The storm will likely create a great buying opportunity for Chubb this week. As we all know, the impact from the storm will effect the 4th quarter results but will have no lingering negative effects during 2013. In fact, it should help to push property rates even higher. Wait for the drop, then buy in and wait for the first and second 2013 quarter earnings to get the best return you will see for a long time from this blue chip stock.
Waxman you don't get it do you? The business model at CB is
flawed. Management will have to drop the flood insurance
program and this will end their competitive advantage over
less risk adversive companies who wisely stayed out the flood
insurance business. BK risk too high here due to flood insurance
policies upto 15 million dollars a pop. Get it?