Our Buyback Premium Portfolio is beating the S&P 500 by more than 92% since its inception in 2000; two of the latest new additions to this portfolio are leading players in the insurance sector, reports David Fried, editor of The Buyback Letter.
We dabbled in WellPoint (WLP) a couple of times in 2009 and 2011. It is the second-largest health insurer in the US.
The company has more than 36 million members in its affiliated health plans and 68 million individuals served through subsidiaries. In fact, one of every nine Americans is a member of a WellPoint affiliated health plan.
After the recent introduction of healthcare reforms, the health insurance industry in the US is expected to benefit from rising demand.
Healthcare reforms, such as the formation of health insurance exchanges and the government providing health insurance to citizens who can't afford it, will be the biggest contributors to this growth.
This is expected to add 25 million US citizens to the overall health insurance market, and WellPoint is well positioned to capitalize on the potential growth.
Top 5 Sliver Companies To Invest In 2015: ACE Ltd (ACE)
ACE Ltd (ACE) is a holding company of the ACE Group of Companies. ACE is a global insurance and reinsurance organization, serving the needs of customers in more than 170 countries. It offers commercial insurance products and service offerings, such as risk management programs, loss control and engineering and complex claims management. It also provides specialized insurance products ranging from Directors & Officers (D&O) and professional liability to various specialty-casualty and umbrella and excess casualty lines to niche areas, such as aviation and energy. In addition, it supplies personal accident, supplemental health, and life insurance to individuals in select countries. ACE operates in four business segments: Insurance-North American, Insurance-Overseas General, Global Reinsurance, and Life. In December 2011, it acquired Rio Guayas Compania de Seguros y Reaseguros, a general insurance company in Ecuador. On November 30, 2011, it acquired Penn Millers Holding Corporation (PMHC). On April 1, 2011, it acquired the operations of New York Life�� Hong Kong. On February 1, 2011, ACE acquired New York Life�� Korea operations. In September 2012, it acquired 80% of PT Asuransi Jaya Proteksi in Indonesia.
Insurance-North American
ACE�� Insurance-North American segment consists of the operations in the United States, Canada, and Bermuda. This segment includes the operations of ACE USA (including ACE Canada), ACE Bermuda, ACE Commercial Risk Services, ACE Private Risk Services, ACE Westchester, ACE Agriculture, and various run-off operations. During the year ended December 31, 2011, Insurance-North American segment accounted for 45% of its consolidated net premiums earned. During 2011, ACE USA represented approximately 49% of Insurance-North American�� net premiums earned.
ACE USA is the North American retail operating division which provides a broad array of P&C, A&H, and risk management products and services to a diverse group of commercial and non-commercia! l enterprises and consumers. ACE Bermuda provides commercial insurance products on an excess basis mainly to a global client base, covering exposures that are generally low in frequency and high in severity. ACE Commercial Risk Services addresses the insurance needs of small to mid-sized businesses in North America by delivering an array of specialty product solutions for targeted industries. ACE Private Risk Services provides personal lines coverages for high net worth individuals and families in North America.
ACE Westchester specializes in the North American wholesale distribution of excess and surplus P&C, environmental, professional and inland marine products. ACE Agriculture provides Multi-Peril Crop Insurance and crop/hail insurance protection to customers throughout the United States and Canada through Rain and Hail and Agribusiness insurance through Penn Millers Insurance Company. The run-off operations include Brandywine, Commercial Insurance Services, residual market workers��compensation business, pools and syndicates not attributable to a single business group, and other exited lines of business. Run-off operations do not actively sell insurance products, but are responsible for the management of existing policies and settlement of related claims.
Insurance-Overseas General
During 2011, ACE�� Insurance- Overseas General segment accounted for 37% of its consolidated net premiums earned. Insurance-Overseas General segment consists of ACE International, its global retail insurance operations, the wholesale insurance business of ACE Global Markets, and the international A&H and life business of Combined Insurance. ACE International is its retail business serving local companies and insureds to large multinationals outside the United States, Bermuda, and Canada. ACE Global Markets, its London-based excess and surplus lines business, includes Lloyd�� of London (Lloyd��) Syndicate 2488 (Syndicate 2488). ACE provides a fund at Lloyd�� to support und! erwriting! by Syndicate 2488, which is managed by ACE Underwriting Agencies Limited. The reinsurance operation of ACE Global Markets is included in the Global Reinsurance segment.
