Vietnam or Thailand ? Vote for the TOP Country of the Week !
Updated: May 11, 2025
"I say," returned Smith, "that the Salamander is far more likely to reinsure than to stand a heavy assessment. And we want that business of theirs. We have a little score to settle with the Salamander, sir." "Yes, yes," admitted the President. "O'Connor has treated us very badly; still, it has worked out very fortunately for us.
"One is to let the risks in force expire, paying the losses as they occur; that will take about five years. The other, which is the usual way, is to pay some other company to assume the liability on all our outstanding policies to reinsure us. We pay a lump sum, and the other company pays the losses as the risks expire, instead of our doing so." "I see the idea. But what company would do that?
With his wonted caution, however, he had refrained from putting himself on record, other than orally. "Reinsure half, and put it through, Smith," he had directed; and Smith had done so. In cases where his own security was involved, Mr. F. Mills O'Connor was an exceedingly cautious man.
And I think you'll be getting out pretty well. You're impaired right now, you know." Mr. Murch's financial vanity was touched. "After all," he said, with an effort, "I probably averaged only 150 for mine. I've got pretty fair dividends on it for some time. That'll get me out pretty nearly even. Well, Mr. Belknap, if you can arrange to reinsure the Salamander on those terms, go ahead."
For this sum, or perhaps a little less, you can probably reinsure all your business now in force, leaving you, let us say, with your capital stock intact and perhaps $100,000 over." "In other words," said Mr. Murch, "we'll get for our liquidated stock about 120; stock which sold last week at 210!" "Precisely. If I can get you a reinsurer on the terms I mentioned.
"You're thinking of reinsurance," said Mr. Wilcox mildly. "It is exactly there that the Porphyrion is weak. It has tried to undercut, has been badly hit by a long series of small fires, and it hasn't been able to reinsure. I'm afraid that public companies don't save one another for love." "'Human nature, I suppose," quoted Helen, and he laughed and agreed that it was.
"You're thinking of reinsurance," said Mr. Wilcox mildly. "It is exactly there that the Porphyrion is weak. It has tried to undercut, has been badly hit by a long series of small fires, and it hasn't been able to reinsure. I'm afraid that public companies don't save one another for love." "'Human nature, I suppose," quoted Helen, and he laughed and agreed that it was.
"But suppose he doesn't. Suppose they decide to reinsure and quit. Murch has the reputation of being a bad loser," said Smith, slowly. His chief looked at him. "Let them reinsure, then. But how does that affect us?" he said. "Why shouldn't we reinsure them?" said the Vice-President. "What!" exclaimed Mr. Wintermuth. "What's that you say?"
Occasionally it's discouraging when we see some competitor build up an income in three or four years as big as ours that it's taken three or four generations to establish, but when we read some morning that our enterprising friends have had to reinsure their liability with some stronger concern and retire from business because their losses have caught up to them, we don't feel quite so badly.
But if the word "missing" brings all hope to an end and settles the loss of the underwriters, the word "overdue" confirms the fears already born in many homes ashore, and opens the door of speculation in the market of risks. Maritime risks, be it understood. There is a class of optimists ready to reinsure an "overdue" ship at a heavy premium.
Word Of The Day
Others Looking