SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Spekulatius who wrote (42703)5/18/2011 9:56:28 PM
From: Jurgis Bekepuris   of 78717
 
KCLI is crap. NWLI - hmm. It had 9% book growth for the last 10 years and I assume they can continue on that clip. This is somewhat OK but not stellar. Other insurance companies have higher book growth rates, though mostly book-per-share growth due to share repurchases. Compared to something like ENH who had huge losses on cats, NWLI looks pretty good. ;)

One big issue about insurance book growth is that they hold mostly bonds as investments. Bonds had higher yield for most of last 10 years and they appreciated when yields dropped (assuming some holdings in long bonds + no stupid CDOs or MBSes), helping the book growth rate. OTOH, current situation will hamper the book growth in the next couple years - bonds are returning almost nothing and rising interest rates would drop prices of any long bonds held. Although I assume most insurance companies are trading at discount exactly because of this reason. :)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News