Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of mortgage insurer MBIA (NYSE: MBI) climbed 10% today after settling its lawsuit against Flagstar Bancorp (NYSE: FBC), in which it accused the bank of misrepresenting the loan quality underlying $1.1 billion in mortgage-backed securities. �
So what: Flagstar agreed to pay $110 million in cash to settle the lawsuit, giving MBIA a decent chunk of change to help firm up its balance sheet. In fact, MBIA said it intends to use the cash to repay a portion of its secured loan from National Public Finance Guarantee Corp., giving investors plenty of good vibes over its seemingly improving financial position.
Now what: While today's settlement is certainly good news, MBIA still has plenty of uncertainty surrounding it. "We will continue to focus on resolving our remaining litigation with other parties so that National Public Finance Guarantee Corp., our U.S. muni-only insurer, can resume its role as a leader in the U.S. public finance insurance market," said MBIA CEO Jay Brown. Without a significant settlement from Bank of America (NYSE: BAC ) , however, several analysts doubt that MBIA will be able to completely pay off the loan balance. ��
Top 5 Medical Companies To Watch In Right Now: Old Republic International Corporation(ORI)
Old Republic International Corporation, through its subsidiaries, provides various insurance and mortgage guaranty products in North America. The company operates in three segments: General Insurance, Mortgage Guaranty, and Title Insurance. The General Insurance segment provides liability insurance coverages to businesses, government, and other institutions in commercial construction, forest products, energy, general manufacturing, and financial services industries; and transportation, including trucking and general aviation industries. It provides various insurance products, such as automobile extended warranty, aviation, commercial automobile insurance, general liability, home warranty, inland marine, travel accident, and workers? compensation, as well as liability coverage for claims arising from the acts of owners or employees, and protection for the physical assets of businesses. This segment also offers financial indemnity products, such as consumer credit indemnity , errors and omissions/directors and officers, guaranteed asset protection, and surety, as well as bonds that cover the exposures for losses of monies, or debt and equity securities due to acts of employee dishonesty. The Mortgage Guaranty segment insures first mortgage loans, primarily on residential properties incorporating one-to-four family dwelling units to mortgage bankers, brokers, commercial banks, and savings institutions. The Title Insurance segment provides lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. It also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and services related to real estate transfers and loan transactions. Old Republic International Corporation markets its products directly, as well as through insurance agents and brokers. The company was founded in 1887 and is based in Chi cago, Illinois.
Advisors' Opinion:- [By Marc Bastow]
Insurance underwriting company Old Republic (ORI) raised its quarterly dividend 5.8% to 18 cents per share, payable on Dec. 16 to shareholders of record as of Dec. 4.
ORI Dividend Yield: 4.28% - [By Lawrence Meyers]
The part I like the most is that WGL sells energy credits and carbon offsets to retail customers. The company makes good money on these elements, selling to customers who just like to feel good about how they are ��elping the environment�� WGL has a long history as an energy company and has paid a dividend for 37 years. It currently pays 4.3% annually.
Old Republic International (ORI)The next of our dividend stocks is one you may have heard of: Old Republic International (ORI). Old Republic started back in 1887 and is an insurance company that offers a huge array of products. A lot of insurance products are very high margin, and Old Republic has mastered the art of selling these. Extended Automobile Warranty, Home Warranty an Travel Accident Insurance are great segments to be playing in.
- [By Fredrik Arnold]
Ten Champion dogs that promised the biggest dividend yields into July included firms representing five of nine market sectors. The top stocks were three of five from the financial sector: Universal Health Realty Trust (UHT); Mercury General Corp. (MCY); Old Republic Int'l (ORI). The other two financial firms, HCP Inc., and United Bankshares Inc. (UBSI), placed sixth and eighth.
- [By Holly LaFon]
Prem Watsa is renowned for his long track record of outstanding returns using Buffett-style value investing through his worldwide insurance and reinsurance company, Toronto-based Fairfax Financial Holdings. His five-year cumulative is 176.4%, compared to 12.2% for the S&P 500. Most recently, he made headlines for making a large contrarian bet on Research In Motion (RIMM) and joining its board in his first activist investing foray. In the fourth quarter, he added to this position. He also added to his positions in Citigroup Inc. (C), Old Republic Corp. (ORI) and Johnson & Johnson (JNJ) and dramatically reduced one of his largest holdings, Dell (DELL). As a Ben Graham devotee, Watsa looks past short-term fluctuations in price to the underlying strength of a business. His stance on the economy, as of September and October 2011, was that he believed the U.S. was showing Depression-level interest rates and deficits, but he still liked some stocks and would hedge his exposure, he told CFA Institute Magazine.
