CBL Insurance IPO

[Balance]

Very interesting stuff eh Balance

PS — you can see why Toby Fiennes wants to be know as just that ..poor bugger

https://www.nbr.co.nz/article/rbnz-s...watch-b-187456

Famous last words?

Actually, I think the RBNZ has done a good job with CBL on balance.

They placed CBL under close supervision, gave CBL time to raise more capital but as the old saying goes, 'you can lead a horse to water but you cannot force it to drink', CBL decided it knew better.

The rrest as they say, is history.

[Balance]

https://www.insurancetimes.co.uk/cap...426534.article

Excerpt : "CBLI had significantly under-reserved its French business to such an extend its adjusted capital for solvency purposes (ie excluding inadmissible components) was most likely to be less than zero’, according to the court documents."

CBL certainly getting plenty of coverage and publicity overseas.

NOT good for NZ and RBNZ!

FMA? Useless anyway so who cares.

[Lola]

https://www.insurancetimes.co.uk/cap...426534.article

Excerpt : "CBLI had significantly under-reserved its French business to such an extend its adjusted capital for solvency purposes (ie excluding inadmissible components) was most likely to be less than zero’, according to the court documents."

CBL certainly getting plenty of coverage and publicity overseas.

NOT good for NZ and RBNZ!

FMA? Useless anyway so who cares.

Maybe FMA should get Harris or Hutchinson to flip.?
They could explain what’s happened and save everyone a lot of time.
Might even discover the truth!

[Marilyn Munroe]

I want to have a moan about the competency of governance in financial sector companies in New Zealand.

Why do we not have managers competent enough to tend the ledgers, chase the rascals, cultivate the virtuous, and have the experience and grit to survive both feast and famine?

CBL Insurance is a prime example of this shortfall. There was already a road map of the dark dangers of underwriting guarantee insurance in foreign lands with the previous failure of local insurer Standard Insurance.

The example of Standard should have set off alarm bells with those appointed to steer the CBL ship safely. What stress testing was done by auditors, audit committee, or directors before the reckless plunge into underwriting something prone to concentration of risk in a far away foreign land.

With this level of incompetence is it any wonder our financial institutions are run from Sydney or Melbourne.

Boop boop de do
Marilyn

[winner69]

makes you wonder where all the surety and guarantee bonds in the India infrastructure will (or would of) end up

[Brain]

[QUOTE=Marilyn Munroe;706712]I want to have a moan about the competency of governance in financial sector companies in New Zealand.

It’s just not the financial sector. Its a problem with a lot of NZ listed companies. One of the problems in investing is sorting out who all the dickheads are. This is particularly the case with IPOs

[Balance]

[QUOTE=Brain;706752]

I want to have a moan about the competency of governance in financial sector companies in New Zealand.

It’s just not the financial sector. Its a problem with a lot of NZ listed companies. One of the problems in investing is sorting out who all the dickheads are. This is particularly the case with IPOs

For starters - avoid IPOs from Forsyth Barr + PEs.

[Lola]

[QUOTE=Balance;706762]

For starters - avoid IPOs from Forsyth Barr + PEs.

Look you have to be fair.

Since about 2002 Forskin Bra have been Fund Managers not Investment Bankers or even Brokers
Great Model though.

[stoploss]

I find them quite exposed to property construction cycles and the French market and legislation in particular. Good profits but too much concentration to be prudent for an insurance company.

I just read the first page of this thread very interesting. Halebop congratulations , great foresight shown in this post . Maybe you should have been on the board !!

[Balance]

http://www.sharechat.co.nz/article/9...us-on-cbl.html

Guess he is expecting a lot of questions and a lot of investigations ahead.

Maybe should have put more time and effort into CBL rather than sit on board of Fisher Funds?

Or was he asked to leave - gently?