All GLG News Analyses Filed Under: Insurance & Risk Management

Any company will have difficulty if they lose 90% of their investment portfolio.  I understand that it is difficult to see positive returns right now, however, companies in the insurance business that depend on their investments, as well as other things, to pay claims, should be invesiting in long...

This  analysis  is  being  written  in  response  to  a  comment by  a  reader to  my previous analysis  on  the  same  subject. Today we have a  problem  where  the  subprime situation is  getting...

Most people are never going to burn their homes down to collect insurance money.  That said, there will always be a contingent of people in the world that are willing and able to resort to fraud to better their position financially. With the advent of the internet and the ability for someone...

When competition sets price and  conditions in the securities markets produce losses of principal, the only way to raise the gross margin is by reducing operating.

Carriers expect desperate and dishonest acts during hard financial times.

Lesson of monoline debacle: Core issue is concentration of counterparty risk. 

Instead of protecting policyholders, NYS regulators have scrambled to assure availability of bond insurance for benefit of public debt issuers. Core of their strategy was to force shareholders and creditors (the banks) to contribute, one way or another, to the solution.  To do so, they pulled off...

Implications: 1.Assumptions - the need to obtain aaproval by Credit Rating Agencies is , at best, a  CRITICAL GOAL to ACHIEVE. 2.The Financial MarketPlace reacted in a timely manner. However the response may be pre-mature. The salient issues mayNOT have been resolved. 3.Mortgage-backed securities...

There  is  a  new  paradigm  on  the  horizon  to  further  trouble  the  subprime  CDO  market. As  the  CDO  market  unravels  we  find  wheels  within  wheels  coming  off....

Implications: 1.A loss to both Net Income and Revenues reach the Billions Mark. 2.A further deterioration og the combined Income to Revenues is very likely to continue. 4.It is entirely possible that an additional charge may have to be absorbed at the year end audit and become a major obstacle for the...