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

To: Spekulatius who wrote (44359)	6/8/2012 2:52:33 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78613

CNA - L : Longer analysis of CNA underperformance. The guy still likes L, but I agree with you more: CNA is going to continue dragging down L. Some other articles in this blog are interesting too. He did SNE analysis. Do you still hold insurance companies? What do you think about the risk of long-time-zero-bond rates for insurance/reinsurance cos? Seems to me that this may not be fully reflected in their valuations as they are still benefitting from bond prices going up as yields drop. In fact, I wonder if major part of good (re)insurance company results in the last decade is due to the falling bond/treasury yields that boosted their fixed income portfolios up. But longer term if rates stay at zero'ish level, it seems that most (re)insurance companies will have really weak results, since usually they don't have strong underwriting profits but try to make it up with float investment. So apart from BRK and FRFHF that hold equities, should we sell all other (re)insurance cos?