Archived posting to the Leica Users Group, 1998/12/09

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Subject: [Leica] Re: Completely off topic / ins. cos.
From: Paul Schiemer <pschiemer@aol.com>
Date: Wed, 09 Dec 1998 11:42:43 -0500

You guys wrote:
<<>>Ever notice that some of the biggest buildings are owned by
insurance companies?<<

<<Well, think of the economics of large buildings and of insurance
companies.
 Large buildings pay off in time, a long time, but are a relatively
certain bets.  Life insurance companies NEED this sort of long-term,
guaranteed income:  

So, of course insurance companies own, and finance, a lot of LARGE
buildings.>>

Just because the name on the outside says "Joe Blatzmo Insurance" does
not mean THEY own the building.
They may be the anchor tennant for the owner, and, because of that, they
get the temporary sticker on the outside (temporary because it can
easily be changed to another name.)
I see Allstate on lots of buildings locally (albeit small ones) and
know, for a fact, they are renting.
I think State Farm is no. 1, and Allstate is no. 2 as insurance
companies go here Stateside (or the other way 'round).

I'd wager most insurance companies spread their assets across a wide and
diverse set of investments, some short term, others long- but not,
particularly or in specific, real estate.