• Dowling & Partners

    ALL INSURANCE.
    ALL THE TIME.

    Comprised of 15 analysts, our Equity Research team is in constant contact with management of both public and private companies to keep our clients abreast of industry trends and new developments. Our boutique model of “all insurance, all the time” allows our dedicated five person sales team to respond to our client’s needs quickly and provide timely access to senior research analysts. 

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    D&P 2018 P/C (Re) insurance u.s. industry outlook

    While there’s a lot of talk about (re)insurance rate declines decelerating and in some cases flattening out, with too much capacity chasing too little risk, absent a significant event(s), we continue to expect a very competitive underwriting environment for the foreseeable future.  Our outlook for Global Reinsurance remains negative, as cyclical & secular pressures persist.  In this world of excess capital and low interest rates, (Re)insurance brokers are in a better relative position as “He Who Controls The Customer Wins.  See our full 2018 Industry Outlook

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    new administration reiterates Corporate tax reform tops agenda

    With the recent elections giving U.S. government control to the Republicans, corporate tax reform including a reduction of the corporate rate appears much more likely. That said, it remains unclear how any proposed legislation might evolve and, perhaps more importantly, how much of the benefit will be competed away in the ultra-competitive (re)insurance market.  While we believe that the benefit will eventually be returned to customers, there will likely be a lag which would create a window where ROEs could rise.  See IBNR #46, 2016

     

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    an assessment of private mi's new borrower-paid monthly mortgage insurance pricing

    Private MI's new rate cards address the demand for risk-based pricing by the capital framework introduced by PMIERs.  We estimate that the new rate cards target low double digit to low teens returns, with leverage from quota share reinsurance potentially improving this to the mid-teens.  Despite the risk of longer-term price competition, we believe the MI stock multiples have been overly penalized by both rate and recession fears.  See our full report for detail.