Do these 3 reinsurance contracts solves the major issue regarding the loss reserves?
If not, what is the purpose of this? Why did they release this AFTER the market closed? It was certainly leaked as that is why there was a run-up from $6.60 yesterday. Clearly, someone know about this.
No, other than the WC reinsurance deal, both of the others primarily have to do with future liabilities. This likely replaces CastlePoint's position on July 1 --- onwards position, relieving them of those liabilities.
Without knowing the magnitude and lines of business of the reserve shortfall, it's impossible to know how this impacts the apparent liability situation !