OB is acting very strong. Not sure what's up. Float is somewhat tight because WTM owns 75% and others hold OB fiorm because of the 5.4% dividend. Todays action, up, themn a whack fdown on Russia & Ukraine news.tanking overall market…..but teh buyer took in all in on way down then ran it right back up. Someone wants OB. Don't know if it is Buffet's style..but maybe. This new crop insurance division OB started is doing very well……..Buffet might like that area.
I disagree that OB is too small for Buffet. You're right that Buffet probably wouldn't get OB as a single entity………but it could make sense that Buffet takes all of WTM and get's 75% stake in OB along the way. if you state that OB is too small for Buffet to own, then why does Buffet own 17 million shares of SYA?? humm? You also will notice that WTM also ownes 17 million shares of SYA. A buyout of WTM woudl give Buffet 34 million combined shares of SYA…….just under 40%?? And give him 76% control of OB……OB has some interesting new products that could expand VERY VERY fast, if they have the capital. - WHICH BUFFET DOES. I think OB's new Crop Insrance division would be attractive to Buffet. A huge market. His capital and his name……..it would grow extremely fast. Same goes for the Municipal Bond insurance investment WTM has thru BAM. That would also be very interesting to Buffet. WTM has a good reinsurance company, Sirius….WTM has numerous insurance related venture capital investments…WTM owns a $36 billion money manager…….White Mountain Advisors.
I think ALL of WTM would be of interest to Buffet…it is the SMALL pieces that WTM owns that would look good to him - combined…..and small pieces… from to BIG pieces. Buffet is VERY WELL AWARE that WTM took the GEICO competitor "Essurance" from nothing..to selling it to Allstate for $1 BILLION. Esurance competes directly with GEICO. So Buffet will not poo-poo ANY venture investments by WTM in the insurance area. WTM did very well. I think it is a BIG mistake to poo poo ANY investment idea for Buffet… if it is "too small". Again, WHY would Buffet own 17 million shares of SYA? Your thesis falls apart. Buffet SYA stake is worth a tiny $383 million. But you insist that is "too small" for Buffet? Then why does Buffet own SYA?
The new insider director is Patrick Theile, CEO of PartnerRe from 2000- 2010. Over the past 10 years, PartnerRe stock roughly doubled and quarterly dividend went from $1.36 annual rate to $2.68. Since Theile recently bought OB stock in low $15's (open market) perhaps some of his old happy stake owners followed suit. A long-term double play is OB paired with BCRH.