Federated National Insurance: Stellar Growth And Sound Management, But Clouds Are Gathering
- Federated posted excellent 2Q14 quarterly results, but several items give us pause.
- Growth is exceptional, but the fact that we don't understand the dynamics is puzzling.
- We are not fans of reinsurance-linked accrued profits, which were discussed on the conference call.
- It appears as if the business environment is at its most favorable, implying that returns are at or near cyclical peaks.