Property insurance products include traditional commercial fire coverage, as well as energy industry-related, construction, and other technical coverages. Principal casualty products are commercial primary and excess casualty, environmental, marine and general liability. ACE International specialty coverages include D&O professional indemnity, energy, aviation, political risk and specialty personal lines products. The A&H operations primarily offer personal accident and supplemental medical products to meet the insurance needs of individuals and groups outside of United States insurance markets. ACE International�� personal lines operations provide specialty products and services designed to meet the needs of specific target markets and include property damage, auto, homeowners, and personal liability.
Global Reinsurance
During 2011, ACE�� Global Reinsurance segment, which accounted for 7% of its consolidated net premiums earned. Global Reinsurance segment represents ACE�� reinsurance operations comprising ACE Tempest Re Bermuda, ACE Tempest Re USA, ACE Tempest Re International, and ACE Tempest Re Canada. The Global Reinsurance segment also includes ACE Global Markets��reinsurance operations. Global Reinsurance markets its reinsurance products worldwide under the ACE Tempest Re brand name and provides a range of coverage to a diverse array of primary P&C companies. ACE Tempest Re Bermuda principally provides property catastrophe reinsurance, on an excess of loss basis globally to insurers of commercial and personal property. ACE Tempest Re Bermuda underwrites reinsurance principally on an excess of loss basis, meaning that its exposure only arises after the ceding company�� accumulated losses have exceeded the attachment point of the reinsurance policy. ACE Tempest Re Bermuda also writes ! other typ! es of reinsurance on a limited basis for selected clients.
ACE Tempest Re USA writes all lines of traditional and specialty P&C reinsurance for the United States market, principally on a treaty basis, with a focus on writing property per risk and casualty reinsurance. ACE Tempest Re USA underwrites reinsurance on both a proportional and excess of loss basis. ACE Tempest Re International provides P&C treaty reinsurance to insurance companies worldwide. ACE Tempest Re Canada offers an array of traditional and specialty P&C reinsurance to the Canadian market, including casualty, property risk and property catastrophe.
Life
During 2011, ACE�� Life accounted for 11% of 2011 consolidated net premiums earned. Life includes ACE�� international life operations (ACE Life), ACE Tempest Life Re (ACE Life Re), and the North American supplemental A&H and life business of Combined Insurance. ACE Life provides individual life and group insurance, including Egypt, Indonesia, Taiwan, Thailand, Vietnam, the United Arab Emirates, throughout Latin America, selectively in Europe, as well as China through a non-consolidated joint venture insurance company.
ACE Life offers a portfolio of protection and savings products, including whole life, endowment plans, individual term life, group term life, group medical, personal accident, universal life, and unit linked contracts. ACE Life sells to consumers through a range of distribution channels, including agency, bancassurance, brokers, and direct to consumer marketing. ACE Life Re helps clients (ceding companies) manage mortality, morbidity, and lapse risks embedded in their books of business. ACE Life Re�� business is a Bermuda-based operation, which provides reinsurance to primary life insurers, focusing on guarantees included in certain fixed and variable annuity products and also on more traditional mortality reinsurance protection. ACE Life Re is a United States-based traditional life reinsurance operation. Combined I! nsurance ! distributes specialty individual accident and supplemental health and life insurance products targeted to middle income consumers in the United States and Canada.
Advisors' Opinion:- [By Dividends4Life]
This week a few companies answered the call and rewarded their shareholders with higher cash dividends:
Consolidated Edison Inc. (ED) engages in regulated electric, gas, and steam delivery businesses. January 16th the company increased its quarterly dividend 2.4% to $0.63 per share. The dividend is payable March 15, 2014, to stockholders of record on February 12, 2014. The yield based on the new payout is 4.7%.
