Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?

This post begins with a bleg. Exactly how does State Farm derive $4 billion of reinsurance coverage from $1.1806 billion of actual notes outstanding? There are some very bright financial minds that are stumped by that question. So in this game of Slabbed emulates Jeopardy,  let’s set up the question and bleg at the beginning when the … Continue reading “Has the Cat Bond Market Seized Up? The (sub)Prime Answer is Affirmative. $2.8 Billion of Missing Merna Re Cat Bonds? Is State Farm’s Reinsurance Program Worthless?”

well, RE-butter my butt and call me a biscuit, Merna transfers $4billion cat risk from State Farm

No wonder State Farm is short on walkin’ around money. Merna Reinsurance Ltd. transfers $4 billion of natural catastrophe risk from State Farm, the largest homeowners and auto insurer in the U.S., to investors, either as bonds or as loans. The notes mature in three years and pay off for investors if State Farm’s aggregate … Continue reading “well, RE-butter my butt and call me a biscuit, Merna transfers $4billion cat risk from State Farm”

Merna and Oglesby RE

Noting Sop’s mention marking this as day number 364 of our blogging on Katrina insurance issues and related matters (some more closely than others), I pass on the Fitch rating for Merna Re, a relative of Oglesby Re, along with the picture the names of these reinsurance entities brought to mind. Merna Re is a … Continue reading “Merna and Oglesby RE”

Wall Street paternalism and disconnect at it’s finest and on display. A Skadden partner writes about shareholder ignorance and displays plenty in the process.

I’ve written a series of posts on the disconnect from reality between the Wall Street fantasy land and Main Street, which has made modern day Wall Street possible. The problem is systemic in my opinion, from trade publications like the National Underwriter whose editor in chief believes spending yet more money on public relations is the … Continue reading “Wall Street paternalism and disconnect at it’s finest and on display. A Skadden partner writes about shareholder ignorance and displays plenty in the process.”

The Tangled Web Part Deux: Support your local TARP insurer and/or subsidize “the wealthy”

I love it when I hear that mental “click”! I’ve been squirreling away several important news links like pieces of a jig saw puzzle trying to figure out how to make them fit and be understandable to a broader audience. This post is partially in response to the recent guest column by Eli Lehrer of the … Continue reading “The Tangled Web Part Deux: Support your local TARP insurer and/or subsidize “the wealthy””

News on Windpool reinsurance case not reassuring

The whiff from yesterday’s docket report  in  Association Casualty Ins. Co., et. al. v. Allstate Ins. Co., et. al got stronger today – and once again, we see loopholes where there should be a safety net. Plaintiffs rested their case before the jury today  and all of the remaining insurance company defendants followed State Farm’s lead … Continue reading “News on Windpool reinsurance case not reassuring”

Edrust has left the building! State Farm dumps its BP stock.

Nowdy reported the cratered investment back in June. The following is from the Naz. Gotta give Ed’s boys in finance and investing some credit. They stayed away from subprime and other forms of toxic paper except to the extent they pushed it out into retail channels via their Bermudan special purpose entity Merna RE. No … Continue reading “Edrust has left the building! State Farm dumps its BP stock.”

Insurance costs hit home, for all of us – including the good neighbor and LA Insurance Commissioner Donelon, too

“One thing is certain.  The more we all spend on insurance, that’s less money that we spend on other things, like cars, and refrigerators, and clothing.  Until the problem is solved, our recovery will never be complete…” WLOX reporter Doug Walker hit the road for a week in January to learn more about the insurance … Continue reading “Insurance costs hit home, for all of us – including the good neighbor and LA Insurance Commissioner Donelon, too”

The Commish sets up a “Stakeholder” Meeting. If he’d only invited all the stakeholders…..

I’ve been hanging onto Anita Lee’s story from June 27th (H/t Editilla for the ease in finding the link) on Insurance Commish Mike Chaney’s upcoming insurance forum for almost 2 weeks now trying to figure out how to make all the puzzle pieces fit. Puzzle pieces? Now our readers are confused too but perhaps not as … Continue reading “The Commish sets up a “Stakeholder” Meeting. If he’d only invited all the stakeholders…..”

We haven’t blogged on it because we knew…..

The time is still not right for NFIP reauthorization. The bonus is this also means I get 6 more months to be a pain in the ass to our current favorite U$ $enator, true blue friend to $ubprime king Angelo Mozilo and bona fide Pac Man Chri$ Dodd. If I left anything out rest assured there will … Continue reading “We haven’t blogged on it because we knew…..”