The most prestigious law school admissions discussion board in the world.
|
 |
 
|
Insurance prices have escalated so quickly because of poor investments
Poast new message in this thread
Date: May 14th, 2024 9:23 PM Author: startled philosopher-king Too many losses in the markets, especially fixed income markets. All insurance gets bundled together and reinsured and commoditized and traded around the world anyway. These companies are typically very conservative and made bad bets in the bond markets. With rising interest rates they are getting wrecked, so the whole world pays. The key is to own nothing. Insure nothing. Insurance is such a fucking racket. I hate the world. |
 |
Date: May 14th, 2024 9:30 PM Author: apoplectic state Or they didn’t model for an influx of 40 million unlicensed drivers arriving in a 4 year span (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662169) |
|
Date: May 14th, 2024 9:35 PM Author: startled philosopher-king I don't work inside an insurance company, but I would bet dollars to doughnuts that underwriting is much more adversely affected by poor performance on investments than it is by loss records. Losses are nothing in insurance. Claims is literally a back office bullhsit function. |
Date: May 14th, 2024 9:43 PM Author: Geriatric Macaca It’s a regulated industry with a regulated profit margins and they don’t have a choice but to buy T-bills owed to insane reserving requirements and TTT regulations. They don’t want to buy worthless US government bonds but they don’t have a choice and if they did that would be the end of the dollar. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662213) |
|
Date: May 14th, 2024 9:56 PM Author: pink sexy stag film degenerate rare TCR insight from this TTT insurance Compliance Monkey (TM). (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662249) |
|
Date: May 14th, 2024 10:02 PM Author: Geriatric Macaca The good news for insurers is they are less fucked then regional banks and are benefiting from the retrenchment of regional banks from all manner of lending. Insurance lending in the CML space will be a 180 business once the office sector picture is resolved. They stole market share the banks will never get back. None of this is sexy business but it’s keeps a lot of bros in comfy $500k a year sinecures managing loan portfolios and doing annual reunderwriting work on billion dollar towers and pretending they are something more and better than some residential mortgage broker doing the same shit only with a few fewer zeroes on the term sheets. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662263) |
|
Date: May 20th, 2024 1:05 PM Author: misanthropic indirect expression actually CR (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47676821) |
|
Date: May 20th, 2024 6:30 PM Author: Geriatric Macaca What lay people don’t know about CML deals is most of those billion towers require annual reunderwriting. A bro like Trump has to prove up his ability to pay every 12-36 months. Nobody is just giving you a billion bucks for one property on a 30 year mortgage based on one point in time rent roll. The life of a Trump is constantly talking to your lenders. It sucks donkey balls IRL. He basically works for his banks. It’s why the litigation against him is so criminal. The banks review every single lease. They constantly look at his books. He’s basically a glorified property manager with some skin in the game. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47677886) |
|
Date: May 14th, 2024 9:45 PM Author: misanthropic indirect expression This. Their investment performance sucks (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662220) |
|
Date: May 14th, 2024 9:51 PM Author: Geriatric Macaca It’s not really higher rates that are fucking up casualty players but the arrival of PE insurers stealing market share and raping on the reinsurance end.
The future of the industry is hybrid players who use the cash generation side of their insurance franchises to fund other businesses like PE/alts or wealth management franchises. If all you do is fling policies you are a dead duck. |
|
Date: May 14th, 2024 9:54 PM Author: startled philosopher-king It's ridiculous. Everyone's making money, but I'm paying more for less coverage. That's fucking bullshit. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662241) |
|
Date: May 14th, 2024 9:56 PM Author: Geriatric Macaca Everyone isn’t making money. Mortality is still way above pre-COVID levels and on the property end — do you know what it costs to build new construction? The price of any repairs have gone up 200%. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662250) |
|
Date: May 14th, 2024 9:57 PM Author: startled philosopher-king How do you know so much about insurance and insurance markets? (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662254) |
|
Date: May 14th, 2024 10:06 PM Author: Geriatric Macaca I know a lot about everything in finance hoss. Want to ask me about ABS? I can write you a primer on doing P-CAPS through Delaware statutory trusts. I’m CCO of a broker dealer. We are broker dealer of record for something like $200bn of reinsurance contracts. I have a call with DTCC on processing a $40bn bulk reinsurance flow tomorrow. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662274) |
|
Date: May 14th, 2024 10:15 PM Author: high-end stubborn kitchen international law enforcement agency (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662295) |
|
Date: May 14th, 2024 10:15 PM Author: startled philosopher-king Describe the availability of reinsurance for reinsurance contracts. How many levels does it go? (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662297) |
|
Date: May 14th, 2024 10:27 PM Author: Geriatric Macaca Bulk reinsurance statutes/rules generally prevent this from getting too crazy. Too much reinsurance and you trigger M&A treatment which no insurer wants because of capital implications. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662324) |
|
Date: May 20th, 2024 1:11 PM Author: Azure Set Famous Landscape Painting (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47676846) |
|
Date: May 20th, 2024 2:05 PM Author: cruel-hearted plaza knife I've seen $500 billion reverse repos disappear like tears in rain (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47677015) |
|
Date: May 20th, 2024 2:08 PM Author: Trip kink-friendly office dopamine You're too smart to be running your lazy "all Hohols will die" flame on the Ukraine war. You've got an actual Russian war to talk about, time to pick up your game. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47677024) |
|
Date: May 14th, 2024 10:14 PM Author: high-end stubborn kitchen international law enforcement agency (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662293) |
|
Date: May 14th, 2024 10:40 PM Author: Geriatric Macaca I never understood the whole fixed income loss thing because at the end of the day I’m a lawyer and not a mentally ill gambler/day trader. These are unrealized losses that can’t even be called book losses. It’s an opportunity cost and not a real book loss. Hold the bond to maturity and who gives a fuck what the notional NPV is? Absent a black swan event you don’t need that capital today. Lot of hot air over nothing which the market understands just fine since this shit hasn’t dented a single finance stock. (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662352) |
|
Date: May 20th, 2024 2:01 PM Author: soggy kitty party of the first part fair enough if you have liabilities that are not rate sensitive. If you're stuck in long term low-yielding positions for a future liability that's increasing at higher rates, you are fucked. so basically anything other than fixed annuities, life and surety (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47677003) |
|
Date: May 20th, 2024 2:07 PM Author: cruel-hearted plaza knife They are not going out of business but their relative performance due to that opportunity cost will blow out their holds for years (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47677022) |
|
Date: May 14th, 2024 10:48 PM Author: mauve sticky juggernaut (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47662358) |
|
Date: May 20th, 2024 1:06 PM Author: curious unhinged digit ratio (lawyer) (http://www.autoadmit.com/thread.php?thread_id=5528606&forum_id=2#47676830) |