Sunday, July 4, 2010

Understanding Insurance companies

General Insurers (aka Nonlife insurance) - e.g. RSA - defensive stocks that generally do well in a recession. Tend not to invest in equities.

Life Assurers -e.g. Aviva - tend to follow the stock market more closely and invest in a lot in equities. The issue policies that pay out a lump sum in the event of someone's death.

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