Don’t you see? This is the beginning of the collapse of the insurance industry. Maybe now people will understand how this unregulated giant has been the spine of our prosperity. The Spine that wasn’t visible to the naked eye until the flesh was torn from it. Now you can see how it is connected to every aspect of our living economy. And now, you can see how it is broken and say to yourself “hmmm, I guess it was crucial to our economic survival”.”Can we fix it now?”
Answer with a question, “Have we discovered a medical procedure to cure a broken back, which caused paralysis?”
Liberty – who are you kidding? This is becuase you and all of your Regional Markets have been buying business on the street for 50 cents on the dollar, for about the last 3-4 years!! And now your financials are suspect, and you took a $7 billion gulp that was overpaid for! You’ll likely lose 15-25% of what you bought as you make the switch from Lib Mutual Regional paper to Safeco on P/L, and vice versa on C/L. The best news in this whole thing is that Lib Mutual will be quiet in 2009 – finally! And the rest of us can actually get on to properly pricing business to exposure.
EMC Insurance Group Inc. (Nasdaq: EMCI) today announced that losses associated with Hurricanes Gustav and Ike are expected to range from approximately $8.2 million to $9.0 million, or $0.39 to $.43 per share after tax.
Property and casualty insurer Harleysville Group Inc. – rated A minus by AM Best – said Tuesday that it holds $11 million worth of securities from investment bank Lehman Brothers Holdings Inc. and mega-insurer American International Group.
Shares of State Auto Financial Corp. fell sharply Monday after an analyst downgraded the insurance company’s stock, calling it overpriced after steep gains last week.
Cincinnati, which still holds securities of American International Group Inc worth about $81 million as of September 15, sees an impairment charge of about $50 million from securities related to the mortgage giants Fannie Mae and Freddie Mac.
Cincinnati said it had sold most of the $24 million of Lehman preferred stock and debt securities held at June 30, and expects to take a related charge of $9 million in third quarter.
United Fire & Casualty Co. (UFCS) projected up to $20 million in third-quarter pretax losses from hurricanes Gustav and Ike and added a default by Lehman Brothers Holdings Inc. (LEHMQ) would cut earnings by another $4 million.
Standard & Poor’s Ratings Services it has lowered its outlook on Selective Insurance Group Inc. and its subsidiaries to negative from stable, citing concerns that recent profitability has not been as strong as the ratings agency expected at the current rating level, as well as the decline in capital adequacy since the end of 2006 and relative to peers.
Big Turtle,
What on earth are you talking about? The insurance industry is coming down? AIG was by every definition a non-standard company, specializing in charging the firestorm of underwriting and investment risk. Liberty has been one of the most active insurers in M&A activity of late. These companies are, at no rate, an indication of an industry’s health. With a slowing in CAT activity (even in a soft market) many companies are quite robust…Today!
hey liberty policy holder…go to geico.com for your free rate quote. I saved…and their day to day business is not tied to investments. I feel good about Buffet being sole owner!!
Has Liberty grown too quickly? Appears the S & P folks are just giving us a heads up on whats to come. I’ll heed that warning and beging to move my business!
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hmmm
Don’t you see? This is the beginning of the collapse of the insurance industry. Maybe now people will understand how this unregulated giant has been the spine of our prosperity. The Spine that wasn’t visible to the naked eye until the flesh was torn from it. Now you can see how it is connected to every aspect of our living economy. And now, you can see how it is broken and say to yourself “hmmm, I guess it was crucial to our economic survival”.”Can we fix it now?”
Answer with a question, “Have we discovered a medical procedure to cure a broken back, which caused paralysis?”
Liberty – who are you kidding? This is becuase you and all of your Regional Markets have been buying business on the street for 50 cents on the dollar, for about the last 3-4 years!! And now your financials are suspect, and you took a $7 billion gulp that was overpaid for! You’ll likely lose 15-25% of what you bought as you make the switch from Lib Mutual Regional paper to Safeco on P/L, and vice versa on C/L. The best news in this whole thing is that Lib Mutual will be quiet in 2009 – finally! And the rest of us can actually get on to properly pricing business to exposure.
Hey, I told you that you shouldn’t have raised my premium in this soft market without any reported loss in 10 years!
EMC Insurance Group Inc. (Nasdaq: EMCI) today announced that losses associated with Hurricanes Gustav and Ike are expected to range from approximately $8.2 million to $9.0 million, or $0.39 to $.43 per share after tax.
Property and casualty insurer Harleysville Group Inc. – rated A minus by AM Best – said Tuesday that it holds $11 million worth of securities from investment bank Lehman Brothers Holdings Inc. and mega-insurer American International Group.
Shares of State Auto Financial Corp. fell sharply Monday after an analyst downgraded the insurance company’s stock, calling it overpriced after steep gains last week.
Cincinnati, which still holds securities of American International Group Inc worth about $81 million as of September 15, sees an impairment charge of about $50 million from securities related to the mortgage giants Fannie Mae and Freddie Mac.
Cincinnati said it had sold most of the $24 million of Lehman preferred stock and debt securities held at June 30, and expects to take a related charge of $9 million in third quarter.
United Fire & Casualty Co. (UFCS) projected up to $20 million in third-quarter pretax losses from hurricanes Gustav and Ike and added a default by Lehman Brothers Holdings Inc. (LEHMQ) would cut earnings by another $4 million.
Standard & Poor’s Ratings Services it has lowered its outlook on Selective Insurance Group Inc. and its subsidiaries to negative from stable, citing concerns that recent profitability has not been as strong as the ratings agency expected at the current rating level, as well as the decline in capital adequacy since the end of 2006 and relative to peers.
Big Turtle,
What on earth are you talking about? The insurance industry is coming down? AIG was by every definition a non-standard company, specializing in charging the firestorm of underwriting and investment risk. Liberty has been one of the most active insurers in M&A activity of late. These companies are, at no rate, an indication of an industry’s health. With a slowing in CAT activity (even in a soft market) many companies are quite robust…Today!
You, sir or madam, are an EGGHEAD!
Big turtle…you just been poned!
hey liberty policy holder…go to geico.com for your free rate quote. I saved…and their day to day business is not tied to investments. I feel good about Buffet being sole owner!!
I hope to live long enough to one day see a company that is man (or woman) enough to take a rating decrease without squealing like a stuck pig.
Has Liberty grown too quickly? Appears the S & P folks are just giving us a heads up on whats to come. I’ll heed that warning and beging to move my business!