Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

Protective Life: Earnings Beat Not Driven By Sustained Business Improvement

There are a lot of reasons that investors chose to shy away from insurance companies like Protective Life (NYSE:PL) as investments, but one of the reasons is that their earnings are notoriously volatile and difficult to understand. Property and casualty insurers face consistently large risks in the form of unexpected natural disasters. Health insurers are perpetually at risk from political regulations and reimbursement challenges. For life insurers though, the story should be a little different. Life insurance companies generally don't face the type of catastrophic loss events that property & casualty companies do, and while once in a while politicians decide to attack them (such as the new SIFI, or systematically important financial institution, regs that will probably...

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