What is to be gained by this except to enrich management and venture capitalist, I don’t see how this will benefit the policyholders – unfortunately the policyholders are apathetic, so it will be approved because no one cares.
I am amazed at how this could happen. Mutuals are insulated from the market and while it is difficult to raise capital for expansion, that’s not a good reason to convert. I agree that there must be something in this for managment enrichment. They doubled their surplus didn’t they, without taking on additional exposure; if it is money they need to upgrade their data systems, a judicious use of some of that surplus is in order. Bet they couldn’t get their hands on surplus for bonuses, so going stock will allow them to reward themselves, cash in, sell out and get out. Too bad….
What is to be gained by this except to enrich management and venture capitalist, I don’t see how this will benefit the policyholders – unfortunately the policyholders are apathetic, so it will be approved because no one cares.
I am amazed at how this could happen. Mutuals are insulated from the market and while it is difficult to raise capital for expansion, that’s not a good reason to convert. I agree that there must be something in this for managment enrichment. They doubled their surplus didn’t they, without taking on additional exposure; if it is money they need to upgrade their data systems, a judicious use of some of that surplus is in order. Bet they couldn’t get their hands on surplus for bonuses, so going stock will allow them to reward themselves, cash in, sell out and get out. Too bad….