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

To: Spekulatius who wrote (42703)	5/18/2011 12:20:43 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78750

So what's the deal with 13% shareholder's funds drop in a quarter? ;) deltalloydgroep.com "Shareholders funds3 in Delta Lloyd's marked-to-market balance sheet decreased to € 4 billion in the first quarter of 2011. This was mainly due to the significant narrowing of the spread between the collateralised AAA curve and the ECB AAA curve by 74 basis points" - this is completely normal, n'est ce pas? :)

To: Spekulatius who wrote (42703)	5/18/2011 9:56:28 PM
From: Jurgis Bekepuris	Respond to of 78750

KCLI is crap. NWLI - hmm. It had 9% book growth for the last 10 years and I assume they can continue on that clip. This is somewhat OK but not stellar. Other insurance companies have higher book growth rates, though mostly book-per-share growth due to share repurchases. Compared to something like ENH who had huge losses on cats, NWLI looks pretty good. ;) One big issue about insurance book growth is that they hold mostly bonds as investments. Bonds had higher yield for most of last 10 years and they appreciated when yields dropped (assuming some holdings in long bonds + no stupid CDOs or MBSes), helping the book growth rate. OTOH, current situation will hamper the book growth in the next couple years - bonds are returning almost nothing and rising interest rates would drop prices of any long bonds held. Although I assume most insurance companies are trading at discount exactly because of this reason. :)