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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (22377)	10/31/2005 10:46:12 AM
From: muwis123	Read Replies (1) \| Respond to of 78702

Generally speaking, when big reinsurance/insurance companies invest in smaller companies, they want to participate in the cycle. AIG really doesn't need to acquire anyone, IMO. They already have the expertise and infrastructure to write whatever business they want to and can move in and out of areas of the market they see opportunity in. I think there will be a wave of consolidation within the next couple of years in the reinsurance sector as we have seen in previous cycles. Although if the pricing environment continues to improve as I believe it will, the mgt of these smaller names will be less inclined to sell or merge.