Stock analyst touts Baton Rouge insurer’s stock

Advocate staff photo by BILL FEIG -- Blue tarps covering wind damage were a common sight in Batoin Rouge after 2008's Hurricane Gustav. 1347 Property Insurance Holdings in Baton Rouge, which recently went public, is among four companies that have picked up wind-and-hail only policies from the state’s insurer of last resort, a line of business Louisiana Citizens Property Insurance Corp. would be only too happy to shed. Show caption
Advocate staff photo by BILL FEIG -- Blue tarps covering wind damage were a common sight in Batoin Rouge after 2008's Hurricane Gustav. 1347 Property Insurance Holdings in Baton Rouge, which recently went public, is among four companies that have picked up wind-and-hail only policies from the state’s insurer of last resort, a line of business Louisiana Citizens Property Insurance Corp. would be only too happy to shed.

A stock analyst interviewed by Forbes.com is touting the stock of Baton Rouge-based 1347 Property Insurance Holdings, which sells policies that cover only the wind-damage from hurricanes.

Joel S. Salomon, founder and managing member of SaLaurMor Capital, said 1347 is undervalued in an interview with Forbes staffer Wallace Forbes.

The insurer is benefitting from a 15 percent to 20 percent drop in reinsurance costs this year. Reinsurance is the insurance insurers buy to protect themselves from large losses. If 1347 does a good job of underwriting, picking up the appropriate wind-only policies from Louisiana and Florida’s property insurers of last resort, the company can make “substantial profits,” he said.