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.
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.
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.