I am guessing that IAG will lose some market share in the long term as people get angry about not being covered, whereas SUN will get more business at a higher premium. (Although I think they mis-priced this event).
IAG brands policies don't offer flood insurance as standard, whereas SUN does. Some SUN guy just went on TV to say they are covered regardless whether the water comes from above, below, left or right... there is no debate whether it's flood, storm water, man made error or act of God.
I am guessing that IAG will lose some market share in the long term as people get angry about not being covered, whereas SUN will get more business at a higher premium. (Although I think they mis-priced this event).
I had a bit of a chuckle tonight watching the news...there were some people complaining that they were having a little trouble getting money out of there insurance company because water damage from a rising creek/river is not considered to be a flood.one old guy got a shock after being told that his insurance cover was only good up to 15K as that was the maximum claim for flooding.
The camera panned down his letter from the insurance company to reveal that it was from Real insurance http://www.realinsurance.com.au/people think that they are saving money by buying cheap insurance, and they are saving money right up to the time when they actually need to make a claim...then they find out that there decision to save money on a premium comes at a very real cost.
And SUN still holding well above $8 per share.
I still reckon you'll get it below 8$, see my previous posts on SUN. Before it gets taken out by one of the banks.
gg
(11th-January-2011)In very late today at $8.17i figured the biggest SP falls happen on the day of the disaster/s so hopeful that theory proves to be correct over the coming days and weeks, this is a big average down for me in the expectation that over the next 6 or 8 months i can turn my long suffering SUN position around and finally get some closure. SUN is now my biggest single holding making up over 12% of my portfolio.
My average Price has come down to $9.06
A little less than 1 month later and im out today ($8.77) for 60 CPS profit....1 month for a return that's greater than the last 3 net dividends (18 months worth) combined.yet another no brainer/easy money trade.
Hind sight is a wonderful thing.
There was no way for you to know what sort of damage the Brisbane flood and Yasi would have done. The only way for that to be a good trade is that you know what their re-insurance policy coverage was like and what those limits were. This would only be a good trade if you worked out that, even if Brisbane flood and Yasi costed SUN $1B the company is still a bargain at $8.17...
Just because a trade worked in your favour doesn't mean it was a good trade... but I take it all back if you actually knew any of the above.
The company’s result included a $63 million in gains from the sale of property and equipment, while the previous corresponding period included a $106 million loss on disposal of interests in various subsidiaries.
(24th-May-2012) I topped up my Suncorp holding today...based on the rationale that below $7.70 is/has been the buy zone over the last 32 months and i see no reason why it wont prove to be again.
Sun has an interesting 3 year chart, clearly trending sideways but with some quite large swings in both directions, overall some very choppy price action showing that buying in at any of the significant low points gives opportunities for profit.
I just keep buying the lows as i see em..just keep plodding along.
~
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