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Meadowbrook Insurance Group, In Message Board

  • joe_sutton21224 joe_sutton21224 Oct 23, 2012 5:06 PM Flag

    And Here Come The Consultants

    As expected, the consultant6s are now in to help with "strategies." If they get downgraded, it is all over. B++ is as good as F in the insurance world. This will mark 4 straight questers of decreased Stautory Surplus.
    The dividend will be gone very shortly. I am sure that is one of the "strategies"

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    • err, I guess its at 9, thought it was at 10.

    • Thanks Joe. I guess we'll soon see the market reaction...I think I will listen to the call....unusual that it comes after the open.

    • Hello seems to know Meadowbrook and the industry well...if the Best downgrade does happen, do you think there is any chance a larger P&C would buy MIG, or would it make more sense for the potential buyers to just siphon off MIG's customers one by one? Thanks for any thoughts you have.

      • 1 Reply to twhite113
      • I appreciate your confidence in me. The honest answer is, I don't know. I suspect that program business that is profitable would quickly leave for other carriers. That is not the majority of business though.
        Really, the question is, is there a market for the workers compensation book of business? And if there is, what is it worth?
        I don't think that there is any way that an outsider could make an informed call. The primary issue is that the company has under reserved for losses. The question we can't answer is, by how much?
        I don't think they would be a target for the large national insurers. However, it's not out of the question that a specialty insurance company, or private equity group could find value.

        The challenge of valuing insurance companies is that there is a subjective and nontransparent aspect to their reserves and investments.

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