Which (brand name) Insurance Company will be the first one to default ?

[CHUMPS FROM OXFORD]

A merger taps your resources, so you need to have plenty of cash going into the merger.

Also...merger would allow Met to combine P&C operations with Hartford...a big savings. Both companies big in the NE (P&C).

I don't think it will happen anyhow.

 

[SportsNut]

A merger taps your resources, so you need to have plenty of cash going into the merger.

Also...merger would allow Met to combine P&C operations with Hartford...a big savings. Both companies big in the NE (P&C).

I don't think it will happen anyhow.

Here is one BIG issue... Their exposure to heavily devauled securitites... Met was the 7th largest holder of Lehman's CDS's...

Yes, Met raised 2 Bn from the recent stock offering, but they are going to have to take a charge for the loss of over 800M as indicated below. Maybe they will sqeak by, maybe not... maybe some of these large insurers will be able to consolidate and survive, but it could end up being like playing musical chairs; someone will be left standing when they prefer to be sitting.

Merger and consolidation of insurers is an attempt to move into the catergory of: "Too BIG to fail", in the eyese of the Dept of Treasury. Coveted status, I might add; just ask our new ins co... AIG.


From Dow Jones News:
Company: MetLife Inc. (MET)
Lehman exposure owed $878.4 million
Date of disclosure: Sept. 25
Notes: The figure comes from a Lehman filing of the seven firms holding the
largest secured claims against the bank.

 

[CHUMPS FROM OXFORD]

"Maybe they will sqeak by, maybe not"

The $800 million stings. But check their assets. I assure you, they will not just "squeak by."

 

[Sam]

I just bought some Met on Thursday. share to book value was too good to be true.

 

[CHUMPS FROM OXFORD]

More Good news Sam...

After Hours: 30.88 +0.63 (2.08%) - Oct 10, 7:27PM EDT

 

[OHInsAGNT]

I always hate to speculate on the ill-fortune of others. Further, if I've learned anything in the last 12 months, it's that those who make a point to claim their strength often do so to hide weakness. (Not a rif on anything said here, more toward those media announcements where a company says it's fine and 6 hours later is begging for cash on the street.)

How about we speculate on which insurance company is the strongest?

 

[xrac]

It won't be NYL. N.Y. Life Passes On TARP:

National Underwriter Life & Health

 

[halis]

None of them will. The main one having the damn problem is AIG the largest in the world, and the US govt has decided that they are much too important to let fail so they will prop them up with a stick. If they get govt money for making moronic decisions, as do the banks, I want to know where my money is? I'd be happy to start being a moron starting right now and go run over someone in the local supermarket parking lot for walking too slow.

As long as the execs at AIG can still afford high priced whores, coke and yachts then the US govt has done their job.