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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 453.97

-0.1%

Feb 4 4:00 PM EST

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To: carranza2 who wrote (71901)	3/13/2011 3:58:30 PM
From: Logain Ablar	Read Replies (1) of 220043

I would think Berkshire's Bermuda CAT reinsurance operations would take a hit as well as some of the Bermuda reinsurers. The life insurers don't reinsure the same way the property and casualty insurers do. I remember Aflac is big in Japan and Asia. Munich, Swiss and Hannover Re all had 5% haircuts on Friday. Japanese direct P&C insurers can be crushed by this. In the U.S. a P&C insurer is not allowed to write premium that exceeds 3x its surplus (on a net, and this actually depends on the state the insurer is domiciled in). So imagine writing a homeowners policy for $1,000 covering $400,000 of property. Ditto on the commercial side. This can be a massive hit to the surplus / solvency of the direct writers. Just look at some of the loss announcements of the Bermuda reinsurers from the Australian Flood and NZ quake. Some of the companies won't survive without government intervention. In the U.S. there is a backstop to cover claims when a carrier goes insolvent. No idea what Japan or Bermuda has in place.

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