tag:blogger.com,1999:blog-10546227.post113202271747104913..comments2024-01-16T10:02:08.779-05:00Comments on Alpha Guy: Quicken PremierUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-10546227.post-1132289734771820832005-11-17T23:55:00.000-05:002005-11-17T23:55:00.000-05:00I've got a bud that works for that insurer, but I ...I've got a bud that works for that insurer, but I haven't talked with him about it, or done any analysis on that company. I've been long two insurers, am still long one but closed out the other position for a decent profit (but closed it out too early dang it), and work for an insurer.<BR/><BR/>Insurers make $$ from underwriting risks (duh) if and only if the combination of expenses, claims, etc. don't exceed premium received. However, the real $$ that most make is from investments. Insurers need surplus in case of catastrophe; when claims are incurred but not yet paid, those reserves are invested. Insurers also buy insurance ("re"insurance) to protect themselves from exposure to single catastrophic events.<BR/><BR/>The key to investing in insurers is understanding if they are adept enough to squeak out just a tidge more underwriting profit than their competition; to understand and be comfortable with their investment portfolio; and to understand their exposure to single catastrophic events.nodoodahshttps://www.blogger.com/profile/05324705536306995431noreply@blogger.com