HIG was cut in half last week to 10, because they didn't detail their capital position. Now they have in a new SEC filing:
The Company has in the past used the concept of an estimated capital margin in excess of modeled rating agency requirements to maintain AA level ratings when discussing its capital position. On October 6, 2008, the Company announced that it had arranged for a $2.5 billion capital infusion by Allianz SE. Assuming a year-end S&P 500 level of 1,165 (the closing level at September 30, 2008) and pro forma for the Allianz investment, the Company estimated a capital margin of $3.5 billion. Assuming the S&P 500 closed 2008 at 900 (7% below the S&P 500 close of 968 on October 31, 2008), the Company's estimated capital margin would be approximately $2.0 billion.
This estimate reflects the estimated capital positions of the Company’s life and property and casualty operations (exclusive of any fourth quarter statutory credit related impacts) in addition to cash and short-term investments at the parent company. The estimate does not include any benefit from the Company’s $500 million Glen Meadow trust contingent capital facility, nor does it include any draw down of the Company’s $1.9 billion revolving credit facility, both of which are available to fund potential future capital shortfalls in any operating subsidiary. The estimate also assumes the Company’s operations perform as planned for the remainder of the year....
The Company estimates that the year-end risk-based-capital ("RBC") ratio at Hartford Life and Accident Insurance Company ("HLA") would be approximately 440% assuming the S&P 500 closed the year at 900 and approximately 345% assuming the S&P 500 closed the year at 800. These estimates reflect the Company’s contribution to HLA of $1 billion provided by the property and casualty subsidiaries, which was completed in October, and assume the Company contributes the net proceeds from the $2.5 billion Allianz SE investment to HLA by the end of 2008.
On its October 29, 2008 earnings call, management indicated RBC figures in the range of 400% and 300% assuming year-end S&P 500 levels of 900 and 800, respectively. In addition to the assumptions set forth in the preceding paragraph, these estimates included an estimated provision for HLA’s fourth quarter statutory credit-related impacts of $500 million, after-tax, in the S&P 500 at 900 scenario and $750 million, after-tax, in the S&P 500 at 800 scenario...
In addition, the Company maintains about $1.5 billion of capital resources comprised of cash and short-term investments at the parent company and incremental capital held by the property and casualty subsidiaries. The transfer of additional excess capital from the property and casualty subsidiaries would be subject to the approval of the Connecticut Department of Insurance. Were the Company to use these capital resources, each $500 million increment would increase HLA’s RBC ratio by approximately 30 percentage points at S&P 500 levels of 900 and 800. In addition, the Company can access the $500 million Glen Meadow trust contingent capital facility and maintains the ability to access $1.9 billion of capacity under its revolving credit facility.
Under all of the foregoing scenarios, the Company estimates its property and casualty subsidiaries would continue to be capitalized at or above the levels historically associated with "AA level" property and casualty insurers.
Att: RBC Bank President Gordon Nixon - Salary - 11.73 Million!!
$100,000 - MISTAKE (FISHERMEN'S LOAN)
I'm a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC account.
There is no monthly interest payment date on the contract.
Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan contracts signed by other fishermen around the same time showed a monthly interest payment date on their contract,(agreement).
The lending policy did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn't familiar with these type of loans. She never informed me verbally or in writing about this new criteria.
Phone or e-mail:
RBC President, Gordon Nixon, Toronto (416)974-6415
RBC Vice President, Sales, Anne Lockie, Toronto (416)974-6821
RBC President, Atlantic Provinces, Greg Grice (902)421-8112 mailto:firstname.lastname@example.org
RBC Manager, Cape Breton/Eastern Nova Scotia, Jerry Rankin (902)567-8600
RBC Vice President, Atlantic Provinces, Brian Conway (902)491-4302 mailto:email@example.com
RBC Vice President, Halifax Region, Tammy Holland (902)421-8112 mailto:firstname.lastname@example.org
RBC Senior Manager, Media & Public Relations, Beja Rodeck (416)974-5506 mailto:email@example.com
RBC Ombudsman, Wendy Knight, Toronto, Ontario 1-800-769-2542 mailto:firstname.lastname@example.org
Ombudsman for Banking Services & Investments, JoAnne Olafson, Toronto, 1-888-451-4519 mailto:email@example.com
"Fighting the Royal Bank of Canada (RBC Bank) one customer at a time"
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