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

PartnerRe: Solid Earnings At A Big Discount To Book

PartnerRe (NYSE:PRE) is a Bermudian reinsurer selling at a discount to tangible book. On an earnings basis, it is also cheap with an average earnings yield of 10%+. PartnerRe is well diversified and has typically reserved itself conservatively. For a long-term investor, there is a promise of capital gains should the corporation simply return to tangible book. The company has also grown premiums and business lines over the past ten years, making it possible that my 10%+ average earnings yield is too low in light of the increased scale of the business. Put simply, PartnerRe is a cheap reinsurer, which will probably sell above book in the long run given its historical ROEs -- which have averaged above...

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