With the commercial lines market firming up, I see the prospects as being very good for One Beacon. I got in at $12 & change. My only concern is the payout ratio of dividend to earnings per share. Any comments on how secure the dividend will be over the next 12 months?
The commercial lines market firming up. Interesting analysis. Not certain how you came to that conclusion. Probably listening to the OBI propergander. You will get a major dividend once the marine unit is sold to St. Paul. Big Mike and Dan Henderman are not looking out for your/our best interest. You bought at 12, sell and take the money and run. Put it into a company that has a pretty good chance of being around for more than 18 months. It gets cold in Minnesota.
I've been in the insurance business since 1979 both as an underwriter and as an agent. The firming trend in commercial lines has started particularly in workers comp. Personal lines is firming up faster. I don't see any major pricing changes in 2012 unless there is severe hurricane weather effecting several states. OB is in specialty lines which tends to be less sensitive to market cycles, but it will be effected to a lesser degree. Good luck.