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OneBeacon Insurance Group, Ltd. Message Board

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  • snogreen snogreen Oct 19, 2012 10:00 AM Flag

    Book value to drop?

    OB is similar to RLI now, yes...but RLI is a far stronger company. RLI has a 13% ROE. OB is far less. RLI is more profitable. RLI has $100 million debt and $113 million cash. So by all measures, RLI is a far stronger and more profitable company with a bullet proof balance sheet....And RLI pays less than a 2% they are able to reinvest and grow business. OB pays out almost all their profits to dividends, largely to WTM. So it's harder for them to grow.

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    • Shut up.

    • From S&P.

      "The expected sale of Essentia and termination of the Hagerty collector car and
      boat business to Markel in early 2013 will represent a meaningful loss of a
      profitable niche for OB. In 2011, the Hagerty niche represented $167 million,
      or 16% of OB's total net writings of $1.1 billion.

      If OB is paying out almost all it's earnings as can they continue to do so, if the Hagerty business they just sold, accounts for about $170 million of very profitable revenue?

      • 1 Reply to snogreen
      • New lines to offset Hagarty? Where is the breakdown of the "very profitable business"? OB's ROI is history. Mgt tells me RLI is their goal. Will they match ? That is a bet at 6+% dividend. 2 other points: I have been fortunate to visit with both Buffett and Byrnes. Your statement on Obama? I was down in my accounts during the Bush years. Both my corporate and pension accounts are up 147% during Obama despite a huge Bush carryover disaster at the beginning -- very similar to the 800,000 monthly drop in employment. If you didn't match -- bummer. My strategy? All in OB if the c.s war monger Romney family (& hide behind the trees sons) wins -- de je vous. Once burnt with Bush shame on GW; if burnt again with Romney shame on me.

14.72+0.07(+0.48%)3:01 PMEDT