Vantaggi
A small P/C Insurer re-structuring itself due to external rating pressures from rating agencies and new ROE targets from new shareholders mainly P/E driven. Such change enables employees to learn how important is controlling the expense base and writing policies aimed at technical profits versus premium volumes in light of the low investment returns and soft insurance cycle.
Svantaggi
To safeguard rating pressures from rating agencies, long tali reserves where reduced in order to generate short term profits to show as a tangible result of a masked turnaround. Unfortunately the tali will catch up inevitably with the under-reserved balance sheet. To reduce expenses live underwriters and profitable line of business where cut jeopardizing future growth with insurance brokers and clients who are running away from Torus to protect their business interests.