Admiral Group (AMIGY), mcap$6.7bn, price $22.24 vs $25.00

$AMIGY pitch:
– GEICO of UK with 14% market share.
– Cost advantage over competitors due to DTC business and cost-focused culture.
– A capital-light model with 50%+ ROEs.
– The stock underperformed recently due to claims inflation impacting margins – should be a temporary issue only.
– Currently trades below historical multiples and is expected to re-rate as the insurance cycle plays out.

$AMIGY valuation:
– Historical ROE at 50%+.
– Currently trades under 6x P/BV vs 8x average.

Exp. gain: 33% upside to continued compounding.

Full AMIGY write-up (free guest account required):

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