What about the insurance industry? Isn't that industry in a slump due to low interest rates which is compressing their investment income? Also the premiums have come down due to intense competition, I believe. And since Ebix feeds off these players, is that a factor in sales and earnings growth? Any comments?
Lots of free cash, but what are they doing with it? How are they getting investment income? The yield on bonds is pitiful. Aren't they supposed to hold AAA grade bonds and maybe do some securities investing just like Buffet does? I used to own a company called Tower group (TWGP) a small north eastern insurer and they complain about lack of investment income. May be the big guys have good investment portfolio managers but the smaller ones are stuck with low yielding instruments.