It appears he invested some of that in obtuse writing classes. What an impenetrable announcement... So many words to say, what Benaud would've given in 5, "He got his sums wrong." The worry is no mention of how this happened.
Yep, makes you wonder if “he got his sums wrong” extends to their ‘ability to assess risk’
Bit of a worry going forward
Last edited by winner69; 07-02-2018 at 03:45 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Reading those announcements suggests they need heaps more capital ....seeing RBNZ and Ireland thought they needed more andvthats before the big loss was known.
Maybe new shares less than $1.15 eh Lola
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Regulators coming into play, solvency margin of 170% is now required ( not sure where the bar was beforehand )
The big reserve strengthening "exercise" is there to adequately cover risks taken on, not Armageddon.
You have to take on a lot more risk to kick revenues up 30+%
1H17
CBL Insurance
Solvency Capital
160,440
Solvency Margin
150.2%
ASSET INSURE
Solvency Capital
46,130
Solvency Margin
351.9%
CBLIE
Solvency Capital
22598
Solvency Margin
186.7%
Definitely a bad time to have shares in CBL... It is not the end of the world kind of stuff though ( a lot of you are so dramatic ).
The existing long-term risks that came with the SFS Acquisition and not their core business risks that are causing the headache here, SFS was underestimated and alas we are here.
The precautionary measure of increased solvency margin is required to keep regulators happy with the higher levels of risk found to have been taken on unknowingly.
Originally Posted by Lola
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