• Why Investor Relations?

    For more than 40 years, the CFA Institute has advocated for efficient capital markets that are ethical, transparent, and provide investor protections. One of the Institute’s guiding principles states: “Investors need complete, accurate, timely and transparent information from securities issuers.”

  • Why InsuranceIR?

    Insurance companies face unique challenges when communicating with investors and InsuranceIR is uniquely suited to help with industry-specific support.

    The primary purpose of this blog is to offer specific ideas on how insurance companies can achieve that objective.

    The supporting pages offer information on InsuranceIR's capabilities and how firm principal Heather J. Wietzel can help your company improve your investor communications.

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  • Copyright 2012

Back from AIFA

The AIFA conference is an impressive event that I thoroughly enjoyed again this year.

The presentations cover a vast array of topics relevant to insurance companies and industry investors. I’m sifting through the information from the investor relations perspective and expect to post a variety of thoughts in the coming days.

But there is one recommendation I wanted to make immediately:
Insurance company interim quarter earnings releases/calls should happen in conjunction with the filing of the associated 10-Q.

Putting all the materials out at one time lets a company appropriately focus attention on key strategic messages while meeting investor needs for the necessary details that support results. (Companies also can help by making Schedule D and Schedule P data available at the same time.)

I believe this tactic will be even more appreciated by investors as the accounting grows even more complex, e.g., the potential changes in fair value reporting under consideration by the FASB).

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2 Responses

  1. As to whether the calls and the Q should be at the same time, I think that the answer is ideally yes, but many companies put so much detail in the Q, I suspect this can only happen by pushing back the timing of the call (as opposed to pushing up the timing of the Q).

    So, the question might be, would investors prefer to wait longer for the call in order to get the Q at the same time? Put in those terms, I’m not sure what the answer is.

    If we could get the Q earlier, then obviously that’s a win, but I’m not sure companies can do that in a lot of cases.

    • Dan, you raise a good point. But, my experience has been that 10-Qs are published so late … close to the filing deadline … because of the focus on the release and call.

      I believe most companies could file the 10-Q earlier then their current practice by restructuring the work flow. In most instances, that would lead to a call (and release) and 10-Q somewhere in between the two current dates.

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