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Strategies & Market Trends : 50% Gains Investing
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To: JakeStraw who wrote (55818)9/27/2007 2:14:09 PM
From: Dale BakerRead Replies (1) of 118717
 
The other more tangible factor is that the big reinsurance outfits set aside reserves every year as they write coverage. So even a major storm or two probably wouldn't ding earnings much if at all. They have had two good years to build up their piggy banks without paying out much at all.

My point is that there is less "risk" involved when the reinsurers have bulging balance sheets.
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