Cousins Properties Incorporated (CUZ), a real estate investment trust (REIT), owns, develops, and manages real estate portfolio, as well as performs certain real estate-related services. January 16th the company increased its quarterly dividend 66.7% to $0.075 per share. The dividend is payable February 24, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.8%.
Wisconsin Energy Corporation (WEC) generates and distributes electric energy, as well as distributes natural gas. The company operates in two segments, Utility Energy and Non-Utility Energy. January 16th the company increased its quarterly dividend 2% to $0.3900 per share. The dividend is payable March 1, 2014, to stockholders of record on February 14, 2014. The yield based on the new payout is 3.8%.
BlackRock Inc. (BLK) is a publicly owned investment manager. The firm primarily provides its services to institutional, intermediary, and individual investors. January 16th the company increased its quarterly dividend 14.9% to $1.93 per share. The dividend is payable March 24, 2014, to stockholders of record on March 7, 2014. The yield based on the new payout is 2.4%.
ONEOK Inc. (OKE) operates as a diversified energy company in the United States. January 15th the company increased its quarterly dividend 5.3% to $0.40 per share. The dividend is payable February 18, 2014, to stockholders of record on February 10, 2014. The yield based on the new payout is 2.5%.
Omega Healthcare Investors Inc. (OHI) is a real es - [By Damian Illia]
ACE Limited (ACE) is an insurance and reinsurance organization. The company provides commercial insurance products and service offerings such as risk management programs, loss control and engineering and complex claims management. The company�� segments are: Insurance - North American, Insurance - Overseas General, Global Reinsurance, and Life.
- [By Ben Levisohn]
For the past several years, Berkshire has contrasted its own cost-free float provided by profitable underwriting against the industry�� (unimpressive) tendency to lose money on underwriting while generating net returns from investment income. So far, so good. Less edifying, though, is the repeated contrast of Berkshire�� track record of profitability to State Farm��…even though, as a mutual company, State Farm�� profitability goals are inherently different from for-profit insurers like Berkshire. It�� true that through year-end 2013, Berkshire�� underwriters have ��ow operated at an underwriting profit for eleven consecutive years,��but so have ACE (ACE), American Financial (AFG),� AmTrust Financial (AFSI), Arch Capital (ACGL), Chubb (CB), HCC (HCC), Progressive (PGR), RLI (RLI), and W.R. Berkley (WRB), any or all of whom provide a more meaningful comparison than contrasting Berkshire�� results to a company that�� not out to produce a profit in the first place.
Hot Insurance Stocks For 2014: Employers Holdings Inc (EIG)
Employers Holdings, Inc. (EHI), incorporated on March 9, 2005, is a holding company. The Company is a provider of workers compensation insurance focused on select small businesses in low to medium hazard industries. It employs a disciplined, conservative underwriting approach designed to individually select specific types of businesses, predominantly those in the lowest four of the seven workers' compensation insurance industry defined hazard groups, that it believe will have fewer and less costly claims relative to other businesses in the same hazard groups. Workers' compensation is provided for under a statutory system wherein employers are required to provide coverage for their employees' medical, disability, vocational rehabilitation, and/or death benefit costs for work-related injuries or illnesses. It operates as a single reportable segment and conduct operations in 31 states and the District of Columbia, with a concentration in California, where over one-half of its business is generated.
Workers' compensation provides insurance coverage for the statutorily prescribed benefits that employers are required to provide to their employees who may be injured or suffer illness in the course of employment. The level of benefits varies by state, the nature and severity of the injury or disease, and the wages of the injured worker. Each state has a statutory, regulatory, and adjudicatory system that sets the amount of wage replacement to be paid, determines the level of medical care required to be provided, establishes the degree of permanent impairment, and specifies the options in selecting healthcare providers. These state laws generally require two types of benefits for injured employees: medical benefits, including expenses related to the diagnosis and treatment of an injury, disease, or both, as well as any required rehabilitation and (indemnity payments, which consists of temporary wage replacement, permanent disability payments, and death benefits to surviving family members.
