As expected, the Fed cut rates today. Most market participants seem to think this is a good idea (or that they should have done more). I am not one of them. If the rationale is truly concern over a slowing economy largely driven by trade issues, then the Fed really Continue Reading
The Path of Pricing: Bullish For All the Wrong Reasons
This is an update to my earlier discussion of P&C pricing to reflect the new data points we received during earnings this week. The good news is pricing will continue to get better. The bad news is it will get better because losses continue to get worse. The net impact Continue Reading
Why Successful Insurance Innovation Fails To Create Value
Short story: All the value goes to the consumer I previously wrote about my skepticism surrounding insuretech’s ability to succeed. Today, I will focus on why innovation won’t succeed for incumbents either. Let’s agree on some definitions first. A successful innovation is one that improves the competitive position and financial Continue Reading
A Better Way To Think About Excess Capital
Summary:Acquisitions should be measured not just vs. WACC but vs. the opportunity cost of finding a better deal laterWACC is a flawed concept as it doesn’t address the cost of financial distress which increases with more leverage We live in a world of low interest rates and thus low borrowing Continue Reading