Confessions of a KFS customer---BK must be looming!!!
Being a loyal customer of Southern United everything went well till I had to file a claim. Boy do you guys have problems. First, BOTH "800" numbers on my policy were for companies which are not even associated with Southern United. Hard to file a claim when your company gives you numbers for other insurance companies. Of course I did manage one company to accept my claim. Too bad they were not Southern United and had no association with Southern United---Contract had been cancelled. Why didn't they cancel my policy when they cancelled claims services? Uh money, they must need it pretty bad.
I could go on but let me assure you Mr. Blue who I finally tracted down via a number given by a former service provider to his supervisor is quite a claims man. Told me he'd have to call me back in "about 5 minutes" because he was busy making a denial letter. I almost said"Shouldn't you take my claim first" but I knew he was important and I didn't want to get smart. A week later with no contact and I'm wondering if I shouldn't have gotten smart with Ole Vince Blue when he told me he spent over a year processing claims in New Olreans after Katrina. I have spent 4 years helping the industry overcome their problems with processing claims and gone to the point of working on slabbed and Yahoo Allstate full-time to help the industry. Oh well looks like my work is not successfull as there are still people willing to tell a client they will get back to them right after they finish the denial letter they were working on when they took your call. Welcome to a pre BK company Steve Haas is what I felt like. Welcome to the NFL after a big hit---
It is standard industry practise for companies who are selling off their various corporate sub's to do blanket claims denials in order to books their balance sheets Steve or if you prefer Forrest. I have seen it many times. You are screwed and need to get a lawyer. Of course anyone who buys one of KFS's subs will find out later they don't have the profit generating machine they believed when they looked at the books. You can only do mass claims denials for so long before it kills the goose that layed the golden egg so to say. Good Luck Mr. Haas and be sure to come back to let us know how KFS is "cooking" the books pre-sale. Buyer beware not only of the insurance but of the insurance company is the caviate. I'd look for abnormal claims denials in recent or long term data, then adjust valuation DOWN...
"strengthening relationships with regulators and rating agencies, being sure we have the right people in the right role."
I want to remind longs here that blanet denials are not the way to "strengthen relationships with regulators". Have we not learned a thing from the disaster in Illinois where the company was ordered to process claims in a proper and timely manner and fined a considerable about? We are on the shit list of USA regulators and as a forgein based company we cannot afford to remain on this list. Mr. Forrest does us a great service by giving us real time field reports on how our claims practises are a cluster fuck at best. Lip service will only serve to keep this company going in the wrong direction with regulators. The consideration of new leadership should be the focus of the BOD!!! Is there not an activist investor like Mr. Chapman at EDCI who will take over this disaster?
Thanks, Dan. I believe we are at the turning point in Kingsway's transformation. Since last quarter's call, we have taken action that will allow us to put the legacy of poor historical business strategies behind us. We can now concentrate our attention on rebuilding the strength and performance of the group. On last quarter's call, I provided an update on the considerable process we made in executing the transformation plan we announced in February of this year. I outlined what we were doing on all four fronts. All of which I'll touch on again this morning. The four were, restoring financial stability, managing the run-off of Lincoln, strengthening relationships with regulators and rating agencies, being sure we have the right people in the right role.