No. of Recommendations: 3
given any insurance experts are likely on BH board, am wondering which specific companies the kinsale ceo refers to in this interview :
"...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?..."
No. of Recommendations: 1
Kinsale is a P/C insurance company in the excess and surplus business. Usually complex, nonconforming, hard to place, unusual commercial and residential risk.
Markel, Crum & Foster (Fairfax), Starr, WR Berkeley, AIG, etc are all in excess and surplus as are many others.
No. of Recommendations: 0
i believe kinsale is speaking about the alt managers that use insurance float.
but i wanted to hear from someone that can point me to those distorted running ratios.
