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Posted

I have had a hard time deciding what to do with insurers/re-insurers... There is still too much capital on balance sheets and until it is eliminated we will not see a hard market. The problem is large catastrophe losses will result in a big drop in BV. Perhaps the best thing is to buy BRK at current levels (the operating businesses provide some nice diversification to cushion any underwriting losses).

Posted

I have had a hard time deciding what to do with insurers/re-insurers... There is still too much capital on balance sheets and until it is eliminated we will not see a hard market. The problem is large catastrophe losses will result in a big drop in BV. Perhaps the best thing is to buy BRK at current levels (the operating businesses provide some nice diversification to cushion any underwriting losses).

 

 

Give it time.  IMO, we will see a fair bit of adverse development from the policies underwritten over the past couple of accident-years.  A good chunk of capital will ultimately be [glow=red,2,300]vapourized[/glow] (because of decisions already taken!).

Posted

Berkley talks about fear being a key driver in the turn to a hard market... at some point the jig will be up and those who are under reserving will have their Jesus moment.

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