Latest news with #CFA
The Star
8 hours ago
- Business
- The Star
Do home insurers really need to check credit?
POP-QUIZ time: Which of the following events do you think would make your home-insurance premiums rise? You buy a 100-year-old mansion on the beach. Natural disasters boost insurance claims. Lumber, sheetrock and contractors get more expensive. You're late on some credit-card payments. The correct answer is, believe it or not, 'all of the above.' The standard explanation for why insurance costs have soared in the United States is that a heating climate is growing more dangerous, driving up disaster claims and reconstruction prices. And that's all true. But there's another key factor that gets much less press and has zero to do with climate change: consumer credit ratings. Using creditworthiness to set home-insurance premiums is a standard practice that insurers contend keeps prices low. But it's actually making the insurance crisis worse. And unlike climate change, there's an easy, immediate fix: Just stop doing it. Having a low credit score can double home-insurance premiums in most of the United States, according to a new study by the advocacy group Consumer Federation of America (CFA) and the Climate and Community Institute, a progressive think tank. A typical homeowner with a low credit score (about 630 on Fair Isaac Corp or FICO) pays US$1,996, or 99%, more a year than someone with a stellar score (about 820 on FICO), the study suggests. In fact, it's often more expensive for a homeowner to have a low credit score than to live in an area at high risk of climate disaster, according to the study. A homeowner with a 630 FICO score living in one of the safest places in the country – say a one on a climate-risk scale of one to 100 – might theoretically pay US$3,028 a year in premiums. A homeowner with an 820 FICO score living in an area that's a 71 on the climate-risk scale would pay the same amount. 'This has big implications for whether insurance prices are really an effective signal about disaster risk for homeowners,' study co-author Nick Graetz, an assistant professor at the University of Minnesota, told me. In a perfect world, the price of home insurance would mirror the risks of bad things happening to your house. Rising premiums would discourage people from moving into risky areas or incentivise them to disaster-proof their homes. In our imperfect world, insurance companies basically subsidise homeowners for living in high-risk areas as long as they have good credit. And that's just the start of the mixed messages. The credit-score effect can vary drastically from state to state, as do insurance premiums in general. California, Maryland and Massachusetts make it illegal to use credit scores in setting premiums. Arizona, Oregon, Pennsylvania and West Virginia, meanwhile, impose punishing penalties of 150% or more on people with low credit scores. And rather than encouraging those with bad credit living in high-risk areas to weatherise or move to safer locales, soaring premiums cause them to go without insurance or buy too little. They often lack the financial wherewithal to do anything else. Meanwhile, in some of the riskiest states, people with every kind of credit score are turning increasingly to state-backed insurers of last resort such as California's FAIR plan. That plan's total exposure to potential disaster losses has nearly quadrupled in the past four years to US$650bil. These policies are typically expensive but also offer minimal coverage – the worst of both worlds for homeowners. All of this contributes to the country's growing problem of under-insurance against climate disasters, which could be hiding US$2.7 trillion in potential property losses, by one estimate. This is part of what people mean when they talk about a climate-driven 'insurance crisis' in the United States. But the term refers mainly to the fact that home insurance is rapidly becoming more expensive – rising 74% nationally since the Great Recession by one measure – and crushing housing affordability. Decidedly not in crisis is the insurance industry itself, which seems to be doing just fine. Property and casualty insurers cleared net income of US$169bil last year, according to credit-rating company AM Best, even as they complained of disaster losses. At nine of the top 25 US home-insurance providers that are publicly traded, executive pay rose by 30% last year, on average, according to a study by the advocacy groups Revolving Door Project and Public Citizen. In an email, Bob Passmore of the American Property Casualty Insurance Association, an industry group, rejected the CFA credit-score study as 'flawed' because it used online premium quotes from a data provider called Quadrant Information Services rather than actual homeowner premiums. He also said insurance companies use special 'credit-based insurance scores,' not regular credit scores, to set premiums. But those credit-based insurance scores are almost identical to ordinary credit scores, as the CFA showed in a 2023 study. And the results of the new CFA study gibe with those of a 2024 paper by researchers at the Federal Reserve (Fed) and Philadelphia Fed, which studied the actual credit-rating and insurance data for millions of mortgages and found that buyers with credit scores below 620 paid 30% more for insurance than people with scores above 720. 