This is close enough to BV of $12. After it goes ex dividend, you are paying $12.88 today or 7.3% premium to BV. Yield 6.5% on after dividend net purchase price. Goes ex dividend 6/15/12. Some chance White Mountain will buy remaining float at $17/shr.
Travelers is not a comparable company, try RLI which OB refers to as one of their competitors in the 10-k. RLI has the same metrics, premium growth and a low combined ratio, but a nothing yield and twice book.
This is unlike most property and casualty stocks since it is focusing on specialty areas where losses can be contained (hopefully). So if you value it as a "growth stock" -- it grew 17% (premiums) in the recent quarter-- then it will sell somewhere above book.
Yes but earnings were down in Q1. They had a large gain from sale of assets. Other P&C companies reported good results in Q1. I think the dividend yield gets attention but operations are what counts. I will get interested at $12