Disciplined Underwriting
The Company focuses on disciplined underwriting and continues to pursue profitable growth opportunities across market cycles. It carefully monitor market trends to assess new business opportunities that it expects will meet its pricing and risk standards. It prices its policies based on the specific risks associated with each potential insured rather than solely on the industry class in which a potential insured is classified. Its disciplined underwriting approach is a critical element of its culture and its believe that it has allowed them to offer competitive prices, diversify its risks, and out-perform the industry.
It executes its underwriting processes through automated systems and experienced underwriters with specific knowledge of local markets. It has developed automated underwriting templates for specific classes of business that produce faster quotes when certain underwriting criteria are met. Its underwriting guidelines consider many factors, such as type of business, nature of operations, and risk exposures, and are designed to minimize or prevent underwriting of certain undesirable classes of business.
Loss Control
Its loss control professionals provide consultation to policyholders to assist them in preventing losses and containing costs once claims occur. They also assist its underwriting personnel in evaluating potential and current policyholders and are an important part of its underwriting discipline.
Premium Audit
It conducts premium audits on substantially all of its policyholders annually upon the policy expiration. Premium audits allow them to comply with applicable state and reporting bureau requirements and to verify that policyholders have accurately reported their payroll and employee job classifications. It also selectively perform interim audits on certain classes of business or if unusual claims are filed or concerns are raised regarding projected annual payrolls, whi! ch could ! result in substantial variances at final audit.
Claims and Medical Case Management
The role of its claims department is to actively and efficiently investigate, evaluate, and pay claims, and to aid injured workers in returning to work in accordance with applicable laws and regulations. It has implemented rigorous claims guidelines and control procedures in its claims units and have claims operations throughout the markets it serves. It also provides medical case management services for those claims that it determines will benefit from such involvement. utilize medical provider networks affiliated with Anthem Blue Cross of California (Anthem) and Coventry Health Care, Inc. and make every appropriate effort to direct injured workers into these networks for medical treatments.
In addition to its medical networks, it work closely with local vendors, including attorneys, medical professionals, and investigators, to bring local to its reported claims. It pays special attention to reducing costs and have established discounting arrangements with the aforementioned service providers. It uses preferred provider organizations, bill review services, and utilization management to closely monitor medical costs. It actively pursues fraud and subrogation recoveries to mitigate claims costs. Subrogation rights are based upon state and federal laws, as well as the insurance policies it issues. Its fraud and subrogation efforts are handled through dedicated units.
The Company competes with The Hartford Financial Services Group, Inc., Travelers Insurance Group Holdings, Inc., Zurich Insurance Group Ltd., and Berkshire Hathaway Homestate Companies.
Advisors' Opinion:- [By Roberto Pedone]
Employers Holdings (EIG) is a provider of worker's compensation insurance focused on select small businesses engaged in low to medium hazard industries. This stock closed up 2.9% at $28.48 in Thursday's trading session.
Thursday's Volume: 252,000
Three-Month Average Volume: 119,789
Volume % Change: 75%From a technical perspective, EIG jumped notably higher here right above its 50-day moving average of $26.48 with above-average volume. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $21.03 to its recent high of $29.12. During that move, shares of EIG have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of EIG within range of triggering a near-term breakout trade. That trade will hit if EIG manages to take out its 52-week high at $29.18 with high volume.
Traders should now look for long-biased trades in EIG as long as it's trending above Thursday's low of $27.65 or above its 50-day at $26.48 and then once it sustains a move or close above its 52-week high at $29.18 with volume that's near or above 119,789 shares. If that breakout hits soon, then EIG will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $33 to $35.
Hot Insurance Stocks For 2014: NMI Holdings Inc (NMIHZ)
NMI Holdings, Inc. (NMIH), incorporated on May 19, 2011, is a development-stage company. The Company through its subsidiaries provides private mortgage insurance in the United States. The Company�� wholly owned subsidiaries include National Mortgage Insurance Corporation and National Mortgage Reinsurance Inc One.
On April 24, 2012, NMI Holdings, Inc. (NMI) closed an agreement with MAC Financial Ltd. to acquire MAC Financial Holdings Corporation and its wholly owned subsidiaries. On September 30, 2013, the Company merged MAC Financial Holding Corporation into NMIH, with NMIH surviving the merger, and it merged NMRI Two into NMIC, with NMIC surviving the merger.
