Investors Should Buy This Insurance Firm Now: Pro

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Investors Should Buy This Insurance Firm Now: Pro"


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The Chubb Corp. hit a 52-week high—but is the wind about to blow the other way on insurance stocks as hurricanes come rolling in? Brian Meredith, managing director at UBS, shared his


insights.


“The reinsurance stocks typically have fairly good performance relative to the markets in September, coming out of hurricane season,” Meredith told CNBC. “So on average over the last 12


years, they’ve outperformed the market by 5 percent coming out of the hurricane season.”


Meredith said investors can start buying Chubb because valuations are “fairly low” and the risk reward is favorable in September.


“Pricing has been pretty competitive for the last several years across the board on property casualty insurance—commercial lines in particular,” he said.


“I see from the reinsurance perspective, we had some price increases in 2009 after a tough season in 2008, and then you saw pricing down 10 to 20 percent in 2010. But price levels are still


fairly attractive for the property reinsurance line.”


______________________________CNBC Slideshows:12 Most Expensive Hurricanes in US History


No immediate information was available for Meredith or his firm.


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