Watch Out Charlie, There’s a New Ticket in Town

Topic: Pearls of Wisdom

Alexandra Jemetz CIM

November 16, 2015


Print & Share

Print

Watch Out Charlie, There’s a New Ticket in Town

And it’s a lot better than chocolate.

Max-Hervé George has the best job in the world. In a nutshell, it’s the work of counting his money as it grows, guaranteed, every day. You see, Mr. George owns a Fixed Price Arbitrage Life Insurance Contract (or known price contract) from a French company which was subsequently acquired by insurer Aviva. He obtained it when he was seven, from his father (he’s now 25). The contract basically allows him to trade on the previous week’s price of various global markets – i.e. investing with 20/20 hindsight.

To no one’s surprise, Aviva doesn’t like this contract, and has so far refused to honour it (and, according to this article, has not recorded the potential losses on their books). They have, however, been ordered to compensate the family for their loss in investment return from 1997 to 2007, to the tune of €9.6 million (€1.4 million of that is Max-Hervé’s). In 1997 the contract was worth €8,000 – that’s a 69% annual growth rate. Extrapolate that to 2030 and Aviva would owe him €230 billion – more than the company itself is worth. And it doesn’t end there – George may also add funds to the contract, any time he pleases. It’s easy to see where this could go. The Swiss arm of a French bank has already deemed him to be of good credit and has loaned him €20 million. To quote George: “I can take all the money in the world and invest it, there is no limit.”

But don’t think he rests on his laurels – he spends his hours trying to make money to keep up his legal battle with the insurer. “Every week I deposit a dossier with Aviva in which I tell them how I want them to re-invest my money. To make sure they can’t say they have never received my instructions, I fly from Geneva to Paris to lodge them myself or I employ a court bailiff to do so. That cost (sic) me an average of €1,000 a week. Apart from that, there are legal and other costs.”

So, in case you were wondering what the world’s second best job is. . . May we introduce Nicolas Lecoq Vallon (George’s lawyer, of course) who claims he has about 30 more clients with these types of contracts. “There are new ones coming out of the woodwork all the time.”

Source: John Lichfield, The Independent, “Max-Herve George: The man fighting a merciless legal war against insurance giant Aviva“, April 10, 2015.

More Like This...

See another CRM2 blog post that may be of interest to you.

CRM2: The Nexus Approach to our CRM2 Reports

Topic:
CRM2
Excerpt:
With changing securities regulations coming into effect, investment firms are now required to provide individual investors with specific additional in

More Like This...

See another Foundations & Endowments blog post that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

More Like This...

See another Human Interest blog post that may be of interest to you.

The Case for Openness – An Open and Shut Case?

Topic:
Human Interest
Excerpt:
From time immemorial, mankind has been open. Open to new ideas, open to trade, and open to migration – the three critical ingredients for progress.

More Like This...

See another Inside Nexus blog post that may be of interest to you.

Here we Grow Again!

Topic:
Inside Nexus
Excerpt:
Recently, the Nexus team welcomed our seventh new face to join us since the start of the pandemic in 2020. As growth is an integral part of our

More Like This...

See another Investments blog post that may be of interest to you.

The Demise of FTX and Sam Bankman-Fried

Topic:
Investments
Excerpt:
At the beginning of November 2022, Sam Bankman-Fried was crypto-currency’s “White Knight”. The flip-flop and t-shirt-wearing 30-year-old was the found

More Like This...

See another Pearls of Wisdom blog post that may be of interest to you.

“Work, Work, Work, Work, Work, Work”

Topic:
Pearls of Wisdom
Excerpt:
This has been a busy year. I’ve had lots happening on the home front (a wedding!) and lots going on at the office (too long to list!) Managing work

More Like This...

See another Tax Planning blog post that may be of interest to you.

Saving in my Professional Corporation – It’s a Great Idea!

Topic:
Tax Planning
Excerpt:
The ability for professionals in Canada to incorporate their practice has existed for some time. Doctors, dentists, lawyers, accountants, and other

More Like This...

See another Wealth Planning blog post that may be of interest to you.

Living to 100

Topic:
Wealth Planning, Living to 100
Excerpt:
“You’re going to live to 100!” For some, this may sound like a fantastic, welcome prognosis. They imagine gazing at sunsets every evening at the

On a Side Note…

See another CRM2 Nexus Notes Quarterly article that may be of interest to you.

No posts found.

On a Side Note…

See another Foundations & Endowments Nexus Notes Quarterly article that may be of interest to you.

Charitable Giving Made Easier

Topic:
Foundations & Endowments
Excerpt:
Giving to charities and supporting our community are important to us at Nexus. We donate a portion of our management fees back to the charities and

On a Side Note…

See another Human Interest Nexus Notes Quarterly article that may be of interest to you.

The Case for Openness – An Open and Shut Case?

Topic:
Human Interest
Excerpt:
From time immemorial, mankind has been open. Open to new ideas, open to trade, and open to migration – the three critical ingredients for progress.

On a Side Note…

See another Inside Nexus Nexus Notes Quarterly article that may be of interest to you.

Here we Grow Again!

Topic:
Inside Nexus
Excerpt:
Recently, the Nexus team welcomed our seventh new face to join us since the start of the pandemic in 2020. As growth is an integral part of our

On a Side Note…

See another Investments Nexus Notes Quarterly article that may be of interest to you.

Lessons From the Art World and Beyond

Topic:
Investments
Excerpt:
“Exactitude is not truth.”

On a Side Note…

See another Pearls of Wisdom Nexus Notes Quarterly article that may be of interest to you.

A Table for None, Please; Working From Home on the Rise

Topic:
Pearls of Wisdom
Excerpt:
Reading is one of the principal occupations in our profession. As we digest a wide range of material, interesting ideas and surprising facts – some

On a Side Note…

See another Tax Planning Nexus Notes Quarterly article that may be of interest to you.

Saving in my Professional Corporation – It’s a Great Idea!

Topic:
Tax Planning
Excerpt:
The ability for professionals in Canada to incorporate their practice has existed for some time. Doctors, dentists, lawyers, accountants, and other

On a Side Note…

See another Wealth Planning Nexus Notes Quarterly article that may be of interest to you.

From The Editor: What’s My Age Again?

Topic:
Wealth Planning, Living to 100
Excerpt:
How old are you? It’s a simple question, one we readily know the answer to, although some of us might not want to talk about it. And why do we know