Advisors' Opinion:- [By Zachary Tracer]
NMI Holdings Inc. (NMIHZ), a mortgage insurer backed by funds tied to Carlyle Group LP (CG) and Kyle Bass, filed to sell shares in an initial public offering as investors bet on a housing-market rebound.
Hot Insurance Stocks For 2014: PartnerRe Ltd (PRE)
PartnerRe Ltd. (PartnerRe), incorporated in August 24, 1993, is the ultimate holding company for its international reinsurance group. The Company provides reinsurance on a global basis through its wholly owned subsidiaries, including Partner Reinsurance Company Ltd. (PartnerRe Bermuda), Partner Reinsurance Europe plc (PartnerRe Europe) and Partner Reinsurance Company of the U.S. (PartnerRe U.S.). Its risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines and mortality, longevity and health. The Company also offers alternative risk products, which include weather and credit protection to financial, industrial and service companies on a global basis. In January 2013, the Company acquired Presidio Reinsurance Group, a United States-based specialty accident and health reinsurance and insurance writer. In March 2013, the Company announced the formation of Lorenz Re Ltd.
The Company provides reinsurance for its clients in approximately 150 countries globally. Through its branches and subsidiaries, the Company provides reinsurance of non-life and life risks to ceding companies (primary insurers, cedants or reinsureds) on either a proportional or non-proportional basis through treaties or facultative reinsurance. The Company operates in three segments: Non-life, Life and Corporate and Other. Its Corporate and Other segment is consisted of the capital markets and investment related activities of the Company, including principal finance transactions, insurance-linked securities and strategic investments, and its corporate activities, including other operating expenses.
Non-life Segment
The Non-life segment is divided into four sub-segments, North America, Global (Non-the United States) Property and Casualty (Global (Non-the United States) P&C), Global (Non-the United States) Specialty and Catastrophe. The North America sub-seg! ment includes agriculture, casualty, motor, multiline, property, surety and other risks generally originating in the United States. The Global (Non-the United States) P&C sub-segment includes casualty, motor and property business generally originating outside of the United States. The Global (Non-the United States) Specialty sub-segment business include agriculture, aviation/space, credit/surety, energy, engineering, marine, specialty casualty, specialty property and other lines. The Catastrophe sub-segment is consisted of the Company�� catastrophe line of business. The Company reinsures, primarily on a proportional basis, agricultural yield and price/revenue risks related to flood, drought, hail and disease related to crops, livestock and aquaculture. The Company provides specialized reinsurance protection for airline, general aviation and space insurance business on a proportional basis and through facultative arrangements.
The Company�� space business relates to coverages for satellite assembly, launch and operation for commercial space programs. Its casualty business includes third party liability, employers��liability, workers��compensation and personal accident coverages written on both a proportional and non-proportional basis, including structured reinsurance of casualty risks. The Company provides property catastrophe reinsurance protection, written on a non-proportional basis, against the accumulation of losses caused by windstorm, earthquake, tornado, tropical cyclone, flood or by any other natural hazard, which is covered under a property policy. Credit reinsurance, written on a proportional basis, provides coverage to commercial credit insurers, and the surety line relates to bonds and other forms of security written by specialized surety insurers. The Company provides reinsurance coverage for the onshore oil and gas industry, mining, power generation and pharmaceutical operations on a proportional basis and through facultative arrangements.
The Company p! rovides r! einsurance for engineering projects globally, predominantly on a proportional treaty basis and through facultative arrangements. The Company provides reinsurance protection and technical services relating to marine hull, cargo, transit and offshore oil and gas operations on a proportional or non-proportional basis. The Company�� motor business includes reinsurance coverages for third party liability and property damage risks arising from both passenger and commercial fleet automobile coverages written by cedants. This business is written predominantly on a proportional basis.
