One of the issues that I think bothers a lot of investors about the insurance space is the enormous level of volatility in earnings of firms in the industry. By its very nature, the insurance business is dull most of the time with stable consistent profits. But when major disasters, or mortality trends turn bad, or major new developments emerge in the healthcare field, these events can easily crush an insurers profit for a quarter or even a year. Perhaps the uncertainty around these firms' earnings is why so many insurance companies trade with low multiples compared to the broader market. With that in mind, $18B market cap Humana (NYSE:HUM) should appeal to many novice investors in the...
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