Stowe is Sold

[thetrailboss]

Looks like more of a corporate reshuffling, but AIG spun the resort off to a new entity named Chartis.

http://www.wcax.com/global/story.asp?s=11782995

No more taxpayer discounts for lift tickets I guess :wink:

 

[roark]

Chartis is the name they're shifting most of the core Property/Casualty Insurance biz (the 'good', profitable part of AIG) to. Implies to me that they don't intend to unload it, which is surprising.

 

[gotr0]

I'm guessing you're being sarcastic? Because Chartis is the new name for AIG. It's like Blackwater changing its name to "Xe".

 

[thetrailboss]

I'm guessing you're being sarcastic? Because Chartis is the new name for AIG. It's like Blackwater changing its name to "Xe".

No I am not being sarcastic. The article says that Chartis is a new division of AIG (a new entity).

The taxpayer discount is a joke of course.

 

[drjeff]

I heard that after yesterday's announcement that the new chairman of the board of Chartis will be Chris Dodd

 

[Angus]

I had a conversation with a person in the know - associated with this Chartis entity - before xmas who indicated they have no intention of selling the resort.

 

[thetrailboss]

I'd imagine that C.V. Starr would be rolling in his grave if he knew that his beloved ski area might have been sold.

 

[WWF-VT]

Most likely just another AIG paper transaction. The accountants will make it look like revenue for one entity and a loss for another one and a tax deduction for both !

 

[snowmonster]

It sounds like a corporate reorganization to shield the profitable side of the business from the liabilities of the rotten side. The property/casualty insurance business is spun off (along with Stowe) so that they can continue operating profitable without the burden of making up for the liabilities for more speculative contracts. The more speculative contracts will be left with AIG itself which can then be resolved either through continued operation, reorganization in bankruptcy or sale to third parties. With the property/casualty business (and Stowe) in the new entity, Chartis can operate like the old profitable AIG. In a sense, Chartis is a return to the old business model of AIG.

And, yes, CV Starr will probably turn over in his grave if they sold Stowe. Wasn't Greenberg in the mix for potential buyers last year?

 

[marcski]

It sounds like a corporate reorganization to shield the profitable side of the business from the liabilities of the rotten side. The property/casualty insurance business is spun off (along with Stowe) so that they can continue operating profitable without the burden of making up for the liabilities for more speculative contracts. The more speculative contracts will be left with AIG itself which can then be resolved either through continued operation, reorganization in bankruptcy or sale to third parties. With the property/casualty business (and Stowe) in the new entity, Chartis can operate like the old profitable AIG. In a sense, Chartis is a return to the old business model of AIG.

And, yes, CV Starr will probably turn over in his grave if they sold Stowe. Wasn't Greenberg in the mix for potential buyers last year?

Yes and Yes, I did also hear that Greenberg, along with some others were potential bidders.

Chartis, which as others have said, is the new entity which now controls most of the property/casualty insurers. If I'm not mistaken, most of those companies' were forced to set aside enough reserves to cover its potential liabilities and claims, since they were governed differently than AIG's more speculative financial products, which as we all know, brought the company to the brink.

 

[jaywbigred]

Most likely just another AIG paper transaction. The accountants will make it look like revenue for one entity and a loss for another one and a tax deduction for both !

This doesn't even make sense.

It sounds like a corporate reorganization to shield the profitable side of the business from the liabilities of the rotten side. The property/casualty insurance business is spun off (along with Stowe) so that they can continue operating profitable without the burden of making up for the liabilities for more speculative contracts. The more speculative contracts will be left with AIG itself which can then be resolved either through continued operation, reorganization in bankruptcy or sale to third parties. With the property/casualty business (and Stowe) in the new entity, Chartis can operate like the old profitable AIG. In a sense, Chartis is a return to the old business model of AIG.

This is spot on, I believe.

 

[skimawk]

Ski Area Ownership, Does it Matter

Does it really matter who owns your favorite ski area, as long as the lifts turn, snowmaking covers the trail, and there's food and beverage available?

 

[witch hobble]

Does it really matter who owns your favorite ski area, as long as the lifts turn, snowmaking covers the trail, and there's food and beverage available?

Yes. It matters.

 

[Geoff]

Does it really matter who owns your favorite ski area, as long as the lifts turn, snowmaking covers the trail, and there's food and beverage available?

It's not so much ownership as who manages it after the ownership change. Stowe appears to be a non-issue but there have been some debacles in the ski industry over the years.

 

[drjeff]

It's not so much ownership as who manages it after the ownership change. Stowe appears to be a non-issue but there have been some debacles in the ski industry over the years.

Ain't that the truth!

 

[snowmonster]

Does it really matter who owns your favorite ski area, as long as the lifts turn, snowmaking covers the trail, and there's food and beverage available?

It shouldn't matter when all the above happen or they improve. It does matter when one of the above deteriorates. An ownership change in a certain popular VT ski area 2 or 3 years ago raised a great fuss that has only recently died down.

Anyway, Stowe is interesting because of who owns it and its role in the financial crisis. AIG went from being a giant in the insurance industry to being a symbol of the financial crisis and the government's response to it.

 

[riverc0il]

Does it really matter who owns your favorite ski area, as long as the lifts turn, snowmaking covers the trail, and there's food and beverage available?

Three words: American Skiing Company.

Now look at the former ASC resorts. Under different owners, all the New England areas are blossoming with investment an renewed interest from customers. Some may dispute Killington in this regard but it seems like the quality of their product has improved lately even if they have not had a return to their pre-ASC glory years. Management ultimately matters more than ownership but ownership picks the management.

 

[JD]

I'm guessing you're being sarcastic? Because Chartis is the new name for AIG. It's like Blackwater changing its name to "Xe".

Yup. Shinannigans.

 

[JD]

Suddenly everyone has an overdeveloped sense of ethics....AIG and greenburg have been douchbags from the start....NOW everyone cares.

excuse me while I LOFL.

 

[ski_resort_observer]

I think it's basically a PR move. One of the big business mags recently named the top 10 companies that people hate and AIG was numero uno.To anyone that is familiar with big business news it's easy to see why. They got a big taxpayer bailout and within a couple of weeks they were caught spending millions on a meeting for top execs at a posh resort. AIG has also been fighting the idea of lower top pay for execs and greatly reduced year end bonuses. The new division Chartis has obviously been in the works for awhile and starting with the bailout they needed to get the name AIG, very toxic from a PR perspective, away from parts of the business.

I agree it doesn't make much of a diference at Stowe, it's not like they have ever had flags around the resort with AIG on it. Offering the info that the ownership of Stowe pretty much from the get go is a company from NYC wouldn't probably help it's brand of being a storied Vermont ski resort.