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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (47401)	3/12/2009 12:31:55 PM
From: Haim R. Branisteanu	Respond to of 218005

summary of Z1 - in the US - 11 trillion went to money heaven in 2008 Message 25487596

To: TobagoJack who wrote (47401)	3/12/2009 10:56:09 PM
From: energyplay	Respond to of 218005

A properly run insurance company will make an underwriting profit under most circumstances, and the investment products make additional margin. For a life insurance companies, an underwritting profits means that for every $100 in paid net premiums it will pay out less that $100. Sort of the opposite of a Ponzi scheme ;-) As long as the underwriting profit continous steadily, like it tend to for life insurance, very little reserve should be needed. Prudent regulators require reserves anyway. For something like property insurance, where one year may have no hurricanes, and the next year three hurricanes, much larger reserves are needed. Insurers usually can hold their assets until it is a good time to sell. Insurers can also raise rates to bring in more money. It is likely some may cut dividend to increase cash levels. Most insurance companies are in better shape than most college endowments. en.wikipedia.org