Catlin’s shares trade too cheap

Catlin’s shares, at 335¾p, or less than five times forecast earnings, and providing a 7.4% dividend yield, look too cheap, the Times says.

The shares trade at a 7% discount to Numis Securities’ forecast of net tangible assets. Catlin’s short six-year life as a public company and the relative volatility of its underwriting earnings imply that it should trade at a lower rating than that of Hiscox or Amlin.