India Shares Investment Blog

Filed under: Chubb Corp (CB), Stocks to Buy

The stock of insurer Chubb Corp (CB), first discussed here on May 29, 2009 at a price of $39.65, continues to move higher, in incremental fashion, and I obviously still like the business model at this juncture.

Look for Chubb to post a small rise in premiums in 2011, bolstered by solid operational characteristics. Chubb boasts a strong personal insurance brand, a diversified business (personal lines, commercial insurance, specialty insurance), and a stronger balance sheet than many competitors. The aforementioned should translate in continued market share gains for CB in 2011. Further, pricing is showing signs of bottoming/firming. Investment income will also likely rise slightly in 2011.

Continue reading Chubb Continues to Chug Along

Chubb Continues to Chug Along originally appeared on BloggingStocks on Mon, 07 Mar 2011 17:00:00 EST. Please see our terms for use of feeds.

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Filed under: Before the Bell, Earnings Reports, Forecasts, Aetna Inc (AET), CIGNA Corp (CI)

Insurance giant Aetna Inc. (AET) will be reporting its fourth quarter earnings Friday before the market opens, with analysts expecting to see a strong quarter for the company.

Going into tomorrow’s earnings report, analysts are expecting to see Aetna report earnings of $0.62 per share, up from $0.40 during the same period last year.

Continue reading Aetna Fourth Quarter Earnings Preview

Aetna Fourth Quarter Earnings Preview originally appeared on BloggingStocks on Thu, 03 Feb 2011 17:00:00 EST. Please see our terms for use of feeds.

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Filed under: International Markets, Stocks to Buy

Investors searching for opportunities will be hard pressed to find stocks that are still undervalued. It seems like this rally has pushed every sector to very high levels. Perhaps, it may be time to look in more off-the-cuff places for investment ideas.

One possibility trades on the Amsterdam-based exchange, the Euronext. The Dutch insurer, Delta Lloyd Group, which has operations in the Netherlands, Germany, and Belgium, is a profitable company with a favorable balance sheet that trades at a significant discount to its book value. In the first half of 2010, it generated €767 million of income after taxes and non-controlling interests, a 263% increase. At the same time, it has €3,903 billion in tangible assets net of all liabilities, but a market cap of just € 2,810 billion as of January 11. In other words, investing in Delta Lloyd is like buying assets, with all liabilities paid off, at a 30% discount.

This alone is not enough to make it a suitable investment. After all, a number of financial companies also trade below their book value, why not buy those? There are a few key distinctions that make this Dutch insurer a much safer bet than most other seemingly-similar stories.

Continue reading Opportunity on the Euronext: Delta Lloyd

Opportunity on the Euronext: Delta Lloyd originally appeared on BloggingStocks on Wed, 12 Jan 2011 16:00:00 EST. Please see our terms for use of feeds.

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Filed under: International Markets, Competitive Strategy, Berkshire Hathaway (BRK.A), Market Matters, Amer Intl Group (AIG), Serious Money, Stocks to Buy, MetLife Inc. (MET)

To continue the saga of what might be on Warren Buffett’s foreign wish list, consider the current holdings of Berkshire Hathaway (BRK.A/BRK.B), the largest of which is insurance. The insurance industry has been hard hit by the economy, but it also has the greatest potential to rebound of any industry. Insurance companies have huge cash flow and a large float (mandated by government regulation) that can be used for investments. This has been a major contributing factor in Buffett’s success.

Unlike the construction, automobile or financial sectors that have been met with an economic tidal wave that destroyed demand, there is no lack of demand in the insurance industry. The insurance companies have been hurt by the shrinking of their investment portfolios more than loss of demand or even claims, accepting companies that wrote swaps, like American International Group (AIG).

When next “my pal Warren” invests abroad he may not have to go very far.

Continue reading Serious Money: Buffett Going Global — Part 5

Serious Money: Buffett Going Global — Part 5 originally appeared on BloggingStocks on Mon, 12 Jul 2010 14:30:00 EST. Please see our terms for use of feeds.

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Berkshire Hathaway – Warren Buffett – Insurance – MetLife – American International Group