Bull et al
Here is a little tip for ya!
Foreign “REINSURANCE” corps.

quote:

After weeks of speculation, the financial damage from the Chile earthquake and Windstorm Xynthia in Europe is starting to emerge. According to a recent report by Moody's, 16 global reinsurance companies have reported their net insured losses

Source: http://www.bloggingstocks.com/...nce-earnings-impact/

Couple that with a no cap US healthcare law and prices should go from way down to way up.
Do your homework but don’t dilly dally.
Good luck
Pawn

What is your point?

Are you trying to tell us that insurance companies lay off their risks by both buying and selling reinsurance with other companies? So? They have always done that.

Or are you pointing out that a number of companies will have losses because of the Chile Earthquake and other storms or natural disasters?

Sorry to tell but that is how insurance works and why people pay premiums. Do you think insurance companies should never pay? Then they have no reason to exist.

Bull,
Re:

quote:

What is your point?
Are you trying to tell us that insurance companies lay off their risks by both buying and selling reinsurance with other companies? So? They have always done that.

Correct! But their risk is about to go way up and they will need to buy even more reinsurance. Therefore the value of reinsurance corp stock should go up.
Re:

quote:

Do you think insurance companies should never pay?

Certainly they should pay, but I am talking about reinsurance corps who are sharing the risk with the insurance corps, who should pay also.

Put your politics aside and forget about the insurance corps, look at the REinsurance corps as they are the ones who will receive the windfall from this new legislation. Look for the major carriers in the Reinsurance business who’s stock is down because of paying out high claims in Chile etc and wait for the impact of new revenue from this new legislation to start to show up on their balance sheet.
Take a look at: London Reinsurance Group Inc. (LRG)
Pawn

Bull,
You might find this interesting reading

Insurance & Reinsurance Industry Group:
Corporate Insurance & Regulatory Bulletin - London
http://www.mayerbrown.com/corp....asp?id=8496&nid=100

quote:

Correct! But their risk is about to go way up and they will need to buy even more reinsurance. Therefore the value of reinsurance corp stock should go up.

That I think would be a rather large assumption. Their risk will go up proportionally as well. That is what it is all about ya know.

And one could make the opposite case since the new legislation also sets up it's own reinsurance type pools for the insurance companies to cover the catastrophic and pre-existing condition cases which will be on a non profit basis. That would have the opposite effect to the one on which you are thinking you will profit.

quote:

Reinsurance business who’s stock is down because of paying out high claims in Chile etc

That "etc" is a big one you are ignoring.

Did you forget about CDSs and the mortgage crash already? Those are insurance and reinsurance. They are still getting hurt by those and licking wounds over earlier write downs. They have lost huge amounts of money lately.