Harleysville Group, Inc. (NASDAQ:HGIC)

CAPS Rating: 2 out of 5

The Company is an insurance holding company which, through its subsidiaries, engages in the property and casualty insurance business on a regional basis.

Recs

1
Player Avatar zwalt99 (73.21) Submitted: 10/11/2010 9:30:31 PM : Outperform Start Price: $30.26 HGIC Score: +93.27

I recently purchased this stock after doing some research...
They keep the combined ratio in the neighborhood of 100%, meaning they don't make or lose much on the underwriting business. However, free cash flow over the past several years has been high enough to do two important things: A) grow long term investments and B) fund a growing dividend.

The loss triangles show that in recent years, they've become more conservative with their reserves. Therefore surprise underwriting losses in the future are less likely.

Member Avatar zwalt99 (73.21) Submitted: 9/29/2011 8:55:51 PM
Recs: 0

I punched my ticket on this today, and I suggest that anyone else who hit the jackpot here does the same. While I have no reason to believe the Nationwide deal will fall through, I see no sense in risking a $30/share profit to hold out for the last $1.

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