July 20, 2007: Life Insurance quickie in sub-prime time

Sub-prime. I'm tired of hearing about it. I would love to put the term to better use, i.e., a bad steak.

A few readers e-mailed me regarding expressed thoughts on the sub-prime situation. Life Insurance companies are highly invested in bonds and other income producing securities. It turns out that only a few have sub-prime exposure. And these few only have exposure as a very small part of their investment portfolio.

The following major insurers have mentionable sub-prime debt:
MET,CNO,GNW and HIG.

Looking at the numbers, here are insurance companies I would consider for purchase if you decide to become a more defensive investor:

Conseco (CNO)
Genworth Financial (GEN)
Hartford Financial Services (HIG)
Lincoln National (LNC)
Met Life (MET) - don't worry about their small sub-prime exposure

Sub-prime mania is a sucker's emotion,imo.