Wilbur Ross: Reinsurers are cheap

[omagh]

Private capital is telling us that reinsurers are undervalued, but some aren't well-capitalized.  ORH will rise as prices for other reinsurers get bid up.  FFH may take ORH private before long.

 

-O

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=aBsxbPhfQrDw&refer=home

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Billionaire investor Wilbur Ross said he’s considering buying and combining reinsurance companies with a market value of $1 billion to $2 billion after a drop in the stock prices of carriers around the industry.

 

“We’re certainly looking,” Ross said today in an interview after a speech at a conference in New York. “There’s an awful lot” of companies with equity of between $1 billion and $2 billion, Ross said, without identifying potential targets.

 

Consolidation among reinsurers is likely to increase because of a scarcity of capital, Ross, 71, said during his address. Max Capital Group Ltd. agreed to sell itself to IPC Holdings Ltd. on March 2 after investment losses helped push the shares down by about a third in six months of Nasdaq Stock Market trading.