I wonder who will be the first to say, “Whoops, maybe they should have failed?”
From what we see on the wholesale side, Chartis is not underwriting risks and is buying business by cutting competitors’ premium. In an already soft market, Chartis with it size and apparently unlimited ability to spend the taxpayers money, is a beneficiary of the Fed, which has an awful lot of egg on its face!
Quit whining about losing business to your competitor. You lost in the past, you’re losing now and will lose in the future because Chartis is here to stay. Now pull up your skirt, wipe those tears away and go write a BOP.
Well, we know who you work for Phoenix. I’m going to have to agree with earlybird on this one. You guys have been underpricing business for quite a while now.
And can someone please explain how there’s any value in your stock when all the money in the company is on loan from the government and you just had to take a $4 billion dollar reserve adjustment???
No, you don’t know for whom I work Market Watcher.
Underpricing? So you think everybody has combined ratios in the 80’s except for Chartis? If you were to watch long enough you would know that reserve adjustments on ancient claims happens all the time, in both directions. You just don’t here about the takedowns in the headlines.
And on what do you base your statement that all the money in Chartis is on loan from the government? Please tell me where one single dollar of government money went to a Chartis company. You can’t, because it didn’t happen. Perhaps the entire subject of the cds debacle in which the AIG Financial Services Division was involved is a bit much for your pretty little head to comprehend so you just fabricate these preposterous statements hoping nobody will call you on it. You should just sit back and keep watching the market because you obviously don’t have the knowledge and skill to participate.
Well, one thing’s for sure… no matter where you work, I’m glad I don’t have to be anywhere near you beacuse you don’t have the “knowledge and skill” to act like a professional in a public forum.
First off, not everyone is posting combined ratios in the 80’s. More often than not companies are pushing the envelope at or near 100%. And secondly, reserve takedowns are in the headlines every quarter. They’re called earnings releases i.e. financial results smart guy. If you can’t interpret them, then maybe you shouldn’t be working in the financial industry. Clearly you’re contributing to the downfall.
Your lies about Chartis just show either how much you don’t know or how much you have to gain by driving down their stock price, Market Watcher. Now answer my question. What amount of government loans went to Chartis and to where in Chartis did it go? If you can’t answer it, then retract your statement and admit you don’t know what you’re talking about
I agree with Market Watcher. Phoenix is definitely unprofessional and does not know how to act in a professional forum.
As for Chartis, the company has been agressively underpricing business for a long time. It has come home to adversely affect them (particularly on long tail business). Hence, the $4 billion reserve charge in the last quarter. The company is faced with either raising rates dramatically or letting the business go. In addition, the company has lost a lot of its underwriting talent to competitors (Zurich, ACE, Ironshore, etc). If the company is to be a going concern into the future, it is hurt by having some of its brightest minds no longer in the organization. Furthermore, the company has sold off some of its gem business units just to pay back the Fed such as–their Asian life insurance operations and Hartford Steam Boiler to name a few. How does the company expect to survive when some of its key assets are gone and sold for garage sale prices?
The main reason why the company is still trading is because of government support of the company and a reverse 1:20 stock split. If this would not have happened, the company would be trading (at most) around $1.50 a share but probably delisted.
All in all, the American taxpayers got taken to the cleaners on this deal. The company should have just failed…..
You’re splitting hairs Phoenix… AIG still owns Chartis and we all know what that means now don’t we? If AIG got the money and Chartis is owned by AIG and AIG is essentially owned by the government, then that makes you an accomplice in the eyes of the American people.
Remember to thank me when you go to bed tonight – I paid your mortgage payment this month.
Oh, and stop being bitter because the rest of the guys didn’t invite you to come with them to Ironshore.
“On Wednesday, AIG said it has approval from Treasury to pump $2 billion of proceeds from recent asset sales into Chartis to support its capital position.”
Here’s some figures that are straight from the earnings release – Chartis had close to $32 Billion in Written Premiums for 2010. They have $123 Billion in Net Invested Assets and $39 Billion is Statutory Surplus – which is up over 2009. So even if they took the entire reserve adjustment from net invested assets they would still be the largest property and casualty company in the world that sells its products through independent brokers. Also note if they took the reserve hit from surplus they would still have a surplus to premium ratio above 1.00 which is more than enough to maintain their ratings. Keep in mind we may not like Chartis/AIG but no one can deny they were well financed and their surplus and assets were always separately held per state insurance regulations from the rest of the AIG operations.
Chewbacca says:
“I agree with Market Watcher. Phoenix is definitely unprofessional and does not know how to act in a professional forum.”
Oh please! Get over yourselves! You do realize that this is just a comment board on a free internet site, don’t you? It’s no more a professional forum than the op/ed pages of your local news rag.
I wonder who will be the first to say, “Whoops, maybe they should have failed?”
