update, page-29

PE of 20 is unlikely. WDC and WOW are at PE (Current) of 17 - and they are pretty much as stable as companies come.

Assuming stable long term EPS of $1.05 (and that is a big assumption), I'd say anywhere between 13-15 PE is reasonable. ($13.65 - $15.75)

I'm not sure about long term premium trend of being upward with inflation. My biggest wonder in the past is always "what's stopping the customers from going to cheaper competitors"; and perhaps it's partially the AAA rating, but I think it's mostly the % of the premium that goes to the insurance brokers.

If the broker system is being replaced, say with online platform that easily compare most of the bread and butter standard insurance; I think margin will get hurt real fast.