S&P needs to look closer at the programs they these folks are actually on-risk with. Does a 117% combined mean that overnight, they’ll start running nearer to 80% combined! These folks (and their competators) have been pricing deals under-market ratess for years, and with some lines, on high-cat, high working limits – it’s scary. A series of unfortunate events in any one of these product vertical would show very, very poor results. These rating agencies are absolutely clueless! This is a simple example of how an ‘A 10 carrier’, could plumet overnight, like an AIG did! Except, Navg. would not get a US Tres. bail out like AIG or Hartford did…S&P is set to give back the ‘stable’, if they meet expectations, WOW – what a bunch of hog-wash!
Steak dinner, boom.
S&P needs to look closer at the programs they these folks are actually on-risk with. Does a 117% combined mean that overnight, they’ll start running nearer to 80% combined! These folks (and their competators) have been pricing deals under-market ratess for years, and with some lines, on high-cat, high working limits – it’s scary. A series of unfortunate events in any one of these product vertical would show very, very poor results. These rating agencies are absolutely clueless! This is a simple example of how an ‘A 10 carrier’, could plumet overnight, like an AIG did! Except, Navg. would not get a US Tres. bail out like AIG or Hartford did…S&P is set to give back the ‘stable’, if they meet expectations, WOW – what a bunch of hog-wash!
Good thing Tower bought up the whole middle market book….