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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (25773)	9/14/1999 3:41:00 PM
From: Benkea	Respond to of 99985

Haim: "insurance companies also have huge stock portfolios which may and I hope will be sold to cover claims." Only Berkshire and they WON'T be selling. MOST insurance companies have the VAST majority in fixed income.

To: Haim R. Branisteanu who wrote (25773)	9/14/1999 4:16:00 PM
From: Logain Ablar	Read Replies (2) \| Respond to of 99985

Haim: The stock portfolios are a much smaller % of an insurers assets vs. stocks although some companies have been changing thier weighting over the past few years. Typically an insurer has a line of credit (secured by assets) that it will draw down to pay claims. This allows it time to sell securities in a reasonable manner in the market (vs. all at once). But if we have a 20B CAT thats still a lot of supply in the market. Also, those homeowners have higher hurricane deductibles (mandatory 10k in Florida with their insurance pool from what I've heard). Tim