Judge of the Change

Chubb specializes in XoL (excess of loss) trade credit insurance, which means that the insured company agrees in the policy to take a significant loss before “coverage” kicks in. This is different than ground-up insurers like Atradius, Allianz, and Coface, who will insure entire losses (also known as “ground-up”.)

as of 9/15/23: — S&P trades at 17.9 times earnings — the insurance portion trades at 11.8 times earnings — last time it was that wide of a delta was in 2008 and 2020

“Years of ultralow interest rates hurt insurers in two ways, first by reducing investment returns and second, by expanding insurance-underwriting capacity.” i don't quite understand the latter part, it has do with investors who are searching for yield buying lots of catastrophe bonds and insurance-linked securities, which adds to the capital pil... See more