Today’s company is one of the 4 listed-insurance companies (other 3 being Great Eastern, Prudential and Sing-Reinsurance) on the Singapore Exchange. We wrote about this last year too.

It’s also a tiny insurer people hardly talk about.

But more specifically, this company is a property & casualty (P&C) insurer. Or commonly known as general insurance – Which provides motor, fire, marine and housing insurance. It also provides casualty insurance, which covers negligence such as hospital malpractice.

Why Insurance is The Best Business Out There

Looking at good insurance companies all comes down to its “underwriting”.

And underwriting is the company’s ability to accurately forecast and price risk. If an insurer takes in more premiums than the claims it pays out, it earns “underwriting profits”.

Between you and me, I’d say it’s like “free money” for the insurers. If they know how to correctly price their insurance policies, given the claims they need to potentially payout.