Couldn't agree more @Solvetheriddle which is why I'm continuing to buy....

Why Arthur J. Gallagher (AJG) Stock Is Trading Lower Today

Another OpenAI input thing.

Both are quality imo so I'm ignoring what's going on and adding to my position....(he say's with a lump in his throat)

Insurance broker stocks tumble as OpenAI approves first AI insurance app = better article

Some investors expressed confusion about the market reaction, questioning why commercial insurance brokers were so heavily impacted when the current application focuses on home insurance. Some argued that insurance brokers dealing with specialty products might be better insulated due to the complexity of those offerings.

@Solvetheriddle @Jimmy @jayjayjayjay @Mujo @Slomo i haven’t been following Steadfast recently but it caught my attention today. It’s got a solid performance history and looks interesting at this price. There’s been a lot of talk about increasing competition and reducing brokerage premiums lately and brokers have been downgrading the stock. Steadfast shared this slide in their investor update materials in December. What do you make of the trend in reducing premiums? Is this structural or cyclical?

It’s also worth noting the increasing short interest in the stock over the last 6 months.

I think its cyclical. Bond yields are higher so insurers earn more on their float so don't need to make as much on the underwriting but you're fighting inflation and increased natural disasters long term.

Hi Guys

Re Steadfast (and other insurer) sell off today - it might be another offshoot fear from the "SaaSpocalypse" ... following US insurers having been sold off following launch of US Insurance comparison tool that may force greater competition. Found following mention of the catalyst in the AFR:

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Insurers including AUB, IAG, QBE, Suncorp and Steadfast dived 3.4-9.5 per cent as the brokers and underwriters were hit by a selloff in US peers after last week’s launch of an AI tool from online insurance shopping platform Insurify. Insurify’s app uses ChatGPT to compare auto insurance rates using details about the vehicle, the client’s credit history, driving record and other inputs.

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