'Insurance prices often depend more on who lives in a home,' the Fed researchers wrote, 'than on the disaster risk a home is exposed to.' Insurers say using credit scores to set premiums saves many homeowners money (the richer ones, probably). In theory, an iffy credit score suggests a policyholder is more likely to need a payout in the event of a disaster. In reality, this makes little sense. Hurricanes and wildfires don't run a credit check before attacking your house. I have a good credit score, but if my house gets damaged in a storm, you can bet I'll need a payout. Arguably, low credit scores make it harder for homeowners to obtain financing to bolster homes against disasters, which could raise the risk of insurance payouts. But doubling their premiums won't solve that problem. And it further punishes the lower-income people and disadvantaged minorities who already suffer the most from climate change. In fact, this credit-score issue is yet another reason to doubt that our current climate-risk-management system – built on a shaky scaffolding of private home insurance with spotty government reinforcement – is built for an increasingly hostile environment. 'Is this method of trying to price behaviour in the private insurance market the most effective way to reduce the risks of disasters over the long run?' Graetz asked. Significant reform is needed. The so-called Insure Act, reintroduced last month by senator Adam Schiff of California, could be a place to start. It would set up a federal reinsurance programme to backstop losses, make insurers cover all disasters, including floods, and encourage adaptation. The government's National Flood Insurance Programme should be bolstered and expanded. Those are big lifts in the best of times and probably impossible given the current leadership in Washington. Barring insurers from using credit scores to set premiums and making them be more transparent about their methods are simpler first steps that might even have bipartisan appeal. More importantly, that would focus everybody's attention, including insurers, on the big question of how we can all survive and thrive in a changing climate. — Bloomberg Mark Gongloff is a Bloomberg Opinion editor and columnist covering climate change. The views expressed here are the writer's own.
Yahoo
6 days ago
- Business
- Yahoo
Frank Sands Reduces Shopify Inc. Holdings by 38.31% in Q2 2025
Exploring the Strategic Moves of Sands Capital Management Frank Sands (Trades, Portfolio) recently submitted the 13F filing for the second quarter of 2025, providing insights into his investment moves during this period. Frank M. Sands, Jr., CFA is the Chief Executive Officer and Chief Investment Officer of Sands Capital Management, an investment management firm focused on investing in quality growth businesses throughout the world. He spends most of his time on investment research and decision making, as well as business strategy. Sands Capital Management was founded by his father, Frank M. Sands, Sr. in 1992. Frank Sands (Trades, Portfolio), Jr. joined the firm in 2000 after working for six years as a research analyst and portfolio manager for Fayez Sarofim & Co., an institutional investment management firm based in Houston, Texas. Since joining Sands Capital Management, working alongside his father, the firm has continued to produce strong investment results for its clients. Sands Jr. earned a BA from Washington & Lee University, an MS from Johns Hopkins University and an MBA from the Darden School at the University of Virginia. Sands Capital believes that over time, stock prices reflect the earnings growth of their underlying businesses. Their team is dedicated to identifying the relatively small number of truly exceptional growth businesses that they expect to own for many years. The firm has two primary concentrated growth strategies: Select Growth, emphasizing rapidly growing innovative businesses, and Global Growth, emphasizing rapidly growing business all over the world. Warning! GuruFocus has detected 5 Warning Signs with NVDA. Summary of New Buy Frank Sands (Trades, Portfolio) added a total of 3 stocks, among them: The most significant addition was On Holding AG (NYSE:ONON), with 4,614,347 shares, accounting for 0.69% of the portfolio and a total value of $240.18 million. The second largest addition to the portfolio was Carlisle Companies Inc (NYSE:CSL), consisting of 426,360 shares, representing approximately 0.46% of the portfolio, with a total value of $159.20 million. The third largest addition was Palo Alto Networks Inc (NASDAQ:PANW), with 154,863 shares, accounting for 0.09% of the portfolio and a total value of $31.69 million. Key Position Increases Frank Sands (Trades, Portfolio) also increased stakes in a total of 25 stocks, among them: The most notable increase was Intercontinental Exchange Inc (NYSE:ICE), with an additional 2,620,310 shares, bringing the total to 