I've held the company for the past year so I'm biased by the appreciation in the stock price but I'll outline a couple of things:
1. Earnings have continued to expand since 2008. I think that there is still P/E expansion opportunities 2. Company is trading at a meaningful discount to book value. Even now P/BV is around 0.8. 3. Sentiment is improving in insurers. They are still facing significant pricing issues, but investment portfolio losses have stabilized.
I'm not sure what caused the sell-off on Friday but in general the company is still relatively attractively valued. I do worry that Net Premiums written continue to soften. I really want to see more business being written before I think this company is on the path to a strong recovery.