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

Platinum Underwriters: Conservatism At Its Best

There is no shortage of reinsurers selling at a discount to book. Many of these reinsurers will likely eventually trade above book, should return on equity and investment yield permit such valuations. But many of those are either not diversified enough, in my judgment, and many have high recent earnings, which might be a bit above their long-term average.

In this article we will take a look at Platinum Underwriters (NYSE:PTP) who falls in the middle of the pack in terms of returns and diversification. Given Platinum's historical prudence, it is a buy relative to the market generally. But relative to other reinsurers, I believe there are yet better purchases in terms of earning power to price, e.g.,...

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