Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E_K_S who wrote (55388)	5/31/2015 8:40:43 PM
From: Spekulatius	2 Recommendations Recommended By E_K_S Jurgis Bekepuris Read Replies (2) \| Respond to of 78753

re BWINB - we can only rate the risk in BWINB's insurance book based on past performance. There certainly is risk, as is evident from the 2011 results. We know that BWINB is rated A+ by AM best and that they have been over reserving for almost consecutive 30 years now. Since there is no debt and BWINB is small, the rating agencies will not rate them. An acquirer would probably take some cost out of the operation and could take some excess capital out to pay for the acquisition cost. I think there is a possibility for an acquisition if the current management decides to call it quits.

To: E_K_S who wrote (55388)	6/3/2015 4:19:22 AM
From: MNTNH	Respond to of 78753

Re BWINB A few points to check .. customer stickiness and renewals (also cost of acquiring) underwriting margins share of the industry and consequently growth For insurers, typically AM Best is the rating agency to look at. (BWINB is a-) Scale here: en.wikipedia.org Reinsurers help to take risk off their books but that depends on the extent of reinsurance which also lowers profitability, and in certain cases the reinsurance of reinsurance, otherwise aka retrocession. One of the issues is with their investment portfolio, its only earning 3+% p.a. BTW to all: Could someone direct me (or better still paste here) their latest loss development triangle and reserves release data? Sorry my account is locked at work.