Time to Buy Reinsurers

Includes: PRE, SWCEY, THG
by: Paul Kedrosky

Not to be more crass than usual, but with Macondo costs getting locked down, however briefly, and aggregated among BP and insurers, this is normally the time when you buy insurers. Premiums for deepwater offshore rigs are being jacked as much as 50%, and shallow rigs are seeing premiums go up 15-25%, so insurers with oil exposure are likely to see cash flows increase fairly markedly.

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Disclosure: No positions