sparkly wrote:Ericsson wrote: Insurers offering life policies are set to post higher 2016 full-year profits boosted by a change in the regulatory requirement in accounting for liabilities.
Some of the revisions have been prompted by the Insurance Regulatory Authority’s (IRA) requirement that all life insurers should prepare their 2016 full-year accounts based on the gross premium valuation (GPV), which analysts say is less conservative compared to the previous net premium valuation (NPV).
http://www.businessdaily...19734-ff8j47/index.html
Double digit profit growth in FY2016 compared to FY2015.
This is exactly why investors should pay close attention to the cashflow statement.
Not always. Insurance firms face the risk of making/paying large claims due to events. According to WB, it is not the risk of paying claims but the size and pricing that's the risk.
WB doesn't favor or avoids markets where pricing isn't commensurate with the risk taken on.
As long as KenRe prices risk at a fair price then it will be OK over time. Insurance firms aren't expected to make money from premiums but investment of the float.
KenRe has a unique opportunity to buy assets on the cheap. Shares in good and cheap firms. Bonds offering 13%.
This is a long-term investment for me. A classic WB play. Not flashy just steady.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett