ALL THE TIME.
Comprised of 15 analysts, our Equity Research team is in constant contact with management of both public and private companies to keep our clients abreast of industry trends and new developments. Our boutique model of “all insurance, all the time” allows our dedicated five person sales team to respond to our client’s needs quickly and provide timely access to senior research analysts.
AIG LOSS RESERVES ON AN IMPROVING TRACK WITH MORE RECENT AY APPEARING STRONGER
With the last two AYs appearing well reserved by AIG, along with continued strengthening of the older legacy reserves, we believe their aggregate reserve position is noticeably improved. That said, we continue to believe the older legacy reserves will develope adversely = overall development, on average, is likely to be adverse over the next several quarters. See our full report published 5/12.
AJIT JAIN/NATIONAL INDEMNITY/ BERKSHIRE HATHAWAY "DOES A PROGRESSIVE", GOES DIRECT TO INSURED/CUSTOMER IN COMMERICAL LINES (WORKERS' COMP)
In theory, a direct to insured insurance offering that is capable of offering a real time bindable quote on the front end, and assumes all the risk gross/net on the back end represents the most efficient business model possible. Looking ahead, we envision a world where "agents" will continue to write the vast majority of small commercial accounts, but will do so with lower commissions and potentially new partners. See IBNR #15, 2015
FROM "FRIENDLY" TO "HOSTILE"... EXOR PUTS IN "FINAL AND LAST OFFER" FOR PARTNERRE AT $137.50 CASH (UP FROM $130/SH)
In what is now stated to be EXOR's "final and last offer" for PartnerRe, EXOR will pay $137.50/sh in cash (up from $130.00/sh) for PartnerRe. The revised bid equates to $6.8B or a ~10% premium to the implied value under the revised agreement between PartnerRe/AXIS or 116% of adj. TBV/sh, further adjusting PartnerRe's estimated YE BV for the break-up fee expense reimbursements to AXS. The two offers on the table for PartnerRe bring diametrically opposed options to the co. The "doubling down" in an attempt to get closer to the customer vs. a willingness/ability to accept lower returns than what public shareholders are accustomed to. They are very different strategies for PartnerRe. Shareholders must decide, do they want $137.50/sh in cash immediately from EXOR, or ~$123/sh of TBV in the new AXS/PRE (Which in theory is understated by loss reserve releases). The ball is once again in PartnerRe's court. See IBNR UNDERCOVERage #17