Hi Chuck,

I am not so sure I agree with your interpretation of the conclusion. The insurance business underwrites risks of all kinds and has for hundreds of years, and quite successfully for the most part. But the actuarial framework seems to elude the interest and attention of finance for some reason. Most business risks are within a fairly constrained set. At the business level they manage these risks, so why can't an analyst identify them, too? Can't a difference of opinion between business/credit and the analyst about specific risks be a source of value add/long position, or value remove/short position?

Yours, in service,

Jason