Tjohn schreef:
AS a company in runoff :
!!!!!!!!!!!!!!!!!!!!!!The fraud is up to 20-30% TGIC need to do more for the stock holders!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The operational costs of the company are annually about 32 milj. The moment when the revenues minus the operational costs are below the settled claims is the point where the company can keep going on indefinitely . 230-32 = 198 milj. We need a reduction in the settled claims from annual 530 (2009) to 192 milj that is about a reduction of 60%.
2009 settled claim 515 milj 515-198= 317
2010 settled claim 430 milj 430-198= 232
2011 settled claim 330 milj 330-198= 132
2012 settled claims 220 milj 220-198= 22
2013 settled claims 150 milj 150-198= -48 provid
The company had by the start of the runoff 1000 milj in assets 1000-(317+232+132+22-48)= 345 milj left over for the stock holders 345/15000000= $23 a share
In this simplified model we ignore the reduction in revenues and the profit on capital etc. But what we see is that the quick reduction in set...