James River Group: Why The Valuation Gap Should Close
Summary
- Global Indemnity's $15 per share all-stock offer for James River Group suggests that the company is undervalued.
- James River specializes in underwriting excess and surplus lines insurance, which accounts for a significant portion of their premiums.
- The company is turning around quite nicely with a hard market behind its back, creating strong future underwriting profits.
- Shares are a buy with a price target of $14.
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