Corporate Welfare alive and well as Malloy gives $11.5 million to profitable insurance holding company

With the help of $11.5 million in taxpayer funds, Governor Malloy proudly announced that he was able to convince The Navigators Group, Inc., an extremely profitable “international specialty insurance holding company with insurance company operations, underwriting management companies and operations at Lloyd’s of London” to move from Rye, New York to Stamford Connecticut.

According to the Malloy administration, the state of Connecticut will provide the private insurance company with a 10-year, $8 million forgivable loan at no interest. The Navigators Group will also receive a $3.5 million grant to help offset the $25 million relocation cost.

The company employs 87 people at the Stamford location, with an additional 35 across the state.  If the company creates 200 jobs within the next five years it will not have to pay back the $8 million, no interest loan.

If it fails to create the jobs, the no-interest loan will have to be paid back.

Since the State of Connecticut is borrowing the $11.5 million to give to the Navigators Group, the actual cost to Connecticut’s taxpayers over the next 20 years will be in the range of $15 million.  The amount of state debt per capita already places Connecticut as the most debt ridden state in the in the nation.  While the average state debt per capita across the country is about $1,400, Connecticut’s state debt per capita amount is over $5,800.

According to official filings, the Navigators Group has been doing very well.  Last year, the company’s net income was $63.8 million, up from $25.6 million in 2011.

The company’s net income per share had its best showing since 2007.

And the company’s operating earnings were $37.6 million, up from $19.1 million in 2011. The jump in earnings came despite net losses of $20.4 million as a result of Superstorm Sandy.

According to the company’s financial filings, Stanley Galanski, the President and Chief Executive Officer of NAVIGATORS GROUP INC, made $2,714,948 in 2012.  Of this total, $725,000 was received as a salary, $372,000 was received as a bonus, $1,574,396 was awarded as stock and $43,552 came from other types of compensation.

Navigators Group Inc.’s other corporate officers include:

Stephen R. Coward:  $856,933 in total compensation.

Ciro M. DeFalco: $1,004,503 in total compensation.

H. Clay Bassett Jr.: $1,028,407 in total compensation.

Vincent C. Tizzio: 1,854,513 in total compensation.

And for those who think using taxpayer funds to subsidize extremely successful business isn’t all it is  cracked up to be, in what appeared to be a related announcement, “Navigators Group, in partnership with Cos Cob-based Kids In Crisis, announced it will be the title sponsor of the Navigators Stamford KIC IT Triathlon. The June event consists of a 1.5-kilometer swim in Long Island Sound, a 40K bicycle ride and a 10K run through Stamford.”

  • Sleepless in Bridgeport

    Somebody please stop him before Connecticut becomes the next Detroit.

    • buygoldandprosper

      The difference between Bridgeport and Detroit?
      Geography.

  • buygoldandprosper

    The 10K run is about as far as the Navigator folks will have to travel from Rye to Stamford, so I would go with the smart money.
    The First Five Jive is about as bogus as the Next Five Jive.
    Debtor Dan spreading out the public cash to buy votes.
    And let’s just say…for arguments sake, that Navigators becomes a very large Hybrid Insurance. Will Catherine Smith demanding the states money back actually result in a collection?
    Dan’s policy, like most of his endeavors, is so flawed it is scary but he won’t be around to clean up the mess.

  • Jim Spellman

    Despite having been Bitch Slapped by “buygoldandprosper’ the other day, the Boy/Girl ( ? ) is dead on in today’s commentary. In the future, let us all dwell on common real dangers rather than misconceived suspected dangers. “Can’t we all just get along ? “

  • Castles Burning

    So, do we know what the Alliance Districts were told about the money “owed” them?

  • buygoldandprosper

    Speaking of misguided bailouts! Ben Barnes and Dan Malloy need to go to one of their charter schools and take a math class. A course in ethics might help too.

    “The New Haven Open, formerly the Pilot Pen, lost money this year on revenues of about $4 million, and the state will contribute $400,000 this year and next to subsidize the tournament, Barnes said. So why exactly did the state want to buy a distressed tennis tournament and commit to spending millions in taxpayers funds to keep it going?
    Calling the sinking Open “a bargain in the world of owning tennis tournaments,” Barnes said, “We felt that between the quantifiable economic impact and the harder-to-quantify impacts of identity were beyond value.”