Author Topic: Fairfax has started repurchasing shares  (Read 6324 times)

Dazel

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Re: Fairfax has started repurchasing shares
« Reply #10 on: September 28, 2017, 07:30:11 AM »

https://www.canadianunderwriter.ca/insurance/benefits-merging-fairfax-allied-world-far-outweigh-overlap-reinsurance-fairfax-insurance-coo-1004105613/

Fairfax insurance is not very understood by the market as the company has been looked at as hedge fund over the years...Odyseey Re is 26th and Allied world is 41st biggest writers of reinsurance in the world in 2016 and Brit writes 25% of its business in reinsurance and the other 75% is primary insurance.
Odyssey Re (see Fairfax 2017 posts) bought reinsurance on their reinsurance in north America according to their annual report and would have little impact from small cat's and they also ended a large reinsurance contract for Florida in June of 2015 ...

These are not small Cat's of course and the losses could be very large at Fairfax but not in the context of Fairfax size. Fairfax owns 67% of Allied World as well I believe with options to buy it all over the next 5 years.

As for the industry if this creates a hard market...Fairfax will have a large amount of capital with insurance sales they just made so not only will they not have to raise capital they will be in position to take advantage of the hard market if happens. If that's the case its a back the truck up borrow money from whoever will give to you type investment! fingers crossed!
« Last Edit: September 28, 2017, 07:33:30 AM by Dazel »


Alekbaylee

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Re: Fairfax has started repurchasing shares
« Reply #11 on: September 29, 2017, 06:38:08 AM »