The Company�� multiline business provides both property and casualty reinsurance coverages written on both a proportional and non-proportional basis. Property business provides reinsurance coverage to insurers for property damage or business interruption losses resulting from fires, catastrophes and other perils covered in industrial, commercial property and homeowners��policies, and are written on both a proportional and non-proportional basis. The Company�� predominant exposure under these property coverage is to property damage. The Company�� property reinsurance treaties exclude certain risks, such as war, nuclear, biological and chemical contamination, radiation and environmental pollution.
The Company provides specialized reinsurance protection for non-the United States casualty business. This reinsurance protection is offered on a proportional, non-proportional or facultative basis. The Company provides specialized reinsurance protection for non-the United States property business. This reinsurance protection is offered on a proportional, non-proportional or facultative basis. The Company�� Non-life business is produced both through brokers and through direct relationships with insurance companies. In North America, business is written through brokers, while globally, the business is written on both a direct and broker basis.
Life Segment
The Company�� Life ! segment i! ncludes the mortality, longevity and health lines of business written primarily in the United Kingdom, Ireland and France. The Company provides reinsurance coverage to life insurers and pension funds to against individual and group mortality and disability risks. Mortality business is written on a proportional basis through treaty agreements. Mortality business is subdivided into death and disability covers (with various riders) written in Continental Europe, term assurance and critical illness (TCI) written in the United Kingdom and Ireland, and guaranteed minimum death benefit (GMDB) written in Continental Europe. The Company also writes certain treaties on a non-proportional basis in France.
The Company provides reinsurance coverage to employer sponsored pension schemes and life insurers who issue annuity contracts offering long-term retirement benefits to consumers, who seek protection against outliving their financial resources. The Company�� longevity portfolio is subdivided into standard and non-standard annuities. The non-standard annuities are annuities sold to consumers with aggravated health conditions and are underwritten on an individual basis. The Company provides reinsurance coverage to life insurers with respect to individual and group health risks. The Company�� Life business is produced both through brokers and through direct relationships with insurance companies. During the year ended December 31, 2011, one cedant accounted for 13% of the Life segment�� total gross premiums written and one broker, the Aon Group (including the Benfield Group), accounted for 16% of the Life segment�� total gross premiums written.
The Company competes with Munich Re, Swiss Re, Everest Re, Hannover Re, SCOR, Transatlantic, Arch Capital, Axis Capital and XL Group.
Advisors' Opinion:- [By Marc Bastow]
International insurance holding company PartnerRe Ltd. (PRE) raised its quarterly dividend 5% to 67 cents per share, payable on Feb. 28 to shareholders of record as of Feb. 18.
PRE Dividend Yield: 2.72%
Hot Insurance Stocks For 2014: Reinsurance Group of America Inc (RGA)
Reinsurance Group of America, Incorporated (RGA) is an insurance holding company. RGA is engaged in the reinsurance of individual and group coverages for traditional life and health, longevity, disability income, annuity and critical illness products, and financial reinsurance. During the year ended December 31, 2011, approximately 65.8% of the Company�� net premiums were from its operations in North America, represented by its United States and Canada segments. Its subsidiaries include RGA Reinsurance Company (RGA Reinsurance), Reinsurance Company of Missouri, Incorporated (RCM), RGA Reinsurance Company (Barbados) Ltd. (RGA Barbados), RGA Americas Reinsurance Company, Ltd. (RGA Americas), RGA Atlantic Reinsurance Company, Ltd. (RGA Atlantic), RGA Life Reinsurance Company of Canada (RGA Canada), RGA Reinsurance Company of Australia, Limited (RGA Australia) and RGA International Reinsurance Company (RGA International). The Company has five geographic-based operational segments: United States, Canada, Europe & South Africa, Asia Pacific and Corporate and Other. On January 1, 2012, it dissolved its United Kingdom reinsurance subsidiary and transferred its business to RGA International, the Company�� Ireland-based subsidiary, to better manage capital resources.
As of December 31, 2011, the Company has operation in Australia, Barbados, Bermuda, People�� Republic of China, France, Germany, Hong Kong, India, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Poland, Singapore, South Africa, South Korea, Spain, Taiwan, the United Arab Emirates and the United Kingdom. The Company provides reinsurance products to the life insurance companies worldwide. The Company obtains its revenues through reinsurance agreements, which cover a portfolio of life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability income, as well as annuities and financial reinsurance.
