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The deadly tornadoes in Joplin, Missouri and other Midwestern communities, as well as floods and...

The deadly tornadoes in Joplin, Missouri and other Midwestern communities, as well as floods and earthquakes around the world, are expected to bring insurers record losses of up to $55B this year. Concerns about the mass payouts are causing stocks in the sector to lag.
Comments (2)
  • Adjusted Return
    , contributor
    Comments (359) | Send Message
     
    The Reuters piece is perhaps half-baked. It should have focused solely on the performance of U.S. homeowners' insurers.

     

    It is true that there have been high international cat losses over the last couple of quarters to which U.S. losses are now added. But the index used as a comp contains also companies such as AIG, MTG and MBI, and certain life companies, whose underperformance may be due to other factors. Allstate has perhaps underperformed but companies such as TRV, CB and ACE (not included in the index), focused more on commercial lines and with global exposure, have been doing great. Plus, the Reuters piece doesn't say a lot about reinsurers' share of losses (other than BRK ones) and their performance.
    24 May 2011, 08:37 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Next comes the hurricane season: get ready to long crude oil and NG in August.
    24 May 2011, 08:24 PM Reply Like
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