I see a big threat to ABL coming from the Insurance companies themselves. At the moment ABL is a minor irritation, its not discussed the volume of policies that are surrendered each year back to the Insurance companies, and that thru ignorance of other opportunities, that could be substantial. As ABL share of that grows so will the Insurance companies offer for surrendered policies and the ARB will be severely curtailed?
Also wouldnt the derivative book on Jxn would be at risk during another banking crisis, that external risk shouldnt be understated and perhaps makes Jxn the least recession proof of the three?
I see a big threat to ABL coming from the Insurance companies themselves. At the moment ABL is a minor irritation, its not discussed the volume of policies that are surrendered each year back to the Insurance companies, and that thru ignorance of other opportunities, that could be substantial. As ABL share of that grows so will the Insurance companies offer for surrendered policies and the ARB will be severely curtailed?
Also wouldnt the derivative book on Jxn would be at risk during another banking crisis, that external risk shouldnt be understated and perhaps makes Jxn the least recession proof of the three?
Both are good points and are addressed in the discussion