5,313,039 shares. This adjustment represents a significant 97.31% increase in share count, a 1.38% impact on the current portfolio, with a total value of $974.78 million. The second largest increase was Arthur J. Gallagher & Co (NYSE:AJG), with an additional 918,618 shares, bringing the total to 1,121,249. This adjustment represents a significant 453.35% increase in share count, with a total value of $358.93 million. Summary of Sold Out Frank Sands (Trades, Portfolio) completely exited 12 holdings in the second quarter of 2025, as detailed below: Uber Technologies Inc (NYSE:UBER): Frank Sands (Trades, Portfolio) sold all 3,913,222 shares, resulting in a -0.97% impact on the portfolio. Nike Inc (NYSE:NKE): Frank Sands (Trades, Portfolio) liquidated all 3,754,580 shares, causing a -0.81% impact on the portfolio. Key Position Reduces Frank Sands (Trades, Portfolio) also reduced positions in 37 stocks. The most significant changes include: Reduced Shopify Inc (NASDAQ:SHOP) by 4,653,206 shares, resulting in a -38.31% decrease in shares and a -1.51% impact on the portfolio. The stock traded at an average price of $99.95 during the quarter and has returned 39.39% over the past 3 months and 41.15% year-to-date. Reduced Inc (NASDAQ:AMZN) by 1,864,520 shares, resulting in a -16.81% reduction in shares and a -1.21% impact on the portfolio. The stock traded at an average price of $197.77 during the quarter and has returned 6.24% over the past 3 months and 2.36% year-to-date. Portfolio Overview At the second quarter of 2025, Frank Sands (Trades, Portfolio)'s portfolio included 66 stocks, with top holdings including 9.78% in NVIDIA Corp (NASDAQ:NVDA), 5.81% in Inc (NASDAQ:AMZN), 5.56% in Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), 4.35% in Netflix Inc (NASDAQ:NFLX), and 4.22% in Microsoft Corp (NASDAQ:MSFT). The holdings are mainly concentrated in 8 of the 11 industries: Technology, Consumer Cyclical, Communication Services, Financial Services, Healthcare, Industrials, Energy, and Basic Materials. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Advertiser
7 days ago
- Entertainment
- The Advertiser
'That's leader behaviour': Former PM spotted taking on a surprising job
Drivers in a busy Sydney car park were surprised to find an unusual guide for exiting traffic - former prime minister Tony Abbott. Mr Abbott was filmed holding the boom gate of an underground car park open with one hand as he waved cars through with the other. The Pitt Street car park was reportedly battling congestion when the former PM decided to assist. It is unclear when the footage was filmed, but since was shared to the Instagram account Humans of Eastwood Daily, it quickly garnered thousands of likes and comments. "From budgie smuggler to car smuggler, a man of many talents," one person replied. Another said she was impressed, "that's leader behaviour". "He was always a worker. Bushfire CFA volunteer, surf lifesaver, he did a lot more civil service than most pollies," said another. Mr Abbott is well known for jumping in at times of crisis, in a personal capacity, including volunteering with the NSW Rural Fire Service. During the Black Summer bushfires he was seen working to save homes. Despite the good deed, others could not look past the 28th prime minister's other endeavours. "Remember the time he ate an onion," one quipped. Another said it was the "best thing Tony Abbott's done". READ MORE: 'Political folklore': Tony Abbott still has an eye for a good-looking onion Drivers in a busy Sydney car park were surprised to find an unusual guide for exiting traffic - former prime minister Tony Abbott. Mr Abbott was filmed holding the boom gate of an underground car park open with one hand as he waved cars through with the other. The Pitt Street car park was reportedly battling congestion when the former PM decided to assist. It is unclear when the footage was filmed, but since was shared to the Instagram account Humans of Eastwood Daily, it quickly garnered thousands of likes and comments. "From budgie smuggler to car smuggler, a man of many talents," one person replied. Another said she was impressed, "that's leader behaviour". "He was always a worker. Bushfire CFA volunteer, surf lifesaver, he did a lot more civil service than most pollies," said another. Mr Abbott is well known for jumping in at times of crisis, in a personal capacity, including volunteering with the NSW Rural Fire Service. During the Black Summer bushfires he was seen working to save homes. Despite the good deed, others could not look past the 28th prime minister's other endeavours. "Remember the time he ate an onion," one quipped. Another said it was the "best thing Tony Abbott's done". READ MORE: 'Political folklore': Tony Abbott still has an eye for a good-looking onion Drivers in a busy Sydney car park were surprised to find an unusual guide for exiting traffic - former prime minister Tony Abbott. Mr Abbott was filmed holding the boom gate of an underground car park open with one hand as he waved cars through with the other. The Pitt Street car park was reportedly battling congestion when the former PM decided to assist. It is unclear