I hope you read the OB release. Sort of as I anticipated. Book is $11.56 and it trades at 140% of book - only because of the dividend it pays. But you say you are in OB for the income at this stage. But think carefully what they said:
<<For the year ended December 31, 2011, comprehensive income was $44 million, net income was $55 million and operating income was $48 million, or $0.51 per share.>>
OB is paying $80 million per year in dividends. The only way they can supposedly continue to pay out $80 million.....if they only EARN $48 million...is to take it out of capital reserves. And that isn't a wise choice.
Funny exactly what I expected in the last quarter of a transition period. I focus on the new core business which had strong growth and an unreal combined. Then go back to the investor conference tape and hear the expected mid-teens returns on a very lucrative specialty business which will have low combined ratios to support the dividends.
I put my eggs on WTM and they delivered. Book is now $542 and stock is $458. And they say they will keep buying back if the discount is so large. 80% of OB is embedded in WTM.
I'm hoping for a nice bump in WTM today.....but who knows what Mr. Market will do. But I feel I always have downside protection from losses, because WTM will just step in and buy when it's down. Good cozy feeling.