Author Topic: PIH - 1347 Property Insurance Holdings  (Read 14979 times)

MarkS

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Re: PIH - 1347 Property Insurance Holdings
« Reply #40 on: August 27, 2016, 09:19:28 AM »
Hey muscleman,

I don't really follow this company. I also don't know much about the flood insurance world as I've always made sure that our homes were outside the 100 year floodplain.  But from what I understand the insurance is mostly covered by the federal government - and as an aside not particularly good. Typically damage from flood waters are not covered by your homeowners insurance.  If wind rips off your roof and rain destroys your furniture you can collect on your typical homeowners policy. But damage from rising water isn't usually covered.

Hope this helps.
Mark


muscleman

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Re: PIH - 1347 Property Insurance Holdings
« Reply #41 on: August 27, 2016, 10:49:38 AM »
Hey muscleman,

I don't really follow this company. I also don't know much about the flood insurance world as I've always made sure that our homes were outside the 100 year floodplain.  But from what I understand the insurance is mostly covered by the federal government - and as an aside not particularly good. Typically damage from flood waters are not covered by your homeowners insurance.  If wind rips off your roof and rain destroys your furniture you can collect on your typical homeowners policy. But damage from rising water isn't usually covered.

Hope this helps.
Mark


Got it! So if people lose  their homes due to flood, there is nothing they can do? They just lost a big financial asset of their life?

I found this for PIH's 10-k. "our manufactured home policies can be endorsed to include coverage for flood and earthquake".

"Catastrophes can be caused by various events, including hurricanes, tropical storms, tornadoes, windstorms, earthquakes, hailstorms, flood, explosions, fires and by man-made events, such as terrorist attacks." This is vague.


But this language probably means wind/hail is the only thing they cover, though for mobile homes they provide flooding coverage.

"Maison provides dwelling policies for wind and hail only, and dwelling, homeowner and mobile home/manufactured home policies for multi-peril property risks."

MarkS

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Re: PIH - 1347 Property Insurance Holdings
« Reply #42 on: August 27, 2016, 11:42:54 AM »
Flood insurance certainly covers some of the loss .  However, I've heard a lot of people complain that their flood policies do not include damage to contents. But that is just what I'm hearing.  It makes a certain amount of sense as the mortgage holders seem to be the primary beneficiary of flood policies. But that's the cynic in me.   Most of the flooding occurred in some of the fastest growing parishes (counties) in the state.  IMHO the uncontrolled growth changed the way water runs off causing damage in areas that never previously flooded . This has lead to lots of homeowners with no coverage. Ordinarily we expirience a period of rapid growth after major storms. People get their insurance settlements and start rebuilding. But I'm concerned that the effects from this disaster may linger.
Mark

muscleman

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Re: PIH - 1347 Property Insurance Holdings
« Reply #43 on: August 31, 2016, 09:03:52 PM »
I had a call with IR.

A few things to point out.
1. In proxy form, there is no compensation philosophy. IR followed up with me later saying bonus is based on overall profitability. I asked if there are specific profitability goals, and the answer is no. The bonus is paid on discretionary terms. Meaning as long as the board is happy, the board will decide to give the executives their bonus.
2. I asked why do they say although the reinsurance cost has increased from 13M to 23M, it is actually a better deal on a risk adjusted basis. Does this mean the risk is now higher? IR said, well, you know, there is 30% increase in number of policies written. So I said that means there is a 30% increase in risk. Why does this justify a nearly 100% increase in reinsurance cost? IR said the policy composition has also changed. I didn't say anything. But I think if  the policy composition has changed and that justifies the remaining 70% increase in the reinsurance costs, then they would have to also increase their per policy premium by 70% at least, in order to balance the increased risk. But that's clearly not the case here. Per policy premium is almost flat compared to last year.

Thoughts?

muscleman

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Re: PIH - 1347 Property Insurance Holdings
« Reply #44 on: November 30, 2016, 07:11:17 AM »
no one following this anymore?
https://www.sec.gov/Archives/edgar/data/1591890/000138713116007965/ex99-1.htm

2016 Q3. Combined ratio 144%. There is always some natural catastrophy in LA. About one every two quarters. :o