Kevin J. Holloway - Seeking Alpha © seekingalpha.com. Use of this feed is limited to personal, non-commercial use and is governed by Seeking Alpha's Terms of Use (http://seekingalpha.com/page/terms-of-use). Publishing this feed for public or commercial use and/or misrepresentation by a third party is prohibited. SeekingAlpha.com http://seekingalpha.com/author/kevin-j-holloway Aflac: Bad Press Can Bring Good News http://seekingalpha.com/article/294618-aflac-bad-press-can-bring-good-news?source=feed 294618 John Neff

I've been reading "John Neff on Investing" and came across a situation he encountered in the 80s with beaten-down property and casualty insurance companies. Wall Street predicted that asbestos-related problems were going to be a liability of approximately $500 billion. Wall Street overreacted and insurance stock prices moved downward significantly. Sounds familiar to me. Insurance stocks have been beaten down with many of the recent natural disasters in Japan and in the US, which have made for some real bargains.

Instead of focusing on the fate of the insurance industry if costs reached the predicted magnitude, we wondered about the impact once overreactions melted away. - Ness

Neff decided to buy Cigna (CI) at its lows with special consideration to the low P/E and well-managed business. After the market realized the predictions were overblown, Cigna's shares advanced 54% and property and casualty insurers advanced 45%. The

]]> Tue, 20 Sep 2011 03:37:54 -0400 Kevin J. Holloway By Kevin J. Holloway:

John Neff

I've been reading "John Neff on Investing" and came across a situation he encountered in the 80s with beaten-down property and casualty insurance companies. Wall Street predicted that asbestos-related problems were going to be a liability of approximately $500 billion. Wall Street overreacted and insurance stock prices moved downward significantly. Sounds familiar to me. Insurance stocks have been beaten down with many of the recent natural disasters in Japan and in the US, which have made for some real bargains.

Instead of focusing on the fate of the insurance industry if costs reached the predicted magnitude, we wondered about the impact once overreactions melted away. - Ness

Neff decided to buy Cigna (CI) at its lows with special consideration to the low P/E and well-managed business. After the market realized the predictions were overblown, Cigna's shares advanced 54% and property and casualty insurers advanced 45%. The


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