Property Reinsurers: The Answer Is Blowing in the Wind [View article]
Seems I saw a spreadsheet study that stated that buying insurers after they were beaten to death as a result of heavy storm damage resulted in positive returns. Apparently the heavy losses caused long term holders to bail out and after the season insurers raised their rates. The stocks then gained favor again.
Having said that, as a 21 year veteran of the Insurance claims business, the gulf States are very litigenous and these cases and Insurance Commissioner hearings can drag out for years. It's impossible to say which way the courts and Commissioners will lean. And penalties can be heavy.
The other issue is to confirm that the company you are interested in is adequately 're-insured' otherwise they have to cannibalize themselves to pay the losses.
Property Reinsurers: The Answer Is Blowing in the Wind [View article]
Having said that, as a 21 year veteran of the Insurance claims business, the gulf States are very litigenous and these cases and Insurance Commissioner hearings can drag out for years. It's impossible to say which way the courts and Commissioners will lean. And penalties can be heavy.
The other issue is to confirm that the company you are interested in is adequately 're-insured' otherwise they have to cannibalize themselves to pay the losses.
jegan ;-)