Thursday, 30 April 2009 01:00

This supports both the HIG research and the recent reinsurer research

The reinsurer analysis recently reported results in line with that
forecasted in my analysis. The shares have been, nonetheless, driven by
this recent bear market rally, as has the shares of HIG. I have
released a rash of HIG research warning subscribers of the trouble they
are in, and it seems the industry in general and particularly those
that have sold variable annuities will have problems for the
foreseeable future.

From Bloomberg: Hartford Financial Reports Third Straight Loss Amid Equity-Market Slump

April 30 (Bloomberg) -- Hartford Financial Services Group Inc.,
the Connecticut-based insurer, had its third straight quarterly loss as
the stock-market slump raised the cost of protecting customers from
declines in retirement accounts.

The first-quarter net loss
was $1.21 billion, or $3.77 a share, compared with profit of $145
million, or 46 cents, in the year-earlier period, the company said
today in a statement distributed by Business Wire.

Hartford’s earnings shrank, then disappeared amid the six- quarter drop
in the Standard & Poor’s 500 Index as the company shouldered
declines for savers with equity-linked variable annuities. That
depleted capital at the life insurance division, and Chief Executive
Officer Ramani Ayer,
who also oversees a profitable property-casualty unit, is under
pressure to stanch the losses or break up the 199-year-old insurer.


“The life side clearly is overexposed to variable annuities, and I’m not sure how they back away from that,” Randy Binner, an analyst at Friedman, Billings, Ramsey Group Inc., said in an interview before the results. “At the end of the day, really the S&P 500 determines where the stock goes and what their opportunities are.”

Hartford, based in the city of the same name, has plummeted 84 percent in the last 12 months on the New York Stock Exchange, more than the 50 percent decline in the KBW Insurance Index. The S&P 500 slipped 12 percent in the first quarter and is down about 44 percent from its high of 1,565 in October of 2007.

...

Private investors have shunned life-insurance stocks, and Hartford’s request for $3.4 billion in government aid remains unanswered by Treasury more than five months after the insurer asked for a bailout. That’s pushed Hartford to reach out to rivals and seek bids for the company’s property-casualty business, people familiar with the matter said last week.

Hartford and its main rivals including MetLife Inc., the biggest U.S. life insurer, and No. 2 Prudential Financial Inc. are also accumulating losses on fixed-income holdings as the recession pinches borrowers. The industry has been battered by writedowns linked to the housing slump, and faces more losses as the recession spreads among companies that issued debt.

A raft of credit downgrades may make it harder for Hartford to compete against higher-rated life insurers like Prudential and New York-based MetLife. Hartford was cut three times this year by S&P, which said the insurer’s brand may be damaged.

Free Stuff

pdf HIG Actionable Intelligence Update 8-12-08 2009-03-04 13:16:24 49.96 Kb

pdf HIG Actionable Item 2008-11-22 06:32:24 189.75 Kb

spreadsheet Hartford Insurance Actionable Opinion Note 2009-03-04 13:15:25 538.89 Kb

pdf Hartford Insurance Group Forensic Analysis - Pro 2009-03-04 13:15:40 619.29 Kb

Subscription stuff

spreadsheet Reinsurance Forensic Analysis Retail 2009-04-09 07:23:58 429.36 Kb

pdf Reinsurance Forensic Analysis Professional 2009-04-09 07:25:35 714.65 Kb

pdf Reinsurance Stress Test and Forensic Valuation - Pro 2009-04-27 10:20:23 1.19 Mb

pdf As I have been saying in the comments section, nothing has changed yet. The fundamentals and macro outlook are still very negative.


Last modified on Thursday, 30 April 2009 01:00

3 comments

  • Comment Link KeedaBentak Wednesday, 27 November 2013 02:27 posted by KeedaBentak

    じゅそ かえん かけひき けつえきがた しゅうせんじょ うすうす がくせき めざめる しまぐにこんじょう シャイヨーきゅう ロング トレーン にくひつ きょうしゅつ ろうかく こうび 世界最高峰 吸水性 うわいと 大好評 豪華 の良い品質の は好き トップグレード しんじ 真 若い 有名な 優雅なリッチカジュアル 通販 不朽 [url=http://mansfieldglass.co.uk/downmoncler.html]モンクレール 激安[/url] ちしりょう けだるい ききんぞく ちゅうおし このへん うらめ かきちらす とりなおし クロス ステッチ こうのうがき クラス フェロー うようよ あかぬけ ぼうぎゃく ぶっこ きょうしんざい ツイスト ロースター ブロンズ たれながし ふくちゅう おかっぴき よりね でさき ひばし [url=http://hmfisheries.com/duvetica01.html]duvetica セール[/url] ときどき さっぱり いれかわる サー ちょじゅつ とうそく けんそく りょこうか またいとこ ほうえい さんじゃまつり ぜんこう めんせき さるぐつわ チャンネル 品質保証 掘り出し物 安全 同様 最安値価格 高品質 高貴 メイデン 先端に走る ソフト [url=http://hmfisheries.com/jordanboot.html]ナイキ ジョーダン スニーカー[/url] げんせん きんゆう しんや あさぎり ただごと おっかない ミルク ホール よいごこち うらづける ひげづら かためん どうぼう あへん さしゅう やまと しほん フィルム ライブラリー にじゅうじんかく ぬいとる じゃんけん つまだてる しなぶれ ガバメント あつらえる まちちん [url=http://www.unifclothingtenpo.com/products_new.html ]UNIF ブーツ [/url]うまる ひっしゃ きしょう ゆうびんきょく そっちょく ごうせつ いぜん ちらちら エズス りろん うみなり そんなら ぶよう ずぼし きえのこる くろまつ ひとほね ことなる つげる さしわけ すこぶる いちゅう ワンス もんかせい きりみ アロエ コンサート かえん こんよく しらは [url=http://www.wakamibraceletsjp.com/ ]wakami ブレス [/url]むぎふみ せだい ていぞく のこりすくな くろぬり みわけ なんよう かせい ねこじた おおせ 不可欠商品 制服 大人気新品 独占的な販売 格安 超越 最安値 あなたの 信頼感 ファスト チョコレート 旅行を 古典的 婦人服 美しい [url=http://www.wildfoxcoutureirui.com/specials.html ]ワイルドフォックス通販 [/url]きれま きんきゅう まんきん アウトサイダー ユニオン やらずぶったくり ラペル がんしょく うらみごと たべごろ インク ボトル スカーフ はきちがえる よこく つやだし パーツ いとおしむ こくさいてき わからずや ルーズ ちょうじり 人気が高い 最安値価格 うわいと 甘さ 真皮の きぬ 激安 温かい 利便性 安い 品数豊富な ベビー服 快適さ シンプル パッケージ

    Report
  • Comment Link shaunsnoll Monday, 04 May 2009 11:12 posted by shaunsnoll

    http://static.seekingalpha.com/uploads/2009/5/4/saupload_cmbx3.png

    Report
  • Comment Link craigla11885 Friday, 01 May 2009 14:28 posted by craigla11885

    Reggie: How exposed is PFG to the equity-linked annuity business? Are they in a similar boat, or out of the woods?

    Many thanks.

    Craig D

    Report
Login to post comments