With all the talk of stocks being overvalued due to the massive rally we've seen since March, you'd think there'd be almost no dirt cheap stocks. You know what I'm talking about. I mean really cheap. Stocks with single digit P/Es and price-to-book ratios well under 1.0.

But what if I told you that there's one sector where there's not just one dirt cheap stock, but many of them. And as an added bonus, these dirt cheap stocks also have a Zacks Rank of #1 or #2, which means they have rising earnings estimates.

Too good to be true?

Nah. You just have to know where to look.

Dirt Cheap Stocks are Not the Techs

To find the dirt cheap stocks in this market you have to get over your obsession with tech stocks, energy plays and, as hard as it is, even the drybulk shippers.

Because our dirt

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On Monday, PartnerRe Ltd. (PRE) announced that it will acquire the remaining shares of ParisRe Holdings Limited through a merger in lieu of the stock-for-stock transaction agreed upon earlier. By choosing a merger vote instead of an exchange offer, the amended structure is expected to accelerate PartnerRe’s acquisition of ParisRe. However, the consideration granted to ParisRe shareholders will remain unchanged. PartnerRe has entered into agreements to acquire 77%, and previously acquired approximately 6%, of ParisRe’s outstanding common shares. In these transactions, PartnerRe offered (subject to certain adjustments) the same exchange ratio of 0.30 PartnerRe common shares for each ParisRe common share. The closing of the 77% block purchase is currently expected to occur in Oct. 2009, subject to certain conditions and regulatory approvals. Shareholder approvals from both the companies in connection with the closing of the 77% block purchase have been obtained. As a result, ...

On July 7, Max Capital Group Ltd. (MXGL) announced that it had appointed two Senior International Casualty reinsurance underwriters at Lloyd’s Ltd, the Lloyd’s managing agent for Syndicates 1400, 2525 and 2526, to build up its Lloyd’s platform.

Graeme Scott has been appointed as Casualty Treaty Underwriting Manager for Lloyd’s Syndicate 1400. He has over 30 years of experience in casualty underwriting and has most recently served as the Senior International Casualty Treaty Underwriter for ACE Tempest Re in London. Previously, he was Underwriting Manager (Facultative Casualty) with Munich Re UK.

Mr. Scott will be supported by Mr. Stuart Hawes, who has been appointed Treaty Underwriter for Lloyd’s Syndicate 1400. Mr. Hawes has around 14 years of experience in insurance, including nine years in casualty reinsurance underwriting. His latest stint was with ACE Tempest Re, the reinsurance operating unit of the ACE Ltd. (ACE).

Both Scott and

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A.M. Best Co. viewed PartnerRe Ltd.’s (PRE) decision to acquire a majority stake in Paris Re on July 5, 2009 as positive for the company.

The all-stock transaction, valued at about approximately $2 billion, will exchange 0.30 of PartnerRe shares for each Paris Re common share outstanding. The deal is expected to be completed in a number of steps. We think this will help PartnerRe’s visibility in a wider market and strengthen its operation to weather the ongoing market volatility.

After reviewing the offer, A.M. Best kept unchanged PartnerRe Group’s and its members’ financial strength rating and issuer credit ratings (ICR) at “A+" and “aa-", respectively. The ICR and debt ratings of the parent company (PartnerRe Ltd) remained unchanged as well. The outlook for all ratings is stable.

The rating agency exudes optimism about the transaction and believes that PartnerRe will gain operating scale through a diversified geography

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PartnerRe to diversify through Paris Re acquisitionOn July 5, 2009, Bermuda based reinsurer PartnerRe Ltd. (PRE) reported that it has agreed to acquire Paris Re, a French-listed, Swiss-based diversified reinsurer in a succession of transactions. The stock-for-stock transaction will exchange 0.30 of PRE's common shares for each Paris Re common share outstanding. The total value of the transaction is expected to be approximately $2 billion.We think this will help PartnerRe's visibility in a wider market and strengthen its operation to weather the ongoing market volatility.Initially, PRE acquired approximately 6% stake of Paris Re in a stock-for-stock transaction at the 0.30 exchange ratio. The company intends to acquire an additional 57% of Paris Re's outstanding common shares at the same exchange ratio. The block transaction is expected to close in the fourth quarter of 2009.Prior ...

