# Insurance General Developed Value

> Valuation criteria for developed market value general insurance stocks. P/B 0.7-1.5x, Combined Ratio <100%, investment yield benchmarks, and dividend sustainability assessment.

- Skill: `fdu-ins/insurance-general-developed-value` (Agent Skill)
- Install (CLI): `npx skillmds@latest add fdu-ins/insurance-general-developed-value`
- Raw SKILL.md: https://api.skillmd.com/api/skills/fdu-ins/insurance-general-developed-value/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: FDU-INS (https://skillmd.com/u/fdu-ins)
- Updated: 2026-09-10
- Page: https://skillmd.com/skills/fdu-ins/insurance-general-developed-value

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# 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 |
| **Expense Ratio** | <30% | Operating efficiency as % of premium |

## Benchmarks

- UK Motor Insurance: Admiral Group maintained combined ratio <90% (exceptional; industry average 95-110%)
- General insurers trade 0.7-1.0x P/B during market peaks, 1.0-1.5x during troughs

## Investment Income Impact

- Rising gilt yields (2026: 4.45%) boost insurer profitability significantly vs 2016-2021 near-zero environment
- Investment income now 20-30% of total earnings for well-positioned insurers
- Reinvestment risk if rates fall; assess portfolio duration