TWR - Tower Insurance.

**Balance** · 18-05-2021, 07:50 PM

Originally Posted by winner69

All that cash earning a pittance at the moment ...$600k in first half they say

Yes, bugger that they have to hold the investments in gilt-edged bonds and bank deposits which pay bugger all - and rising bond rates would have significantly reduced bond values?

**winner69** · 18-05-2021, 08:06 PM

Balance - do actuaries still exist or Is the calculation of likely future liabilities all done by AI ...and hope they dont get it wrong.

I worked at Tower many many years ago and the actuary was God ....one of them tried to get me to become one as he thought I had the smarts to be a good one ...but it seemed a pretty boring job....and they weren't exactly the life and soul of the party

**KJMLimited** · 18-05-2021, 09:38 PM

Not forever though. Bonds expire and get replaced by higher yield paper. In theory.

**Balance** · 18-05-2021, 10:14 PM

Originally Posted by KJMLimited

Not forever though. Bonds expire and get replaced by higher yield paper. In theory.

Agree if the bonds are held through to maturity - the M-T-M then is simply an accounting valuation exercise.

Insurance companies do have to sell bonds though to meet ongoing claims so losses (or gains) are realized when said sales happen.

**KJMLimited** · 19-05-2021, 08:53 AM

They could sell short dated bonds first which in theory trade close to par.

**Balance** · 19-05-2021, 09:24 AM

Originally Posted by KJMLimited

They could sell short dated bonds first which in theory trade close to par.

Comes down to their Treasury view & portfolio decision.

In the good old days, the insurance companies were allowed to have a large equity portfolio and man, some of them used to trade their positions like they were Gordon Gecko!

**peat** · 19-05-2021, 11:50 AM

Originally Posted by Balance

Comes down to their Treasury view & portfolio decision.

In the good old days, the insurance companies were allowed to have a large equity portfolio and man, some of them used to trade their positions like they were Gordon Gecko!

but of course they went broke and no one wants a broke insurer.