But how does that apply? You can purchase the business, and back the reserves, but that doesn't make the reserves yours. The reserves are stated, and the underwriting is always dependant upon available reserves. The reserves belong to the payoff of the insured, or to the original investors in the syndicate when the insured has no claim. The only thing available for purchase is the underwriting capacity based on net reserve availabilty, industry formulas, and regulatory requirements. The reserves are what makes an insurance entity viable. They do exist, and they are an asset of an insurance company. They are, however, balanced against the contigent liability of claims.
Whatever Canopius purchased and began to back should somehow be segregated into a theirs and ours type of distinction. Or they should begin to pay interest on the reserves they are writing against.
