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To: Between the Lines
While I’ll agree that the insurers have suffered vast costs due to catastrophic weather phenomenons, where were their profits going when NOTHING happened?

Was it ALL real estate investments? I have as much problem understanding this as a liberal has with oil profits.

9 posted on 09/05/2007 12:48:03 PM PDT by poobear (Pure democracy is two wolves and a lamb voting on what's for dinner. God save the Republic!)
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To: poobear
where were their profits going when NOTHING happened?

It's called 'cash reserves against loss'.

L

13 posted on 09/05/2007 1:03:41 PM PDT by Lurker ( Comparing moderate islam to extremist islam is like comparing smallpox and ebola.)
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To: poobear

Do you think their 1 year premiums cover all catastrophes incurred in any given year ? A bunch of it goes to fund reserves for those years they have massive payouts, called “loss reserves”, and they are required by law.


20 posted on 09/05/2007 2:08:12 PM PDT by cinives (On some planets what I do is considered normal.)
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To: poobear

Insurance companies are like bookies. They lay off part of the possible liability to re-insurers. Insurance companies never take the full hit from something such as a hurricane or a twister.


21 posted on 09/05/2007 2:10:36 PM PDT by em2vn
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