TheStreet.com Ratings: Reinsurers Redux

Another positive note for this company is the 47.6% increase in cash flow for the first nine months of the year. Net cash flow from operations was $281.7 million for the year to date through September, compared with $190.9 million a year earlier.

Odyssey has returned 54% so far this year, but we still feel the stock has more room to rally since its price-to-earnings ratio of 16 is far below other peers, such as Transatlantic Holdings and Max Re.

Our rating criteria are based on the risk-adjusted performance of the individual stocks. We like consistent earnings growth, strong cash flow, strong return on invested capital, minimal price volatility and good solvency. In the case of the reinsurance sector, we see positive results in these key areas for nearly all stocks.