Dykstra: Delphi Financial Bodes Well

Beating the market over time is a fine way to amass wealth. And eventually, those who build wealth can become rich. It takes longer, but the rewards are just as great, and the risks are far less.

The play today, Delphi Financial Group(DFG Quote), is a past winner and defines consistency. Delphi continues to post impressive growth in group employee-benefit premiums, driven by strong gains in disability and life insurance.

Pricing discipline and tightening underwriting standards at its Reliance Standard Life subsidiary have led to improved profit margins. Management says the market for excess-workers'-compensation insurance remains strong, rates are holding steady, and retention is high.

Solid demand for voluntary products, including the company's new limited-benefit health insurance, has driven growth in new production. Delphi continues to penetrate its longtime favorite target, the small-business market, with disability insurance. In recent quarters, Delphi has also made headway in the highly competitive market for large businesses. The company should benefit from a healthy job market, particularly among smaller employers. For these reasons I will place a limit order at $4.90 to buy 10 April 35 calls (DFGDG).

Always remember: Life is a journey; enjoy the ride!