Insurance Disasters like Harvey and Irma may cause Short Term Pain but will produce Long Term Gain for well capitalized Insurers and Re-Insurers like Munich Re (MURGY) and Berkshire Hathaway (BRK-B) companies like Geico, General Re and Berkshire Hathaway Reinsurance Group.
The payouts from these disasters will flush out the smaller companies and companies that insured aggressively over last few years with improper risk underwriting. The rise in rates should allow the well capitalized companies to move in now and gain market share with less risk on a going forward basis.
No comments:
Post a Comment