What's with insurance.

Graham

challengemaster wrote: »

If motor insurance isn't profitable then how come FBD have millions to invest in hotels?

Insurers' business model
Underwriting and investing
The business model is to collect more in premium and investment income than is paid out in losses, and to also offer a competitive price which consumers will accept. Profit can be reduced to a simple equation:

Profit = earned premium + investment income – incurred loss – underwriting expenses.
https://en.wikipedia.org/wiki/Insurance

umop apisdn

Graham wrote: »

I can't imagine insurance company spinners are cheap at all. I'm led to believe they laugh every time you start your car, they take another sip of Krug and a nearby lacky feeds them a smoked salmon canapé. :pac:

I get it now, you're desire is to be wanna be cat's lacky, at least he tried something from spin school.

Graham

umop apisdn wrote: »

I get it now, you're desire is to be wanna be cat's lacky, at least he tried something from spin school.

Really, that's the best you can come up with.

I was expecting at least one additional insurance bogeyman to make an appearance.

umop apisdn

Graham wrote: »

Really, that's the best you can come up with.

I was expecting at least one additional insurance bogeyman to make an appearance.

You should try looking up spin in wiki as well if you can't afford spin school

Liam McPoyle

challengemaster wrote: »

I think you answered your own question there. Using reserves to purchase property assets.





If motor insurance isn't profitable then how come FBD have millions to invest in hotels?

I didn't say they did.



FBD, like many insurers, have made investments over the years so as not to be reliant solely on the insurance industry to pay the dividends that their share holders demand.

FBD invested in a number of Hotels and a couple of resorts in Spain before the financial crisis in 2007, Im not sure of the exact dates but it was certainly before then.

Due to the restrictions / requirements of Solvency II they may be forced to sell the interests they already have to put the money into their claims reserves pot.

Here is an article from yesterdays Indo which explains it.

FBD will sell its stake in a hotels business to its joint venture partner Farmer Business Development for €48.5m and issue bonds to meet the target, the Irish Independent understands.
The insurance group was rocked by the sudden departure of chief executive, Andrew Langford, at the end of July.
Chief financial officer Fiona Muldoon, the former head of banking and insurance supervision at the Central Bank, stepped in as interim CEO and is widely tipped to take on the top role. She joined FBD in March.
'The Farmers Journal' reported yesterday that a total capital injection of up to €100m could be required to ensure that the embattled insurer can meet tough new solvency rules due to take effect from the start of next year.
Around half of the money is likely to be raised from the sale of FBD's stake in a hotels business to its partner in the joint venture, Farmer Business Development.
Farmer Business Development - a farmers' group - is also the largest shareholder in the insurance group with a 25pc stake.
If a sale of the hotels is agreed, FBD is obliged to announce that to the market.
An issue of subordinated bonds is understood to be the preferred option to close the remaining financial gap.
A new share raising, which would potentially dilute existing shareholders, is not understood to be on the cards.
FBD is in a so called closed period, meaning the company is restricted in what it tells investors, until interim results due to be released on August 24
Shares in FBD closed down 6pc yesterday at €6.44 each and have fallen 44pc so far this year.
The shares traded at €19.30 each in January 2014.
FBD issued a number of profit warning last year on the back of increased customer payouts which the company said related to the economic recovery.
Emer Lang, an analyst at Davy Stockbrokers said the impact of a set of new Europe-wide rules for the insurance sector, known as Solvency II, is likley to be the key focus when FBD publishes its interim results at the end of the month.
"Speculation that Solvency II poses a challenge for FBD has intensified since the insurer's mid-May IMS when it reiterated that the continuing significant uncertainty in the claims environment will impact the development of booked claims reserves and profitability in 2015," Emer Lang said.

Source

Graham

umop apisdn wrote: »

You should try looking up spin in wiki as well if you can't afford spin school

You need to make your mind up.

If I'm an 'insurance spinner' then of course I could afford it and I wouldn't need classes in it. Out of curiosity, what's the going rate for insurance spinners these days?

If I'm not an 'insurance spinner' then I probably wouldn't be able to afford the classes after I'd paid for my car insurance.

:rolleyes:

umop apisdn

Graham wrote: »

You need to make your mind up.

If I'm an 'insurance spinner' then of course I could afford it and I wouldn't need classes in it. Out of curiosity, what's the going rate for insurance spinners these days?

If I'm not an 'insurance spinner' then I probably wouldn't be able to afford the classes after I'd paid for my car insurance.

:rolleyes:

At least cat tried something before he slunked off, got anything yet ?

Graham

umop apisdn wrote: »

At least cat tried something before he slunked off, got anything yet ?

Did you make your mind up yet or are you still confused?

umop apisdn

Graham wrote: »

Did you make your mind up yet or are you still confused?

Are you that stuck ?

Graham

umop apisdn wrote: »

Are you that stuck ?

I think it's safe to say you've failed to make your point and you've given up trying so I'll leave you with your imaginary 'spinners'.

umop apisdn

Graham wrote: »

I think it's safe to say you've failed to make your point and you've given up trying so I'll leave you with your imaginary 'spinners'.

At least cat attempted some spin before he crashed and burned. I guess they just can't get quality staff these days.

wonski

JamboMac wrote: »

so my policy is due to be renewed from last year was 1,500 on provisional licence.

Now I have a full licence and would expect it to decrease yes, not go astronomical. Car is an 01 1.4 golf 75hp.

Aviva no quote and 123.ie 3,200.
Last week the AA where sub 1,000 which I hope they still will be in a weeks time as I'm quite within the 30days.

At this rate I'd be better off trying to insure 300hp golf gti, I wouldn't mind but I actually have my car running well, but would nearly become UN-sellable at that quotes.

I know some won't insure a car 15 years old but mine technically ain't.

You paid 1500 last year and AA offered under 1000.

What is the problem, exactly

Vic_08

umop apisdn wrote: »

At least cat attempted some spin before he crashed and burned. I guess they just can't get quality staff these days.

I don't agree with many of the conclusions Business Cat makes nor do I have any love for the insurance industry but I do appreciate him taking the time to post the insiders view on his industry.

If all you can come up with is pathetic snide remarks then perhaps YOU should just slink off to bother someone else.

umop apisdn

Vic_08 wrote: »

I don't agree with many of the conclusions Business Cat makes nor do I have any love for the insurance industry but I do appreciate him taking the time to post the insiders view on his industry.

If all you can come up with is pathetic snide remarks then perhaps YOU should just slink off to bother someone else.

Tell us more about this great "insiders" view, where all the ordinary insurance customers, such as Tom and Mary have been deemed crooks ?

biko

FFS