Since our initial article on National General (NYSE: NGHC), the company has completed two major successful acquisitions.
As a result, we are revising our pro forma earnings power estimate of the company from $2.50 to $3.00, which could be achieved by 2018. We now think that NGHC can do ~$2.75 in EPS by 2017. Based on these new estimates, we are raising our 2-year price target to $42. Last year, NGHC acquired QBE's lender-placed insurance business, a controversial line historically, which has stabilized after the Dodd Frank reform and retrenchment by several large players. NGHC also acquired Assurant Health, which writes small group self-funded (Stop Loss) company sponsored health benefit plans and supplemental products, including dental, accident, cancer/critical
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