LTCi Increases/Discontinuations

[briko3]

Considering Genw. Life Ins. Co. has well over $16 BILLION dollars in LTC insurance reserves, I don't think the $35 million dollar gain from this sale is "burning furniture for lack of coal."

Let's see..... $35 million is about two-thousandths of 1% of their LTCi reserves.

In other words, that $35 million is .22% of the amount of money they have in LTCi reserves.

If the $16 Billion was the size of clearlight's head, the $35 million would be smaller than an eyelash.

Assuming they make only 4% per year on their LTCi reserves (the actual return is probably much higher), they would make $35 million in interest on the reserves EVERY 20 days.

Statements like this:

"...they appear to be burning the furniture for lack of coal..."

are ignorant and unprofessional and certainly border on unethical and unfair sales practices.


nadm

I need to go back to school. I didn't realize that .22% was 2 thousanths of 1%

 

[Mr_Ed]

I need to go back to school. I didn't realize that .22% was 2 thousanths of 1%

My bad.
I fixed it.




Let's see..... $35 million is about two-tenths of 1% of their LTCi reserves.

In other words, that $35 million is about .22% of the amount of money they have in LTCi reserves.

 

[Arthur Rudnick]

"If the $16 Billion was the size of one's head, the $35 million would be smaller than an eyelash"


Scott,
Would you please tell me where I could verify that statistic? I'm sure you realize that quoting false or questionable insurance statistics are against each state's insurance laws.

 

[Mr_Ed]

"If the $16 Billion was the size of one's head, the $35 million would be smaller than an eyelash"


Scott,
Would you please tell me where I could verify that statistic? I'm sure you realize that quoting false or questionable insurance statistics are against each state's insurance laws.

so I embellished a little.


here's a better one:


If the $35 million was represented by flying from New York to San Francisco,

the $16 Billion would be equal to flying to the moon......SIX TIMES.

 

[clearlight]

It's better when math incompetents avoid drawing attention to their weakness.



Public companies like Genworth are, by definition, openly for sale, just like Pepsi and Walmart. Capitalism 101. Mutuals, by contrast, are not as openly for sale. I hope we all know that.

As with any public company, Genworth's value (share price as well as buyout price) has hugely to do with its corporate cash position in this market. Few companies are growing (Manulife/Hancock is growing).

LTCI reserves are NOT Genworth's corporate cash... in effect not even Genworth's money. Can they get away with using reserves to replace furniture?

Burning of furniture strengthens a corporation's cash position and makes a public company like Genworth (like Ford or Dollar Stores) more of a pure play for outside investors (hedge funds, other insurers etc). Smart?

There's nothing unethical about pondering a corporation's management and financial moves among ourselves.

++ It would be deeply unethical and intentionally deceitful to imply to customers (and prove ignorance among ourselves) that increasing premiums indicate something negative about a company (like Hancock).

++ raising premiums indicate sharpened actuarials and conservative investment management. They indicate marketing confidence.

What about companies that have not raised premiums YET? Are they being irresponsible? Will the hammer fall next week? Next year?

IMO Hancock's increase says the company is being conservative, preparing to weather longterm low returns on bonds and other investments.

John Hancock has arguably the strongest brand name of any American financial institution: equally important in investment management, their roots are ancient and familiar, and Manulife, their parent company is massively diversified globally, nearly independent from America's economy.


John Hancock/Manulife's $40BB (cdn) annual REVENUES dwarf Genworth's total value. They are diversifying globally rather than rolling the dice, mostly in one country, with LTCi alone.

 

[UrAgenius]

sorry guys, i cut and pasted from a word doc.
It looked good on the message, but posted wrong.
And I don't see a big mutual buying an underpriced block of business, as they pride themselves on waiting for statistics before they came into the market accurately priced.

 

[billberry12]

Is Mutual of Omaha really a mutual company? If so, is that a good thing?

 

[Mr_Ed]

It's better when math incompetents avoid drawing attention to their weakness.



Public companies like Genworth are, by definition, openly for sale, just like Pepsi and Walmart. Capitalism 101. Mutuals, by contrast, are not as openly for sale. I hope we all know that.

As with any public company, Genworth's value (share price as well as buyout price) has hugely to do with its corporate cash position in this market. Few companies are growing (Manulife/Hancock is growing).

LTCI reserves are NOT Genworth's corporate cash... in effect not even Genworth's money. Can they get away with using reserves to replace furniture?

Burning of furniture strengthens a corporation's cash position and makes a public company like Genworth (like Ford or Dollar Stores) more of a pure play for outside investors (hedge funds, other insurers etc). Smart?

There's nothing unethical about pondering a corporation's management and financial moves among ourselves.

++ It would be deeply unethical and intentionally deceitful to imply to customers (and prove ignorance among ourselves) that increasing premiums indicate something negative about a company (like Hancock).

++ raising premiums indicate sharpened actuarials and conservative investment management. They indicate marketing confidence.

What about companies that have not raised premiums YET? Are they being irresponsible? Will the hammer fall next week? Next year?

IMO Hancock's increase says the company is being conservative, preparing to weather longterm low returns on bonds and other investments.

John Hancock has arguably the strongest brand name of any American financial institution: equally important in investment management, their roots are ancient and familiar, and Manulife, their parent company is massively diversified globally, nearly independent from America's economy.


John Hancock/Manulife's $40BB (cdn) annual REVENUES dwarf Genworth's total value. They are diversifying globally rather than rolling the dice, mostly in one country, with LTCi alone.

I apologize for having difficulty in deciphering what your point is.

Are you saying that one public company (Genworth) is not a good choice for LTCi, but another public company (Hancock/Manulife) is a good choice for LTCi?

If so, can you give specific (clear) reasons why one is bad and the other is good?


nadm
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Is Mutual of Omaha really a mutual company? If so, is that a good thing?

Yes and yes.