PDH - Premier Diversified Holdings Inc.

[Parsad]

Here you go...read the latest press release:

 

http://web.tmxmoney.com/article.php?newsid=72335807&qm_symbol=PDH:CNX

 

http://www.artemis.bm/blog/2014/12/16/sequant-re-launches-ils-platform-aims-to-ease-investor-access-to-risk/

 

http://mobile.royalgazette.com/article/20141216/BUSINESS04/141219781&template=mobileart

 

Cheers!

[Hawks]

Getting more and more interesting. I like the direction Parsad is heading.

[compoundinglife]

Here you go...read the latest press release:

 

http://web.tmxmoney.com/article.php?newsid=72335807&qm_symbol=PDH:CNX

 

http://www.artemis.bm/blog/2014/12/16/sequant-re-launches-ils-platform-aims-to-ease-investor-access-to-risk/

 

http://mobile.royalgazette.com/article/20141216/BUSINESS04/141219781&template=mobileart

 

Cheers!

 

Interesting idea. It sounds like this is a totally new model for connecting investors to insurance risk (not that ILS is new but allowing smaller investors to participate is new)?

[karthikpm]

Here you go...read the latest press release:

 

http://web.tmxmoney.com/article.php?newsid=72335807&qm_symbol=PDH:CNX

 

http://www.artemis.bm/blog/2014/12/16/sequant-re-launches-ils-platform-aims-to-ease-investor-access-to-risk/

 

http://mobile.royalgazette.com/article/20141216/BUSINESS04/141219781&template=mobileart

 

Cheers!

 

Interesting idea. It sounds like this is a totally new model for connecting investors to insurance risk (not that ILS is new but allowing smaller investors to participate is new)?

 

Sanjeev

 

ILS seems hard for me to understand.  Will your annual report include some " ILS for dummies" explanation ?

 

Thanks

 

Karthik

[OracleofCarolina]

Here you go...read the latest press release:

 

http://web.tmxmoney.com/article.php?newsid=72335807&qm_symbol=PDH:CNX

 

http://www.artemis.bm/blog/2014/12/16/sequant-re-launches-ils-platform-aims-to-ease-investor-access-to-risk/

 

http://mobile.royalgazette.com/article/20141216/BUSINESS04/141219781&template=mobileart

 

Cheers!

 

Interesting idea. It sounds like this is a totally new model for connecting investors to insurance risk (not that ILS is new but allowing smaller investors to participate is new)?

 

Sanjeev

 

ILS seems hard for me to understand.  Will your annual report include some " ILS for dummies" explanation ?

 

Thanks

 

Karthik

 

+1

 

 

[ourkid8]

Agreed! 

 

 

Here you go...read the latest press release:

 

http://web.tmxmoney.com/article.php?newsid=72335807&qm_symbol=PDH:CNX

 

http://www.artemis.bm/blog/2014/12/16/sequant-re-launches-ils-platform-aims-to-ease-investor-access-to-risk/

 

http://mobile.royalgazette.com/article/20141216/BUSINESS04/141219781&template=mobileart

 

Cheers!

 

Interesting idea. It sounds like this is a totally new model for connecting investors to insurance risk (not that ILS is new but allowing smaller investors to participate is new)?

 

Sanjeev

 

ILS seems hard for me to understand.  Will your annual report include some " ILS for dummies" explanation ?

 

Thanks

 

Karthik

 

+1

[Parsad]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers! 

[Hawks]

Thank you Sanjeev. That helps to clarify things to some degree.

[adesigar]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

[Parsad]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

 

The way SequantRe is structured, is that it gets a percentage of the profits from any investment gain from the underlying collateralized capital.  That only happens two ways...good investments and good underwriting.  If you have poor underwriting, that can easily wipe out any investment gains.  Thus we are incentivized to make good underwriting decisions.  Cheers!

[rkbabang]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

 

The way SequantRe is structured, is that it gets a percentage of the profits from any investment gain from the underlying collateralized capital.  That only happens two ways...good investments and good underwriting.  If you have poor underwriting, that can easily wipe out any investment gains.  Thus we are incentivized to make good underwriting decisions.  Cheers!