From what we see on the wholesale side, Chartis is not underwriting risks and is buying business by cutting competitors’ premium. In an already soft market, Chartis with it size and apparently unlimited ability to spend the taxpayers money, is a beneficiary of the Fed, which has an awful lot of egg on its face!
Quit whining about losing business to your competitor. You lost in the past, you’re losing now and will lose in the future because Chartis is here to stay. Now pull up your skirt, wipe those tears away and go write a BOP.
Yes !
Well, we know who you work for Phoenix. I’m going to have to agree with earlybird on this one. You guys have been underpricing business for quite a while now.
And can someone please explain how there’s any value in your stock when all the money in the company is on loan from the government and you just had to take a $4 billion dollar reserve adjustment???
No, you don’t know for whom I work Market Watcher.
Underpricing? So you think everybody has combined ratios in the 80’s except for Chartis? If you were to watch long enough you would know that reserve adjustments on ancient claims happens all the time, in both directions. You just don’t here about the takedowns in the headlines.
And on what do you base your statement that all the money in Chartis is on loan from the government? Please tell me where one single dollar of government money went to a Chartis company. You can’t, because it didn’t happen. Perhaps the entire subject of the cds debacle in which the AIG Financial Services Division was involved is a bit much for your pretty little head to comprehend so you just fabricate these preposterous statements hoping nobody will call you on it. You should just sit back and keep watching the market because you obviously don’t have the knowledge and skill to participate.
Well, one thing’s for sure… no matter where you work, I’m glad I don’t have to be anywhere near you beacuse you don’t have the “knowledge and skill” to act like a professional in a public forum.
First off, not everyone is posting combined ratios in the 80’s. More often than not companies are pushing the envelope at or near 100%. And secondly, reserve takedowns are in the headlines every quarter. They’re called earnings releases i.e. financial results smart guy. If you can’t interpret them, then maybe you shouldn’t be working in the financial industry. Clearly you’re contributing to the downfall.
Your lies about Chartis just show either how much you don’t know or how much you have to gain by driving down their stock price, Market Watcher. Now answer my question. What amount of government loans went to Chartis and to where in Chartis did it go? If you can’t answer it, then retract your statement and admit you don’t know what you’re talking about
If their premium volume dropped 3.3% where did those figure go to?
I agree with Market Watcher. Phoenix is definitely unprofessional and does not know how to act in a professional forum.
As for Chartis, the company has been agressively underpricing business for a long time. It has come home to adversely affect them (particularly on long tail business). Hence, the $4 billion reserve charge in the last quarter. The company is faced with either raising rates dramatically or letting the business go. In addition, the company has lost a lot of its underwriting talent to competitors (Zurich, ACE, Ironshore, etc). If the company is to be a going concern into the future, it is hurt by having some of its brightest minds no longer in the organization. Furthermore, the company has sold off some of its gem business units just to pay back the Fed such as–their Asian life insurance operations and Hartford Steam Boiler to name a few. How does the company expect to survive when some of its key assets are gone and sold for garage sale prices?
The main reason why the company is still trading is because of government support of the company and a reverse 1:20 stock split. If this would not have happened, the company would be trading (at most) around $1.50 a share but probably delisted.
All in all, the American taxpayers got taken to the cleaners on this deal. The company should have just failed…..
You’re splitting hairs Phoenix… AIG still owns Chartis and we all know what that means now don’t we? If AIG got the money and Chartis is owned by AIG and AIG is essentially owned by the government, then that makes you an accomplice in the eyes of the American people.
Remember to thank me when you go to bed tonight – I paid your mortgage payment this month.
Oh, and stop being bitter because the rest of the guys didn’t invite you to come with them to Ironshore.
You just can’t bring yourself to answer the question or admit that you’re either wrong or lieing can you, MW?
As your credibility is now shot here, I am officially dismissing you from this site. Be gone. Good day, sir.
You want credibility, here you go…
“On Wednesday, AIG said it has approval from Treasury to pump $2 billion of proceeds from recent asset sales into Chartis to support its capital position.”
http://online.wsj.com/article/SB10001424052748704858404576133844076640786.html
Here’s some figures that are straight from the earnings release – Chartis had close to $32 Billion in Written Premiums for 2010. They have $123 Billion in Net Invested Assets and $39 Billion is Statutory Surplus – which is up over 2009. So even if they took the entire reserve adjustment from net invested assets they would still be the largest property and casualty company in the world that sells its products through independent brokers. Also note if they took the reserve hit from surplus they would still have a surplus to premium ratio above 1.00 which is more than enough to maintain their ratings. Keep in mind we may not like Chartis/AIG but no one can deny they were well financed and their surplus and assets were always separately held per state insurance regulations from the rest of the AIG operations.
Chewbacca says:
“I agree with Market Watcher. Phoenix is definitely unprofessional and does not know how to act in a professional forum.”
Oh please! Get over yourselves! You do realize that this is just a comment board on a free internet site, don’t you? It’s no more a professional forum than the op/ed pages of your local news rag.