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Tower Group International, L.Ş. Message Board

  • cash2go cash2go Sep 26, 2013 2:49 PM Flag

    Selling far below tangible book???

    Tangible book value
    Tangible book value (TBV) is the value of an insurer's assets minus its liabilities, excluding intangibles and goodwill. This could also be a proxy for liquidation value -- an estimate of what the insurance company would be worth if the company closed its doors, paid out claims, and returned excess capital to shareholders. (Hence the term "shareholders' equity.") Obviously, you'd want to pay a lower multiple of tangible book value to increase your margin of safety, assuming you can't get shares at a discount to TBV.

    Unless audits and rating agency have been a total fraud...

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