My new rating system for the banks. Or Credit ratings
I think casualty insurance there are some insane deals. I bought AHL in the last month and look to be in that for a long time. It has consistently earned ROE of 20% has consistently underwritten profitability. Ever year in fact and has some of the best insurance ratios and trades at 6/10 tangible equity. They also bought back 20 to 25% of their stock
I think you should look at casualty insurance. Also AXS, PRE, AWH. I feel like people think they are financials and had trouble because of 2008 but none of them were affected. And have all bought back huge amounts of stock. I am saying right now in casualty insurance you can throw darts and get rich thats how undervalued every casualty insurer is.
Also my credit rating analysis did look at profitability. Look at page 2 and my ratio 2. I examine pre provision income to highest provisions. And if you're over 1/1 you have very good credit. This means that give a bank lots of loan defaults and do they still make money.
PNC is the best bank in the U.S. if you measure stocks like PNC does loans of reward to risk.