Actually if you remove the non cash expenses; they are sitting...

Actually if you remove the non cash expenses; they are sitting comfortable on PE of 12 to 13!

So they are doing much better than what their P&L is saying (because as long as you didn't buy QBE at full value of its Goodwill, amortization should not affect you. I.e. their goodwill is inflated, but if you buy at cheap price assuming no goodwill, you're golden).

But I won't pat the management in the back for getting better investment return because (I might be wrong), I think it is an uncontrollable factor - so thinking that they do well is the equivalent of thinking that Oil executives deserve bonus when the price of oil hit $150 per barrel.

You can argue the positive side that the 'CATS' are at its possible worst (bottom of the cycle); and that might be true. It would be great if it is true. But a good provision can smooth out this fluctuation. Does anyone know whether GAAP allows provision to be carried over FY? (i'm not well versed in insurance accounting).

If I buy insurance company that depends on the investment yield to make profit; might as well invest in bonds (or since I'm a small investor, funds that invest in bonds). Insurance management should be judged by their underwriting skills, not their investment returns. And by that measure, they are doing worse this year.