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The insurance sector will be closely watched as stock trading resumes tomorrow. William Blair...

The insurance sector will be closely watched as stock trading resumes tomorrow. William Blair notes last year's Q4 losses from Irene at Chubb (CB), Allstate (ALL) and Tower Group (TWGP) represented more than 50% of expected Q4 EPS estimates. But MKM Partners says although the group will suffer losses, it will not be a major capital event for the average company even in the face of $10B of insured losses.
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  • foodforthought
    , contributor
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    With TWGP, the market is fixated after reinsurance limit losses of $97.5 million, which management filed on 10/29/12. I think TWGP will not hit that maximum. The following is from 2011 10K:

     

    The 2011 severe weather related losses, which include Hurricane Irene, were $31.5 million.

     

    Granted, Sandy was worse than Irene, but not 3x worse than the whole of 2011. TWGP should be trading around high $18.75-$19.00 level. Oversold!
    1 Nov 2012, 08:37 PM Reply Like
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