Author Topic: Fairfax 2018  (Read 104461 times)



wondering

  • Jr. Member
  • **
  • Posts: 81
Re: Fairfax 2018
« Reply #431 on: September 04, 2018, 07:13:38 AM »
https://www.theglobeandmail.com/business/article-why-canadas-reputation-as-a-kids-tv-production-powerhouse-is-under/

Interesting article about Fairfax's investment in Boat Rocker Media and the Canadian childrens TV programming industry.

wondering

  • Jr. Member
  • **
  • Posts: 81
Re: Fairfax 2018
« Reply #432 on: September 11, 2018, 02:02:14 PM »
Interesting article about the excess capital in the reinsurance industry.

"We find an asymmetric risk / reward as we move through 2018 windstorm season. We calculate ~$60bn of excess capital in the industry. We believe this surplus capital could result in limited pricing improvement even with a material loss; much like the pricing reaction to 2017 losses. We expect SCOR's shares to be most exposed should a hurricane emerge, given highest disclosed sensitivities and most risk to its buy-back."

https://ftalphaville.ft.com/2018/09/11/1536679537000/When-the-wind-blows-your-money-away/

Cigarbutt

  • Hero Member
  • *****
  • Posts: 1031
Re: Fairfax 2018
« Reply #433 on: September 11, 2018, 03:01:35 PM »
Thank you wondering. That was useful.

Here's a recent AMBest report that offers complementary info on different topics including the impact of the ILS market.
http://www3.ambest.com/bestweek/DisplayBinary.aspx?TY=P&record_code=277679&URatingId=2855493

-most relevant pages of the document (3-9 and 34-39).

As you likely know, Markel has been expanding in a big way into the ILS space whereas Fairfax hasn't.

The cat-bond space appears to be a huge success, seemingly may have made the underwriting cycle irrelevant and people involved with transactions are getting comfortable, as most participants no longer require an independent rating agency opinion.

However, in 2017, from adequate sources, the average coupon on the bonds is about 5% and average expected loss stands at 2,7%.

Seems like an awfully thin margin but, so far, so good.