Comparative Analysis of Capital Utilization in Different…

.September 2, 2024 at 4:00:05 PM

Greenlight Capital Re, Ltd. (NASDAQ:GLRE) has a ROIC to WACC ratio of 0.989, showing almost balanced capital utilization close to its cost of capital. AMERISAFE, Inc. (NASDAQ:AMSF) stands out with a ratio of 3.716, indicating superior efficiency in generating returns above its cost of capital. Global Indemnity Group, LLC (NASDAQ:GBLI) also performs well with a ratio of 2.080, reflecting efficient capital utilization. In contrast, Hallmark Financial Services, Inc. (NASDAQ:HALL) faces challenges with a negative ROIC, leading to a ratio of -6.095, highlighting operational inefficiencies. Efficient capital utilization is crucial for sustainable growth and value creation in the insurance industry.