Insurance Companies

[First Guy]

CINS is the only insurance company in the S&P SL20 index. It is also the largest based on both market cap and revenue by a large margin. (out of listed insurers)

CTCE and AINS have very high P/E ratios

UAL has the best dividend yield

Business and profitability between life and non life companies vary a lot.

CTCE is now a life only insurance company and JINS has more general insurance business.

Insurance companies were required to differentiate the two businesses so now mostly they have created another subsidiary.

Outlook can be different to past performance.

Below chart shows the market cap, revenue and P/E ratios for insurance companies

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[First Guy]

How do insurance companies make money?

Insurance companies theoretically make money in two ways:

By charging enough premiums to cover the expected payouts that they will have to cover over the life of the policy
By earning investment returns ("the float") using the collected premiums

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In other words, excess money collected over the amounts paid as claims and return on investments from collected premiums.

customer or premium acquisition and administration costs are the major costs

[BackstageTop contributor]

So a high interest environment is beneficial for insurance companies just as low rates are good for bond traders. Then JINS group is covered both ways with CSEC in the picture. Or is that a simplistic view ?

[yellow knifeTop contributor]

Thanks FG

UAL has the best dividend yield

Yes.. UAL is recording a growing dividend..

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[First Guy]

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[First Guy]

With everything that was going on, I don't think anyone is looking at shares now