ValueBuff Posted October 7, 2010 Share Posted October 7, 2010 I recall that FFH has 1200$/share in invested (approx.). 75% of that money is in various types of bonds. They way yields have come in, that should give FFH some impressive mark to market gains. To compare, the US 10 year has fallen about 15% in the second quarter. If they dont hold them, they will report large EPS as the earnings go though the revenue from the disposal. I assume the equity gains are hedged out so it is a wash; and if they took home ~4% on the bonds ( i think this is conservative) on 900$ invested per share. That would equate to 36$ per share in gains off the bond portfolio. Underwriting is always a guess for me, so I will call it a wash too. I know some people follow this a lot closer than I. What are your thoughts? Link to comment Share on other sites More sharing options...
beerbaron Posted October 7, 2010 Share Posted October 7, 2010 Bonds in insurance companies are usually not market to market under they are classified as held for sale. Someone maintains a excellent spreadsheet of FFH stock investment portfolio. That would be a nice place to start counting. BeerBaron Link to comment Share on other sites More sharing options...
ValueBuff Posted October 12, 2010 Author Share Posted October 12, 2010 Thanks BB. I didnt know that bonds were not mark-to-market Link to comment Share on other sites More sharing options...
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