Wednesday, May 20, 2009

M&A

mergers and acquisitations is the game for today.

Totally unprecedent, what they're going to try is to merge group and individual business into 1 entity. Guess in times like these, anything is possible.

So what will happen eventually is that everyone will be doing every different line of product. Its good in the sense that there's increase exposure. With this, I can say i'm underwriting every line of business, individual life, individual health, group life and health, policy servicing underwriting.

The concern comes in with regards to limits. underwriting limits determine the value of the underwriter. Its like in an airline, the bigger the plane you fly the more senior you are.

Now with the merger, there's cause for concern that the group people will be marginalize. Have always been under the impression that individual underwriters are more valued than group ones. So then what if we get the lower limits compare to them? That'll totally kill us.

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