General Insurance — Developed Markets Value Strategy
Primary Method: Price-to-Book (P/B) Ratio + Combined Ratio + Investment Income
Key Metrics
| Metric | Target | Assessment |
|---|
| P/B Ratio | 0.7-1.5x | Fair value typically 1.0-1.2x; below 0.9 signals value opportunity |
| Combined Ratio | <100% | <100% = underwriting profit; >100% = underwriting loss |
| Underwriting Profit Margin | >5% | Combined Ratio converts to margin: 95% CR = 5% margin |
| Investment Yield | 4-5%+ | UK gilt yields 4.45% (Feb 2026); use as benchmark |
| Dividend Yield | 3-5% | Sustainability check vs combined ratio |
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