I notice that WTM fell over $9 on fri, same day as news of the cruise ship disaster..and down over $4 today. Been a lot of talk about what insurance compaies have exposure. the ship alone was about $600 million...but loss of life could take it to a $1 billion issue they say. Probably a lot or Re companies have a slice. But another interesting comment was that if there was proven "fross negliance" by the Captain...and it was not an "accident".....then the insurance companies may have an out.. All news lately points the Captain knew exactly what he did and did it to be a show off.and disregarded his charts and electronic equipment.
Traded this for 10-14 points several times now. Tempted to nibble here. Guess earnings are Feb 3.
Anybody selling here is really stupid. They are about to report a record quarter with the esurance capital gain in it. We have no knowledge if they had an exposure to Carnival but even if they did it will not be meaningful. One thing about White Mountain--it is now pretty illiquid stock as can be seen today. They may step in after Feb 3 quite period and buy more stock as they have indicated. They have over $130/shr in excess capital. The stock will no doubt trade at BV sometime in the near future-- $550/shr. They are also a sitting duck for an acquisition by the likes of Berkshire.
Yes, that Gross Negligance clause i good..but it coudl mean a long drawn out court fight, and a reserve set up.
I saw it was all Euroeapn Insurers that were lead..... But WTM's Siruis Group IS a European insurer. I read XL was the largest Re taker....but XL might have then parceled off some risk to other Re's..like WTM's Sirius.
Considering an up to $1 billion liability spread all around, I wish WTM woudl kame a statement. This stock is WAY too thin to be destroyed by mere rumor or innuemdo. Which it looks like is going on last Fr and today....down over 25 points??