BALTIMORE (Stockpickr) -- The stocks the "smart money" loves right now just may surprise you.
Professional investors have spent most of 2013 playing catch-up with the broad market indices. By and large, they were too slow to click "buy" when the rally kicked off last November, and they were too quick to hit "sell" when stocks temporarily corrected in June. As the S&P 500 hits its head on new all-time highs again this week, that's putting scores of fund managers in buy mode as we round the corner to August.
And a handful of their favorite names may come as a surprise. After all, for an industry that's focused on consumer-driven blue chips for most of the year, any move to out-of-favor tickers says a lot about portfolio managers' priorities. So today, we'll take a closer look atfive of their favorite surprise stocks.
To do that, we're focusing on 13F filings. Institutional investors with more than $100 million in assets are required to file a 13F -- a form that breaks down their stock positions for public consumption. From hedge funds to mutual funds to insurance companies, any professional investors who manage more than that $100 million watermark are required to file a 13F.
RSA Insurance Group plc is the holding company of the RSA group of companies whose principal activity is the transaction of personal and commercial general insurance business. The Company operates in four segments: Scandinavia, Canada, United Kingdom and Western Europe, and Emerging Markets. The Company provides insurance covers for a range of renewable energy technologies, including Wind Energy, which includes onshore and offshore facilities; Solar Energy, which includes photovoltaic, concentrated and thermal installations; Small Hydro, which includes power stations producing an output up to 50 megawatt, and Bio energy, which includes Biomass, Biogas and Waste to Energy plants. The Company works with both large and small brokers. The Company works with partners, such as building societies, banks, retailers, motor manufacturers, charities, utilities and unions to offer their customers appropriate insurance products.
Advisors' Opinion: - [By Sarah Jones]
RSA Insurance Group Plc (RSA) gained 0.8 percent to 114.1 pence after Morgan Stanley upgraded the insurer to overweight from underweight, saying the share price will benefit from a stronger prospective U.K. performance. The stock has declined 9.2 percent so far this year, while the FTSE 350 Insurance Index has rallied 10 percent.
- [By Sofia Horta e Costa]
RSA Insurance Group Plc (RSA), which insures cars, homes and ships in the U.K., Scandinavia and emerging markets, rose 0.8 percent to 114.1 pence. Morgan Stanley raised its rating on the stock to overweight, the equivalent of a buy recommendation, from underweight.
Best Insurance Companies For 2014: Fairfax Financial Holdings Ltd (FRFHF)
Fairfax Financial Holdings Limited (Fairfax) is a financial services holding company. The Company, through its subsidiaries, is principally engaged in property and casualty insurance and reinsurance and the associated investment management. The Company�� segments consist of Insurance, Reinsurance, Insurance and Reinsurance Other, Runoff, and Corporate and Other. On December 22, 2011, the Company completed the acquisition of 75% interests in Sporting Life Inc. On August 16, 2011, the Company acquired William Ashley China Corporation. On March 24, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of The Pacific Insurance Berhad. On February 9, 2011, an indirect wholly owned subsidiary of Fairfax completed the acquisition of First Mercury Financial Corporation. In October 2012, its RiverStone runoff subsidiary acquired all the outstanding shares of Brit Insurance Limited.
Advisors' Opinion: - [By Tim Brugger]
Citing the letter of intent to be acquired�for $9 a share signed Monday with a consortium led by its largest shareholder, Fairfax Financial (NASDAQOTH: FRFHF ) , BlackBerry� (NASDAQ: BBRY ) �has opted to cancel its conference call and webcast following the 7 .a.m EST release of Q2 earnings this Friday, the company announced yesterday.
- [By Charles Sizemore]
BlackBerry (BBRY) has been a value trap that has ensnared more than its share of value hunting investors in recent years — yours truly included. Buying BlackBerry stock will also likely go down in history as the single-worst investing mistake in the otherwise illustrious career of Prem Watsa — the chairman of Fairfax Financial (FRFHF) and the man commonly known as the ��arren Buffett of Canada.��/p>
- [By Dan Caplinger]
That business model has been so successful that other, smaller insurance companies have emulated it. For instance, Fairfax Financial (NASDAQOTH: FRFHF ) and Markel (NYSE: MKL ) have used the same investing model to take advantage of their respective core insurance businesses. Both Fairfax and Markel have had substantial success, showing the power of using temporarily available premium reserves to make higher-return investments.
