Where and how do you think the $500 Million (More or Less) will be booked on their books ? As a payable "Liability". This is not good. It will affect their PPS moving forward. EOM Sorry.
When an insurance company gets sued, they have to set aside a reserve for estimated exposure. Gnw should have already did that.
If they settle for $500 Million (which I believe is high), would affect the balance sheet by approx. $350Million after taxes. Company would still have a tangible net worth of approx. $13Billion.
Not a major concern IMHO.
Correct, I do not disagree. But once that reserve becomes executed then it goes out of assets/reserves. Thus it should a decrease in cash /reserves whatever it is booked under.