A rise of 1% in investment return on fixed interest instruments could generate an additional $100 million or more in annual revenue for insurance companies with blocks of long term care insurance.
Several years of historic low interest rates have wreaked havoc on the long term care insurance marketplace. Several insurers directly cited this as a contributing factor in their decision to cease selling policies to new applicants.
Conversely, a more »
When a company raises its dividend, it is a sign of confidence.
However, is this sign of confidence misleading, or are these companies really presenting a good opportunity?
5 Year Div. Raise
5 Year Stock Performance
2.24 more »
American insurers not only need to increase customers by selling more policies, but also need to earn from their investments. A fluctuating underwriting and weak investment yield boost financial and operating risks. Although the pricing environment and industry demand has witnessed some improvement, the new policies the Fed will execute will certainly impose changes in the asset allocation of these firms. Which insurance companies will better handle this new context more »
According to a research by MarketLine, the global insurance sector is expected to reach $5.1 trillion in 2015. This growth will be mainly driven by the recovery in developed countries like the U.S. The companies within this sector foresee growth opportunities through focusing on products with new insurable risk, international expansions, and regulatory changes. I have analyzed three companies from the industry and observed how they are framing more »
Life insurance and structured settlements provider Imperial Holdings (NYSE: IFT) has had an interesting couple of years. After a dramatic FBI raid tied to questionable practices at its now-shuttered cash-advance division, the company's stock price took a sharp, lasting hit. At the time, some market-watchers speculated that the potentially illegal activities of some Imperial staffers would bring the entire company down. Fortunately, an FBI investigation eventually determined that the more »
Insurance stocks have been one of the hottest sectors so far in 2013, with the SPDR S&P Insurance ETF (NYSEMKT: KIE) posting an impressive 15%+ gain before the conclusion of March. Specific insurance stocks, such as Aflac, Lincoln National, and Unum outlined below, have all risen at least 25% in less than 3 months.
In an environment of rising interest rates, I am focused on gaining exposure to money more »
Compared to 2012, leading long-term care insurance companies recorded increases of 30%-55% in applications submitted during the first two months of the year.
According to the findings of a study released this week by the American Association for Long-Term Care Insurance, January and February were busy months for insurers. The organization based their report on data representing nearly 30,000 individual long-term care insurance policies submitted during the first more »
For this article, I've researched dividend-paying companies in the Accident & Health Insurance industry. Also, to make sure I find the best gems, all three stocks mentioned in this article comply with the following criteria:
- Market Cap of more than 500 million and an average volume of at least 250K = Low Volatility = Low Beta
- DCF valuation discount of at least 20% = Earnings translating into cash flow
- PEG ratio of less more »
Aflac is a niche-product insurer that sells supplemental health and life insurance in the US and Japan. Supplemental accident insurance dominates its US market, where Colonial Life, a subsidiary of the UNUM Group (NYSE: UNM), provides its strongest competition. Supplemental cancer insurance dominates Japanese sales. Investors interested in other US insurers with a strong presence in the lucrative Japanese insurance market should also take a close look at both MetLife more »
The negative-sounding headlines about departures of insurance companies that offered long-term care insurance and those now seeking double digit premium increases could lead one to believe that the industry's future is indeed dim.
Having spent most of the past two decades focused on long-term care insurance and working with many of the industry's bright minds, I fear many investors and are coming to their erroneous conclusions simply because more »
Property casualty and health are two very different kinds of insurance, but they do share a lot of similarities between them. Both ultimately come down to one party (the insured) passing on its risk of catastrophic loss to another party (the insurance company). I was looking for a company to add some stability to my portfolio, and thought I'd share my results with my fellow Fools. All my results more »