Specialty Insurance

Niche insurers with 25%+ ROE: construction, cyber, hurricane — nobody else will touch these risks

Specialty Insurance Niche Underwriters

Total Return

+56.9%

Sharpe Ratio

0.64

Max Drawdown

-18.3%

Win Rate

52.2%

Alpha

-6.9%

Comp. Score *

0.29

Risk Parameters

Max Allocation7.0%

Stop Loss18.3%

Take Profit8.1%

Max DD Tolerance18.3%

Rebalanceweekly

Execution Guidance

Order TypeMarket

Entry RuleUse market orders for volatile names.

TimingSAFE TO BUY. *

ScalingEnter in 3 tranches over 1-2 weeks.

Positions — Vol-Adjusted Sizing

Symbol	Action	Vol	Stop Loss	Take Profit	Size	Links
HCI	BUY	37%	28.1% below entry	12.5% above entry	4.5%	TV YH
OSCR	BUY	77%	40.0% below entry	24.4% above entry	2.3%	TV YH
WRB	BUY	23%	17.4% below entry	7.7% above entry	7.3%	TV YH

▶ For Passive Investors (Buy & Hold)

This strategy is suitable for passive investing. - Take profit: Rebalance when any position exceeds 2x its target weight. Trim back to target, redeploy to underweight positions. - Stop loss: NO price-based stop loss. This strategy recovered from -18% drawdown to return 171% long-term. - Exit rule: Review annually. Exit if strategy underperforms its benchmark for 3 consecutive years.

Avg 5Y Return

71.1%

Avg 5Y Sharpe

0.56

10Y Return

171.2%

10Y Sharpe

0.51

HODL Composite

0.59

Consistency

92%

Suitable for passive

Yes