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.
Group Insurance and Employee Benefits Review
Within the US Life Ins Industry, we continue to favor Group Ins & Employee Benefits business given the attractive risk/return profile & strong cash flow generation. Additionally, favorable secular trends will support stronger top-line growth prospects for Group Ins & Employee Benefits providers. 1) the tight employement market & the robust business senitment will drive higher wages & more employee benefits. 2) the shift of employee benefits towards a defined contribution model will lead to a growing demand for supplemental & voluntary benefit products. We argue the companies best positioned are those that focus on small mid case market and/or supplemental & voluntary benefits. See our full Group Insurance & Employee Benefits Review.
Retro2... Who's Taking The Retro (ILWs) On Retro For "HIM"?
CATCo's statement that it derived a significant benefit from reinsuracne protections highlighted the opaque nature of the retro market, or more aptly the retro on retro market. Some of the largest buyers of ILWs are, in fact. retro writers, which makes "following the loss" all the more difficult. This highly concentrated market will be the most significant driver of any forward market changes = the "known unknown" is the extent of the fallout. See IBNR #42, 2017
Q3:17 Mortgage Insurance Earnings Preview
MI Stock performance was positive in the third quarter, with the exception of a brief dip on hurricane-related concerns in early September, and we believe that third quarter results will support a continued positive outlook for the group. We are projecting $73B of new insurance for the industry in Q3:17, keeping the MIs on pace for a possible $250B of NIW in 2017. In addition, although we have entered the seasonally-challenged period of the year, we expect credit trends to remain positive, with ongoing year/year new notice improvement at the legacy players and the prospect for addtional favorable reserve development at MGIC and perhaps others. See our full preview.