Best Insurance Companies For 2014: Markel Corp (MKL)
Markel Corporation is a financial holding company serving a range of markets. The Company markets and underwrites specialty insurance products. The Company operates in three segments: the Excess and Surplus Lines, the Specialty Admitted, and the London markets. It also owns interests in industrial and service businesses, which operate outside of the specialty insurance marketplace. On January 1, 2012, the Company acquired Thompson Insurance Enterprises, LLC (THOMCO). On July 13, 2011, the Company acquired PartnerMD, LLC. On October 19, 2011, the Company acquired an 83% interest in WI Holdings Inc. (Weldship). In April 2012, its subsidiary, Markel Ventures, acquired a majority interest in Havco WP LLC. In July 2012, Markel Corporation announced that Ellicott Dredge Enterprises, LLC, through its subsidiary Rohr International Dredge Holdings, Inc., acquired IDRECO GmbH. In January 2013, OneBeacon Insurance Group Ltd sold Essentia Insurance Company to the Company. In May 2013, it announced that it has completed its acquisition of Alterra Capital Holdings Ltd.
Excess and Surplus Lines Segment
Business in the Excess and Surplus Lines segment is written through two distribution channels, professional surplus lines general agents who have limited quoting and binding authority and wholesale brokers. The business produced by this segment is written on a surplus lines basis through either Essex Insurance Company or Evanston Insurance Company. During the year ended December 31, 2011, in the Excess and Surplus Lines segment, it wrote business through regional underwriting offices, which include Markel Northeast (Red Bank, NJ), Markel Southeast (Glen Allen, VA), Markel Midwest (Deerfield, IL), Markel Mid South (Plano, TX) and Markel West (Woodland Hills, CA and Scottsdale, AZ). Product offerings within the Excess and Surplus Lines segment fall within the product groupings, which include Property and Casualty, Professional Liability, and Other Product Lines. Property coverages consist of f! ire, allied lines (including windstorm, hail and water damage) and other specialized property coverages, including catastrophe-exposed property risks, such as earthquake and wind on both a primary and excess basis. Its property risks range from small, single-location accounts to multi-state, multi-location accounts. Casualty product offerings include a range of liability coverages targeting apartments and office buildings, retail stores, contractors and recreational and hospitality businesses. It also offers products liability coverages on either an occurrence or claims-made basis to manufacturers, distributors, importers and re-packagers of manufactured products.
Professional liability coverages include solutions for specialized professions, including architects and engineers, lawyers, agents and brokers, service technicians and computer consultants. It offers claims-made medical malpractice coverage for doctors, dentists and podiatrists; claims-made professional liability coverage to individual healthcare providers, such as therapists, pharmacists, physician assistants and nurse anesthetists, and coverages for medical facilities and other allied healthcare risks, such as clinics, laboratories, medical spas, home health agencies, small hospitals, pharmacies and nursing homes. This product line also includes for-profit and not-for profit management liability coverage, which can be bundled or written mono-line and include employment practices liability, directors��and officers��liability and fiduciary liability coverages. In addition, it offers a data privacy and security product, which provides coverage for data breach and privacy liability, data breach loss to insureds and electronic media coverage.
