Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

Montpelier Re: Not As Cheap As It Looks

Montpelier Re Holdings (NYSE:MRH) is a Bermuda-based U.S. catastrophe property insurer. While it has some additional lines, it is pretty dependent on the catastrophe market which makes up some 70% of 2012 premiums. About half of its risk is directly out of the United States although it is diversified, a bit, across risk lines and regional perils. We are taking a look at this reinsurer due to the following reasons:

    A concentrated catastrophe reinsurer Price to tangible book of 0.96 PE of 6.9 Has had a cumulative redundancy with reserves since inception Montpelier has a healthy set of ratings: "Montpelier Re is currently rated "A" by A.M. Best (Excellent, with a stable outlook), "A-" by Standard & Poor's ...
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