Apr. 29 at 2:42 PM
$SLDE Great results, new 100mm buyback, but maybe most importantly, the "higher tower" they mentioned on the call. The stock is failing to rerate on fears of loss ratio/combined ratio normalization. The ratios appear abnormally low because of the lack of hurricane cat losses in the last couple of years. The higher reinsurance tower (+
$1BN) is meant to allay these fears, supports the ratio guidance, allows them to comfortably add policies/grow, and buyback shares. This is dramatically undervalued now - my base case is
$35. Time to rerate!
