`How high is right. The last reported book value of OB was $11.57. ...OB is now just about $16.00. That means OB is trading just about 140% of book value. Almost EVERY other insurance company is trading under book value fr right around it.OB is an insurance anomaly. The low interest rates are KILLING the investments of insurance companies. And a sluggish economy doesn't help sales. OB is now in nosebleed territory.
WTM owns 80% of OB....if I was WTM, I would look to sell out your 80% stake if you can get 140% book value....then I would take proceeds and buy another insurance company 20% UNDER book! That is a savings of 60%.
You should rather consider buying WTM (owns 80% of OB). WTM is about $444 a share. The book value due out this Friday (2/3) should be around $520 or more....maybe over $530. WTM pays no real dividend, but it is far cheaper than OB.
Ah, but that is backward thinking. Look ahead (and look at the "sweet spot" in OB which has good growth); the nominal yield is a wee bit understated for now and in the near future. Ponder "growth", which is missing in other insurance stocks.