David Einhorn’s Speech at Ira Sohn Transcribed

CEo of greenlight capital pictureH/T to http://www.insidermonkey.com, who got a copy of the audio file of David Einhorn’s speech at Ira Sohn and transcribed it.

Below is a brief excerpt followed by a link to the full text:


Dan Loeb’s Third Point Re To Merge After Years Of Losses

Nestle Dan Loeb Daniel Loeb third point capital hedge fund manager activist investor poison pen activism Yahoo corporate governance famous investorsLast week, Third Point Re insurance, which is backed by US hedge-fund manager Daniel Loeb, said it would merge with Sirius International Insurance Group in a cash-and-stock deal worth around $788 million. The deal comes at a pivotal time for both companies. Third Point Re To Merge After Years Of Losses Early last year, reports Read More

The basics of Delta Lloyd is a Dutch financial services company listed in Amsterdam and operating mainly in the Netherlands and Belgium. The Bloomberg ticker is DLNA. It has 167M shares outstanding and trades at 70% book value, 6x earnings, and has a 6% dividend yield. Delta Lloyd reports embedded value, which is essentially the discounted value of the existing book of business. At 32 € per share, it means the shares essentially trade at half the runoff value of the company assuming it writes no new business.

Delta Lloyd has over 40B€ of its own risk assets and manages over 70B€ funds in total. It’s primarily a life and pensions business, with about 30% of operating earners coming from the property casualty insurance asset management in banking.

While S&P only rates the group single pay, its insurance entities hold on average 2.3 times the amount of capital required by the regulator at the subsidiary level and 40% more than Delta Lloyd’s own minimum target. Delta Lloyd has only 15% net to equity versus peers typically having 2-3 times as much. Delta Lloyd’s strong capital position and focus on the long-term pension business enables it to take a bit more investment risk than others.

Here is a link to the full article-http://www.insidermonkey.com/blog/2011/06/02/transcript-of-david-einhorns-speech-at-the-ira-sohn-conference/