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Wow, a stupid class warrior.
Not all insurance companies make their profits from investments. Google "combined ratio" for more info on this.
Carroll and others pointed out that the profit margins the health insurance companies report -- often below 5 percent -- pace some industries and lag behind many others.
"From a net margin basis, it's not that much," said Steve Shubitz, an analyst at Edward Jones. "The bottom line is any business needs to make money. That's why you're in business."
Carroll said this year's profit increases look especially large because of how poorly companies did last year, when their investment portfolios -- like everyone else's -- saw massive declines.
Take out the role investment income plays in earnings reports, he said, and you'll find earnings for UnitedHealth and WellPoint rose 7 percent and 4 percent, respectively, while Aetna's dropped 36 percent.
"It's a little mystifying why health insurance gets vilified for that profitability," Shubitz said.
Goldman Sachs Group Inc. (GS) will pay $26.6 million to settle a lawsuit brought by investors in a $698 million mortgage-backed securities offering, according to papers filed in Manhattan federal court.
The Public Employees Retirement System of Mississippi today asked U.S. District Judge Harold Baer to approve the settlement. The pension fund told Baer earlier this month that both sides had accepted a settlement proposed by a mediator. The amount of the settlement was disclosed in todays filing.
The Mississippi retirement fund sued in 2009, claiming New Century Financial Corp. (CYFL), which originated the mortgages underlying the securities, failed to adhere to its underwriting standards and overstated the value of the collateral backing the loans. The fund claimed New York-based Goldman Sachs didnt conduct proper due diligence when it bought the loans in 2005.
A federal judge in New York on Nov. 9 approved more than $ 294 million in settlements with The Bears Stearns Cos. Inc. and certain of its former officers and directors, and the financial giants former outside auditor, ruling that the settlements are procedurally and substantively fair (In re Bear Stearns Companies Inc. Securities, Derivative, and ERISA Litigation, MDL No. 08-md-1963, No. 08-2793, S.D. N.Y.).
U.S. Judge Robert W. Sweet of the Southern District of New York gave final approval of the settlements, $ 275 million of which will be paid by current owner of The Bear Stearns Cos. JPMorgan Chase & Co. Inc., while another $ 20 million will be paid by former outside auditor Deloitte & Touche LLP, to settle claims that the defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 by misrepresenting Bear Stearns exposure to the subprime mortgage lending crisis.
Judge Sweet also approved lead plaintiff State of Michigan Retirement Systems request for $ 35.4 million in attorney fees and more than $ 2 million in litigation expenses, as well as its request for $ 31,053.14 in reasonable costs and expenses as lead plaintiff.
There was massive fraud committed against investors by the financial sector. Massive fraud.
And every time one of the fraudsters is caught, they get a fine which is less than the amount they netted from the fraud, and "no admission of wrongdoing".
Wakey wakey!
.
Idiotic quote. Income tax rates/policy have nothing to do with "national prosperity."
There was massive fraud committed against investors by the financial sector. Massive fraud.
And every time one of the fraudsters is caught, they get a fine which is less than the amount they netted from the fraud, and "no admission of wrongdoing".
Wakey wakey!
.
If there was massive fraud, there would be massive lawsuits and people going to jail.
Not happening.
Review & Outlook: Where Are the Criminals? - WSJ.com
I can't say it any better and I wish I could say it as well!Your insurance company has a very thin margin between what it takes in in premiums and what it has in outlays. It takes this thin margin and invests that money. That is how they make their profits. Not from premiums, but from investments.
Insurance companies lost billions and billions when they invested in Wall Street's derivative rip-off schemes.
Your state employee pension fund likewise invests the taxpayer and employee contributions to the fund. Otherwise, those contributions would have to be much higher.
Just google the name of your state employer retirement fund and any of the big 5 firms for 2007-2008 (Bear Stearns, Lehman Brothers, Goldman Sachs, etc.). See how much your state employee fund lost in those firms.
Colleges and universities also invest in derivatives. Check how much their endowment funds lost. Remember Larry Summers? Clinton's SecTreas. He had a lot to do with derivatives being completely unregulated going into the New Millenium. Then, after he left office, he went on to manage Harvard's endowment fund. He lost them billions in derivatives trading.
And then there is your 401k manager. He thinks proximity to your money and billions of dollars of other people's money makes him smart. When Wall Street gave him box seats to the Super Bowl and all the hookers and blow he could handle, he bought all the derivatives they could throw at him. Then, when he lost a big chunk of your grandparents' nest egg, he cried ignorance.
Have your insurance rates gone up? Has your state raised taxes to fix the broken public employee pension fund in your state? Have your college tuition rates gone up? Did your grandparents and parent lose their asses just as they were preparing to retire?
And there you are, thinking no rich guy ever ripped you off...
The financial services sector was making 40 percent of ALL corporate profits in the US just before the crash. And they have already worked their way back to making 33 percent of all corporate profits in the US today.
Talk about redistribution of wealth!!! This is the greatest redistribution of wealth in history!
If you can't feel their hand in your pocket, you are not paying attention.
Wow, a stupid class warrior.
Not all insurance companies make their profits from investments. Google "combined ratio" for more info on this.
Fool. You clearly don't know what combined ratio is. As I said, they take the margin they make between premiums and outlays (underwriting profit) and invest that.
Combined ratio is the amount of profit they get from investing the underwriting profit.
Carroll and others pointed out that the profit margins the health insurance companies report -- often below 5 percent -- pace some industries and lag behind many others.
"From a net margin basis, it's not that much," said Steve Shubitz, an analyst at Edward Jones. "The bottom line is any business needs to make money. That's why you're in business."
Carroll said this year's profit increases look especially large because of how poorly companies did last year, when their investment portfolios -- like everyone else's -- saw massive declines.
Take out the role investment income plays in earnings reports, he said, and you'll find earnings for UnitedHealth and WellPoint rose 7 percent and 4 percent, respectively, while Aetna's dropped 36 percent.
"It's a little mystifying why health insurance gets vilified for that profitability," Shubitz said.
Health Insurance Profits: Not Worth the Outrage? - ABC News
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