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

To: Spekulatius who wrote (55387)	5/31/2015 6:31:58 PM
From: E_K_S	Read Replies (2) \| Respond to of 78752

Re BWINB How does one evaluate the riskiness of their insurance business? Are they at a disadvantage for being small (market cap of only $337mln) or their niche market is perfect since the larger players really do not service that type of account. In general, I would assume that all insurance companies have different levels of risk in their book of coverage especially w/ using certain reinsurers. Do you look at the credit rating of their reinsurers and/or does S&P, FINCH and/or MOODY's rate the risk of their insurance pools? I could see an activist investor accumulating a position w/ the goal of getting a board seat to have management explore a friendly merger from a larger insurance company that would like to service their niche market. I certainly would not want the company to reach for yield in their investments. To error on a conservative approach is far better than to increase the duration in their fixed income holdings. Still, these are good problems to have. Thanks for the input, definitely one to watch. EKS