CBL Insurance IPO

[hardt]

Hmm - yes, this is what Peter Harris seems to claim. Question is - can he be trusted? I heard from some other (in my view trustworthy) source close to the action a different version of the story.

I have written off CBL investment comfortably without an ounce of stress, the destroying of a profitable business by an over reaching regulatory body stresses me out more than anything and a story will soon be public for you all to make up your mind.

The strengthening did not affect the $500m in cash reserves CBLC's.
RBNZ completed a 'without notice" application to liquidate CBLI as the 10yr reserve strengthening was underway.
RBNZ gave CBL & PWC 7 days to respond to the actuarial report from RBNZ's chosen auditor which took over 6 months to DRAFT and 5 days in decided no more time was to be permitted for a response.

17/02 - RBNZ advised CBL & PWC they had 7 days to respond to the draft report

21/02 - RBNZ determined CBL "is not yet required to prepare a recovery plan" ( a prescribed process under s 138 of NZ IPSA insurance regulations designed to get insurers back on its feet )
- Despite the fact CBL had already announced the reserve strengthening recommended by PWC

23/02 - Despite the previous assurances, RBNZ advised CLBI they had 3.5 hours to appoint a voluntary liquidator and, if not, RBNZ would immediately file an application for a winding up order and at the same time apply to the court for a liquidator to be appointed.

I cannot wait for RBNZ to get dragged through the coals over this... or most likely an internal investigation coming to a quiet ending.

RBNZ made claims in court which were contradicted by PWC/KPMG/DELOITTE.
RBNZ say and pay what they need to, to validate their actions.

Anonymous Survey of 200 large NZ Businesses:

50% claimed RBNZ does not have sufficient understanding of the realities of their industry

50% of businesses claimed their interaction with RBNZ was not-constructive

71.43% of businesses claimed RBNZ is not readily held to account for the quality of their work ( including mistakes being made )