a discount. Moreover, the shares offer a yield of more than 5 per cent, which also underpins their value.