The tax issue is not an old Obama issue. Liberty does business in 20 countries and owns reinsurance entities, all which are taking a tax hit under the Trump plan. Long term it’ll probably be a wash but short term it’s a $250M hit.
The tax hit is just a revaluation of deferred tax assets. Its simple accounting, you had a tax asset valued for the future at the 35% corporate rate and now it has to be revalued at the 20% it will be realized at, creating a hit to the P&L in 2017.
These carriers are showing 100% + combineds but still the commercial market is soft? WTH is going on? That just doesn’t look like sound underwriting and risk management to me.
Cats in ’17 blew up the CRs. What do you expect for the long term? THAT latter valuation is a sign of sound underwriting and ERM practices. No one will over-react to an unusual year, caused by a few more cats than typical. Plus, capital is abundant, and competition exists in ILSes & Cat Bonds.
The tax issue is part of the old Obama taxes. Trump rates will fully kick in in 2018 and they will do ever so much better along with their employees.
The tax issue is not an old Obama issue. Liberty does business in 20 countries and owns reinsurance entities, all which are taking a tax hit under the Trump plan. Long term it’ll probably be a wash but short term it’s a $250M hit.
The tax hit is just a revaluation of deferred tax assets. Its simple accounting, you had a tax asset valued for the future at the 35% corporate rate and now it has to be revalued at the 20% it will be realized at, creating a hit to the P&L in 2017.
These carriers are showing 100% + combineds but still the commercial market is soft? WTH is going on? That just doesn’t look like sound underwriting and risk management to me.
Cats in ’17 blew up the CRs. What do you expect for the long term? THAT latter valuation is a sign of sound underwriting and ERM practices. No one will over-react to an unusual year, caused by a few more cats than typical. Plus, capital is abundant, and competition exists in ILSes & Cat Bonds.
But Commercial Auto at Liberty Mutual is a sh*t show.