[ctguy87]

From an objective standpoint, what is the best case scenario for CT, especially Hartford, regarding the health insurance mergers? What are the potential negative and positive impacts?

[BobNJ1960]

Negatives: The "knowns" in consolidation are simple: same revenue, fewer total jobs. Fewer jobs usually masked in p.c. terms, like synergies or efficiencies or eliminating redundancies in operations. In general, corp bought suffers most of the losses, unless it is in a lower COL region, in which case buyer makes more eliminating most jobs in their higher COL region.

The positive impacts are higher earnings per share for shareholders, good profits for shareholders of corp bought via a hefty price premium, and long-term a stronger industry.

Hartford has nothing to gain in this situation. It is certain to happen anyway, as relative to many industries, consolidation in insurance is long overdue.

[ctguy87]

Originally Posted by BobNJ1960

Negatives: The "knowns" in consolidation are simple: same revenue, fewer total jobs. Fewer jobs usually masked in p.c. terms, like synergies or efficiencies or eliminating redundancies in operations. In general, corp bought suffers most of the losses, unless it is in a lower COL region, in which case buyer makes more eliminating most jobs in their higher COL region.

The positive impacts are higher earnings per share for shareholders, good profits for shareholders of corp bought via a hefty price premium, and long-term a stronger industry.

Hartford has nothing to gain in this situation. It is certain to happen anyway, as relative to many industries, consolidation in insurance is long overdue.

Thanks. That's what I figured.

By the way, someone posted an article about how Hartford has lost 37% of insurance jobs since 1990. To me, this made sense as things like IT are outsourced, decline of local agents in favor of online marketplaces, and general job reduction. Then I saw that nationwide, insurance jobs have risen, especially in Des Moines and wisconsin.

If only Des Moines wasn't so painfully boring and flat.

[BobNJ1960]

Originally Posted by ctguy87

Thanks. That's what I figured.

By the way, someone posted an article about how Hartford has lost 37% of insurance jobs since 1990. To me, this made sense as things like IT are outsourced, decline of local agents in favor of online marketplaces, and general job reduction. Then I saw that nationwide, insurance jobs have risen, especially in Des Moines and wisconsin.

If only Des Moines wasn't so painfully boring and flat.

This is the source:

Hartford Has Lost 37 Percent Of Its Insurance Jobs Since 1990 - Hartford Courant

[ctguy87]

Originally Posted by BobNJ1960

This is the source:

Hartford Has Lost 37 Percent Of Its Insurance Jobs Since 1990 - Hartford Courant

The other article I mentioned - Take it with a grain of salt as its from 2013 and may be Des Moines biased - but numbers don't lie. Interesting discussion as well regarding wage differences between the 2 cities balanced with cost of living.

America's insurance heavyweights: Des Moines narrows gap with Hartford | The Des Moines Register | desmoinesregister.com

[BobNJ1960]

Originally Posted by ctguy87

The other article I mentioned - Take it with a grain of salt as its from 2013 and may be Des Moines biased - but numbers don't lie. Interesting discussion as well regarding wage differences between the 2 cities balanced with cost of living.

America's insurance heavyweights: Des Moines narrows gap with Hartford | The Des Moines Register | desmoinesregister.com

I know people working in insurance in that fine city (now 3rd worldwide in insurance jobs, btw). These trends will continue, most likely at a faster pace.

Excellent article, btw. Thanks for posting it!

[JayCT]

Originally Posted by ctguy87

The other article I mentioned - Take it with a grain of salt as its from 2013 and may be Des Moines biased - but numbers don't lie. Interesting discussion as well regarding wage differences between the 2 cities balanced with cost of living.

America's insurance heavyweights: Des Moines narrows gap with Hartford | The Des Moines Register | desmoinesregister.com

There is an excellent article in today's Hartford Courant on this subject. It noted that the loss of insurance jobs in Hartford is more related to the sell off of financial divisions and outsourcing of certain jobs such as IT than with a reduction in direct insurance jobs. It did also note that the consolidation of insurance will likely mean changes. I will try to provide a link when I get to a computer. Jay

[HeadedWest]

Originally Posted by ctguy87

If only Des Moines wasn't so painfully boring and flat.

Des Moines may be boring but it (like much of Iowa) is not flat. Rolling low hills are pretty much everywhere around there. Granted, outside of the towns, most of those hills are covered in cornfields, not trees.

I was quite surprised when I first drove through eastern Iowa; I thought it would be like northern Illinois or Indiana, but it's quite different.

[BobNJ1960]

Originally Posted by JayCT

There is an excellent article in today's Hartford Courant on this subject. It noted that the loss of insurance jobs in Hartford is more related to the sell off of financial divisions and outsourcing of certain jobs such as IT than with a reduction in direct insurance jobs. It did also note that the consolidation of insurance will likely mean changes. I will try to provide a link when I get to a computer. Jay

Saved you some work, Jay. Stay cool (somehow)-it's hot in central NJ, too!

Health Insurance Consolidation Raises Specter Of Layoffs - Hartford Courant

PS, CIGNA rejected Anthem, so since that was a 18% stock price premium, I would expect CIGNA stock to drop some (runup was in anticipation of a deal).
Although surely they will end up bought soon IMO, by someone!

[GraniteStater]

Originally Posted by ctguy87

Thanks. That's what I figured.

By the way, someone posted an article about how Hartford has lost 37% of insurance jobs since 1990. To me, this made sense as things like IT are outsourced, decline of local agents in favor of online marketplaces, and general job reduction. Then I saw that nationwide, insurance jobs have risen, especially in Des Moines and wisconsin.

If only Des Moines wasn't so painfully boring and flat.

Des Moines is on the upswing, experiencing a large amount of growth and incomes are high relative to COL. Lots of old leafy neighborhoods, Downtown is improving even more over the past 10-15 years. Madison, WI has a more desirable natural setting, it is on an isthmus surrounded by lakes Mendota and Monona. Madison is a good fit for a displaced New Englander. I have lived in both New Hampshire (Concord region) and Madison.