• 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.

  • Pages

  • Copyright 2012

Transparency that Insurance Investors WANT

With my passion for best practices in insurance-sector investor relations, I am always thrilled when I run across examples of companies doing things really well.

As an example of “providing investors with the transparency they want,” I’m highlighting the comprehensive and timely (timely = early enough to be useful) reserve-related disclosures of Endurance Specialty Holdings* (NYSE: ENH).

I recommend taking a look at Endurance’s “global loss triangles” and the various materials available on the “Quarterly Results” page of their IR site.  A number of the Bermuda carriers, including Endurance, provide global loss triangles to show their business consolidated across various jurisdictions to supplement any U.S.-only Schedule Ps. (While U.S. carriers could view their Schedule Ps as sufficient, I believe Endurance’s materials offer useful ideas that could be help enhance the 10-K or other disclosures.)

Of course, the material offers good data.  But I consider the probable “philosophy” behind the information as important as the data itself. As I have said in the past, better and more transparent communications can be used strategically to reduce uncertainty and to bolster management credibility, arguably a company’s most important intangible asset. Companies and investors win when companies give investors the detail (and data) on the drivers of current results and sources of future opportunities that investors WANT.

* Note: InsuranceIR does not have a business relationship with Endurance.

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