Comments on: Recent Portfolio Moves http://alephblog.com/2008/11/01/recent-portfolio-moves-3/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Tue, 16 Mar 2010 13:31:55 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Brent http://alephblog.com/2008/11/01/recent-portfolio-moves-3/comment-page-1/#comment-19935 Brent Tue, 11 Nov 2008 21:22:02 +0000 http://alephblog.com/?p=1086#comment-19935 The only life company I currently hold is National Western Life Insurance Company (NWLI). A lot of this company is owned by the Moody's of Galveston who also own the American National P&C company (ANAT). It is conservatively run, well diversified, and has very minimal exposure to risky investments such as subprime mortgages. It does not have the pressure of high dividend payments, has no debt and trades at 70% of book value. It recently had a quarterly loss due to writing down some bad debt, but for the first 9 months of the year still showed a profit of $6.42 per share. My only concern is that I keep hearing about the risks tied to companies which issue annuities, which NWLI does, but given their conservative approach to the business, I'm feeling pretty comfortable just holding here and waiting things out and potentially buying more. David, if you have the time, I'd appreciate any comments as to whether or not I am completely missing something here. The only life company I currently hold is National Western Life Insurance Company (NWLI).

A lot of this company is owned by the Moody’s of Galveston who also own the American National P&C company (ANAT). It is conservatively run, well diversified, and has very minimal exposure to risky investments such as subprime mortgages. It does not have the pressure of high dividend payments, has no debt and trades at 70% of book value. It recently had a quarterly loss due to writing down some bad debt, but for the first 9 months of the year still showed a profit of $6.42 per share.

My only concern is that I keep hearing about the risks tied to companies which issue annuities, which NWLI does, but given their conservative approach to the business, I’m feeling pretty comfortable just holding here and waiting things out and potentially buying more.

David, if you have the time, I’d appreciate any comments as to whether or not I am completely missing something here.

]]> By: David Merkel http://alephblog.com/2008/11/01/recent-portfolio-moves-3/comment-page-1/#comment-19814 David Merkel Mon, 03 Nov 2008 17:01:25 +0000 http://alephblog.com/?p=1086#comment-19814 Perhaps I phrased it wrong on Assurant. When all of the life insurers began to get whacked because of asset issues, I asked myself, "What life companies have not gotten whacked over incremental asset issues?" The two that didn't seem hurt were Assurant and Universal American. I sold them both. It hurt to sell Assurant, but I bought it back 30-40% lower. Their asset problems should be less than those of most life insurers. Perhaps I phrased it wrong on Assurant. When all of the life insurers began to get whacked because of asset issues, I asked myself, “What life companies have not gotten whacked over incremental asset issues?” The two that didn’t seem hurt were Assurant and Universal American. I sold them both.

It hurt to sell Assurant, but I bought it back 30-40% lower. Their asset problems should be less than those of most life insurers.

]]> By: PlanMaestro http://alephblog.com/2008/11/01/recent-portfolio-moves-3/comment-page-1/#comment-19813 PlanMaestro Mon, 03 Nov 2008 16:44:22 +0000 http://alephblog.com/?p=1086#comment-19813 Thanks for the analysis David. Bought Assurant before earnings announcement (snif) and some more after it. However, management was dissapointing in the conference call. Why you have AIZ also on your sell list? Thanks for the analysis David.

Bought Assurant before earnings announcement (snif) and some more after it. However, management was dissapointing in the conference call. Why you have AIZ also on your sell list?

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