The London market (re)insurance sector is undervalued by around
30 to 40 percent based on a fundamental analysis of expected cost
of capital versus the sector's projected return on equity (RoE)
performance, according to Espirito Santo analyst Joy Ferneyhough.
Improved margins on the underwriting side and limited downside on yields on the investment side mean that RoE levels within the sector may have reached an "inflection point", which could push underlying RoEs up to circa 15 to 16 percent, Ferneyhough...
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