On June 29, Everest Re Group (RE) announced that Everest Reinsurance Company (Ireland) Limited, its newly established direct subsidiary, has received a license from the Irish Financial Services Regulatory Authority to operate as an authorized non-life reinsurer in Ireland.

As a result, Everest Re will be able to operate throughout the European Union under a single regulatory framework. The company focuses on providing property, casualty and motor classes of business on direct and broker basis. In May 2009, A.M. Best Co. assigned a financial strength rating of A+ (Superior) and an issuer credit rating of aa- to Everest Reinsurance (Ireland) Ltd, with a stable outlook for both ratings.

Everest Re has been generating business in Europe for decades through its representative offices in London and Brussels. This new arrangement supports its existing operations in London and Brussels along with its new operation in Cologne.

Everest Re

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For Immediate Release

Chicago, IL - June 26, 2009 - Zacks.com announces the latest Industry Outlook. Today's outlook from Zacks Equity Research analyst Neena Mishra discusses the Insurance sector. Highlighted stocks include: PartnerRe Ltd. (PRE), Amerisafe, Inc. (AMSF), Hartford Financial Services Group (HIG), Primus Guaranty (PRS) and PMI Group (PMI).

Here is the latest on the Insurance sector:

We remain positive on reinsurer PartnerRe Ltd. (PRE) due to its excellent underwriting abilities, strong capitalization, solid ratings and reputation in the market, which will enable it to take advantage of the stronger demand and better pricing being witnessed currently. We also have a Buy rating on Amerisafe, Inc. (AMSF) in view of its strong capital position and sustained improvement in the results.

Currently we do not have any Sell recommendations on insurance stocks under

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The turmoil in the financial markets resulted in a highly challenging environment for the U.S. insurance industry, a trend that is expected to continue through the end of the current year, though some signs of improvement can be seen now. We also expect further consolidation in the industry.

Life Insurers

Continued losses in the investment portfolio and lower income from the variable annuity business will continue to hurt earnings. Most life insurers have substantial exposure to commercial-real-estate-backed loans and securities, which will result in further losses in the coming quarters.

The Industry's statutory capital levels have fallen sharply and some companies are trying to raise capital through the Troubled Assets Relief Program (TARP). The Treasury has already approved six life insurers for capital infusion under TARP.

Property & Casualty Insurers

Insurers' losses from natural disasters surged in 2008, with maximum losses resulting from Hurricane Ike (insured losses of approximately $15 billion). Six named storms --

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The turmoil in the financial markets resulted in a highly challenging environment for the U.S. insurance industry, a trend that is expected to continue through the end of the current year, though some signs of improvement can be seen now. We also expect further consolidation in the industry.

Life Insurers

Continued losses in the investment portfolio and lower income from the variable annuity business will continue to hurt earnings. Most life insurers have substantial exposure to commercial-real-estate-backed loans and securities, which will result in further losses in the coming quarters.

The Industry's statutory capital levels have fallen sharply and some companies are trying to raise capital through the Troubled Assets Relief Program (TARP). The Treasury has already approved six life insurers for capital infusion under TARP.

Property & Casualty Insurers

Insurers' losses from natural disasters surged in 2008, with maximum losses resulting from Hurricane Ike (insured losses of approximately $15 billion). Six named storms --

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The turmoil in the financial markets resulted in a highly challenging environment for the U.S. insurance industry, a trend that is expected to continue through the end of the current year, though some signs of improvement can be seen now. We also expect further consolidation in the industry.Life InsurersContinued losses in the investment portfolio and lower income from the variable annuity business will continue to hurt earnings. Most life insurers have substantial exposure to commercial-real-estate-backed loans and securities, which will result in further losses in the coming quarters.The Industry's statutory capital levels have fallen sharply and some companies are trying to raise capital through the Troubled Assets Relief Program (TARP). The Treasury has already approved six life insurers for capital infusion under TARP.Property & Casualty InsurersInsurers' losses from natural disasters surged in 2008, with maximum ...