The world of insurance stocks can be simultaneously quite simple and
quite complex. Actuarial science is by no means easy, and it can be
difficult-to-impossible to really evaluate a company's underwriting
risks or investment strategy from outside of the company. On the other
hand, watching metrics like
book value growth,
return on equity,
premium growth, combined ratio and prior year development can usually
point investors towards successful insurance stock picks.
Argo Group (Nasdaq:
AGII)
stands out as something of a challenging case. Book value growth and
return on equity have both been unimpressive, but the company's low
valuation may represent a real bargain if the company can improve its operating results.
Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Argo-Group-Is-A-Confounding-But-Potentially-Undervalued-Stock-AGII-WRB-XL-ACGL0615.aspx
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