Remember – they also had more than $200 million in Fifth Third Bank?
BANGALORE (Reuters) – Cincinnati Financial Corp, a U.S. Midwestern property and casualty insurer, said its exposure to troubled institutions like Lehman Brothers Holdings Inc and government-sponsored enterprises will hurt its 2008 results.
However, analysts do not expect the charges related to the exposure to hurt the company significantly in the coming quarters.
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.
Lehman Brothers, once an investment banking giant, filed for bankruptcy protection on Monday after trying to finance too many risky assets with too little capital.
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.
The think about Liberty – and some others – is that huge benefit of being a mutual. they don’t have to play the game the same way, and they don’t have to report the same way. And they’ve got it covered, whether they want to write direct, write through brokers or wholesalers, or write through Independent Agents. The Independent Agents are the real fools; but then they really don’t care about their industry for the most part. They, independent agents, simply are in it for the quickest cash possible. (and Liberty provides it)
Liberty is looking at a lot of things. Pieces of AIG. But also a couple of other $2 billion to $5 billion acquisitions. There should be news by the end of the year, because storm losses, pricing pressur, and investement woes have 3 or 4 companies in very bad positions right now. The big will get bigger!
I have been an indepndent agent for 28yrs and still work 50 to 60 hrs a week. I have to fund payroll, technology, auto expenses, office space expenses, retirerment fund, healthe insurance,utilities and a number of other expenses out of the on average 11% commision. I do not know what rock you have been under but I can assure you there is no quick money on the independent side of this business. If you think there is give it a try and let me know how things go.
I don’t know what rock YOU’VE been under, but Agency Markets, the arm that utilizes independent agencies offers 15-30% commissions, depending on volume, region, loss ratio, and number of years the business is kept on the books, with an additional 5% incentive during the transitioning of Safeco into Agency Markets.
I don’t know any Independent Agency that makes 11% average commission.
So when will LM start looking at AIG? I hear it has been marked down . . .
And then …they too will be “too big to fail”.
Remember – they also had more than $200 million in Fifth Third Bank?
BANGALORE (Reuters) – Cincinnati Financial Corp, a U.S. Midwestern property and casualty insurer, said its exposure to troubled institutions like Lehman Brothers Holdings Inc and government-sponsored enterprises will hurt its 2008 results.
However, analysts do not expect the charges related to the exposure to hurt the company significantly in the coming quarters.
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.
Lehman Brothers, once an investment banking giant, filed for bankruptcy protection on Monday after trying to finance too many risky assets with too little capital.
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.
The think about Liberty – and some others – is that huge benefit of being a mutual. they don’t have to play the game the same way, and they don’t have to report the same way. And they’ve got it covered, whether they want to write direct, write through brokers or wholesalers, or write through Independent Agents. The Independent Agents are the real fools; but then they really don’t care about their industry for the most part. They, independent agents, simply are in it for the quickest cash possible. (and Liberty provides it)
Liberty is looking at a lot of things. Pieces of AIG. But also a couple of other $2 billion to $5 billion acquisitions. There should be news by the end of the year, because storm losses, pricing pressur, and investement woes have 3 or 4 companies in very bad positions right now. The big will get bigger!
Ship
I have been an indepndent agent for 28yrs and still work 50 to 60 hrs a week. I have to fund payroll, technology, auto expenses, office space expenses, retirerment fund, healthe insurance,utilities and a number of other expenses out of the on average 11% commision. I do not know what rock you have been under but I can assure you there is no quick money on the independent side of this business. If you think there is give it a try and let me know how things go.
I don’t know what rock YOU’VE been under, but Agency Markets, the arm that utilizes independent agencies offers 15-30% commissions, depending on volume, region, loss ratio, and number of years the business is kept on the books, with an additional 5% incentive during the transitioning of Safeco into Agency Markets.
I don’t know any Independent Agency that makes 11% average commission.