Portfolio insurance.

The article focuses on the financial status of Century Shares Trust Co., a no-load insurance sector fund based in Boston, Massachusetts. Century Shares has returned over 18% a year during the three stock market cycles since November 1980, versus less than 16% for the S&P 500. Its expense ratio is just 0.9%-a little more than half the average for equity funds. An insurance company typically loses money on its insurance underwriting but makes up for that by investing the premiums it takes in. Fund manager Allan Fulkerson, has put together his fine record by buying insurers with high returns on equity. He analyzes a company's return on equity in two parts: book value growth and dividends.