 

I'm trying to understand this as well and if there is any moral hazard here.  So you are limiting you're risk to having zero gains, but you can not have underwriting nor investment losses? Doesn't this still give a lot more incentive for bad/risky underwriting than if loses could be realized as well as simply not having gains?  You could view writing a lot of contracts as a good asymmetrical bet, if it goes one way you win, if it goes the other you don't lose.  I'm not saying you or SequantRe would think that way, but a someone in the same business or some future management could.

 

[Parsad]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

 

The way SequantRe is structured, is that it gets a percentage of the profits from any investment gain from the underlying collateralized capital.  That only happens two ways...good investments and good underwriting.  If you have poor underwriting, that can easily wipe out any investment gains.  Thus we are incentivized to make good underwriting decisions.  Cheers!

 

I'm trying to understand this as well and if there is any moral hazard here.  So you are limiting you're risk to having zero gains, but you can not have underwriting nor investment losses? Doesn't this still give a lot more incentive for bad/risky underwriting than if loses could be realized as well as simply not having gains?  You could view writing a lot of contracts as a good asymmetrical bet, if it goes one way you win, if it goes the other you don't lose.  I'm not saying you or SequantRe would think that way, but a someone in the same business or some future management could.

 

 

No, you're not trying to limit your losses to zero gains.  You want to maximize underwriting profit and investment gains...that's how you are compensated...by those two components.  If you take shortcuts in either side, it comes back to bite you in future profits.  Cheers!

[rkbabang]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

 

The way SequantRe is structured, is that it gets a percentage of the profits from any investment gain from the underlying collateralized capital.  That only happens two ways...good investments and good underwriting.  If you have poor underwriting, that can easily wipe out any investment gains.  Thus we are incentivized to make good underwriting decisions.  Cheers!

 

I'm trying to understand this as well and if there is any moral hazard here.  So you are limiting you're risk to having zero gains, but you can not have underwriting nor investment losses? Doesn't this still give a lot more incentive for bad/risky underwriting than if loses could be realized as well as simply not having gains?  You could view writing a lot of contracts as a good asymmetrical bet, if it goes one way you win, if it goes the other you don't lose.  I'm not saying you or SequantRe would think that way, but a someone in the same business or some future management could.

 

 

No, you're not trying to limit your losses to zero gains.  You want to maximize underwriting profit and investment gains...that's how you are compensated...by those two components.  If you take shortcuts in either side, it comes back to bite you in future profits.  Cheers!

 

That's another way of saying management is extremely important.  Therefore, SequantRe isn't a business any idiot can run (long term anyway).

 

[Parsad]

I'll give you the simplest explanation, but as you know, nothing is necessarily as simple as it sounds! 

 

ILS, or insurance-linked securities, are essentially securitized products based on underlying insurance contracts.  Unlike normal reinsurance companies, that use a significant amount of asset to equity leverage and other reinsurance products to offset risk, insurance-linked securities are fully-collateralized...thus the brokerage has very little...virtually no...insurance risk. 

 

Where the brokerage makes money is by taking a percentage of the gross premiums as an underwriting fee and on any gain in the underlying capital collateralizing the insurance risk.  The downside to ILS is the lack of use of leverage and float, but the upside is no exposure to underwriting risk and unlimited capacity to underwrite risk. 

 

That being said, as an ILS brokerage builds its book of contracts, and generates significant annual income, it can set up another insurance subsidiary that is fully-capitalized by its retained earnings, that could eventually underwrite reinsurance risk directly like any other reinsurer.  Thus benefiting from asset to equity leverage and the long-term benefits of insurance float. 

 

Again, it's a lot more complex than this, especially what SequantRe is trying to do, but this simplifies it a bit.  Hope it helped!  Cheers!

 

I apologise in advance if im being completely dumb about this. Also I have not read anything about SequantRe and the comments below are not about SequantRe but just ILS, or insurance-linked securities in general.

 

To me this seems very similar to banks making loans and then passing them off to Fannie/Freddie and keeping a fee. The more loans banks made the more money they made and they didn't keep the risk.

