We are removing AUB Group from our Best Ideas list, as the recent share price appreciation has narrowed the gap to our fair value estimate. However, we remain positive about the business and its outlook. AUB Group is a highly cash-generative company that offers a network of insurance brokers direct access to insurers, along with exclusive policy wording and pricing, claims handling support, and the necessary software to operate the business. The switching costs involved for customers and brokers, as well as between brokers and AUB, create a sustainable competitive advantage that we anticipate will support low-double-digit returns on equity in the long term.
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