Hot Insurance Stocks To Own For 2014: National Health Partners Inc (NHPR)
National Health Partners, Inc., incorporated on March 10, 1989, is a national healthcare membership organization that was formed to address the need for affordable healthcare nationwide. The Company creates, markets and sells membership programs targeted toward underserved markets in the healthcare industry through a national healthcare savings network called CARExpress. CARExpress is a network of over 1,000,000 participating hospitals, doctors, dentists, pharmacists and other healthcare providers that have agreed to render their services and products to the Company's members at discounted prices. CARExpress enables the Company's members to engage in point-of-service transactions directly with participating healthcare providers and pay discounted prices.
The Company has designed membership programs that range from its traditional health discount programs that provide access to networks of providers that have agreed to provide its members with a reduced rate for services, to membership programs that include limited liability insurance benefits. The Company offers two families of CARExpress membership programs to its members, its CARExpress health discount programs, and its CARExpress Plus membership programs.
The Company's CARExpress health discount programs consists of healthcare, including physicians, hospitals, ancillary services, dentists, prescription drugs, vision care, hearing aids, chiropractic services, alternative care, 24-hour nurseline, medical supplies and equipment, and long-term care facilities, which include skilled nursing facilities, assisted living facilities, respite care and home health care. The Company provides its members with access to over 1,000,000 healthcare providers through its agreements with CareMark, Aetna, Optum, Outlook Vision, Integrated Health, Three Rivers, International Med-Care and HealthFi International.
The Company's CARExpress Plus programs are membership programs consists of the Company's CARExpress health discount progr! ams and limited liability insurance benefits underwritten by United States.The limited liability insurance benefits included in these programs are accidental death and dismemberment coverage (AD&D), accident medical expense coverage (AME), accident disability coverage, a daily hospital and intensive care unit (ICU) benefit, doctor visit benefits, inpatient/outpatient surgical visit benefits, as well as emergency room and ambulance benefits. With CARExpress Plus, the Company's health discount programs provide its members with a point of service discount on their healthcare expenses at the time of service. The Company offers three standard CARExpress Plus programs, which include CARExpress Plus Platinum Program, CARExpress Plus Gold Program and CARExpress Plus Silver Program.
The Company competes with Alliance HealthCard, Inc., AmeriPlan, Best Benefits, Careington International, Family Care, Full Access Medical, International Association of Businesses, New Benefits, Inc. and People's Benefit Services.
Advisors' Opinion:- [By Peter Graham]
Last Friday, small cap stocks National Health Partners, Inc (OTCMKTS: NHPR) surged 816.7% while Timios National Corp (OTCMKTS: HOMS) and Medical Care Technologies Inc (OTCMKTS: MDCE) sank 32.28% and 25%, respectively. So what will these three small caps do for investors and traders this week? Here is a closer look to help you decide on a trading strategy:
National Health Partners, Inc (OTCMKTS: NHPR) Surged 816.7% On FridaySmall cap National Health Partners is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called "CARExpress." On Friday, National Health Partners surged 816.7% to $0.044 for a market cap of $107,933 plus NHPR is down 78% over the past year and up 923.3% since June 2012 according to Google Finance.
Hot Insurance Stocks To Own For 2014: American International Group Inc.(AIG)
American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. It also involves in commercial aircraft leasing and residential mortgage guaranty insurance businesses. The company, through Chartis Inc., provides various property and casualty insurance products under commercial and consumer categories worldwide. These products include surplus lines, executive liability/directors? and officers? liability, employment practices, excess casualty, and travel/assistance lines. American International Group, through SunAmerica Financial Group, offers a suite of life insurance and retirement products and services, including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds, and financial planning products and services to individuals and grou ps in the United States. The company, through International Lease Finance Corporation, operates as an aircraft lessor that acquires commercial jet aircraft from various manufacturers and other parties, and leases those aircraft to airlines worldwide. It also sells aircraft from its fleet to other leasing companies, financial services companies, and airlines, as well as provides management services to third-party owners of aircraft portfolios. American International Group, through United Guaranty Corporation, issues residential mortgage guaranty insurance that covers mortgage lenders from the first loss for credit defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to four-family residences in the U.S. and internationally. The company was founded in 1967 and is based in New York, New York.
Advisors' Opinion:- [By Jessica Alling]
New developments
Fueling this morning's drop may be something other than continued investor disappointment in the bank's earnings -- insurer AIG (NYSE: AIG ) has just won an important fight in the continuing legal battle against Bank of America. In a suit filed back in August of 2011, AIG is seeking damages for losses caused by mortgage-backed securities sold by B of A's Countrywide and Merrill Lynch segments. The insurer contends that Countrywide and Merrill Lynch misrepresented the securities, leading to AIG's losses. - [By Brendan Byrnes]
Brendan Byrnes: Let's switch gears and talk about AIG (NYSE: AIG ) , which I believe is your biggest holding in Kase Capital. What are some catalysts, going forward for this company?
