Analyzing Insurance Companies
Beware of Wall Streets insurance analysts.
Want to test them? Ask if they can read what is called a Convention Blank. These are the annual filings the companies make with the state insurance departments. Very few, if any, current analysts can understand them. If they cannot, they are not capable insurance analysts.
As a former Wall Street insurance analyst, I rarely found anyone on the Street giving advice on insurance company securities who took the trouble to truly learn how to understand the policies the companies write, and the reserves behind them.
This is still true today, based on commentaries I see in the media.
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