This column was originally published on RealMoney on Sept. 26 at 12:40 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Just as natural gas has been the big loser with no hurricanes, the winner has to be insurance.
As we look over the landscape of the South, the insurers raised rates big and then didn't have to pay out. That's going to produce some fantastic results for the
but blowout results for
I have been buying AIG for my
Action Alerts PLUS charitable trust because it is so clear that it has cleaned up everything and that it's not going to have to take any more charges.
I believe the numbers are way too low for AIG. Way too low. No one seems to be focused on this because somehow they are waiting for the other shoe to drop on these guys. There won't be ... except the fact that they own the long bond. Have you seen that sucker? Three ways to win: no payouts, huge premium increases, fantastic bond market. What are you waiting for?
At the time of publication, Cramer was long AIG.
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