Quote:
Originally Posted by flstf
I'm not sure where Cigna would cut costs to compete with a not-for-profit alternative but the board must be pleased with the current management and existing profit margin. The CEO made $30.16 million last year and $120.51 million over the last 5 years.
I continue to believe that cutting insurance costs helps but is not the primary problem as long as the out of control health care provider costs which they insure continue to rise faster than people's incomes.
#53 H Edward Hanway - Forbes.com |
$24 mil a year average ain't bad. With the start of football season as a comparison, I live in the Charlotte area so its constantly being discussed, Julius Pepper a DE is being paid $16.7 mil or over a mil per game.
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Peppers will now play next season under a one-year deal worth at least $16.7 million.
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Carolina Panthers, Julius Peppers fail to agree on long-term deal before deadline
So on one hand we have a guy who has been with a company 30+ years, a company with a $8.5 billion market cap, $19 billion in revenues, 30,000+ employees, and we have a D-end who may get 10 sacks and sign a few autographs. Give or take a few mil, I am betting Cigna shareholders are getting a better deal. Oh, and Hanway's stock in the company (he owns .37% of it or assuming a market cap of $8 billion - $31,450,000 got a nice 50% haircut last year.) means he has skin in the game.
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I love this, please stop me!
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"American Idol" former executive producer Nigel Lythgoe recently revealed that Simon Cowell is earning $36 million a year from the show.
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Scoop: Simon Cowell's salary dwarfs Paula Abdul's - The Scoop- msnbc.com
{added}
Please...need help...please stop me.
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But even in death, there can only be one King. Reclaiming his top spot on the list is Elvis Presley, whose estate generated $49 million in the past year.
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Top-Earning Dead Celebrities - Forbes.com
---------- Post added at 06:55 PM ---------- Previous post was at 06:32 PM ----------
Quote:
Originally Posted by The_Jazz
You are missing something very important here - IBNR.
Incurred
But
Not
Reported
That's going to be 10-15% of their expenses and it's a number that may or may not ever be realized.
Insurance company balance sheets are notoriously tricky to read. I submit that, unless you're an accountant with a strong insurance background or an accuary, that you aren't going to make sense of them, at least for this discussion.
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Whew! I am o.k. now. An insurance company with a 125 year history of actual results can get IBNR pretty close to accurate. Inflating the number would affect earnings and shareholders would not like that. Reporting the number too low will incur the wrath of regulators. Alos, if the number is too high or too low it impacts premiums. If premiums are to low, they will lose money, too high and they lose market share. So, within a reasonable range they need to be as accurate as possible to keep everyone happy.