!United States Operations
During 2011, the United States operations represented 54.4% of the Company�� net premiums. The United States operations market traditional life and health reinsurance, reinsurance of asset-intensive products, and financial reinsurance, primarily to the United States life insurance companies. The United States Traditional sub-segment provides life and health reinsurance to domestic clients for a range of products through yearly renewable term agreements, coinsurance, and modified coinsurance. Premiums vary for smokers and non-smokers, males and females, and may include a preferred underwriting class discount. Reinsurance premiums are paid in accordance with the treaty. Automatic reinsurance treaty provides that the ceding company will cede risks to a reinsurer on specified blocks of policies where the underlying policies meet the ceding company�� underwriting criteria. The United States facultative reinsurance operation involves the assessment of the risks inherent in multiple impairments, such as heart disease, high blood pressure, and diabetes; cases involving policy face amounts, and financial risk cases, which include cases involving policies disproportionately in relation to the financial characteristics of the proposed insured. During 2011, approximately 20.4% of the United States gross premiums were written on a facultative basis.
Canada Operations
During 2011, the Canada operations represented 11.4% of the Company�� net premiums. During 2011, approximately 85.2% of the recurring new business was written on an automatic basis. The Company operates in Canada through RGA Canada, a wholly owned subsidiary. RGA Canada is a life reinsurer in Canada, based on new individual life insurance production. It assists clients with capital management and mortality and morbidity risk management and is primarily engaged in traditional individual life reinsurance, as well as creditor, group life and health, critical illness, and longev! ity reins! urance. Creditor insurance covers the outstanding balance on personal, mortgage or commercial loans in the event of death, disability or critical illness and is shorter in duration than traditional life insurance. Clients include the life insurers in Canada.
Europe & South Africa Operations
During 2011, the Europe & South Africa operations represented 16.3% of the Company�� net premiums. This segment serves clients from subsidiaries, licensed branch offices and/or representative offices located in France, Germany, India, Ireland, Italy, Mexico, the Netherlands, Poland, South Africa, Spain, the United Arab Emirates and the United Kingdom. These offices operate primarily through the Company�� subsidiaries RGA International and RGA South Africa. The principal types of reinsurance for this segment include life and health products through yearly renewable term and coinsurance agreements, the reinsurance of critical illness coverage, which provides a benefit in the event of the diagnosis of a pre-defined critical illness and the reinsurance of longevity risk related to payout annuities. The reinsurance agreements of critical illness coverage may be either facultative or automatic agreements. Premiums earned from critical illness coverage represented 20.5% of the total net premiums for this segment during 2011. During 2011, the United Kingdom operations generated approximately 62.9% of the segment�� gross premiums.
Asia Pacific Operations
During 2011, the Asia Pacific operations represented 17.8% of the Company�� net premiums. The Company has a presence in the Asia Pacific region with licensed branch offices and/or representative offices in Hong Kong, Japan, South Korea, Taiwan, New Zealand, Labuan (Malaysia) and the People�� Republic of China. The principal types of reinsurance for this segment include life, critical illness, health, disability income, superannuation, and financial reinsurance. Superannuation is the Australian government mandated c! ompulsory! retirement savings program. Superannuation funds accumulate retirement funds for employees, and in addition, offer life and disability insurance coverage. Reinsurance agreements may be either facultative or automatic agreements covering primarily individual risks and, in some markets, group risks. During 2011, the Australian operations generated approximately 52.3% of the total gross premiums for the Asia Pacific operations. The Hong Kong, Labuan, Japan, Taiwan, China and South Korea offices provide full reinsurance services and are supported by the Company�� United States and International Division Sydney office.
Corporate and Other
Corporate and Other operations include investment income from invested assets not allocated to support segment operations and undeployed proceeds from the Company�� capital raising efforts, in addition to unallocated investment related gains or losses. Corporate expenses consist of the offset to capital charges allocated to the operating segments within the policy acquisition costs and other insurance expenses line item, unallocated overhead and executive costs, and interest expense related to debt. In additionally, Corporate and Other includes results from, among others, RGA Technology Partners, Inc. (RTP), a wholly owned subsidiary that develops and markets technology solutions for the insurance industry and the investment income and expense associated with the Company�� collateral finance facilities.
