FFH - Net Premiums Written to Statutory Surplus

[gaf63]

                      NPW          SS      NPW/SS

 

Northbridge      928.7    1,411.3  0.7

Crum & Forster 716.4    1,628.2  0.4

OdysseyRe      1,893.8  3,512.8  0.5

Fairfax Asia      127.9      327.8      0.4

 

Their NPW to capital is also < .5

 

I am interested in knowing how much insurance FFH  can write to their SS according to the regulations,

and also if any one has an opinion or knowledge of  what level would they be comfortable in writing.

 

Am interested in how much they can increase their business once the opportunity arises.

 

Thanks, gaf

[beerbaron]

Isn't the max NPW/SS 2? I remember Prem talking about it in a few letters to shareholder.

 

BeerBaron

 

 

 

[Tommm50]

There are a number of tests regulators use nowadays using risk adjusted capital calculations. The old rule of thumb used to be you could write premiums 2 to 3 times your policy holders surplus. 2 to 1 was considered conservative.

[gaf63]

Thanks for info,  anyone have an idea what  FFH  considers  conservative??

[beerbaron]

Read the first years letters with Markel. They state it quite clearly.

 

Oh yes, it's also a nice read. Look at the CR back in the 80s, it's crazy what interests rates do on a CR.

 

BeerBaron

[JohnDoe700M]

www.casact.org/education/ratesem/99handouts/wcp22.ppt