Brian Grosso
Investment advisor, long only, long-term horizon, value

AmTrust Financial: Potential Double With Little Downside

Screening for potential investments in the financial sector, I entered the following simple criteria:

  • Price/Book Value < 3
  • Return on Equity > 15%

AmTrust Financial (NASDAQ:AFSI) was one of the first results on my list due to the ticker and I decided to take a deeper look. Overall, I was very impressed with what I found.

Overview and Business Model

AmTrust is a $2.6B global property and casualty insurer that sells to underserved, niche customer groups. The business model seems straightforward and compelling:

    Enter niche, neglected insurance markets with lower than average industry combined ratios and penetration. Markets consist mostly of small businesses resulting in a high volume of small policies that the company manages efficiently by streamlining ...
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