interesting plot twist. i’ve always wondered how a mutual company like liberty mutual was able to buy other ‘stock’ companies like ohio casualty & safeco, and if the liberty mutual policy holders ever got a financial benefit from their company purchasing those stock companies? oh, its all so confusing, but if anyone understands the ins & outs of a mutual company buy stock companies, i think liberty mutual knows how its done.
Do you think policyholders of the mutual would rather have a dividend check in their hands or be told that their insurance paper unexpectedly improved to a higher AM Best rating?
What’s wrong with getting a dividend check and getting their policies moved to a higher AM Best rated company? The company mergers I’ve been involved with generally renunderwrite and/or reprice the acquired book so getting a new company is not always in the best interest of all the policyholders.
But, if you agree the policyholders have an ongoing interest after the transaction, wouldn’t you have to consider their “interests” are being drastically diluted by putting their individual premium contributions into a vastly larger pool of premiums?
I believe that’s an after thought, after the stockholders who are cashing out landed again from clicking their heels together and laughing…
interesting plot twist. i’ve always wondered how a mutual company like liberty mutual was able to buy other ‘stock’ companies like ohio casualty & safeco, and if the liberty mutual policy holders ever got a financial benefit from their company purchasing those stock companies? oh, its all so confusing, but if anyone understands the ins & outs of a mutual company buy stock companies, i think liberty mutual knows how its done.
Do you think policyholders of the mutual would rather have a dividend check in their hands or be told that their insurance paper unexpectedly improved to a higher AM Best rating?
What’s wrong with getting a dividend check and getting their policies moved to a higher AM Best rated company? The company mergers I’ve been involved with generally renunderwrite and/or reprice the acquired book so getting a new company is not always in the best interest of all the policyholders.
But, if you agree the policyholders have an ongoing interest after the transaction, wouldn’t you have to consider their “interests” are being drastically diluted by putting their individual premium contributions into a vastly larger pool of premiums?
I believe that’s an after thought, after the stockholders who are cashing out landed again from clicking their heels together and laughing…