If the underwriting practices of their E&S division are indicative of what is happening on the admitted side, this is a no brainer. It is surprising why they have not been put on watch earlier.
Look for Fireman’s Fund to follow the leads of Aspen and others and raise rates.
With the capital in the market date, this will lead to a loss of business. Hopefully, it will be a more profitable book of business and the insurance industry can return again to underwriting discipline.
If the parent Allianz has substantial exposure to Italy and Spain, they are in big time trouble since Europe is imploding under the debt and no solutions have been forthcoming except for Germany and the World Bank to bail them out. Don’t worry, Obama to the rescue.
Joker-they are not asleep, they are bought & paid for by the insurance industry they are charged with rating! These rating agencies only downgrade when they are forced to.
Expect no overall firming in rates in 2012 as there still is too much capacity worldwide. Do expect further disclosure of the government bonds that most insurers think are safe when they are not.
If these bonds are safe, why are there already back door bailouts underway by the ECB & Fed facilities?
How ironic that an account just came across my desk that FF cut the expiring premium by 20% to take it from another carrier that was already too cheap. Not a clean risk either. Par for the course.
If the underwriting practices of their E&S division are indicative of what is happening on the admitted side, this is a no brainer. It is surprising why they have not been put on watch earlier.
Look for Fireman’s Fund to follow the leads of Aspen and others and raise rates.
With the capital in the market date, this will lead to a loss of business. Hopefully, it will be a more profitable book of business and the insurance industry can return again to underwriting discipline.
If the parent Allianz has substantial exposure to Italy and Spain, they are in big time trouble since Europe is imploding under the debt and no solutions have been forthcoming except for Germany and the World Bank to bail them out. Don’t worry, Obama to the rescue.
What took them so long? Were they asleep at the wheel alongside S&P?
Joker-they are not asleep, they are bought & paid for by the insurance industry they are charged with rating! These rating agencies only downgrade when they are forced to.
Expect no overall firming in rates in 2012 as there still is too much capacity worldwide. Do expect further disclosure of the government bonds that most insurers think are safe when they are not.
If these bonds are safe, why are there already back door bailouts underway by the ECB & Fed facilities?
How ironic that an account just came across my desk that FF cut the expiring premium by 20% to take it from another carrier that was already too cheap. Not a clean risk either. Par for the course.