I concur with Doctor J’s comment. Zurich had a significantly lower exposure in the “mortgage mess” than most other competitors, which is why they are in the position that they are in, i.e., on the hunt to buy profitable units at bargain basement prices from distressed carriers. Check your sources “Mr/Ms Underwriter”.
Lilla, I noticed you were not quoting Mr. Vitale when you so cavalierly declared that Zurich’s “profits fell” in the 3rdQ, but seemed to be filling copy. Admittedly “profits were down” but you must consider thye made profits when many others were in the red. Overall it seems like Zurich/Zurich NA/FIG are not only in strong strategic positions for growth, they are well focused on future opportunities to grow profit with clean books of business.
I checked out your link, which comes from such a reliable source (aig.com). I loved the disclaimer in the lower left of that document. It would be great to know the sources used in compiling that “pile” of info. Bottom line is Zurich has the power to purchase, while “others” are lacking in power to do much of anything, except be forced to sell profitable units and loose senior and tenured employees, to Zurich no less. Enough said!
Who knows – but there should be news by March 1st on a couple of the big players. Tisch will need cash by then, and should tire of pumping billions into that white elephant that Loew’s calls an insurance company.
I’ve heard that QBE is looking ofr further acquistion in the U.S. but how did they miss on the HSB deal? That would have been a good fit for them. Allianz is another that will be active soon.
Zurich is in a better spot re mortgage securities since Switzerland does not require mark-to-market acctg. And ACE just recently moved HQ to Zurich…coincidence?
2 major mergers or sales should be announced before February 1. To be approved during January board meetings – unless there is unforeseen delay. And the names of carriers involved have all been regularly repeated here.
I also heard that the merger won’t get done until February; but the sale that you are talking about should be announced before end of January. One stock regional coming off the board !!
Despite their aggressiveness, Zurich has 48% of their investments in Mortgage/Asset Backed Securities Exposure. This amounts to 176% of surplus.
Baloney. They’ve already taken the hit.
Care to provide a source for your 48% figure? That # sounds more like AIG.
I concur with Doctor J’s comment. Zurich had a significantly lower exposure in the “mortgage mess” than most other competitors, which is why they are in the position that they are in, i.e., on the hunt to buy profitable units at bargain basement prices from distressed carriers. Check your sources “Mr/Ms Underwriter”.
If Zurich had a problem, we would probably know it by now….
http://web.aig.com/2008/cig8594/cig8594_attachment.pdf
Displays Mortgage/Asset-Backed Securities Exposure by company
I WONDER IF THIS HELPS FARMERS INSURANCE IN THE US?
Lilla, I noticed you were not quoting Mr. Vitale when you so cavalierly declared that Zurich’s “profits fell” in the 3rdQ, but seemed to be filling copy. Admittedly “profits were down” but you must consider thye made profits when many others were in the red. Overall it seems like Zurich/Zurich NA/FIG are not only in strong strategic positions for growth, they are well focused on future opportunities to grow profit with clean books of business.
I checked out your link, which comes from such a reliable source (aig.com). I loved the disclaimer in the lower left of that document. It would be great to know the sources used in compiling that “pile” of info. Bottom line is Zurich has the power to purchase, while “others” are lacking in power to do much of anything, except be forced to sell profitable units and loose senior and tenured employees, to Zurich no less. Enough said!
I gotta believe that Zurich is looking at the Big Stag – the Mighty Elk? Or would they make an offer to Loew’s/Tisch??
Who knows – but there should be news by March 1st on a couple of the big players. Tisch will need cash by then, and should tire of pumping billions into that white elephant that Loew’s calls an insurance company.
I’ve heard that QBE is looking ofr further acquistion in the U.S. but how did they miss on the HSB deal? That would have been a good fit for them. Allianz is another that will be active soon.
Zurich is in a better spot re mortgage securities since Switzerland does not require mark-to-market acctg. And ACE just recently moved HQ to Zurich…coincidence?
2 major mergers or sales should be announced before February 1. To be approved during January board meetings – unless there is unforeseen delay. And the names of carriers involved have all been regularly repeated here.
I also heard that the merger won’t get done until February; but the sale that you are talking about should be announced before end of January. One stock regional coming off the board !!
what company’s are you guys talking about?