TWR - Tower Insurance.

[macduffy]

[QUOTEWhat's not to like...][/QUOTE]

- Let's hope we never see negative interest rates here. That money-making float that insurance companies invest isn't the money spinner it used to be but doesn't need to become a minus in the P and L a/c!

- natural disasters and reinsurance costs don't seem to be reducing.

I hold a few TWR myself but not looking to add more at this stage.

[winner69]

[QUOTEWhat's not to like...]

- Let's hope we never see negative interest rates here. That money-making float that insurance companies invest isn't the money spinner it used to be but doesn't need to become a minus in the P and L a/c!

- natural disasters and reinsurance costs don't seem to be reducing.

I hold a few TWR myself but not looking to add more at this stage.

Ironic that over the years insurance companies have invested a lot of that float money into companies/industries that supposedly have stuffed the environment so much and one of the main causes of so many natural disasters

[Southern_Belle]

Ouch - beaten to hell all over again

[kelfy]

OMG !!!!!!! So disappointed today

[BIRMANBOY]

Sort of glad I didn't buy any of these in March when I was contemplating it. Problem for me is the dividends are always unimputed which kind of puts me off. However they are maintaining y/e 15 dividend payouts which at current SP is 10 plus % before tax. Moderately interested again will keep an eye on SP movement. You don't see many insurance Co's going bust.

[smtrader]

If anyone subscribes to Soro's theories, they would've seen this one coming.. he noted that dividend levels are highly correlated with future SP movement.. TWR dropped their final dividend from 8c last year to 7.5c this year..

having said that though, only 500k almost traded, that much isn't enough to say it is rational that these few shareholders have beat the price down by almost 11% as off now..

Disc. looking to buy to cause a DCB

[smtrader]

Just got to skim through their Half year results.. its actually pretty bad in the short/medium term for SP.. also they cancelled their share buy back... not going to be able to prop the SP up (or hold it from falling back down).. but still sounds like a good long term play.. il just borrow at 4% and pocket the 6% difference in dividends.Attachment 8061

[peat]

You don't see many insurance Co's going bust.

In New Zealand there has been Standard Insurance , and following the Canterbury EQ's both AMI and Western Pacific went under.
In the USA there has been AIG and much earlier CONSECO.

So it does happen. Note I am not suggesting Tower will.
But lets face it, insurance is a risky business.....

[BIRMANBOY]

Borrowing to invest is not my idea of a good time smtrader..however if you change your avatar to s&mtrader I could understand it. Still stuck in the dark ages I am so probably missed out on lots of great opportunities. As a long term investment insurance Co's are usually the cockroaches of the investment world.. Have a bad year...no worries up the premiums next year. However its dividend history is not actually that reliable or consistent as other prospects so don't know. Sp that's a different story and have no idea.32014
$0.165

Just got to skim through their Half year results.. its actually pretty bad in the short/medium term for SP.. also they cancelled their share buy back... not going to be able to prop the SP up (or hold it from falling back down).. but still sounds like a good long term play.. il just borrow at 4% and pocket the 6% difference in dividends.Attachment 8061

[BIRMANBOY]

True that's why there's all that re-insurance going on..to ameliorate the risks. They never completely die however just get absorbed into "luckier" better financed entities. However yes not that's going to help an investor much if it happens. Still relatively infrequent though.

In New Zealand there has been Standard Insurance , and following the Canterbury EQ's both AMI and Western Pacific went under.
In the USA there has been AIG and much earlier CONSECO.

So it does happen. Note I am not suggesting Tower will.
But lets face it, insurance is a risky business.....