In the second quarter, it posted more than $700 million in net losses, according to a filing with the National Association of Insurance Commissioners.
I assume the rate of accidents/premiums/payouts is somewhat consistent. Which would imply to me they have been running huge deficits for years. How was everyone asleep at the wheel?
Edit: I mean both the company and auditors. Internally, everyone had to see the approaching disaster. Premium hikes were obvious necessary. Or were there bonus structures for selling more packages, even if they cost the company money?
Also, “while ATIC is required by the state’s DFS to submit to an examination every five years, there are no publicly available exam reports for the company. A 1986 DFS evaluation obtained by Bloomberg described ATIC as insolvent by $6 million.”
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Edit: I mean both the company and auditors. Internally, everyone had to see the approaching disaster. Premium hikes were obvious necessary. Or were there bonus structures for selling more packages, even if they cost the company money?
Also, “while ATIC is required by the state’s DFS to submit to an examination every five years, there are no publicly available exam reports for the company. A 1986 DFS evaluation obtained by Bloomberg described ATIC as insolvent by $6 million.”
When aren't they asleep at the wheel [1]?
It's just generally they're only driving a bicycle instead of an airplane.
Of course, it takes two to tango. The company itself needs to be acting irresponsibly and the regulators need to as well.
[1]: https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_cr...