I adjusted it in the same way as the company did, by removing the impact of market risk benefit liabilities.
This is primarily an issue due to GAAP, and shouldn't have a major impact going forward due to the new brooke-re subsidiary which will move this issue to the subsidiaries books instead.
I believe that given that these assets are intended to be held to maturity (and there is no reason to believe they can't do so) removing these accounting fluctuations is appropriate.
That means the normalized earnings are around 3 billion.
"Normalized Earnings per share: $38.66"
I am long myself but this seems too high. Could you expand on how you got this number?
I adjusted it in the same way as the company did, by removing the impact of market risk benefit liabilities.
This is primarily an issue due to GAAP, and shouldn't have a major impact going forward due to the new brooke-re subsidiary which will move this issue to the subsidiaries books instead.
I believe that given that these assets are intended to be held to maturity (and there is no reason to believe they can't do so) removing these accounting fluctuations is appropriate.
That means the normalized earnings are around 3 billion.
Brooke Re has been active in both Q1 and Q2 and adjusted EPS for these Q's are $4.23 and $5.32
You should not remove the impact of market risk benefit as these cancel out net movement in freestanding derivatives.
I would trust management in their adjusted EPS and annualize the last 2 Q's to get a fwd EPS around $20
Correct me if I am wrong. I very well could be.