Why would the State of California assume all of the liabilities and let ACP Re which is supposedly quite strong financially off the hook (Thanks California taxpayers)? They took $500M in reserve development in one quarter. ACP offered basically $200M to buy their way out and accepted a NOL tax carry forward of unknown value in return (thanks US Taxpayers).
Why would ACP Re, a privately held company, bail out Amtrust and National General from a potential $200M loss? Yes, the owners of ACP own controlling interest in the other two, but where is the “arm’s length” transaction? The page and a half of footnotes in the 10K on related party transactions didn’t really explain it. Just documents it.
Why would the State of California assume all of the liabilities and let ACP Re which is supposedly quite strong financially off the hook (Thanks California taxpayers)? They took $500M in reserve development in one quarter. ACP offered basically $200M to buy their way out and accepted a NOL tax carry forward of unknown value in return (thanks US Taxpayers).
Why would ACP Re, a privately held company, bail out Amtrust and National General from a potential $200M loss? Yes, the owners of ACP own controlling interest in the other two, but where is the “arm’s length” transaction? The page and a half of footnotes in the 10K on related party transactions didn’t really explain it. Just documents it.