Tougher times are in the property and casualty insurance market, as insurers like ACE Limited (NYSE:ACE), Chubb (NYSE:CB), Hartford (NYSE:HIG), Travelers (NYSE:TRV), and W.R. Berkley (NYSE:WRB)
are finding it harder to push rate increases and weak interest rates
limit returns on conventional investment options. With loss trends
having been pretty benign in recent years, there are worries among some
investors and analysts that the industry is setting itself up for a
string of weak performance as losses bite into capital and push down
returns.
I'm really not that concerned about W.R. Berkley in that
context. I am worried about limited premium growth potential and the
year-to-year risks of the company's more aggressive investment
philosophy, but I think the company's underwriting quality has shown
itself over time and I still see opportunities for the company to grow
its underwriting operations organically. I'm still not crazy about the
valuation, but bargains in the P&C are hard to find these days.
Continue here:
W.R. Berkley Pushing On Through A Tough Market
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