Banking, finance, and taxes

In Defense of Reinsurance (ACGL, AXS, RE, PRE, RNR, TRH, XL)

If you want to know who is ultimately on the hook for the biggest part of catastrophic losses from natural (and man-made) disasters, look no further than reinsurers.  They are on the hook for things like volcano business interruption, EU…

By Jon C. Ogg
Published May 19, 2010, 9:39am ET · 1 min read

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If you want to know who is ultimately on the hook for the biggest part of catastrophic losses from natural (and man-made) disasters, look no further than reinsurers.  They are on the hook for things like volcano business interruption, EU wind or flooding, Chilean earthquakes, hurricanes, and on and on.   Morningstar has decided to take a look at some of the large companies in the reinsurance space with some defense of some of its favorite names like Arch Capital Group Ltd. (NASDAQ: ACGL), Axis Capital Holdings Ltd. (NYSE: AXS), Everest Re Group Ltd. (NYSE: RE), Partner Re Ltd. (NYSE: PRE), RenaissanceRe Holdings Ltd. (NYSE: RNR), Transatlantic Holdings (NYSE: TRH), and XL Capital Ltd. (NYSE: XL).  Some of the long-term thesis coming in  is to “lay the basis for some stabilization if not firming in reinsurance rates, and improved industry return prospects in the years ahead.”

FULL ARTICLE on Morningstar.com by Bill Bergman

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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