Insurance Problems Seem To Never Go Away (TIG)

[JEast]

It has been nearly 15-16 years since the TIG saga began and was used as a case of argument by the shorts over the years.  Prem and company finally took the pen away from the Dallas office in mid 2000, but the damage had been done. Just another reference point that sometimes an insurance problem hardly ever goes away.

 

However, I had not heard about the Argentina problem and their recalcitrant effort to not pay for the last 14 years.

http://www.bloomberg.com/news/2014-10-10/argentina-may-ignore-bond-judge-sanctions-tig-case-shows.html

 

Cheers

JEast

[Mikenhe]

It’s a problem that never goes away – but not really much of an impact on the bottom line. You can see from the article that TIG has been very active in pursuing the debt and has known about it for years as well. I’m sure that, as a reinsurance recovery, it is listed as zero so that if they don’t collect its no impact to the bottom line – if they do collect anything then it’s a bonus.

 

 

As they have been suing Caja and the Argentine government for 14 years I don’t think you can use it as a stick to beat Fairfax with.

 

And it has nothing to do with vulture funds and bonds. It’s a reinsurance recovery.

 

You know Fairfax is serious when they try to stop Malbec being sold in the USA.. that was the most disturbing potential outcome of this for me :D