current book value, page-12

annuities can be very dangerous. It all depends on how the contracts are written and the competition to write them from alternative products and other sellers of annuities. It is an extraodinarily complex area and really only an expert in the business can tell you what they have been doing. I think this is why the stock attracts a big discount in the market. I have seen annuity sellers go broke because they guarantee obligations...that is the big risk in this business...and once you guarantee an obligations how do you fund it? how does your investment book look to cover it.....and what if interest rates fall, how does that impact them in getting a return to pay for the annuity..just some of the questions. Plain vanilla fund management is so much easier than that.

Having said all that I am long.......but I do know "experts" in the field who would suggest caution.