If you think even for a moment that they are making money at 102 with the mortagage crap going on you must be smoking something other than tobacco even with in a good market 102 is high!
If they look to the Feds as one poster said they will be o.k.,exec’s can take their bonus’ and screw the workers in the pit.No raise this year!
Loss ratio’s up so what you have the Federal goverment they can save you. I am still trying to understand how AIG can write new business, seen them twice in a week under priced two large insuance companies. The agents say, dont worry the Fed is behind them. Not sure why they are allowed to do this, unfair trade and they have no money to back the paper.
I saw some numbers also. The commercial division had a 98 combined ration and over 70 billion in assets. No problem there, it is all coming from their financial service division, ie mortgage backed securities.
Heck, even I know that if you drop premiums by 20% and everything else remains the same, it will make your combined ratio go up. It will be interesting to see the 3rd quarter results because the average combined ratio will go up due to Ike and Gustav and the companies probably will show losses because you cannot make up the difference in investing right now.
there is still to much money floating around out there to see the beginnings of a hard market. too much foreign capital from asia, the middle east and even warren buffett to see prices firm up. insurance companies never could stand prosperity!
Yeah, so? At 102 they are still making money. And their ROE dropped? They’re still making money. Net income dropped? They’re still on the plus side. Why does only declining impact follow the trickle down theory?
At 102, they’re only making money if their investment income exceeds 2%. Unless they are invested in low risk items, they probably won’t be getting 2% in the third quarter, plus there were larger losses in the third quarter with the hurricanes and other storms. Finally, when will it be revealed that other insurance companies are invested in the sub-primes?
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If you think even for a moment that they are making money at 102 with the mortagage crap going on you must be smoking something other than tobacco even with in a good market 102 is high!
If they look to the Feds as one poster said they will be o.k.,exec’s can take their bonus’ and screw the workers in the pit.No raise this year!
I say halleluiah. Maybe the market will harden somewhat.
Loss ratio’s up so what you have the Federal goverment they can save you. I am still trying to understand how AIG can write new business, seen them twice in a week under priced two large insuance companies. The agents say, dont worry the Fed is behind them. Not sure why they are allowed to do this, unfair trade and they have no money to back the paper.
Tom,
I saw some numbers also. The commercial division had a 98 combined ration and over 70 billion in assets. No problem there, it is all coming from their financial service division, ie mortgage backed securities.
Heck, even I know that if you drop premiums by 20% and everything else remains the same, it will make your combined ratio go up. It will be interesting to see the 3rd quarter results because the average combined ratio will go up due to Ike and Gustav and the companies probably will show losses because you cannot make up the difference in investing right now.
Rates have gotten way too low, perhaps now they will go up…
there is still to much money floating around out there to see the beginnings of a hard market. too much foreign capital from asia, the middle east and even warren buffett to see prices firm up. insurance companies never could stand prosperity!
Yeah, so? At 102 they are still making money. And their ROE dropped? They’re still making money. Net income dropped? They’re still on the plus side. Why does only declining impact follow the trickle down theory?
And hey, if things get too bad, we can always bail them out.
At 102, they’re only making money if their investment income exceeds 2%. Unless they are invested in low risk items, they probably won’t be getting 2% in the third quarter, plus there were larger losses in the third quarter with the hurricanes and other storms. Finally, when will it be revealed that other insurance companies are invested in the sub-primes?