Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

PartnerRe Looks Reasonable Here, Especially If Pricing Firms

With PartnerRe (NYSE:PRE) trading around $98.60, non-insurance investors probably look at the book value on the stock of $109.26 and think the firm is a steal and an obvious arbitrage situation. It is not. In fact, up until recently I thought the global reinsurer was closer to a 'hold' than a 'buy'. The stellar loss environment of 2013 (i.e. there were very few major disasters in 2013), the Fed's move to raise rates which should drain excess capacity from the reinsurance market, and the generally limited impact of higher interest rates on the firm's investment book have changed my mind.

Today, PRE trades around 0.90X book-value. I think the stock is a moderate buy based on an improvement...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details