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On the annuity front
Old 10-06-2008, 02:40 PM   #1
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On the annuity front

Allianz SE invested $2.5 billion in The Hartford:

http://www.marketwatch.com/news/story/hartford-announces-25-billion-investment/story.aspx?guid={214F5C31-E194-41E4-A9AD-F70434E946C6}&dist=hppr

It's a financial investment, but I wonder if there will be a push towards a merger down the road (just speculation, but there's significant overlap between Hartford and Allianz Life and Fireman's Fund [Allianz SE's respective annuity and P&C businesses in the US]).

Aviva (parent company to Aviva USA, the top EIA seller in 2008) just took a 30% hit to their capital surplus:

Market crash rocks insurance giant Aviva - Times Online

From that same article, AIG is exiting the UK life insurance market.

Combined with the deals going on in the financial institution space, something tells me that we'll most likely look back on this period as a time of great power and wealth consolidation at the top.
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Old 10-06-2008, 05:31 PM   #2
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Aviva (parent company to Aviva USA, the top EIA seller in 2008) just took a 30% hit to their capital surplus:

Market crash rocks insurance giant Aviva - Times Online
So what did they get wrong? Did they not hedge the EIA equity market exposure, or did they have a lot of their assets invested in equities (like the last time around with UK insurers)?

I tell you, the names change, but the same stupid moves get made by these guys in every up/down market cycle.
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Old 10-06-2008, 08:50 PM   #3
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Allianz - Wikipedia, the free encyclopedia
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Old 10-06-2008, 08:54 PM   #4
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Yes, that'd be why they withdrew their bid for naming rights to that stadium.... apparently we don't like our American sports teams to play in placed named after pro-Nazi companies.
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Old 10-07-2008, 01:06 AM   #5
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IIRC, in part of the never ending Annuity wars discussion, there was a reference to an academic paper, where professor showed that the insurance companies were significantly underpricing EIA with a guarantee minimum return typically in the 3%+ range

Given the insurance companies latest disasters with investment, the drop of safe investment rates to just barely over the 3% range, and the market tanking etc, I wonder how the insurance companies will be able to pay the claims?
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Old 10-07-2008, 09:40 AM   #6
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Yes, that'd be why they withdrew their bid for naming rights to that stadium.... apparently we don't like our American sports teams to play in placed named after pro-Nazi companies.

That's reaching a little bit don't you think?

Please name for me a couple large German companies who operated from 1930 - 1945 without contributing anything to, or doing anything for the existing government?
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Old 10-07-2008, 09:52 AM   #7
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It was enough of a reach for the jets and giants to reject Allianz's bid to buy their new stadium naming rights.

I think the issue at hand is how aggressively Allianz helped the nazi regime and how complicit their company officers were. They regularly toured the death camps (which they insured) and assured that life insurance policies paid for by people killed in the concentration camps were paid to the nazi's and not to the victims families.
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Old 10-07-2008, 10:09 AM   #8
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That's reaching a little bit don't you think?

Please name for me a couple large German companies who operated from 1930 - 1945 without contributing anything to, or doing anything for the existing government?
Sorry, I didn't mean to imply that they're pro-Nazi now.

But, as a counterpoint, can you name other companies with leadership that was as closely aligned as, say, Kurt Schmitt, chairman of the board for Allianz until 1933 and on the supervisory board until 1945?
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Old 10-08-2008, 10:12 AM   #9
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Sorry, I didn't mean to imply that they're pro-Nazi now.

But, as a counterpoint, can you name other companies with leadership that was as closely aligned as, say, Kurt Schmitt, chairman of the board for Allianz until 1933 and on the supervisory board until 1945?
Under normal circumstances I might do some research in an attempt to make my point. However, considering what they did to my people I don't want to expend any energy doing so.
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