when the footage was filmed, but since was shared to the Instagram account Humans of Eastwood Daily, it quickly garnered thousands of likes and comments. "From budgie smuggler to car smuggler, a man of many talents," one person replied. Another said she was impressed, "that's leader behaviour". "He was always a worker. Bushfire CFA volunteer, surf lifesaver, he did a lot more civil service than most pollies," said another. Mr Abbott is well known for jumping in at times of crisis, in a personal capacity, including volunteering with the NSW Rural Fire Service. During the Black Summer bushfires he was seen working to save homes. Despite the good deed, others could not look past the 28th prime minister's other endeavours. "Remember the time he ate an onion," one quipped. Another said it was the "best thing Tony Abbott's done". READ MORE: 'Political folklore': Tony Abbott still has an eye for a good-looking onion Drivers in a busy Sydney car park were surprised to find an unusual guide for exiting traffic - former prime minister Tony Abbott. Mr Abbott was filmed holding the boom gate of an underground car park open with one hand as he waved cars through with the other. The Pitt Street car park was reportedly battling congestion when the former PM decided to assist. It is unclear when the footage was filmed, but since was shared to the Instagram account Humans of Eastwood Daily, it quickly garnered thousands of likes and comments. "From budgie smuggler to car smuggler, a man of many talents," one person replied. Another said she was impressed, "that's leader behaviour". "He was always a worker. Bushfire CFA volunteer, surf lifesaver, he did a lot more civil service than most pollies," said another. Mr Abbott is well known for jumping in at times of crisis, in a personal capacity, including volunteering with the NSW Rural Fire Service. During the Black Summer bushfires he was seen working to save homes. Despite the good deed, others could not look past the 28th prime minister's other endeavours. "Remember the time he ate an onion," one quipped. Another said it was the "best thing Tony Abbott's done". READ MORE: 'Political folklore': Tony Abbott still has an eye for a good-looking onion
Economic Times
12-08-2025
- Business
- Economic Times
Over 16.7 lakh households benefitted under solar scheme, Rs 9,000 cr disbursed, Parl told
A total of 16.78 lakh households have been benefitted with rooftop installations under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) and over Rs 9,000 crore has been disbursed as Central Financial Assistance (CFA) to the beneficiaries, Parliament was informed on Tuesday. The Ministry of New & Renewable Energy (MNRE) is implementing PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) across the country since February 2024. The scheme targets to achieve rooftop solar installations in one crore households in the residential sector by 2026-27. "A total of 16.78 lakh no. of households have been benefitted with rooftop solar installations under the scheme as on 05.08.2025 and amount of Rs 9,280.88 crore has been disbursed as Central Financial Assistance (CFA) to the beneficiaries," Minister of State (MoS) for New and Renewable Energy and Power Shripad Yesso Naik said in a reply to the Rajya Sabha. The MNRE had launched Grid Connected Rooftop Solar Programme Phase-II in March 2019. In October 2022, the timeline for implementation of the programme was extended until March 2026. However, with the launch of PMSG: MBY in February 2024, the Grid Connected Rooftop Solar Programme Phase-II was subsumed under it.
Time of India
12-08-2025
- Business
- Time of India
Over 16.7 lakh households benefitted under solar scheme, Rs 9,000 cr disbursed, Parl told
A total of 16.78 lakh households have been benefitted with rooftop installations under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) and over Rs 9,000 crore has been disbursed as Central Financial Assistance (CFA) to the beneficiaries, Parliament was informed on Tuesday. The Ministry of New & Renewable Energy (MNRE) is implementing PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) across the country since February 2024. The scheme targets to achieve rooftop solar installations in one crore households in the residential sector by 2026-27. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program "A total of 16.78 lakh no. of households have been benefitted with rooftop solar installations under the scheme as on 05.08.2025 and amount of Rs 9,280.88 crore has been disbursed as Central Financial Assistance (CFA) to the beneficiaries," Minister of State (MoS) for New and Renewable Energy and Power Shripad Yesso Naik said in a reply to the Rajya Sabha. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like I Thought I'd Live With Ear Ringing Forever – Until I Found This Trick Derila Ergo Undo The MNRE had launched Grid Connected Rooftop Solar Programme Phase-II in March 2019. In October 2022, the timeline for implementation of the programme was extended until March 2026. However, with the launch of PMSG: MBY in February 2024, the Grid Connected Rooftop Solar Programme Phase-II was subsumed under it.
