October 16th, 2012

Chart: Valuations Remain at Long-Term Low

Posted at 9:08 AM ET

With the sector exposed to a debt crisis, emerging catastrophe risks and a deteriorating reserving cycle, it should come as no surprise that valuations stand at or near 20-year lows. As shown in Figure 1, reinsurers’ average price-to-book ratios remained near 0.90 during the first half of 2012 - approximately one and half standard deviations below the 20-year mean.

 Figure 1overfig14

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