You can put lipstick on a pig, but it is still a pig. Sad day for Chubb. Using the Chubb name will not make Ace any better, it will just tarnish the Chubb name
How is ACE a pig? They are A++ XV with net income of $3-4 Billion the past three years with combineds in the 80s. Regardless of your feelings on their culture or management, their financial performance hardly resembles a pig.
Mikey,
Agree with UW as the financials and combined ratio illustrate that ACE is an extremely well run firm. However,I have seen an exodus of underwriters from ACE and pursuing other oppportunities over the last 1.5-2 years.
Also, from my experiences as an underwriter, Chubb employees should not be nervous. I am sure that they will be sought after due to their training and the company’s reputation in the industry.
For example, after the fallout of AIG, a large group of underwriters across all companies left for other positions in such companies as Ironshore, Berkshire, Zurich, Traveler’s etc. In fact, I have gotten calls from recruiters in New York, as AIG is now DYING for underwriting talent in NYC and other metropolitan areas of the United States.
Enough posting Mikey. Get back to work, and start building your network. 2 LinkedIn Connections Mr Rooker?
C’mon man!
So…i just took a UW job with ACE yesterday…think I have to worry??
July 1, 2015 at 4:25 pm
Dave says:
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And many of those AIG U/W’s were crappy U/W’s. Somebody wrote the business that AIG had to strengthen reserves for in 2009 and 2010 by over $10 billion. And their extreme re-underwriting of their book in the subsequent years wasn’t done because past U/W’s had done such a good job previously. Yeah, if crappy U/W’s can find new positions, I figure good ones can too.
July 1, 2015 at 10:26 am
Yogi Polar Berra says:
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It looks like they covered the typical keywords used in merger announcements; e.g. efficiency, complementary, leadership, different markets, …etc. But one concerning passage is … ‘the deal came together quickly’.
Does anyone else think that they will have to divest the high-end homeowners segment? Ace acquired the FFIC book. I can’t believe that regulators would allow them to acquire Masterpiece too. It would just leave Ace and AIG in that space.
There are no regulators, only cheerleaders for monopoly pricing!
Just look at the “regulators” of our financial, medical, and educational sectors, where they are paid to look the other way.
The great corporate lie following merger and acquisition, “nothing will change! First a icon Barney & Barney to Marsh and now one of the finest insurers in the US swallowed up by a far lesser company. What a pity!
Depends on your department and office location. Are there any Chubb offices near you that do what you do? If not, you’re probably OK. If so, maybe you get a nice exit package.
You can always join Berkshire. You will find the connections and expertise that you pick up will be invaluable in your career.
It might mean moving though….
You do not know what you are talking about. A perfect case in point is Berkshire. Buffett and Ajit Jain know the insurance and reinsurance industry inside and out. When they wanted to start Berkshire Specialty, they grabbed senior executives from Lexington, American Home, etc. It says a lot about you when Buffett puts his money behind you. Any other insurance company executive in a management post at Berkshire?
The timing of the accident may have been fortuitous, but they wrote the business because they bought it. AIG’s mantra. I see they brought it with them to Berkshire.
My, my insurance102, I give you a rational response with a link to your incorrect statement and your genius response is “yawn”? Kind of explains where you are coming from. Got nothing do ya?
I worked and Chubb for a spell and I enjoyed it for the most part. There are many who came up through the Chubb structure who think they were superior in every way. Some of those will be looking for work for sure. You can bet this is a good deal for the Chubb executives who have been accumulating stock options for years. They will take their money and run.
Some of the middle management types need to be gone too.
This is a sad day for the High Net Worth market, are these carriers looking to phase out the Insurance Agent looking to mass market these clients? What is the future of this industry which I became part of 38 years ago! Between the banks and the insurance industry the future doesn’t look so bright. Both of these carriers need to put time and effort into reconstructing the underwriters and management staff, they are antiquated and have been sitting on these laurels for years.
@ agent = Allianz did buy FFIC (I was a former FFIC employee before that mess began and during the transition. I resigned and got out of that craziness). ACE then purchased FFIC. They tried to model it after ACE, which vendors out most of their claim work to independents. They gutted most of the remaining FFIC Claim staff. The lack of service didn’t sit well with agents most of whom took their book of business elsewhere, many to AIG.
Rumor is Evan Greenberg want’s to compete with AIG again and take away their market share. IF this is his business model, he better not be so arrogant this time and use his noodle. He should KEEP the claims handling in house, offer premier services as AIG does (Fire protection, brush clearing, etc.) and upstaff good quality Chubb employees. He will need to KEEP the pension plan and not gut it like his father did with AIG or no one will want to work for Chubb. He should keep all benefits for Chubb employee’s as they ARE NOW or there will be a mass exodus to AIG and his actions will have the opposite effect.
Evan has shown he understands Corporate business but not the domestic insurance market. Let’s hope he has learned a thing or to or this will be the largest white elephant purchase in US history.
Good one KC. Sounds like you have the scoop on this. It sure is a shame that the once proud FFIC went by the wayside. The jury is out on how the ACE acquisition will work out, but some people will lose out as they have with every big merger. It would be strange if AIG ends up acquiring Chubb business. I don’t compete with AIG on Personal Lines in my area. By the way, didn’t AIG sell off their Personal Auto – 21st Century business to Farmers a while back? They couldn’t compete with the lizard and stupid Farmers took it on. They also were trying to pay off their government loans and needed some money.
Wow!
I am an ACE agent currently. I wonder if I will have access to Chubb for high value homes. Have to check that out.
