Interesting write-up. Has delivered on profitable growth and shares have done well. I agree that these types of specialty lines can be attractive. But I have also seen these types of insurers implode - unlike bank failures P&C insurers don't end up on page 1 of the news when they get it wrong. One concern I have is that some of these product lines (health, liability) are not really short-tail exposures. Hard for underwriters to predict ultimate losses. Also would like to see a shorter duration bond portfolio. But perhaps it wants to match asset duration to liability duration?
Interesting write-up. Has delivered on profitable growth and shares have done well. I agree that these types of specialty lines can be attractive. But I have also seen these types of insurers implode - unlike bank failures P&C insurers don't end up on page 1 of the news when they get it wrong. One concern I have is that some of these product lines (health, liability) are not really short-tail exposures. Hard for underwriters to predict ultimate losses. Also would like to see a shorter duration bond portfolio. But perhaps it wants to match asset duration to liability duration?