Either way, it's not good news for investors. In my mind, the management issue is by far the most serious. Management credibility has to be top of the investment criteria list in this most opaque of sectors. I've never been entirely comfortable when peering into Independent's accounts, and so most of my Qualiport investing faith with Independent has been underpinned by the bullish noises from the management. In short, I gave Independent's management the benefit of the doubt over the accounts.
Trouble is, the latest statement knocks the stuffing out of such reliance.
To be frank, insurance just falls out of my circle of competence . And from recent events, there just doesn't seem to be same scale of certainty from the insurance industry as elsewhere. There are few other industries where today's profits can suddenly become cut short because of a product sold many years ago. While Warren Buffett may feel comfortable within the sector, it's just not for me. And so, not for the Qualiport either.