Where is all this hate coming from with Liberty. They have a very large market through the Independent agents. As matter of fact they are larger on that side than the direct market. We have a large book with them and they have always did right by us. We have had several issues that they could have refused to pay but did the right thing. Everyone wants to relate every company to AIG. Remember AIG got in trouble from the investment side not the insurance!
Liberty did quite well in underwriting for this quarter. Historically they are a company that runs 110% loss ratio and makes a profit on investment income. This result is reversed. They still made an underwriting profit. Their danger sign will be if rates continue to drop. If they continue on the negative side for investments, then they would have trouble.
“…and still reported positive, albeit slightly (lower), results in the quarter.”
Let’s see, $6 million is about 1 1/5% of $404 million. Yeah, I’d say that is just “slightly lower”… if I was the guy trying to explain why they had so much catastrophe exposure in the first place. Headed for a B+!
Aren’t they owned by a mutual holding company though? In the end, it’s just a way to get access to the capital market while maintaining the overall advantages of the mutual company. For example, Liberty isn’t registered with the SEC, and doesn’t file reports with them
Even mutual company information is public through the various insurance departments. Although they don’t have stockholders they still have a lot of information public from those and other sources. You make it sound as if being a mutual is a way to be secretive. Hardly.
IF “rates” continue to drop? Are you kidding? I’m in the Midwest – the Land of Indiana…. and these whores stopped underwriting a looooooong time ago. I was looking at some notes from 2006, and we were lamenting that INDIANA (LIB MUTUAL) was starting to offer 50% credit in Illinois in late 2006. How long can they go? Indiana has been standing on the street corner in her fishnet stockings for more than 2 years, and just taking orders at whatever price sells. And the Independent Agent follows blindly. We’ll see what happens in 2009.
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Where is all this hate coming from with Liberty. They have a very large market through the Independent agents. As matter of fact they are larger on that side than the direct market. We have a large book with them and they have always did right by us. We have had several issues that they could have refused to pay but did the right thing. Everyone wants to relate every company to AIG. Remember AIG got in trouble from the investment side not the insurance!
Liberty did quite well in underwriting for this quarter. Historically they are a company that runs 110% loss ratio and makes a profit on investment income. This result is reversed. They still made an underwriting profit. Their danger sign will be if rates continue to drop. If they continue on the negative side for investments, then they would have trouble.
Bill, you sound like a broken record.
I see you post the exact same comment every dang day. We get your point. Move on.
“…and still reported positive, albeit slightly (lower), results in the quarter.”
Let’s see, $6 million is about 1 1/5% of $404 million. Yeah, I’d say that is just “slightly lower”… if I was the guy trying to explain why they had so much catastrophe exposure in the first place. Headed for a B+!
Aren’t they owned by a mutual holding company though? In the end, it’s just a way to get access to the capital market while maintaining the overall advantages of the mutual company. For example, Liberty isn’t registered with the SEC, and doesn’t file reports with them
Even mutual company information is public through the various insurance departments. Although they don’t have stockholders they still have a lot of information public from those and other sources. You make it sound as if being a mutual is a way to be secretive. Hardly.
Joe,
FYI – Liberty is not a mutual – they are a stock company…it’s just not traded publicly…..Mutual is just the second 1/2 of their name.
J
IF “rates” continue to drop? Are you kidding? I’m in the Midwest – the Land of Indiana…. and these whores stopped underwriting a looooooong time ago. I was looking at some notes from 2006, and we were lamenting that INDIANA (LIB MUTUAL) was starting to offer 50% credit in Illinois in late 2006. How long can they go? Indiana has been standing on the street corner in her fishnet stockings for more than 2 years, and just taking orders at whatever price sells. And the Independent Agent follows blindly. We’ll see what happens in 2009.