Other product lines within the Excess and Surplus Lines segment include excess and umbrella products, which provide coverage over approved underlying insurance carriers on either an occurrence or claims-made basis; environmental products, which include environmental consultants! ��profe! ssional liability, contractors��pollution liability and site-specific environmental impairment liability coverages; transportation-related products, which provide auto physical damage coverage for automobiles, as well as all types of specialty commercial vehicles, dealers��open lot and garagekeeper legal liability coverages, vehicular liability and physical damage coverages for local and intermediate haul commercial trucks and liability coverage to operators of small to medium-sized owned and operated taxicab fleets, non-emergency ambulances and multi-line specialty products designed for the characteristics of the garage industry; inland marine products, which provide a range of specialty coverages for risks, such as motor truck cargo coverage for damage to third party cargo while in transit, warehouseman�� legal liability coverage for damage to third party goods in storage, contractors��equipment coverage for first party property damage and builder�� risk coverage; ocean marine products, which provide general liability, professional liability, property and cargo coverages for marine artisan contractors, boat dealers and marina owners, including hull physical damage, protection and indemnity and third party property coverages for ocean cargo; casualty facultative reinsurance written for individual casualty risks focusing on general liability, products liability, automobile liability and certain classes of professional liability and targeting classes, which include general liability risks; railroad-related products, which provide first and third party coverages for short-line and regional railroads, scenic and tourist railroads, commuter and light rail trains and railroad equipment, and public entity insurance and reinsurance programs, which provide coverage for government entities including counties, municipalities, schools and community colleges.
Specialty Admitted Segment
The business in the Specialty Admitted segment is written by retail insurance agents who have v! ery limit! ed underwriting authority. Products and programs are marketed directly to consumers or distributed through wholesale producers. Personal lines coverages included in this segment are marketed directly to the consumer using direct mail, Internet and telephone promotions, as well as relationships with various motorcycle and boat manufacturers, dealers and associations. The business produced by this segment is written on an admitted basis either through Markel Insurance Company (MIC), Markel American Insurance Company (MAIC) and FirstComp Insurance Company (FCIC).
The Markel Specialty unit focuses on providing total insurance programs for businesses engaged in specialized activities. The Markel Specialty unit is organized into product areas, which concentrate on particular markets and customer groups, including youth and recreation oriented organizations, social service organizations, amateur sports organizations and horse and farm operations. The Markel American Specialty Personal and Commercial Lines unit offers its insurance products focuses its underwriting on marine, recreational vehicle, property and other personal and commercial line coverages. The FirstComp unit provides workers��compensation insurance and related services, to small businesses. The FirstComp unit distributes its products through independent insurance agencies.
Product offerings within the Specialty Admitted segment fall within product groupings, which include Workers��Compensation, Property and Casualty, Personal Lines, Accident and Health, and Other Product Lines. Workers��compensation products provide wage replacement and medical benefits to employees injured in the course of employment and target main-street, service and artisan contractor businesses, retail stores and restaurants. Property and casualty products included in this segment are offered on a monoline or package basis and target commercial markets and customer groups. Targeted groups include youth and recreation oriented organizations,! social s! ervice organizations, museums and historic homes, performing arts organizations, bed and breakfast inns, outfitters and guides, hunting and fishing lodges, dude ranches and rod and gun clubs. Personal lines products provide first and third party coverages for a range of personal watercrafts, including older boats, boats and yachts, as well as for recreational vehicles, including motorcycles, snowmobiles and all terrain vehicles (ATVs). In addition, property coverages are offered for mobile homes, dwellings and homeowners that do not qualify for standard homeowner�� coverage. Other products offered include special event protection, supplemental natural disaster coverage, renters��protection coverage, excess flood coverage and collector vehicle coverage. Accident and health products offer liability and accident insurance for amateur sports organizations, accident and medical insurance for academic institutions, monoline accident and medical coverage for various markets, short-term medical insurance, pet health insurance, stop-loss insurance for self-insured medical plans and medical excess reinsurance coverage.
Other product lines within the Specialty Admitted segment include coverages for equine-related risks, such as horse mortality, theft, infertility, transit and specified perils, as well as property and liability coverages for farms and boarding, breeding and training facilities; first and third party coverages for auto repair garages, gas stations and convenience stores and used car dealers; general agent programs, which use managing general agents to offer single source admitted and non-admitted programs for a specific class or line of business; first and third party coverages for small fishing ventures, charters, utility boats and boat rentals, and professional liability coverages, which it designs and administers on behalf of other insurance carriers and ultimately assume on a reinsurance basis.
