Fairfax benefits from credit default purchase

Insurance organizations are a conservative bunch as far as investment policy is concerned, for the sound reason that they never know when they will need a large amount of cash to pay claims in the event of a catastrophic loss. A handful of players, including Max Capital, have pursued a more adventurous investment strategy, and given the turbulent investment climate of the past few months it is no surprise that these companies are recording figures that are out of step with the rest of the market.