Ive been searching around for threads on individual insurance companies and noticed not much has been posted about them lately.
Im trying to figure out why insurance companies have fallen so much over the previous week, most notably QBE (which rose today) and IAG.
I would have expected that insurance companies are slightly safer than banks given the credit problems.
I understand QBE may have issues, but then again the Au$ has dropped in the last week. Maybe its the fact that they still havnt made a takeover lately, its not mater of if but when. They may be able to get something on the cheap now.
Also, what does IAG have to do with the US, and for that matter the property industry. Not much.
People will still be paying for Green slips and comprehensive car insurance no matter what the economic climate. So their revenue should still increase (slighty), although while they are holding the funds, the returns on it may not be that great.
What are your thoughts on the sector right now????