You can put lipstick on a pig, but it is still a pig. Sad day for Chubb. Using the Chubb name will not make Ace any better, it will just tarnish the Chubb name
Good point Tom. You can buy a name, but you can’t buy a reputation.
How is ACE a pig? They are A++ XV with net income of $3-4 Billion the past three years with combineds in the 80s. Regardless of your feelings on their culture or management, their financial performance hardly resembles a pig.
UW, with all the negative comments about ACE, one might think these comments were made by nervous Chubb employees.
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So…i just took a UW job with ACE yesterday…think I have to worry??
And many of those AIG U/W’s were crappy U/W’s. Somebody wrote the business that AIG had to strengthen reserves for in 2009 and 2010 by over $10 billion. And their extreme re-underwriting of their book in the subsequent years wasn’t done because past U/W’s had done such a good job previously. Yeah, if crappy U/W’s can find new positions, I figure good ones can too.
It looks like they covered the typical keywords used in merger announcements; e.g. efficiency, complementary, leadership, different markets, …etc. But one concerning passage is … ‘the deal came together quickly’.
Call it CHACE.
Or call it DEUCE.
ACHE
Does anyone else think that they will have to divest the high-end homeowners segment? Ace acquired the FFIC book. I can’t believe that regulators would allow them to acquire Masterpiece too. It would just leave Ace and AIG in that space.
There are no regulators, only cheerleaders for monopoly pricing!
Just look at the “regulators” of our financial, medical, and educational sectors, where they are paid to look the other way.
Silly me, I thought Allianz acquired the FFIC book. Perhaps you have your “A”‘s mixed up.
Good deal for Greenberg as he follows Daddy in creating his version of AIG. It’s bad deal for customers who have just had their choices diminished.
The great corporate lie following merger and acquisition, “nothing will change! First a icon Barney & Barney to Marsh and now one of the finest insurers in the US swallowed up by a far lesser company. What a pity!
So…i took a UW position with ACE yesterday and I woke up to this today. Is there any reason to worry??? I have other options…
Depends on your department and office location. Are there any Chubb offices near you that do what you do? If not, you’re probably OK. If so, maybe you get a nice exit package.
Do not plan on an exit package if you were just hired.There is plenty of concern for all. Ace does not gently handle acquisitions.
Btdmks, perhaps you were hired to be a Chubb underwriter for ACE. Look at it as a positive. You may be moving up in the world.
You can always join Berkshire. You will find the connections and expertise that you pick up will be invaluable in your career.
It might mean moving though….
Hidden due to low comment rating. Click here to see.
Ask Warren about how he wrote as new business FedEx right before a huge loss in a California at a little over half the price of expiring.
http://losangeles.cbslocal.com/2015/05/22/chp-to-release-investigation-results-in-deadly-fedex-truck-tour-bus-collision/
Yeah, I don’t know what I’m talking about.
The timing of the accident may have been fortuitous, but they wrote the business because they bought it. AIG’s mantra. I see they brought it with them to Berkshire.
Hidden due to low comment rating. Click here to see.
Hidden due to low comment rating. Click here to see.
My, my insurance102, I give you a rational response with a link to your incorrect statement and your genius response is “yawn”? Kind of explains where you are coming from. Got nothing do ya?
Hidden due to low comment rating. Click here to see.
I worked and Chubb for a spell and I enjoyed it for the most part. There are many who came up through the Chubb structure who think they were superior in every way. Some of those will be looking for work for sure. You can bet this is a good deal for the Chubb executives who have been accumulating stock options for years. They will take their money and run.
Some of the middle management types need to be gone too.
This is a sad day for the High Net Worth market, are these carriers looking to phase out the Insurance Agent looking to mass market these clients? What is the future of this industry which I became part of 38 years ago! Between the banks and the insurance industry the future doesn’t look so bright. Both of these carriers need to put time and effort into reconstructing the underwriters and management staff, they are antiquated and have been sitting on these laurels for years.
@ agent = Allianz did buy FFIC (I was a former FFIC employee before that mess began and during the transition. I resigned and got out of that craziness). ACE then purchased FFIC. They tried to model it after ACE, which vendors out most of their claim work to independents. They gutted most of the remaining FFIC Claim staff. The lack of service didn’t sit well with agents most of whom took their book of business elsewhere, many to AIG.
Rumor is Evan Greenberg want’s to compete with AIG again and take away their market share. IF this is his business model, he better not be so arrogant this time and use his noodle. He should KEEP the claims handling in house, offer premier services as AIG does (Fire protection, brush clearing, etc.) and upstaff good quality Chubb employees. He will need to KEEP the pension plan and not gut it like his father did with AIG or no one will want to work for Chubb. He should keep all benefits for Chubb employee’s as they ARE NOW or there will be a mass exodus to AIG and his actions will have the opposite effect.
Evan has shown he understands Corporate business but not the domestic insurance market. Let’s hope he has learned a thing or to or this will be the largest white elephant purchase in US history.
Good one KC. Sounds like you have the scoop on this. It sure is a shame that the once proud FFIC went by the wayside. The jury is out on how the ACE acquisition will work out, but some people will lose out as they have with every big merger. It would be strange if AIG ends up acquiring Chubb business. I don’t compete with AIG on Personal Lines in my area. By the way, didn’t AIG sell off their Personal Auto – 21st Century business to Farmers a while back? They couldn’t compete with the lizard and stupid Farmers took it on. They also were trying to pay off their government loans and needed some money.
The scumbags have already started to dismantle the Chubb Pension Plan.
Good deal for business but I hope no layoffs
what frigging planet do you live on ??? Of course there are going to be layoffs,
about 5,000. This deal is good for no one but the CEO’s