MetLife (MET - option chain) stock is trading lower today along with most other insurance companies this morning after the cost to insurers related to Friday's earthquake in Japan was estimated to be between $15 to $35 billion. Prudential Financial (PRU) and AIG (AIG) are also down so far in today's trading. Even if these insurance companies are actually on solid footing financially with regard to their expected claims, I expect investors could be frightened for several months to come, which could keep share prices depressed. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MET.

Investors searching for opportunities will be hard pressed to find stocks that are still undervalued. It seems like this rally has pushed every sector to very high levels. Perhaps, it may be time to look in more off-the-cuff places for investment ideas.

One possibility trades on the Amsterdam-based exchange, the Euronext. The Dutch insurer, Delta Lloyd Group, which has operations in the Netherlands, Germany, and Belgium, is a profitable company with a favorable balance sheet that trades at a significant discount to its book value. In the first half of 2010, it generated €767 million of income after taxes and non-controlling interests, a 263% increase. At the same time, it has €3,903 billion in tangible assets net of all liabilities, but a market cap of just € 2,810 billion as of January 11. In other words, investing in Delta Lloyd is like buying assets, with all liabilities paid off, at a 30% discount.

Humana Inc. (HUM), whose colleagues include Aetna Inc. (AET) and CIGNA Corporation (CI), reported Q1 earnings earlier today. The health insurer isn't doing so well, unfortunately. In late trading, shares were down almost 3% to $43.73. Volume is above the norm, as you might expect.

I've covered many stocks that are near their 52-week highs, but this one doesn't fall into such a desirable category. Alas, the 52-week high on the shares stands at $52.66. And, as you can see from the following one-year chart, the stock began its pullback after it topped out in January. Since then, things haven't been too exciting.

The Travelers (TRV), which I first discussed on April 24, 2009, at a price of $30.50 is, as expected, becoming less-cheap by the month. Hence, it's likely that it's "now or never" to catch this train and earn an out-sized gain with TRV during the current economic expansion.

Look for 2% to 4% premium revenue growth with TRV, as the insurance company takes advantage of new business opportunities. Prudent underwriting, a superior balance sheet, and a $1.32 annual dividend add to the positive mix.

All in all, there are many advantages to a home business. For example, you have more time to spend with your family, you do not have to deal with aggravating commutes, and there is even the home office tax deduction. If anything, the overall costs should be lower -- making it easier to get traction for your business.

Yet, there are definitely considerable risks, which are often overlooked. But the good news is that smart insurance planning can provide sufficient protection. And the prices are affordable, costing as little as $500 per year.

Catastrophe bond capacity is maturing, and not much of it is coming back. In the first quarter, $1.8 billion in cat bond risk capital matured, and only $508 million returned in the form of new issuances, according to Thomson Reuters. This quarter, $2.77 billion is maturing, and the absence of first-time issuers makes it unlikely that the market will replace it all. More than a billion of it was from State Farm's Merna Re transaction. The successor to it has already been issued, cleverly named Merna Re II, at only a fraction of the previous bond.

The first catastrophe bond of the quarter closed on opening day ... and it was a big one. State Farm's Merna Re II transaction was good for $350 million in risk capital, upsized from the earlier reported amount of $250 million. Though large, it doesn't compare to the previous Merna Re catastrophe bond, which set a record at $1.2 billion that remains to be beat.

Merna Re II was oversubscribed, but State Farm only wanted to place $350 million, Thomson Reuters reports (registration required). According to one investor who knew about the transaction, "The deal was oversubscribed at +365 basis points and after being upsized to $350 million." The investor added, "The initial price talk was 365 - 405 bp, but the deal got priced at 365 bp. However, Merna was a simple transaction and State Farm only wanted to place 350 million."

The first quarter of 2010 will probably go down in history as the worst ever for catastrophe losses.

According to global reinsurance broker Willis Re (WSH), the insurance industry recorded $16 billion in insured losses, from the Chile earthquake and Windstorm Xynthia in Europe, but the largest losses occurred in smaller markets, where it premium volumes aren't as large. Since the third and fourth quarters tend to be the most loss-prone of the year, a quarter that is normally quiet could set the stage for outsized losses.