Confessions of a KFS customer---BK must be looming!!!
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.
Woo hold up there. I can speak for myself so please I thank the help but I'm not complete in my claims processing yet. It may be the case that everything is proper with my claims handling. I just have concerns which may prove to be unfounded. So lets not jump to conclusions. So far it is alarming but not conclusive. I have faith in Southern to do the right thing by writen policy, they would be fools to not honor a policy. Lets give them time to work it out and I'll agree to keep the board informed. Not paying claims is good if the claim is invalid but mine is a valid claim which needs to be processed properly that is all I'm saying. Thanks for the help but lets not jump to conclusions. Steve