Your position in FFH

[Myth465]

I'm quite certain, with the preliminary estimates being thrown around by knowledgeable insurance executives, that this has the distinct possibility of creating a pretty hard market for reinsurance...especially in Asian markets.  Cheers!

 

Someone has changed their tone in a few days. I hope you are right.

[Parsad]

Someone has changed their tone in a few days. I hope you are right.

 

I didn't say that it is guaranteed.  Just that there is a distinct possibility.  It will all depend on the total overall impact of the insurance losses relative to industry capital. 

 

The original estimates were relatively low compared to the amount of excess capital in the industry.  That number has ballooned over the last couple of days to the $35B number by AIR.  That is only earthquake losses, and not tsunami-related or business-interruption losses. 

 

The number I heard this morning on Bloomberg was that the actual total impact could be $200B, but how much of that will impact insurance directly is another matter and too early to tell.  You can watch the interview below with Willis Group's Joe Plumeri.  Cheers!

 

http://www.bloomberg.com/video/67649402/

[Myth465]

Thanks for the link.

[Uccmal]

Just a question for someone more knowledgeable:  If you have a Honda plant in Alliston Ontario and it needs certain parts that are only manufactured a few miles from a certain damaged reactor would business interruption insurance apply if you are shut down by the lack of parts?

[Alekbaylee]

Looks like insiders bought some shares recently :

 

Mar 15/11  Mar 10/11  Young, Brian David  Direct Ownership  Subordinate Voting Shares  97 - Other  2,354   

Mar 15/11  Mar 10/11  Wacek, Michael  Direct Ownership  Subordinate Voting Shares  97 - Other  1,108   

Mar 15/11  Mar 10/11  Salvesen, James B.  Direct Ownership  Subordinate Voting Shares  97 - Other  277   

Mar 15/11  Mar 10/11  Lovell, Peter H.  Direct Ownership  Subordinate Voting Shares  97 - Other  693   

Mar 15/11  Mar 10/11  Christiansen, Jan  Direct Ownership  Subordinate Voting Shares  97 - Other  970   

Mar 15/11  Mar 10/11  Bennett, Robert  Direct Ownership  Subordinate Voting Shares  97 - Other  1,108   

Mar 15/11  Mar 10/11  Barnard, Andrew  Direct Ownership  Subordinate Voting Shares  97 - Other  3,461 

 

[Grenville]

Looks like insiders bought some shares recently :

 

Mar 15/11  Mar 10/11  Young, Brian David  Direct Ownership  Subordinate Voting Shares  97 - Other  2,354     

Mar 15/11  Mar 10/11  Wacek, Michael  Direct Ownership  Subordinate Voting Shares  97 - Other  1,108     

Mar 15/11  Mar 10/11  Salvesen, James B.  Direct Ownership  Subordinate Voting Shares  97 - Other  277     

Mar 15/11  Mar 10/11  Lovell, Peter H.  Direct Ownership  Subordinate Voting Shares  97 - Other  693     

Mar 15/11  Mar 10/11  Christiansen, Jan  Direct Ownership  Subordinate Voting Shares  97 - Other  970     

Mar 15/11  Mar 10/11  Bennett, Robert  Direct Ownership  Subordinate Voting Shares  97 - Other  1,108     

Mar 15/11  Mar 10/11  Barnard, Andrew  Direct Ownership  Subordinate Voting Shares  97 - Other  3,461 

 

 

I don't think they were insider purchases. No purchase prices were listed.

[Tommm50]

Just a question for someone more knowledgeable:  If you have a Honda plant in Alliston Ontario and it needs certain parts that are only manufactured a few miles from a certain damaged reactor would business interruption insurance apply if you are shut down by the lack of parts?

 

It depends on the type of Business Interruption coverage they bought. Some would, some wouldn't. It used to be business interruption coverage only kicked in if your business was interrupted by direct physical damage to your property caused by a covered peril. Nowadays there are much broader coverages out there. I'd guess in this soft market the broader coverage has become more common but I have no idea how prevalent it is.