Disclaimer: This is not investment advice. PLEASE DO YOUR OWN RESEARCH !!!!
Background:
After looking at Hannover Re and Munich Re a few days ago, I decided to include also Swiss Re and Scor in my analysis. Unfortunately, for both of these players, the CAGRs for profit etc. are meaningless as they were making losses in 2022. However, especially for SCOR I found a few numbers very interesting:
Spoiler: This rather long post contains no actionable investment ideas.
Background:
Hannover Re is a stock that for some reason I have ignored for some time although I consider Insurance stocks as part of my circle of competence. Why did I ignore them ? I was always put off from the ownership structure. Hannover Re is majority owned by Talanx, which itself is also listed. Talanx again is owned ~80% bei HDI, which is owned by …I don’t know.
Looking at the chart, I should have considered them earlier: Over the past 15 years, Hannover outperformed the larger and better known peers like Munich Re and Swiss Re by a wide margin and ties with Berkshire (before FX):
This is very interesting, considering that Hannover Re is only the No. 3 global Reinsurer and Berkshire only number 5. Absolute size doesn’t seem the drivig factor for shareholder returns in the Reinsurance industry.
Deep dive Comparison: Hannover Re vs. Munich Re
Management Summary:
Greenlight Re is an interesting special situation in my opinion combining 2 bets in one stock:
1. It is a bet that David Einhorn will come back after his worst year ever and 4 years of underperformance
2. Greenlight Re, the Reinsurance company whose investments he manages “mean reverts” at least closer to its historical price book ratio.This “bet” should be relatively uncorrelated to the overall market and due to the construction of the investment mandate, Einhorn can charge only half of the performance fee for some time.
Disclaimer: This is not investment advise. DO YOUR OWN RESEARCH !!!
value and opportunity 