With 40+ years in business, never posting a GAAP combined ratio over 100%, no layoffs, and ongoing growth, there is no reason to believe growth won't continue. IT is slowing improving, and not all non-California numbers are bleak. Mr. Tirador brings a fresh outlook, and there is nowhere to go but up for non-California operations. Capital rich company with very conservative underwriting. Day traders should stay away, and long-term investors should see this as a growth stock opportunity.
Fair enough; but their non-california operations are making some rookie mistakes. Take for example the huge Extra-contractual payments in Florida. This is a vast, organized set-up my the Florida plaintiffs bar that is a well known ploy by any seasoned claims operation. Controls should have been in place in the Florida claims operations from day one. Now Florida may be forcing carriers to write homeowners if they write auto. A terrible proposition for insurers. Now take a look at New Jersey: terrible fraud problem especially on PIP coverage; many carriers are simply leaving the state. I am still long this stock but we need to watch the trends carefully on the non california book. Looks like they are paying the price of naively going moving into some tough markets.
While they're under no obligation to share information on individual non-California states, I'd love to know the Florida numbers. I wonder if non-California numbers might be quite a bit better without those of the Sunshine State.