Insurance companies make annual filings with their various home-state insurance departments. Very few, if any, current analysts can understand these intricate documents. Therefore, they are not capable insurance analysts.
I rarely have found anyone on the Street giving advice on insurance company securities who has taken the trouble to truly learn how to understand the policies the companies write, and the reserves behind them.
Unfortunately, this lack of Wall Street insurance knowledge persists, based on commentaries I see.The earnings and book values they spout must, therefore, always be suspect. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
No comments:
Post a Comment