Why premium size matters (more than you think)

Most people involved with insurance recognise that more premium is better (ceteris paribus of course). This is usually true (and occasionally not) but while some of the reasons are obvious, there are a variety of more subtle factors to take into account. This post will cover many of these factors, and point out a few […]

Life insurers getting WACC’d by debt issues

Life insurers in South Africa have been stumbling over each other to issue long-term debt. The reason? Ostensibly to reduce their WACC and generate greater value for shareholders. Common sense tells us that this is a sensible thing to do. Companies all over the world have been using debt capital to reduce their WACC by […]