Hot Insurance Stocks To Own For 2014: Aviva PLC (AVV)
Aviva plc (Aviva) is an insurance group engaged in provision of products and services, such as long-term insurance and savings, fund management and general insurance. Aviva provides long-term insurance and savings, general and health insurance, and fund management products and services. Its business is managed on four geographic regions: United Kingdom, Europe, North America and Asia Pacific. The four regions, together with Aviva Investors, function as six operating segments. The UK region is split into the UK Life and UK General Insurance segments, which undertake long-term insurance and savings business and general insurance, respectively. In April 2013, it transferred its holding in Spanish joint venture Aseval to Bankia. In October 2013, Aviva sold Aviva USA Corporation to Athene Holding Ltd. Effective December 12, 2013, Redefine International Plc, a unit of Redefine Properties Ltd, acquired Weston Favell Shopping Centre from Aviva Commercial Finance Ltd, a unit of Aviva plc. Advisors' Opinion:- [By Namitha Jagadeesh]
Kabel Deutschland Holding AG rose to a record after getting an offer from Liberty Global Plc. Aveva Group Plc (AVV) jumped 5.4 percent as Citigroup Inc. upgraded the shares. Danske Bank A/S (DANSKE) dropped 6.1 percent after Denmark�� financial regulator ordered it to increase its risk-weighted assets. Royal Imtech NV fell to the lowest price since 2004 after posting a first-quarter loss on costs relating to a fraud investigation.
Hot Insurance Stocks To Own 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 Brian Pacampara]
What: Shares of life and health reinsurer Reinsurance Group of America (NYSE: RGA ) sank 10% today after its quarterly results disappointed Wall Street.
- [By David Sterman]
2. Reinsurance Group of America (NYSE: RGA) I've been singing the praises of insurance stocks throughout 2013, and though they have started to make solid upward moves, they are still quite undervalued. As long as their balance sheets are worth more than the public market value of their stocks, then you should pounce.This reinsurer (which insures the insurance companies against catastrophic payouts) is a perfect example. At the end of the second quarter, tangible book value stood at $82.97 a share. That's roughly 24% above the current stock price. And RGA is doing what any "below book" stock should do: buying back shares. The current buyback will be fueled by a $400 investment that should shrink shares outstanding by more than 5%.
- [By Ben Levisohn]
Although the next purchase was made to meet ownership guidelines, Reinsurance Group of America (RGA) still makes our cut after its EVP and head of international markets and operations Allan O’Bryant bought 6,500 shares for $423,100. This is his first purchase and InsiderScore notes that he owns over 30,000 in stock appreciation rights and adds, ��VPs are expected to own between 5,000-21,000 shares depending on “grade level of position.” O’Bryant is due to receive a base salary of $456,200 this year and is eligible to receive a 2013 bonus between 40% (minimum) and 160% (maximum) of his salary.��/p>
Hot Insurance Stocks To Own For 2014: Triad Guaranty Inc (TGICQ)
Triad Guaranty Inc., incorporated in 1993, is a holding company which, through its wholly-owned subsidiary, Triad Guaranty Insurance Corporation (TGIC), is a nationwide mortgage insurer. During the year ended December 31, 2011, Collateral Mortgage, Ltd. (CHL) owns 16.8% of the common stock of TGI. The Company has historically provided Primary and Modified Pool mortgages guaranty insurance coverage on United States residential mortgage loans.
Primary insurance provides mortgage default protection to lenders on individual loans and covers a percentage of unpaid loan principal, delinquent interest and certain expenses associated with the default and subsequent foreclosure (collectively, the insured amount or claim amount). Primary insurance was written on both flow and structured bulk transactions. Flow transactions consisted of loans originated by lenders that were submitted to the Company on a loan-by-loan basis, whereas structured bulk transactions involved underwriting and insuring a group of loans with individual coverage for each loan. Insurance on primary policies consists of 80% of the Company's total insurance in force at December 31, 2011.
Modified Pool insurance was written only on structured bulk transactions. Policies insured as part of a Modified Pool transaction have individual coverage, but an aggregate stop-loss limit applies to the entire group of insured loans. In addition, some of the Modified Pool transactions included deductibles representing a percentage of the total risk originated under which the Company pays no claims until the losses exceed the deductible amount. Modified Pool insurance consists of 20% of the Company's total insurance in force at December 31, 2011.
Advisors' Opinion:- [By Zachary Tracer]
Mortgage insurers PMI and Triad Guaranty Inc. (TGICQ) filed for bankruptcy after housing crashed. Old Republic International Corp. also retreated from the mortgage guaranty business.
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