Replies to post #288 on AICI Capital Trust 9% Pfd (fka AICPQ)

[Enterprising Investor]

Granite Re Files Motions in Lancaster County, Nebraska District Court in January 2016.

The first one is seeking the modification of the Default Judgement by eliminating the provision assigning the Granite Re Judgement to Continental. It also is seeking to have the Order approving the Settlement Agreement set aside.

If Granite Re is successful on these two motions, AIC will seek indemnification in the amount of $11 million from Continental and will reinstate its liability for the Granite Re judgement in the amount of $17.6 million as of 12/31/15.

Source: AIC 12/31/15 NAIC filing

The document was filed with the NAIC on 2/26/16.

[Enterprising Investor]

[From the Department of Corrections]

If Granite Re wins on appeal, Continental not only gets to hand over the $11 million but also may have to make up any difference.

Indemnification provided by Continental is capped at $11 million.