Insurance Sector Actionable Intelligence Note, Made Public

By: Reggie Middleton | Sat, Nov 22, 2008
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I recieved an email from a reporter yesterday inquiring into insurers, which prompted me to release the timely subscription content regarding the Hartford Insurance Group to the public. I grabbed a substantial position in early October, and released a timely actionable intelligence note on October seventeenth, followed up by a significant amount of research. Kudos and big ups go out to my team for doing a phenomonal job crystallizing my strategy. HIG has joined, or is close to joining the increasingly growing 200%+ return on cash investment club.

I picked up on the Hartford after investigating other life insurers, specifically Metropolitan, and found HIG to be the worst of the pack.


Hartford's yields have spiked into junk territory (pretty much where they belong)


Hartford's CDS spreads have blown by a multiple of 4x to 8x


The Hartford Insurance Group is insolvent, as liabilities currently are the equivalent or more than its tangible assets, and thier core investment sector (the financial services industry) adds to those losses literally on a daily basis


This is a graphical depiction of Hartfords own reporting of net outflows - A literal "Run on the Bank" (well, actually insurer).


Previously booked future gains are unraveling rapidly

The general public now has access to the research since the Hartford has pretty much run its course for blog subscribers.

Here is a spreadsheet formally for professional subscribers detailing the exposuse of the top 200 Hartford debt holders that I was able to dig up on short notice - more work definitely needs to be done, along with a target on the top 10. Notice that the top 10 have significant exposure.

 

HIG Security Holders

  Holder name Total Amount Held ($)
1 VANGUARD GROUP INC 261,125
2 TEACHERS INS & ANNU 125,000
3 PRUDENTIAL INSURANCE 69,857
4 JACKSON NATIONAL 65,450
5 NEW YORK LIFE INSURRANCE 64,895
6 AIG ANNUITY INS CO 62,500
7 ALLIANZ LIFE INS CO 61,381
8 CAPITAL RESEARCH AN 58,250
9 SUNAMERICA LIFE INS 53,740
10 NEW JERSEY DIVISION 52,000

Hartford Insurance Group spreads and counterparty/debt holders - pro (149 kB 2008-11-01 09:39:04) This is an Excel 2007 binary document, and either the newest version of excel or equivalent excel reader will be needed to acceess it.

The following are an additional smattering of the stuff my subscribers used to benefit from my research and investment positions, now all free:

10/25/08 Insurance Industry Update - Professional w/inventory addendum (7.5 MB 2008-10-27 03:00:37)

Hartford Insurance Group Forensic Analysis - Pro (619.29 kB 2008-11-06 08:44:34)

 


 

Reggie Middleton

Author: Reggie Middleton

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