Parsad Posted March 1, 2012 Share Posted March 1, 2012 Always a good read, and one of the best insurers in the business. Their views, not unlike Buffett's, seem to contradict Prem's views. Markel expects interest rates to rise...not a question of if, but when. Cheers! http://phx.corporate-ir.net/phoenix.zhtml?c=104364&p=irol-reportsAnnual Link to comment Share on other sites More sharing options...
rijk Posted March 1, 2012 Share Posted March 1, 2012 below is a table that shows bond maturity > 5 years (compiled from annual reports) two observations: - even though mkl seems to agree with buffett on interest trends, their bond portfolio is positioned much more in line with ffh than brk - brk's relative risk exposure to higher interest rates is far lower than ffh and mkl's > 5 yrs---2011---2010---2009---2008 FFH-------74%---83%----74%---71% MKL-------71%---72%----71%---72% BRK-------24%---24%----29%---27% regards rijk Link to comment Share on other sites More sharing options...
Parsad Posted March 1, 2012 Author Share Posted March 1, 2012 I agree. I checked the duration of their bond portfolio yesterday over the last couple of years, and found it unusual as well, relative to their comments about interest rates. Maybe they are hedging their bets! ;D Cheers! Link to comment Share on other sites More sharing options...
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