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Reinsurance companies, like White Mountains, Everest Re, and Platinum Underwriters, are facing a rough profit outlook as more competition enters thir segment of the insurance market and pushes prices down. Is the pain temporary or the new normal?
In the following video, Motley Fool financials analyst David Hanson discusses how the lack of catastrophes has resulted in reinsurance companies accepting lower prices on the premiums written. David also notes a recent warning from Warren Buffett that outsider investors are potentially ignoring the out-sized risks associated with catastrophe bonds.
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The article Warren Buffett's Warning: Are These Companies in Trouble? originally appeared on Fool.com.
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