can you expand from kinsale inteview...referring to alt managers using ins float?
specifically which companies, and is there a single source where public insurance running ratios be verified?
~38min mark
"...They're destroying their own capital. And if you doubt me, pull the Schedule P exhibit for a few of the larger fronting companies and look at their gross loss ratios. Most of them, they're booking the current year at a 60. But if you look back four, five, six, seven, eight years, they're in the 90s.
Well, if you're running a 90 with a 40% expense ratio, that's 130 combined. You think you're going to make that up with [float] investments? No way. But the fronting company seeds most of that risk off to someone else, a reinsurer of some sort. And so there's a lag. Does the risk bearer understand what's happening to his capital?..."
I don't have the information that you seek but suspect that you will find it online.
Thanks for the kind words about the interview
Jack Welch was far from perfect. For instance, he presided over a toxic culture among employees which saw them treated as cattle and a percentage being metaphorically slaughtered every year. That was abandoned when he stepped down. But he did deliver strong results at GE for many years and I think that this was what Michael Kehoe was referencing. Welch is still studied at business schools.
can you expand from kinsale inteview...referring to alt managers using ins float?
specifically which companies, and is there a single source where public insurance running ratios be verified?
~38min mark
"...They're destroying their own capital. And if you doubt me, pull the Schedule P exhibit for a few of the larger fronting companies and look at their gross loss ratios. Most of them, they're booking the current year at a 60. But if you look back four, five, six, seven, eight years, they're in the 90s.
Well, if you're running a 90 with a 40% expense ratio, that's 130 combined. You think you're going to make that up with [float] investments? No way. But the fronting company seeds most of that risk off to someone else, a reinsurer of some sort. And so there's a lag. Does the risk bearer understand what's happening to his capital?..."
This should answer your question: https://www.leadersedge.com/industry/the-new-class-of-es-insurers-is-picking-up-the-pace
link has superb breakdown, but seek NAMES (parent), size, and verified ratios from public compilation. i suspect its not only undisciplined newcomers.
(btw, very good interview w/tough questions)
for as much talk\action on culture, was bizarre to hear references to jack welch, one of the worst ever all-around for non-crony stakeholders.
I don't have the information that you seek but suspect that you will find it online.
Thanks for the kind words about the interview
Jack Welch was far from perfect. For instance, he presided over a toxic culture among employees which saw them treated as cattle and a percentage being metaphorically slaughtered every year. That was abandoned when he stepped down. But he did deliver strong results at GE for many years and I think that this was what Michael Kehoe was referencing. Welch is still studied at business schools.