SPDR® S&P Insurance ETF
KIE Crossed over Its Moving Averages on November 16, Trending Up
On November 23, shares of KIE closed at $72.38, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.
Everest Re Group’s Revenue and Income Fell in 3Q15
Everest Re Group reported net revenue of $1,375.2 million in 3Q15, a fall of 4.2% when compared to its net revenue of $1,435.8 million in 2Q15.
How Does Everest Re Group Compare to Its Peers?
The price-to-book value ratios of Everest, PartnerRe, RenaissanceRe, Axis Capital, and White Mountains Insurance are 1.03x, 0.94x, 1.13x, 1.03x, and 1.16x.
AIG Posted a Huge Loss in 4Q17
AIG (AIG) reported a net loss of $6.66 billion in 4Q17—compared to a loss of $3 billion in 4Q16.
How insurers manage their capital requirements
A company managing higher risk products must maintain a higher level of minimum capital compared to a company with a relatively lower level of risk.
Underwriting profit: First leg of the profit machine
An underwriting loss is not unusual for an insurance company. In a soft pricing environment, pricing of P&C products is low due to intense competition.
How cost structures and distribution channels impact profit
As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.
How investment income drives profit
The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.
An insurer’s investments: Dominated by debt securities
A large portion of an insurer’s balance sheet contains lower-risk assets such as government bonds and high-grade corporate bonds.
Life insurance, P&C insurance, and reinsurance
P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.
Making sense of an insurer’s liabilities
Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.
How valuation of insurance companies works
Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.
How insurers are targeting new growth avenues
US insurance M&A activity picked up in 2014 after a two-year dip, as insurers try to capture growth opportunities in domestic and foreign markets.
Why should you invest in insurance ETFs?
Insurance ETFs are poised to gain from industry growth. As interest rates improve, insurers should see better earnings due to higher investment returns.
How Does a Rate Hike Impact Insurance Stocks?
Interest rates are a key performance driver for life insurance companies, affecting their margins, hedging costs, and product sales.
KIE Trades above Its Moving Averages: How Does SPY Compare?
KIE is the most liquid insurance ETF available in the country and is also among the cheapest, with an expense ratio of 0.35%.
How to Pick a Life Insurance Policy
Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.
What Are the Different Types of Life Insurance Policies?
Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.
The Effect of an Interest Rate Reversal on Insurance Companies
Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.
Rising Interest Rates, Banks, and Insurance Companies
Banking stocks are expected to benefit from higher interest rates, but not immediately. Also, rising interest rates would be countered by higher existing liquidity.
KIE Is Trending Upward after Crossing Its Moving Averages
On November 25, 2015, KIE closed at $72.23, above its 100-day, 50-day, and 20-day moving averages of $70.07, $70.06, and $71.73, respectively.