The Company competes with Munich Re, Swiss Re, Hannover Re, SCOR Global Re, Berkshire Hathaway and Generali.
Advisors' Opinion:- [By David Sterman]
My favorite insurers: AIG (NYSE: AIG) (which I discussed a few months ago), Protective Life (NYSE: PL) and Reinsurance Group of America (NYSE: RGA).
Hot Insurance Stocks For 2014: Allstate Corp (ALS)
The Allstate Corporation (Allstate), November 5, 1992, is a holding company for Allstate Insurance Company. The Company�� business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. It is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, select commercial property and casualty coverages, life insurance, annuities, voluntary accident and health insurance and funding agreements. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, call centers and the Internet. It conducts its business primarily in the United States. Allstate has four business segments: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other. The Company is a personal lines insurer in the United States. Customers can access Allstate products and services, such as auto insurance and homeowners insurance through nearly 12,000 exclusive Allstate agencies and financial representatives in the United States and Canada. In October 2011, the Company acquired Esurance and Answer Financial from White Mountains Insurance Group.
ALLSTATE PROTECTION SEGMENT
In this segment, the Company principally sells private passenger auto and homeowners insurance through agencies and directly through call centers and the Internet. These products are marketed under the Allstate, Encompass and Esurance brand names. The Allstate Protection segment also includes a separate organization called Emerging Businesses, which comprises Business Insurance (commercial products for small business owners), Consumer Household (specialty products including motorcycle, boat, renters and condominium insurance policies), A! llstate Dealer Services (insurance and non-insurance products sold primarily to auto dealers), Allstate Roadside Services (retail and wholesale roadside assistance products) and Ivantage (insurance agency). The Company also participates in the involuntary or shared private passenger auto insurance business in order to maintain its licenses to do business in many states. In some states, Allstate exclusive agencies offer non-proprietary property insurance products. Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service and are brand-sensitive. In most states, customers can also purchase certain Allstate brand personal insurance products, and obtain service, directly through call centers and the Internet.
During the year ended December 31, 2011, total Allstate Protection premiums written were $25.98 billion. Its broad-based network of approximately 10,000 Allstate exclusive agencies in approximately 9,700 locations in the United States produced approximately 86% of the Allstate Protection segment's written premiums in 2011. It provides personal property and casualty insurance products through independent agencies in the United States. Additionally, Allstate distribution, through brokering arrangements, offers non-proprietary products to consumers when an Allstate product is not available.
ALLSTATE FINANCIAL SEGMENT
Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products. Its principal products are interest-sensitive, traditional and variable life insurance; fixed annuities, including deferred and immediate; and voluntary accident and health insurance. Its institutional products consist of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services were offered to! customer! s through the Allstate Bank through September 2011. In 2011, after receiving regulatory approval to voluntarily dissolve, Allstate Bank ceased operations.
The Company sells Allstate Financial products to individuals through multiple intermediary distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents, specialized structured settlement brokers and directly through call centers and the Internet. The Company sells products through independent agents affiliated with approximately 125 master brokerage agencies. Independent workplace enrolling agents and Allstate exclusive agencies also sell its voluntary accident and health insurance products primarily to employees of unaffiliated businesses. Its mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, totaled $7.14 billion as of December 31, 2011
Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the United States, Virgin Islands and Guam. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), specialized structured settlement brokers and directly through call centers and the Internet.
OTHER BUSINESS SEGMENTS
The Company�� Corporate and Other segment consistsof holding company activities and certain non-insurance operations. It�� Discontinued Lines and Coverages segment includes results from insurance coverage that it no longer writes and results for certain commercial and other businesses in run-off. Its exposure to asbestos, environmental and other discontinued lines claims is presented in the segment. The segment also includes the historical results of the commercial and reinsurance businesses ! sold in 1! 996.
Advisors' Opinion:- [By Adrian Day]
Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.
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