London Insurance Market Segment
This segment is consisted o! f Markel ! International. Markel International writes specialty property, casualty, professional liability, equine, marine, energy and trade credit insurance on a direct and reinsurance basis. Business is written worldwide through either Markel International Insurance Company Limited (MIICL) or Markel Syndicate 3000 with approximately 15% of writings coming from the United States. Product offerings within the London Insurance Market segment fall within the product groupings, which include Marine and Energy, Professional and General Liability, Reinsurance, Property, and Other Product Lines.
Marine and energy products include a portfolio of coverages for cargo, energy, hull, liability, war, terrorism and specie risks. The cargo account is an international transit-based book covering a range of cargo. Energy coverage includes all aspects of oil and gas activities. The hull account covers physical damage to ocean-going tonnage, yachts and mortgagee�� interest. Liability coverage provides for a range of energy liabilities, as well as marine exposures, including charterers, terminal operators and ship repairers. The war account covers the hulls of ships and aircraft, and other related interests, against war and associated perils. Terrorism coverage provides for property damage and business interruption related to political violence, including war and civil war. The specie account includes coverage for fine art on exhibition and in private collections, securities, bullion, precious metals, cash in transit and jewelry.
Professional and general liability products include professional indemnity, directors��and officers��liability, intellectual property, some defense costs, incidental commercial crime, general and products liability coverages targeting consultants, construction professionals, financial service professionals, professional practices, social welfare organizations and medical products. Professional and general liability products are written on a global basis. Reinsurance products ! include p! roperty and casualty treaty reinsurance. Property treaty products are offered on an excess of loss and proportional basis for per risk and catastrophe exposures. A portion of the excess of loss catastrophe and per risk property treaty business comes from the United States with the remainder coming from international property treaties. Casualty treaty reinsurance is offered on an excess of loss basis and targets specialist writers of motor products in the United Kingdom and Europe. Excess of loss casualty treaty reinsurance also is offered for select writers of employers��and products liability coverages.
Property products target a range of insureds, providing coverage ranging from fire to catastrophe perils, such as earthquake and windstorm. Business is written either in the open market or on a delegated authority basis for direct and facultative risks. Open market business is written mainly on a global basis by its underwriters to London brokers, with each risk being considered on its own merits. The Company provides property coverage for small to medium-sized commercial risks on both a stand-alone and package basis through its branch offices. Other product lines within the London Insurance Market segment include crime coverage targeting financial institutions and providing protection for bankers��blanket bond, computer crime and commercial fidelity; contingency coverage, including event cancellation, non-appearance and prize indemnity; accident and health coverage for affinity groups and schemes, risks accounts and sports groups; coverage for equine-related risks, such as horse mortality, theft, infertility, transit and specified perils; specialty coverages include mortality risks for farms, zoos, animal theme parks and safari parks; short-term trade credit coverage for commercial risks, including insolvency and protracted default, as well as political risks coverage in conjunction with commercial risks for currency inconvertibility, government action, import/export license cancellati! on, publi! c buyer default and war, and products liability, excess and umbrella and environmental liability coverages.
The Company purchases reinsurance. It purchases catastrophe reinsurance coverage for its catastrophe-exposed policies. In addition, certain foreign reinsurers for its United States insurance operations must provide collateral equal to 100% of recoverable, with the exception of reinsurers who have been granted authorized status by an insurance company�� state of domicile. When appropriate, it pursues reinsurance commutations, which involve the termination of ceded reinsurance contracts. Reinsurance treaties are purchased on an annual basis.
Advisors' Opinion: - [By Kevin Chen]
Completing its acquisition of�Alterra Capital Holdings, Markel Corporation (NYSE: MKL ) now has about $23 billion in combined assets, and $6 billion in shareholder equity.�
- [By Ben Levisohn]
Loew’s, however isn’t just cheap on its own terms. It’s also cheap relative to other investor insurers, including Markel (MKL), Cincinnati Financial (CINF) and Berkshire Hathaway. Shanker and Stefano write:
Best Insurance Companies For 2014: Euler Hermes SA (ELE)
Euler Hermes SA is a France-based credit insurance company. It offers a range of services, including loan assurance, risk assessment, trade debt collection, compensation of losses due to buyer insolvency, bonding and guarantees for companies, reinsurance of loans to individuals and fidelity insurance covering companies against financial loss caused by fraudulent acts. It operates a number of subsidiaries, including Euler Hermes SFAC, Euler Hermes ACI Holding Inc., Euler Hermes Reinsurance AG, among others. On January 1, 2012, the Company completed the simplification of its legal structure in Europe by grouping 13 of its former subsidiaries into one insurance company, Euler Hermes Europe, located in Brussels.
