-
02-07-2019, 12:34 PM
#761
Let's not forget how CBL got into trouble :
https://www.nzherald.co.nz/business/...ectid=12004875
Went into Europe, bought businesses which were making losses - "it was having to strengthen the reserves for its French construction business by $100 million, and had made a $44m write-off, resulting in a likely after tax loss of between $75m to $85m."
And interesting enough, NBR investigation showed that :"CBL : The French Connection. Insurance Group's bosses owned personal stakes in SFS two years before its $110m acquisition."
"how a New Zealand-based company could have a competitive advantage writing builders insurance in France and this was a significant part of its insurance business."
https://www.nzherald.co.nz/business/...ectid=12004423
" CBLI paid 25 million euro, or around $42m, to Alpha Insurance of Denmark for reinsurance claims on February 16, despite the bank declining permission and ordering it not to make the payment, the affidavit says.
Between February 8 and Febraury 20, it also made other payments, with the total including the Alpha Insurance payment worth $55m."
The rest is history and let's wait for SFO report.
Last edited by Balance; 02-07-2019 at 12:36 PM.
-
03-07-2019, 03:24 PM
#762
Is this correct that there is an article on Stuff that headlines , Reserve bank at fault on the CBL $750.00 mil collapse ?
-
03-07-2019, 03:29 PM
#763
Originally Posted by whatsup
Is this correct that there is an article on Stuff that headlines , Reserve bank at fault on the CBL $750.00 mil collapse ?
https://www.stuff.co.nz/business/mon...rance-collapse
Interesting report from Trowbridge and Scholtens - commissioned by RBNZ on its handling of the CBL situation.
RBNZ is at fault for not stopping CBL earlier!
-
03-07-2019, 03:45 PM
#764
Originally Posted by Balance
RBNZ had suspicions as early as 2012!
" ......... the bank should have considered using its position as prudential regulator of CBL in 2015 to deter CBL Corporation from ... listing on the NZX before the bank had been fully satisfied on its reserving and solvency concerns."
"The bank was raising important unresolved issues with CBL in 2016 but it was not exerting any particular pressure on the insurer to respond with urgency or comprehensiveness on these issues."
-
03-07-2019, 04:46 PM
#765
Regulators serve an important purpose of sitting at the bottom of the cliff cleaning up corpses.
-
03-07-2019, 04:59 PM
#766
Originally Posted by hardt
Regulators serve an important purpose of sitting at the bottom of the cliff cleaning up corpses.
and writing reports !
-
03-07-2019, 06:58 PM
#767
I hope the Shareholders Association run with this one.
-
03-07-2019, 07:17 PM
#768
Member
Originally Posted by Brain
I hope the Shareholders Association run with this one.
Has anyone sued the RBNZ ever?
Are Bascand at the RBNZ and Bascand at
Harbour Asset Management related?
-
04-07-2019, 08:20 AM
#769
Originally Posted by Brain
I hope the Shareholders Association run with this one.
They do. Here is there latest media release: https://www.nzshareholders.co.nz/pdf...ga%20media.pdf
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
-
04-07-2019, 09:51 AM
#770
Originally Posted by Lola
Has anyone sued the RBNZ ever?
Are Bascand at the RBNZ and Bascand at
Harbour Asset Management related?
Well, it's fairly clear RBNZ had concerns between 2013 -2016 but lacked the resources & experience to properly monitor and supervise CBL.
https://www.stuff.co.nz/business/mon...on-cbl-failure
"Trowbridge said the CBL failure was reminiscent of other insurance collapses, including Australia's HIH in 2001, because it involved "under-reserving" for future claims. Under-reserving is when an insurer does not set aside enough capital to ensure it can meet claims in the future. In the short-term that can boost growth as the company can offer lower premiums, but over time it results in an insurer going broke.
Trowbridge said he was shocked at the level of under-reserving by CBL, which he described as "massive"."
The promoters and lead brokers, UBS & Forsyth Barr, have brought yet another dud to the NZX like Forsyth Barr did with Wynyard & Feltex!
Tags for this Thread
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks