Far From The Finishing Post

Nick Martin (Polar Capital) - Insuring A Richer Future

from Far From The Finishing Post | Published 8/19/2021

In this episode of Far From The Finishing Post we speak to Nick Martin.  Nick manages Polar Capital's Global Insurance strategy and has been investing in the insurance industry for 20 years.  Nick does a great job of demystifying a complex industry and explaining why the best property & casualty insurers are strong and durable compounding machines.  Show notes:[ 1:30] Nick talks about becoming an investor and joining Hiscox[4:08] Thinking about the downside and not taking excessive risk[5:34] Mapping out the non-life insurance industry[6:56] Focusing on underwriting rather than macroeconomic conditions[8:05] The importance of diversification for managing cycles and risks[10:17] Knowing when to be aggressive and when to be patient and defensive[12:11] Greater pricing discipline in specialty commercial versus personal lines[13:58] The ingredients of a good insurer[14:58] Will underwriters be replaced by machines[16:32] Being outward-facing and open-minded to change [18:27] How technology is changing the industry[20:34] Success in insurance is cultural[21:44] Berkshire Hathaway and decentralised models based on trust[24:16] The importance of an owner mentality[25:28] Incentivisation structures that encourage a long-term perspective[27:07] Leveraging innovation to create competitive advantage in personal lines[28:06] Network effects and pricing advantage[29:58] Price-to-book as a key valuation metric for insurers[31:52] The critical role insurers play in addressing climate change[35:31] Assessing risk in a world where climate change is making historic data sets less relevant[37:05] Encouraging risk mitigation rather than simply just putting up prices[38:48] Low valuations and rising premiums[40:44] The power of compounding in all aspects of life

Om Podcasten

Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.