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Re: marliz post# 6220

Tuesday, 11/18/2008 8:50:57 PM

Tuesday, November 18, 2008 8:50:57 PM

Post# of 10201
That's what I am trying to tell everyone. NO LIQUIDATION. A viable reinsurance company emerging from a bankruptcy sounds like what we are looking at. Why would they write new business against reserves if they intend to distribute the reserves? Sure, you can expect some sort of distribution, but the more they distribute, the more they would have to pay for debt service to start a new company to write new business. Why would you want to pay debt service on money you already have? Why would you want to attract an underwriter to a structure which already exists?

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