Meadowbrook Insurance Group, Inc. (MIG)

The Pro Century merger was a strategic induction to meadowbrook's long term growth. They continue to offer a variety of products and have different revenue streams. Their float continues to be managed conservatively. They continue to proift in their underwritting segment and have an adequate combined ratio. They largely avoided the fluctuations in the market last year by investing primarily in AAA rated fixed income securities. The Weak economy and excess capital or underwritting capacity l in the insurance industry may excert downward presure on pricing through next year, absent any major catastrophes.

I look to this company to continue to outpeform its peers. They are in the alternative risk industriy which is not commonly exposed to the large fluctuations in insurance pricing. They have made great aquisitions these last few years and they are building a great distribution network with a variety of new insurance products...Lots of insider buying recently...market price is trading roughly around 25 percent less than its book value...overall, a company with assets that have great cash generating abilities.

Way undervalued. While it could be a bad year for insurance, this one will pickup long term. Look at the sector comparison, and MIGs recent performance.