Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, property and casualty insurer Endurance Specialty Holdings (NYSE: ENH ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Endurance's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Pembroke, Bermuda (2001)|
|Market Cap||$1.36 billion|
|Trailing-12-Month Revenue||$2.03 billion|
CEO David Somers Cash (since 2010)
CFO Michael McGuire (since 2006)
|Return on Equity (Average, Past 3 Years)||9.7%|
|Cash/Debt||$1.05 billion / $613.4 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
A few months ago, gameguru summed up the Endurance bull case:
A diversified insurance/reinsurance company doing most of its business in the US. ... They have a track record of careful underwriting with a historic combined ratio of about 90%. This year has seen some serious catastrophes, but should provide long-term opportunity.
In fact, Endurance currently sports a particularly paltry price-to-book of 0.5. That represents a clear discount to industry peers like Travelers (NYSE: TRV ) (0.8), ACE (NYSE: ACE ) (0.9), and Chubb (NYSE: CB ) (1.1).
CAPS member steprightup elaborates on the bargain opportunity:
Trading at a deep discount to book value ... the stock price is not exemplifying the true value of the company. A famous investor who followed the approach of purchasing baskets of insurance companies at a discount to book value was Shelby Cullom Davis. With the approach on average being a success, I don't see why concentrating on a single insurance company of this type to be a bad investment going forward. Management seems to be of a conservative nature and despite my opinion of the interest rates for U.S. Treasuries, the mix of fixed maturity investments is relatively sound.
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