Their business fails if they aren’t bringing in new assets to ACP Re.
That being said, the regulators probably view this positively as Stone Point is more-likely to fill the balance sheet void than the Karfunkles.
Regulators should be concerned with WHY a company’s balance sheet started to empty, rather than about re-filling it… only to see it empty again. They don’t want manage another liquidation.
Too bad someone named ‘Simon’ didn’t step in before Stone Point did. :)
Ironically the whole reason the regulator bit their tongues and gave them Tower, despite knowing shell game at the heart of their biz model, was to avoid another big liquidation.
Pass the buck indeed
January 12, 2018 at 11:20 am
UBoreMe says:
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@ Dave C…. The Tower influence is all over AmTrust, with little or no contrition as if what happened was a fluke and picking up where they left off will do just fine. AmTrust itself is just over 10 years old with no real identity, history or tradition. You add a patchwork of odd ball acquisitions, make NO effort to assimilate them, and that leaves the biggest odd ball acquisition to fill the leadership void with their own brand of “what we should do”.
January 10, 2018 at 3:53 pm
UBoreMe says:
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Wasn’t this stock trading at nearly $30 a year ago? This is a deal? One wonders of this is a way to avoid possible SEC entanglements and keep the continuous dirty laundry, unforced errors and random turmoil out of the news. This on the heels of a 97 person IT Dept layoff in Cleveland with more rumored to come. Odd company.
If allowed to go private , what will happen to the preferred shareholders, will they be totally screwed for the first four quarters of privacy, after which they can push their way onto the board to get the dividends they deserve ?
These are people on a MISSION…………………………..
I’ve said it before and will do so again: public stock offerings to boost [reduce large deficiencies in] policyholders surplus are a ruse to cover up habitual production underwriting which is translated as cheap pricing in lieu of risk selection.
In other words, writing a very large amount of cheap business which prevents the growth of policyholders surplus from earned premiums.
To be financially solvenrt an insurer must keep growing its policyholders surplus which is from whence claims are paid. Do the math.
This story will not end well.
Any the shell game continues.
We have seen several stories of selling assets recently which concerned me. That loss ratio is very bad indeed. Makes me wonder what they are doing.
Their business fails if they aren’t bringing in new assets to ACP Re.
That being said, the regulators probably view this positively as Stone Point is more-likely to fill the balance sheet void than the Karfunkles.
Regulators should be concerned with WHY a company’s balance sheet started to empty, rather than about re-filling it… only to see it empty again. They don’t want manage another liquidation.
Too bad someone named ‘Simon’ didn’t step in before Stone Point did. :)
Simon? Help me out – who is Simon?
Ironically the whole reason the regulator bit their tongues and gave them Tower, despite knowing shell game at the heart of their biz model, was to avoid another big liquidation.
Pass the buck indeed
@ Dave C…. The Tower influence is all over AmTrust, with little or no contrition as if what happened was a fluke and picking up where they left off will do just fine. AmTrust itself is just over 10 years old with no real identity, history or tradition. You add a patchwork of odd ball acquisitions, make NO effort to assimilate them, and that leaves the biggest odd ball acquisition to fill the leadership void with their own brand of “what we should do”.
Wasn’t this stock trading at nearly $30 a year ago? This is a deal? One wonders of this is a way to avoid possible SEC entanglements and keep the continuous dirty laundry, unforced errors and random turmoil out of the news. This on the heels of a 97 person IT Dept layoff in Cleveland with more rumored to come. Odd company.
Their marketing dept said they would be stronger than ever with this move. Hmm, it is an odd company.
If allowed to go private , what will happen to the preferred shareholders, will they be totally screwed for the first four quarters of privacy, after which they can push their way onto the board to get the dividends they deserve ?
These are people on a MISSION…………………………..
I’ve said it before and will do so again: public stock offerings to boost [reduce large deficiencies in] policyholders surplus are a ruse to cover up habitual production underwriting which is translated as cheap pricing in lieu of risk selection.
In other words, writing a very large amount of cheap business which prevents the growth of policyholders surplus from earned premiums.
To be financially solvenrt an insurer must keep growing its policyholders surplus which is from whence claims are paid. Do the math.
This story will not end well.