JAB Group (JABHOL; Baa1, BBB+;S) FT reports Investment Strategy Overhaul

• FT times reporting JAB may overhaul investment strategy to start an insurance business - it says co. may comment today. Unclear what size of exposure/rotation this will involve but it already has 8% of portfolio in pet insurance.
• Also unclear if financial policies will change noting secondary has always traded wide (we've had no firm view on fighting/somewhat justified). Its new 10Y from last month priced at +160 with a 10bp NIC that has since been traded away.

Background on co; Privately held investment holdco focusing on consumer goods & retail. Over ~50% of assets in 5 companies; {JDEP NA Equity}, NVA Group, Panera Brands, {KDP US Equity} & {COTY US Equity}. Dividend income generally not significant vs. fluctuations in underlying investments/equities. LTV is currently at 20%, ceiling from S&P is 25%, it targets 15-20% and its generally kept it there (outside a spike in 2020/Covid).