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


To: Logain Ablar who wrote (25780)9/14/1999 4:24:00 PM
From: Benkea  Read Replies (1) | Respond to of 99985
 
Timothy:

"Also, those homeowners have higher hurricane deductibles (mandatory 10k in Florida with their insurance pool from what I've heard)."

There is no "mandatory" 10k deductible here; however, most policies have a ten PERCENT deductible for wind storm damage - ouch!



To: Logain Ablar who wrote (25780)9/14/1999 4:27:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 99985
 
Thanks for the answer Timothy. I am aware of the insurance companies credit lines and somewhat familiar with their investing strategy.

Still on a relative basis their equity portfolios are huge, even that they are a much smaller percentage of their fix income portfolio.

Due to the substantial gains in stocks in recent years and mediocre fix income portfolio performance I assume they will tend to sell the winners - e.g. stocks which will also not hurt much less their capital base.

BWDIK
Haim