Nice article. I noticed KNSL's FCF TTM (around 800 million) is way higher than net income TTM (300 million). Any idea why? Is it because they recognize premiums as profit at later point of time? and in your reverse DCF, would you use 300 million as base or 800 million?
Does E&S industry players have any metric equivalent to capital ratio where if the metric goes below the threshold, assets must be liquidated
Hey, thanks! Its a big part because of changes in reserves and I don't really like putting that into the DCF which is why I used operating cash flow for all the modeling :) About the second part of the question - don't think so but will try to dig deeper.
Thanks a lot!
If you were able to ask the CEO a question about the company what would you want to know?
Nice article. I noticed KNSL's FCF TTM (around 800 million) is way higher than net income TTM (300 million). Any idea why? Is it because they recognize premiums as profit at later point of time? and in your reverse DCF, would you use 300 million as base or 800 million?
Does E&S industry players have any metric equivalent to capital ratio where if the metric goes below the threshold, assets must be liquidated
Hey, thanks! Its a big part because of changes in reserves and I don't really like putting that into the DCF which is why I used operating cash flow for all the modeling :) About the second part of the question - don't think so but will try to dig deeper.