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Reinsurance shares in general had a terrible 2002. But now 2003 is over, many can look back and say that it was a far better year. In the year from December 15 2002 to December 15 2003, only four of the 20 stocks in the Reactions/ Thomson DataStream reinsurance index lost any value.
Australian reinsurer ReAC saw the biggest growth in share price over the year. Its share price increased by more than 213%. But the company is in run-off and its shares are trading at very low levels. In dollar terms, its share price only grew by 20 cents.
The true star performer of the year is Bermudian reinsurer Max Re. Its share price grew by more than 80% over the year. When these figures were recorded on December 15, its share price was trading at $21.25, compared with $11.79 at the same time in 2002.
Max Re's management should...