Advisors' Opinion: - [By Sarah Jones]
Iberdrola SA (IBE), Spain�� biggest power company, fell 3.4 percent to 3.87 euros. Endesa SA (ELE) slumped 4.6 percent to 16 euros, while Acciona SA (ANA), which owns more than 4 gigawatts of wind farms in the country, tumbled 8.5 percent to 37.95 euros. Red Electrica Corp. slid 7.5 percent to 38.34 euros.
Best Insurance Companies For 2014: HCI Group Inc (HCI)
HCI Group Inc, formerly Homeowners Choice, Inc., incorporated in 2006, is a holding company. The Company, through its subsidiaries, is primarily engaged in the property and casualty insurance business. The Company is authorized to underwrite homeowners' property and casualty insurance in the state of Florida through its wholly-owned subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. (HCPC). Through HCPC and subsidiaries, primarily Homeowners Choice Managers, Inc. (HCM), Southern Administration, Inc., Claddaugh Casualty Insurance Company, Ltd., and its subsidiary, HCPCI Holdings LLC, the Company provides property and casualty homeowners' insurance, condominium-owners' insurance, and tenants' insurance to individuals owning property in Florida. The Company�� subsidiaries also include TV Investment Holdings LLC, which owns and operates a marina facility located in Florida; Unthink Technologies Private Limited, which is a software development firm. During the year ended December 31, 2011, the Company organized TV Investment Holdings LLC, HCI Holdings LLC and HCI Technical Resources, Inc. In November 18, 2011, the Company acquired Unthink Technologies Private Ltd. In November 2011, it acquired the Florida policies of HomeWise Insurance Company.
The Company�� subsidiary, HCM provides underwriting policy administration, marketing, accounting and financial services to HCPC, and participates in the negotiation of reinsurance contracts. Southern Administration, Inc. provides policy administration services. Claddaugh Casualty Insurance Company Ltd. provides reinsurance coverage to HCPC. Asof December 31, 2011, the Company has approximately 119,000 policies in force. Citizens Property Insurance Corporation requires the Company to offer renewals on the policies the Company acquires for a period of three years subsequent to the initial expiration of the assumed policies. The policyholders have the option to renew with the Company or they may ask their agent to place their co! verage with another insurance company.
Advisors' Opinion: - [By Ben Levisohn]
Tower Group has dropped 12% to $3.88 today at 11:39 a.m., while Stewart Information Services (STC) has dipped 0.1% to $31.16, the�Navigators Group�(NAVG) has fallen 1.4% to $54.78 and HCI Group�(HCI) has gained 1% to $38.16.
Best Insurance Companies For 2014: American Financial Group Inc (AFG)
American Financial Group, Inc. (AFG), incorporated on July 1, 1997, is a holding company, which through subsidiaries, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses and in the sale of traditional fixed and fixed-indexed annuities in the individual, bank and education markets. The Company�� segment includes: property and casualty insurance, annuity, run-off long-term care and life and other. In August 2012, the Company sold its Medicare supplement and critical illness businesses.
Property and Casualty Insurance
AFG�� specialty property and casualty insurance operations consist of approximately 30 niche insurance businesses offering a range of commercial coverages. Under the property and transportation segment, inland and ocean marine provides coverage primarily for builders' risk, contractors' equipment, property, motor truck cargo, marine cargo, boat dealers, marina operators/dealers and excursion vessels. The agriculture-related business provides federally reinsured multi-peril crop (allied lines) insurance covering perils, as well as crop-hail, equine mortality and other coverages for operating farms/ranches and agribusiness operations on a nationwide basis. The commercial automobile business provides coverage for vehicles (such as buses and trucks) in a range of businesses, including the moving and storage and transportation industries, and a specialized physical damage product for the trucking industry.
