Wow another stellar quarter from Lincoln!!!! I would hope they'd be disappointed!!!
$35.9 million in underwriting losses for the U.S.!!! 105.6% combined for the U.S.!!!
Wake up!!! You better get your hands around your MGAs. Trash trucks for 40+% less than the market??? It's gonna eat your lunch!
Kingsway reported overall favourable reserve development for the quarter, however, we are disappointed with the underwriting results of certain of our U.S. subsidiaries so far this year. The underwriting results of Lincoln General, although much improved in this quarter, have had a major negative impact on overall underwriting profitability.
It would be a telling tale if after all that has been disclosed about Lincoln in their own financials, that AM Best not do anything. For example:
"In the United States, a risk based capital (RBC) formula is used by the National Association of Insurance Commissioners (NAIC) to identify property and casualty insurance companies that may not be adequately capitalized. The NAIC requires that capital and surplus not fall below 200% of the authorized control level. As at June 30, 2007 Lincoln General had an RBC ratio of 183% and we have taken measures to increase this ratio to over 200%."
There are three things the insurance is supposed to be: Non discrimanatory, not excessive, but also not inadequate.
Lincoln by their own admission is not adequately capitalized, Is AM Best gonna let them dump a couple bucks into the company (just enough) to let them keep their A- rating? Then they let their MGAs go back to driving down the market with in appropriate (and inadequate) pricing?