Investors To Insurers: Diversify At Your Own Peril
In studying what drives shareholder value in the insurance industry, our research has convinced us that key business fundamentals have consistently shaped insurance company valuations, even in the midst of change and turmoil.
We have also found that specializing in a few businesses–and doing them well–has become important as market cycles shorten, the levels of expertise required have risen, and products and prices have become commoditized.
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