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A holding company principally engaged, through its subsidiaries, in providing a wide range of commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.
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area51ejc (< 20) Submitted: 7/26/06 3:38 PM : Start Price: $43.20 TRV Score: 23.81
consolidation in the P&C industry and investment in IT will make them a much stronger player in this space. There is a strong possibility of their being acquired by a foreign firm (Zurick and others) but even that event would be worth the wait. Their windstorm exposure to coastwise property has been mitigated by years of agressive re-underwriting and thier primary source of business is the small, well-respected intepenent insurance agent
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blackhawkes33 (38.50) Submitted: 1/11/07 8:48 AM
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If STA gets involved in another acquisition, chances are it will be as a buyer, not being bought by someone else. Remember, the old St. Paul Companies technically bought the larger Travelers in 2004, and I wouldn't be the least bit surprised to see the combined entity go after a possibly larger rival like Zurich. The stock will get crushed (in the short term) if it does announce another deal like that, because the Street thinks (probably rightly so) that the company hasn't completely gotten over the last integration yet. But, long term, depending on the target, acquisition makes a lot of sense. What else are they going to do with the $1bil profit they generate each quarter?
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