Endurance Specialty Holdings (ENH)
hasn't quite settled into its new normal yet, which makes
quarter-to-quarter forecasting quite a bit more challenging. Expenses
are still running high, but premium growth in the insurance business
should lead to better leverage down the road. Still, there is a lot of
uncertainty about the long-term profitability of business being written
today in the insurance sector, and Endurance's pursuit of Aspen (AHL)
adds yet another layer of uncertainty. I seem to be a little more
bullish than most sell-side analysts on Endurance's long-term
profitability, as an assumption of a five-year ROE of 10% leads to a
fair value estimate above $58.
Read the full article here:
Endurance Specialty Still Undergoing Substantial Shifts
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