Under the specialty casualty segment, executive and professional liability business markets coverage for directors and officers of businesses and non-profit organizations, errors and omissions, and provides non-United States medical malpractice insurance. The umbrella and excess liability business provides higher layer liability coverage in excess of primary layers. The excess and surplus business provides liability, umbrella and excess coverage for risks, using rates and forms that ge! nerally do not have to be approved by state insurance regulators. The general liability business provides coverage for contractor-related businesses, energy development and production risks, and environmental liability risks. The targeted programs includes coverage (primarily liability and property) for social service agencies, leisure, entertainment and non-profit organizations, customized solutions for other targeted markets and alternative risk programs using agency captives. The Workers��Compensation provides coverage for prescribed benefits payable to employees who are injured on the job.
Under the specialty financial segment, fidelity and surety provides fidelity and crime coverage for government, mercantile and financial institutions and surety coverage for various types of contractors and public and private corporations. Lease and loan services provides coverage for insurance risk management programs for lending and leasing institutions, including equipment leasing and collateral and mortgage protection.
Annuity Operations
AFG�� annuity operations is engaged primarily in the sale of fixed and fixed-indexed annuities in the individual, bank and education markets through independent producers and also sell annuities through direct relationships with banks. Annuities are long-term retirement saving instruments that benefit from income accruing on a tax-deferred basis. The issuer of the annuity collects premiums, credits interest or earnings on the policy and pays out a benefit upon death, surrender or annuitization. Single premium annuities are generally issued in exchange for a one-time lump-sum premium payment. Certain annuities, primarily in the education market, have premium payments that are flexible in both amount and timing as determined by the policyholder and are generally made through payroll deductions.
A fixed-indexed annuity provides policyholders with the opportunity to receive a crediting rate tied, in part, to the performanc! e of an e! xisting market index (generally the S&P 500) while protecting against the related downside risk through a guarantee of principal (excluding surrender charges, market value adjustments, and certain benefit charges). AFG purchases call options designed to substantially offset the effect of the index participation in the liabilities associated with fixed-indexed annuities.
Run-off long-term care and life
The majority of AFG�� investment in its run-off long-term care and life operations (including 100% of its long-term care business) is in the following subsidiaries: United Teacher Associates Insurance Company, Continental General Insurance Company and Manhattan National Life Insurance Company. United Teacher Associates Insurance Company�� products include Long-term care, life and annuities. Continental General Insurance Company�� products include Long-term care, life and annuities.
Other Operations
Through subsidiaries, AFG is engaged in a range of other operations, including commercial real estate operations in Cincinnati (office buildings and The Cincinnatian Hotel), New Orleans (Le Pavillon Hotel), Whitefield, New Hampshire (Mountain View Grand Resort), Chesapeake Bay (Skipjack Cove Yachting Resort and Bay Bridge Marina), Charleston (Charleston Harbor Resort and Marina), Palm Beach (Sailfish Marina and Resort), Florida City, Florida (retail commercial development) and apartments in Louisville and Pittsburgh.
Advisors' Opinion: - [By Ben Levisohn]
Shares of American International Group have dropped 1.7% to $49.67 at 1:19 p.m. today, while American Financial Group (AFG) has, dropped 0.2% to $57.23, HCC Insurance (HCC) is little changed at $45.12,�Travelers (TRV) has dipped 0.1% to $83.52 and Chubb (CB) is off 0.1% at $86.58.
Best Insurance Companies For 2014: Allstate Corp (ALS)
The Allstate Corporation (Allstate), November 5, 1992, is a holding company for Allstate Insurance Company. The Company�� business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and their affiliates. It is engaged, principally in the United States, in the property-liability insurance, life insurance, retirement and investment product business. Allstate's primary business is the sale of private passenger auto and homeowners insurance. The Company also sells several other personal property and casualty insurance products, select commercial property and casualty coverages, life insurance, annuities, voluntary accident and health insurance and funding agreements. Allstate primarily distributes its products through exclusive agencies, financial specialists, independent agencies, call centers and the Internet. It conducts its business primarily in the United States. Allstate has four business segments: Allstate Protection, Allstate Financial, Discontinued Lines and Coverages and Corporate and Other. The Company is a personal lines insurer in the United States. Customers can access Allstate products and services, such as auto insurance and homeowners insurance through nearly 12,000 exclusive Allstate agencies and financial representatives in the United States and Canada. In October 2011, the Company acquired Esurance and Answer Financial from White Mountains Insurance Group.
