Insurance:Healthcare reform-Good or bad or a little of both

The Ministry of Health and Welfare intends to alter the state-run healthcare programsignificantly. The plans, which include cutting patients’ medical expenses, shouldlower long-term risk-loss ratios. Backlash from doctors and likely pressure to cutprivate insurance-premiums, however, muddy the cost-benefit analysis.

    We advise looking at alternatives to stocks that have already jumped. Potentialcandidates should be: 1) market leaders that, despite solid fundamentals, haveunderperformed second-tier firms due to disappointing capital utilization; 2) INGLife Korea for its sector-best capital adequacy ratios and shareholder return policy;and 3) life insurers, which are should benefit from rising interest rates.