After your company's miserable performance in 2013, your Board of Directors distributed 126,624 shares of your stock, worth $790,134 on the day of distribution, to the worthy officers that guided this performance. This included 41,113 shares ($256,545) handed over to the chief honcho, Cubbin. Of course, the BOD also distributed shares to itself.
Congratulations shareholders, for having a Board of Directors that is so attuned to YOUR interests!
Carrier reputation and visible financial strength both mean a lot to the account side of the equation (as well as the brokers, the recent court decision not withstanding)
Back in the old days, late '70s into the '90s, the belief was that you could write workers comp at a big underwriting loss and still make money on the investment income that the reserves generated. They called it "cash flow underwriting" and companies like Crum & Forster, Continental, Reliance, and Home Insurance participated in this model with alacrity. Where are they now? The companies you mentioned came after them and where are they? Now comes the next generation of underwriting disasters. Each underwriting cycle has 'em. I had a guy at a large mutual company once tell me that the nice thing about working for a mutual is that you can write workers comp at 110 (combined ratio) and there are no shareholders giving you #$%$ about it.
My suspicion is that it is more hope than anything factual. What we saw with the SinkHole should play out with Meadowbrook as well -- the potential bidders will stay on the sidelines until management finishes upping its reserves and decimating book value.
What is funny is that people were making the same bet on Tower Group (TWGP) that became the SinkHole. The longs were all talking up book value and tangible book value, but by the time SinkHole's management got done writing up the loss reserves, the best they could get from an AmTrust affiliate was $3. This turd is still a short -- None of them, not AmTrust, and any of the other runoff management firms, will pay up for this #$%$ -- they will all wait for it to wilt first.
This POS now sits at a buck a share and the one clown on Wall Street that follows it has a price target of $2.50, yet his rating is "Hold" (which in Wall Street-speak means "Don't Hold."). Even funnier, Wheathead has bought into the $2.50 target! "Wall Street speaks! I will follow...." What a hoot!
Hey Wheathead, if you ever learn to look at a company's financials in a more objective light, your investment performance may improve...