Reinsurance Idiot isn't happy unless he can make some sort of negative statement about Monty each and every day. He either lost his ass on margin with Monty after Katrina or he was fired from his mail boy job in Bermuda. It is personal with this prick.
I don't understand why this is a BRK vs MRH analysis. they are two different companies with very different businesses.
BRK has SOME reinsurance, but they have a lot of other stuff as well. It is really more of an old-fashioned conglomerate, with a bunch of unrelated businesses under one roof. (Furniture, jewelry, net jets, etc...) MRH is much more of a pure reinsurance play. (Granted, it isn't AAA, and it doesn't have Ajit, but so what?)
So this really isn't an "apples to apples" comparison.
Can we therefore move on?
Excellent quote, I can relate to the reference.
Speaking of which, I do own more than BRKb, I own some of this link below, and a sprinkling of others, but in all honesty, I own mostly BRKb.
wilbur hasnt sold, so thats good.
i dont know a lot about reinsurance, but i do know that insiders bought a million dollars of stock recently, the board authorized a 100 million dollar buy back recently, book value is 16 dollars or so, and so far the only thing damaged this hurricane season has been some taco stands in mexico.
brkb is a good stock that can withstand a major disaster. i wouldn't tell people not to buy it, but mrk is ready to pop.
you might as well buy some and make some money. it's business baby .. business. make some quick cash. you can own more than one stock
"this is the businessk we have chosen" -- hyman roth
It seems like a moderate hurricane would actually help MRH. It would test their current pricing model (hopefully it's solid) and it would create more demand for reinsurance. I'm afraid that with a calm hurricane season, the demand for reinsurance will go down and possibly hurt MRH more than a normal to more active than normal season. Any thoughts?
1. Assume that that the majority of revenue came from reinsurance written on Florida exposure over the last five years.
2. Now, assume that retail insurance companies have been fleeing Florida like lemmings jumping off a cliff and that Florida's State Government has gobbled up huge percentages of the hurricane exposure.
3. Finally, assume that Florida's State government has decided that taxpayers should shoulder the risk of a major hurricane and has not purchased any reinsurance.
It seems to me that the above scenario would hurt Florida pricing power for Gulf reinsurers, would force the reinsurers into markets that they were less familiar with, and would offer less of a windfall when hurricane season fizzles with a whimper.
Any answers to the above would be greatly appreciated.
I think the bottom-line is that MRH is going to have to get a lot better at understanding risks around the world -- not just in the Gulf. IMHO
Good luck to all.
I disagree. To heck with long term prospects -- it's the short-timers that are holding this stock price below fully converted book value. No hurricanes = higher book value and lower risk = higher stock price.
If you're insuring people for something that doesn't happen, you're very happy. If I'm an insurance company, I don't want to pay out claims just to "test the model". Come on.
People are still VERY fearful in hurricane season -- an uneventful hurricane season will calm fears further.
Agreed, I believe a normal hurricane season is ideal for MRH at this point. Not only will it help firm rates for the future but it will also demonstrate how the company’s new risk model will fair under pressure. I believe Gross Premiums written will show further decline in the upcoming quarters, resulting in reduction in earnings. However, I am still confident in the future prospect of the company. The management team showed great resolve during the 2005 disaster and will continue to build value for investors (increase book value) without accepting unnecessary risks.
it is literally the peak of hurricane season.
people have placed their bets.
i don't expect any movement in this stock price for the next two weeks, then as every week without a catastrophy passes, this stock will start moving up.