“More people should copy us [Berkshire Hathaway]. It’s not difficult, but it looks difficult because it’s unconventional — it isn’t the way things are normally done.” — Charlie Munger, 2000 Wesco Financial annual meeting Alleghany Corporation is a holding company
This article provides a brief update to The Rational Walk’s 2011 research report on Platinum Underwriters. More than two years have passed since the report was published in October 2011 which is enough time to evaluate the validity of the investment thesis. Platinum recently released results for 2013 along with a detailed financial supplement and held a conference call for analysts. We take a look back at the situation in late 2011, evaluate the latest financial results, and attempt to determine whether Platinum might represent a solid investment opportunity based on its current market price and future prospects.
Munich Re has announced plans to introduce insurance products designed to address the large losses that can arise from major events such as the Deepwater Horizon disaster. The insurer hopes to introduce coverage levels of about $10 billion to $20 billion per drilling operation. In order to make such coverage viable, a large number of drilling operations will need to be insured. Read this article for more details.
The average resident of Tennessee, Kentucky, Missouri, or Arkansas probably does not spend a great deal of time worrying about the potential impact of an earthquake on the New Madrid Fault. After all, the largest quake in the past half
P&C National Underwriter magazine has reported that reinsurance pricing was down for the latest January 1 renewal season as global capacity has been restored to levels close to the all-time peak of December 2007. While pricing has softened, underwriting has remained disciplined and “orderly”.