As global markets continue to see saw, QBE Australia has now announced a 50 pct reduction in expected profit on the back of increased insurance payouts. I can't wait to analyze the report in a value fashion, since this is potentially a time when the Munger-s of the world 'back up the truck'!
Indeed, it will be interesting to compare Buffet's references in his annual letters to shareholders regarding the impact of cost-to-float and the general outlook for the insurance sector. Further, quaere whether analysts and value investors can divorce insurance from wider sector performance in the FIRE listings. For eg, think of Suncorp in Australia.
Distress signals are often the sirens' call to true value investors. Then again, one does not want to be caught like Buffet's proverbial duck in an ebbing tide with no trunks!
After holidays, back to work and back to posts..
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