No, nothing T23 - they have remained silent on the matter. In any case, I think the cat cover cuts in at around $1mm (very low) so the damage is quite small (to their bottom line).
I worked the numbers backwards and upside down, and my major conerns is their ability to repeat their investment income performance. I reckon they will stick to what they know, and as such will fail to shorten their duration at current levels (which is what they should do). The shortfall in 2009 investment income will need to be covered by an increase in insurance margins - either at the claims end or the operating end (reckon it has to be the first - can't see the operating expenses dropping too much over the coming 12 months). By my reckoning, to repeat their 2008 performance GWP has to increase around 15-20% over the coming 12 months - that means they will need to purchase GWP....
Kirk and the lads should be talking about this as we speak (else we could see NPAT drop by Dec-09).
Regards
Kit
something to watch, page-11
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