For the life of me, I can never understand why people invest in general insurance companies given that it is completely impossible to predict their earnings from one year to the next with any reliability.
If I want to play the insurance premium cycle, I can buy listed insurance brokers, which also benefit from rising premiums, but where there is no risk of insurance losses, as there is with an insurer.
Also, the insurance broking industry is still quite fragmented, so there is additional acquisition-led growth opportunities to be had in that sector.
In a period during which IAG has been downgrading, insurance brokers have been upgrading (including one this very morning, as it happens).
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IAG Price at posting:
$4.21 Sentiment: None Disclosure: Not Held
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