big buy in lately.....some one must be accumulating ...?
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big buy in lately.....some one must be accumulating ...?
I am surprised at the lack of share price positivity despite results being pretty positive (and outlook positive as well)... I thought we'd easily be in the 80's now, I reckon we'll see a 4 ish cent dividend arriving in less than 5 months time (not a bad yield at all)
I bereave there is an opportunity in the insurance market going begging.
Most insurers are spooked by risks in Christchurch and are charging very high premiums for the risks they do underwrite.
Most of the buildings in Christchurch of earthquake-vulnerable construction have gone. An underwriter with a rigorous selection process which avoided hillside risks, liquefaction zones and buildings with legacy earthquake issues but selected for good construction would gain heaps of premium income.
What about the big one when the Alpine Fault gives way you ask? The fault is some distance away and remember the force of an earthquake diminishes over distance on a logarithmic scale. One of the reasons the Christchurch earthquake was so destructive was a large part of the movement was up and down rather than the horizontal side to side shaking expected.
Something for a properly resourced insurance company with a reinsurance syndicate behind then to have a go at.
Boop boop de do
Marilyn
A lot of accumulation lately...
With this extended run of mild weather this year, it has to be good for insurance companies balance sheet.
Working with one of the large companies (not tower) the last 12 months has seen a huge reduction in domestic weather related claims compared to previous period.
That and higher excesses as customers increase them to save premiums, means less claims as minor claims become uneconomical to claim for.
Of course this could all change with a run of bad weather events!
Yes true...higher access to claim so reduce the claims. Well...the way of insurance business is different now...the charge more for higher risk..and also there is EQC levies to cover the cost in case huge natural disasters strike
IAG in Aoteroa has had a boomer 6 months;
https://www.newsroom.co.nz/2019/02/0...ace-australia#
I thought the market would have gone long on TWR using the "rising tide lifts all boats" theory.
Seems not.
Boop boop de do
Marilyn
Suncorp had a boomer day the year before it... NZ General Insurance going fantastically and outlook for both (of their NZ Operations) reasonably positive as well... but yes, it is like people just simply don't believe it can be that good for Tower either... and still another 3 months before we get close to finding out.
Hold pretty dam good yesterday....buyers are starting to buy in..expecting great result with at least 4c dividend...