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BB&T Corporation Message Board

  • Phaedrus_27330 Phaedrus_27330 Dec 6, 1998 10:06 PM Flag

    Expected some comments to materialize...

    with BBK now being the largest insurance company
    in N.C. & is now the 16th largest such provider in
    the nation. With control of 34 insurance offices in
    N.C. and Va. is BBK now prepositioning itself for an
    offensive incursion further into underwriting? Hmmm.

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    • BBK is not an insurance company, they are an
      insurance agency/broker representing insurance companies
      who actually take the risk. Their exposure includes
      substantial SC holdings as well.

      It is doubtful,
      beyond certain personal line coverages (homeowners and
      personal auto) that they would take the financial risk
      that being an "underwriter" requires. Just ask the
      estates of A&A (Howden) and Frank B. Hall whether
      underwriting and selling of the same product actually works
      financially.

      I would assume they would look for economies of
      their scale rather than assuming such an increased risk
      position. It is my understanding they have not taken the
      necessary steps to improve the profitability of their
      insurance arms as compared with their peers.

      • 2 Replies to bigtimestockfollower
      • This one is for investors only, not vision
        impaired employes! Sell once PE goes to 30....oh yeah, a
        hell of a premium, but you gotta pay for the 'chutes
        that are big enough for mgt. egos. My prediction is
        this one is gone in early 1st quarter '99. Strong buy
        now, and goodbye letter bank......

      • BBK is not interested in the increased risk. BBK
        is a very conservative financial institution. This
        makes the company very solid. If BBK wanted more risk
        they could just lend to riskier clients. Instead, BBK
        lends to low risk clients and price each client
        accordingly to the inherent risk. The company is very solid
        and a top performer in the financial arena.
        BUY
        to Strong Buy is my recommendation- i hold several
        shares.

 
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