ALLSTATE PROTECTION SEGMENT
In this segment, the Company principally sells private passenger auto and homeowners insurance through agencies and directly through call centers and the Internet. These products are marketed under the Allstate, Encompass and Esurance brand names. The Allstate Protection segment also includes a separate organization called Emerging Businesses, which comprises Business Insurance (commercial products for small business owners), Consumer Household (specialty products including motorcycle, boat, renters and condominium insurance policies), A! llstate Dealer Services (insurance and non-insurance products sold primarily to auto dealers), Allstate Roadside Services (retail and wholesale roadside assistance products) and Ivantage (insurance agency). The Company also participates in the involuntary or shared private passenger auto insurance business in order to maintain its licenses to do business in many states. In some states, Allstate exclusive agencies offer non-proprietary property insurance products. Allstate brand auto and homeowners insurance products are sold primarily through Allstate exclusive agencies and serve customers who prefer local personal advice and service and are brand-sensitive. In most states, customers can also purchase certain Allstate brand personal insurance products, and obtain service, directly through call centers and the Internet.
During the year ended December 31, 2011, total Allstate Protection premiums written were $25.98 billion. Its broad-based network of approximately 10,000 Allstate exclusive agencies in approximately 9,700 locations in the United States produced approximately 86% of the Allstate Protection segment's written premiums in 2011. It provides personal property and casualty insurance products through independent agencies in the United States. Additionally, Allstate distribution, through brokering arrangements, offers non-proprietary products to consumers when an Allstate product is not available.
ALLSTATE FINANCIAL SEGMENT
Allstate Financial segment provides life insurance, retirement and investment products, and voluntary accident and health insurance products. Its principal products are interest-sensitive, traditional and variable life insurance; fixed annuities, including deferred and immediate; and voluntary accident and health insurance. Its institutional products consist of funding agreements sold to unaffiliated trusts that use them to back medium-term notes issued to institutional and individual investors. Banking products and services were offered to! customer! s through the Allstate Bank through September 2011. In 2011, after receiving regulatory approval to voluntarily dissolve, Allstate Bank ceased operations.
The Company sells Allstate Financial products to individuals through multiple intermediary distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents, specialized structured settlement brokers and directly through call centers and the Internet. The Company sells products through independent agents affiliated with approximately 125 master brokerage agencies. Independent workplace enrolling agents and Allstate exclusive agencies also sell its voluntary accident and health insurance products primarily to employees of unaffiliated businesses. Its mortgage loan portfolio, which is primarily held in the Allstate Financial portfolio, totaled $7.14 billion as of December 31, 2011
Allstate Financial, through several companies, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia, Puerto Rico, the United States, Virgin Islands and Guam. Allstate Financial distributes its products to individuals through multiple distribution channels, including Allstate exclusive agencies and exclusive financial specialists, independent agents (including master brokerage agencies and workplace enrolling agents), specialized structured settlement brokers and directly through call centers and the Internet.
OTHER BUSINESS SEGMENTS
The Company�� Corporate and Other segment consistsof holding company activities and certain non-insurance operations. It�� Discontinued Lines and Coverages segment includes results from insurance coverage that it no longer writes and results for certain commercial and other businesses in run-off. Its exposure to asbestos, environmental and other discontinued lines claims is presented in the segment. The segment also includes the historical results of the commercial and reinsurance businesses ! sold in 1! 996.
Advisors' Opinion: - [By Adrian Day]
Adrian Day: Yes, yes, I like the concept of looking up the secondary plays. I mean, you know we own Altius (ALS) for example, rather than Alderon (ADV). Altius owns 30% of Alderon, that is more diversified, has a better balance sheet. If Alderon succeeds, Atius will succeed.
