Within the unpredictable world of investing, market dips might be nerve-wracking, as we discovered final week. However for savvy buyers, they’re additionally golden alternatives to snap up high quality shares at cut price costs. One FTSE 100 gem that’s caught my eye is Beazley (LSE:BEZ), a speciality insurer that’s been quietly seeing actual success out there.

What does it do?

The corporate has grown from a plucky upstart to a serious participant within the Lloyd’s of London market. However that is no stuffy outdated insurance coverage firm. The agency is on the slicing fringe of danger administration, providing options for just about all the things, from cyber threats to property dangers.

In its newest earnings report, the corporate smashed analyst expectations, with earnings hovering by a jaw-dropping 178% over the previous 12 months. That’s the sort of progress that makes even tech start-ups jealous!

However regardless of this efficiency, the shares are buying and selling at what a reduced money move (DCF) calculation suggests could possibly be a cut price price. With this estimate a full 74% above the present share price, and a price-to-earnings ratio of simply 4.6 occasions, it’s potential there’s some actual worth right here.

After all, it’s not simply concerning the numbers. From the appears to be like of it, administration has positioned itself effectively out there. It’s a giant fish within the Lloyd’s of London pond, which provides it entry to a smorgasbord of danger and alternative. And it’s not resting on its laurels both. The corporate is making massive strikes within the cyber insurance coverage area — a sector I believe is barely going to develop as our lives turn into more and more digital.

Give attention to progress

Now, I do know what many buyers within the insurance coverage area are pondering. This all sounds nice, however what about some earnings? Whereas its 1.96% dividend yield won’t have buyers popping champagne corks, it’s a pleasant little earner on prime of the potential for capital progress.

Most apparently to me, the Metropolis bigwigs appear fairly candy on Beazley too. Analysts are forecasting a possible price rise of over 26% from present ranges. Though such forecasts are removed from assured, when the fits within the Sq. Mile are getting excited, it’s typically price paying consideration.

After all, no funding is with out danger. Annual earnings are anticipated to dip by a worryingly excessive 15% over the subsequent few years. Like all insurers, it’s uncovered to the chance of main catastrophes, akin to the worldwide IT outage skilled final month. Such an occasion can spook analysts into forecasting main declines in earnings, and is probably going the explanation for the potential undervaluation. Nevertheless, for my part, these dangers are all a part of the sector.

And let’s not overlook the regulatory tightrope that insurers stroll. Modifications in insurance coverage rules or tax legal guidelines might throw a spanner within the works. Plus, because the agency expands into new markets and danger classes, it’s venturing into uncharted waters. So, whereas I’m excited concerning the potential, I’m maintaining my rose-tinted glasses firmly in my pocket.

I’ll be shopping for

Regardless, if the market takes one other tumble, you’ll discover me bargain-hunting for Beazley shares. With its robust market place, engaging valuation, and potential for progress, I reckon it could possibly be a winner for FTSE 100 buyers like me keen to climate a little bit of short-term turbulence for doubtlessly juicy long-term features.