All GLG News Analyses Filed Under: Insurance & Risk Management

Humpty Dumpty

March 19, 2009

Analysis by: GLG Expert Contributor

Analysis of:'Bad Bank' Just One Option Considered To Save Financials | www.cnbc.com

"All the King's horses and all the King's men couldn't put Humpty together again." Federal intervention is likely unavoidable as the economic problems are largely the fault of the normal totally ineffective federal regulation. If the feds trusted the system to flush out it's own putrification, then the whole mess would be even more dramatic, but likely would be over far sooner, and the pain of loss would fall more squarely on those who made the bad investments and derserve the rewards of the risks that they chose.  The government has clearly shown that it prefers to back the corporate giants rather than back the taxpayers.  Too bad for us.

Nitish GroverPrincipal, OwnerNitish Grover and Associates

The Hedge Fund Conundrum - Gold - Risk vs. Safety and Return

March 19, 2009

Analysis of:Hedge Funds Turn To Gold | www.ft.com

Hedge funds are in a quandary. Their sine qua non for existence is the noticeably high returns that are expected to consistently deliver compared to the rest of the market. This obviously means that their investments have a higher beta compared to the market. These same funds are now trying to shift to bullion where gold is considered a safe investment. The problem here is however that anything that is safe will obviously give stable but not extraordinary returns. We can therefore expect a dichotomy in the aims of hedge funds which will reflect on their performance. These are the aspects I attempt to analyze below.

Intensive care treatment may not succeed

March 6, 2009

Analysis by: GLG Expert Contributor

Analysis of:There’s nothing new to boost confidence in ailing Old Mutual | business.timesonline.co.uk

Any new support or pumping of new fund or rejuvenating the old mutual fund has no signs of improvement. The hospital itself is sick and the doctor is stressfully in distress and needless to say about the patient. Trying to dissolve a spoonful of sugar or salt in a bucket of water has no change as the economy has freezed.

Mark MariottiChief Executive OfficerFuture Management Holdings Inc

Guarantee for life?

February 17, 2009

Analysis of:Axa Asia Posts A$372.9 Million Loss on Investments | www.bloomberg.com

In Southern California I watch Axa commercials on CNBC stating I can receive guaranteed payments for life.

Life Insurers - 2009 Challenges - Merger Drivers - E&Y Study

January 23, 2009

Analysis by: GLG Expert Contributor

Analysis of:Life Insurers Face Unprecedented Challenges and Opportunities in 2009, Ernst & Young Predicts | www.insurancenewsnet.com

* We are likely to see some growers and several companies become "the once were" through industry M&A in the next 3-18 months. * Ernst & Young identified some excellent challenges. * The primary determinants for success will be; Execution-Excellence (Ex-Ex) and Executive Stewardship. * Every "bell-curve organization" (average performer) risks being consumed.

Harnath SithamrajuConsultantHarnath Sithamraju

An idea whose time has come

January 13, 2009

Analysis of:Obama's big idea: Digital health records | money.cnn.com

1. This idea if implemented would not only contribute to savings and employment but also organise health records of all. 2. Obviates the need to repeat yourself.

The revitalizing of the American health care system will increase the value of American helth insurers

January 12, 2009

Analysis by: GLG Expert Contributor

Analysis of:Obama's big idea: Digital health records | money.cnn.com

The Health Care System and Health Care Financing System are going to drive the economy over the next few years. Consumers are vitally interested in their own health, wellbeing and financial security and that of their families and the standardizing and technological beefing up of the system meets these consumers needs. There is a positive synergy between consumers needs and demands for good quality care and insurers delivery of services to meet these needs.

" All Market Opportunities for the Sale of Assets will be MATERIALLY Discounted in the Future"

December 28, 2008

Analysis by: GLG Expert Contributor

Analysis of:Munich Re to Buy AIG’s HSB Division for $742 Million | www.bloomberg.com

Implications; 1.The Largest Plan for the Sale of Insurance Company Assets will miss all Goals as potential bidders are plaqued wiyh plunging stock markets. 2.Many U.S. Life Insurers basis of valuation will plumet as the basis of assets have declined , materially , and a "Fire Sale" may be necessary in the near future. 3.A need has been generated to resemble "Book Value" , in order to pay-down government debt and , still, maintain a capital base to generate earnings. 4.Book Value is defined as assets minus liabilities and have been trading between 62% and 94% - clearly not a value -added to the capitalization rate of the firm. 5.The Sale of Hartford Steam Boiler indicates that a publically traded book value a has, clearly , delineated in value between the years of 2000 to the year 2008. 6.The question , at hand: "Is the loss of value due to failure of the Financial Markets or Operational Capacity?"

" AIG's Rescue will take a LONG TIME: An Irrelevent " Kill List"!

December 28, 2008

Analysis by: GLG Expert Contributor

Analysis of:Lloyd’s of London Insurers Defy Market Gloom, Gain on AIG Woes | www.bloomberg.com

Implications: 1.The government  , simply, cannot agree to extend credit to this firm with Management intact. 2.Management has shown a clear pattern of ineptness that has created a pattern of destruction of one of America"s Greatest and Largest Firms! Poor Management and Undercapitalization!!!! 3.An illustration expressing the extreme stress racking the company and expanding, globally!!! 4.The Financial Statements  illustrate a deficiet of almost  $50 Billion of distressed assets and a monumental governmental debt. 5.The Market Value of the firm has depressed from $180 billion in 2007 to the , now, $5 billion.A gaining los that a Mark to the Market May Not Salvage! 6.The ONLY OPTION: Keep AIG afloat while it reemerges as a "Stand -Alone Private Company and gains the ability to Work-Out  a Solution to Debt related issues!!!!!

Probability Through Rose-Colored Glasses

November 10, 2008

Analysis by: GLG Expert Contributor

Analysis of:Why Risk Models Failed to Spot the Credit Crisis by Adam Davidson | www.npr.org

This article should bring to light a common misconception in attempting to evaluate risk of financial loss which is that probability estimation techniques are often falsely relied upon as precise measures. One must remind oneself that in most cases probability of future financial loss cannot be precisely estimated. Such estimates are imprecise largely due to difficulties in accurately assessing dispersion around expected losses based on historical averages for an individual risk or aggregation of risks. The possibility of sustaining a financial loss under most circumstances generally ranges from remote (e.g., earthquake insurance) to likely (e.g., life insurance). While risk models are helpful decision-making tools, they should be relied upon only to the extent the financial arrangement allows enough flexibility so that the counterparties can equitably share in the risk of mis-estimating the probability of loss.

Previous Page : 12345678910Next41 to 50 of 275