 

This seems similar but with insurance. Since the people writing the insurance have keep no risk, how do one make sure of the quality of the insurance that is written? The motivation for an ILS company seems to be to write as many contracts as possible to maximize profits.  ILS companies would have to write more contracts the lower insurance rates got. But if an insurance company is not getting the premiums to cover the risk it should be writing less insurance?

 

The way SequantRe is structured, is that it gets a percentage of the profits from any investment gain from the underlying collateralized capital.  That only happens two ways...good investments and good underwriting.  If you have poor underwriting, that can easily wipe out any investment gains.  Thus we are incentivized to make good underwriting decisions.  Cheers!

 

I'm trying to understand this as well and if there is any moral hazard here.  So you are limiting you're risk to having zero gains, but you can not have underwriting nor investment losses? Doesn't this still give a lot more incentive for bad/risky underwriting than if loses could be realized as well as simply not having gains?  You could view writing a lot of contracts as a good asymmetrical bet, if it goes one way you win, if it goes the other you don't lose.  I'm not saying you or SequantRe would think that way, but a someone in the same business or some future management could.

 

 

No, you're not trying to limit your losses to zero gains.  You want to maximize underwriting profit and investment gains...that's how you are compensated...by those two components.  If you take shortcuts in either side, it comes back to bite you in future profits.  Cheers!

 

That's another way of saying management is extremely important.  Therefore, SequantRe isn't a business any idiot can run (long term anyway).

 

Correct!  We've got two very smart people with a lot of experience running Sequant...Guy & David.  They understand risk, they are actuaries deep down, and are principled.  Cheers!

[simplefocus]

I looked up PRDGF in US and found 2 OTC stocks, PRDGF.PK and PRDGF, with 2 different trading prices.  Which one do you buy? 

 

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?  Thanks. 

[Uccmal]

I looked up PRDGF in US and found 2 OTC stocks, PRDGF.PK and PRDGF, with 2 different trading prices.  Which one do you buy? 

 

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?  Thanks. 

 

Intrinsic value = Sanjeev Parsad.  He is the only reason any of us invested.

[Hawks]

+1

[Partner24]

Agree with Uccmal.

[Crip1]

I looked up PRDGF in US and found 2 OTC stocks, PRDGF.PK and PRDGF, with 2 different trading prices.  Which one do you buy? 

 

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?  Thanks. 

 

Intrinsic value = Sanjeev Parsad.  He is the only reason any of us invested.

 

 

Does that mean that PDH has an attractive P/E (specifically, Parsad/Enterprise) ratio?

 

 

 

-Crip

[Vish_ram]

I looked up PRDGF in US and found 2 OTC stocks, PRDGF.PK and PRDGF, with 2 different trading prices.  Which one do you buy? 

 

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?  Thanks.

 

How can you ask for intrinsic value in a value forum when you've a brand new management, capital and line of biz?

 

 

[Parsad]

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?

 

Does that mean that PDH has an attractive P/E (specifically, Parsad/Enterprise) ratio?

 

If Premier is a nine-inning baseball game, you've only seen one pitch so far in the entire game! 

 

The last six months have been busy, but you've seen nothing yet.  Premier five, ten, fifteen, twenty years out will look very different than what it looks like today.  Only the name will have any discernible similarity, as will my compensation!  Cheers! 

[Uccmal]

Can someone tell me your estimated intrinsic value for PDH and how you came up with that value?

 

Does that mean that PDH has an attractive P/E (specifically, Parsad/Enterprise) ratio?

 

If Premier is a nine-inning baseball game, you've only seen one pitch so far in the entire game! 

 

The last six months have been busy, but you've seen nothing yet.  Premier five, ten, fifteen, twenty years out will look very different than what it looks like today.  Only the name will have any discernible similarity, as will my compensation!  Cheers! 

 

PE -"Parsad Enterprises - nice ring to it. 

 

" Only the name will have any discernible similarity, as will my compensation!". That is the intrinsic value! 

[shalab]

 

PDH => Parsad's Dhandho Holdings  :D

 

One can be certain that ethically, there won't be any issues with PDH.

[bookie71]

Parsad,

When will you license your name to the company?

;D

[wescobrk]

Is tomorrow the deadline for the latest financial report?

Thanks.