The Short Against Universal Insurance Holdings (UVE): What Do The Regulatory Filings Say?

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The Short Against Universal Insurance Holdings (UVE): What Do The Regulatory Filings Say?
Source: ValuePenguin

Universal Insurance

The Short Against Universal Insurance Holdings (UVE): What Do The Regulatory Filings Say? by S&C Messina

When looking at a P&C insurer as a potential investment for our fund, almost 99% of the more than 300 publicly traded companies in the P&C universe don’t make the cut. One filter we have that immediately drops them from consideration is, if they haven’t been around long enough to experience multiple economic and insurance cycles, they’re out.

And if they have been around long enough, most companies in the P&C sector have had crummy track records, meaning they didn’t weather the inevitable, periodic downturns in the economy and soft insurance markets in a profitable manner. As a fund investing in P&C insurers who are in the business of taking risks, we are very risk adverse.

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