CBL Insurance IPO

[Balance]

https://www.interest.co.nz/news/5969...after-striking

Was the writing on the wall 6 years ago?????

Excerpt :

"S&P has cut CBL to BB- with a negative outlook from BB+. S&P also said CBL, which is licenced under the new Reserve Bank prudential regulation regime for insurers and was formerly known as Contractors Bonding Ltd, has governance that's "less than adequate" with its board lacking independence from management."

"CBL now has reduced tolerance and ability to absorb shocks because of its weak risk based capitalisation, financial leverage, modest financial flexibility from entrepreneurial ownership, as well as concentration and credit quality risk regarding its investment assets," S&P said."

Looks like CBL switched its ratings agency to A.M Best in 2013.

[Hectorplains]

There was another big clue.Namely
The sell down by Harris and Hutchinson (discharged bankrupt) in April 017 virtually moments after their shares came out of escrow. The lame reason given at the time viz : “ to increase liquidity “ was actually crap because the buyers were only a few.

This whole mess will keep a lot of lawyers buzzing with excitement as they contemplate the potential for fame and fees. Interns line up!

It's poor chemistry too; "Increasing liquidity" = taking the p*&%.

[King1212]

"All policies currently in force will remain in place and should policyholders have a claim under their policies, it will be processed by CBLI in the ordinary course of business. However, it should be noted that the timing and quantum of payment under any policy a claim may be made under is uncertain at this time and as stated above, no claims can be paid while the company remains in interim liquidation."

that is what the email sent to me today. Basically my 10 years new built warranty is gone...!

[freddagg]

https://www.interest.co.nz/news/5969...after-striking

Was the writing on the wall 6 years ago?????

Excerpt :

"S&P has cut CBL to BB- with a negative outlook from BB+. S&P also said CBL, which is licenced under the new Reserve Bank prudential regulation regime for insurers and was formerly known as Contractors Bonding Ltd, has governance that's "less than adequate" with its board lacking independence from management."

"CBL now has reduced tolerance and ability to absorb shocks because of its weak risk based capitalisation, financial leverage, modest financial flexibility from entrepreneurial ownership, as well as concentration and credit quality risk regarding its investment assets," S&P said."

Looks like CBL switched its ratings agency to A.M Best in 2013.

Thanks for finding that Balance. How many shareholders would have invested in CBL if they had read that report.
I have never taken much notice of of ratings agency reports but I will from now on.

[Balance]

Thanks for finding that Balance. How many shareholders would have invested in CBL if they had read that report.
I have never taken much notice of of ratings agency reports but I will from now on.

One assumes that the underwriters and promoters (UBS, Forsyth Barr, institutions) would have as part of their due diligence assessed the ratings report.

[Sideshow Bob]

One assumes that the underwriters and promoters (UBS, Forsyth Barr, institutions) would have as part of their due diligence assessed the ratings report.

As they say Balance, "Assumption is the mother of all F***-Ups".

[Balance]

As they say Balance, "Assumption is the mother of all F***-Ups".

Guess Harbour, ACC and FNZ Capital (being shareholders) must have assumed proper due diligence was done - oops!

[Lola]

Thanks for finding that Balance. How many shareholders would have invested in CBL if they had read that report.
I have never taken much notice of of ratings agency reports but I will from now on.

Treat them all with a grain of salt.
Including self appointed ones from Kapiti coast
DYOR

[trader_jackson]

Looks like the Preliminary Unaudited Normalized Underlying Adjusted Profit won't be announced

http://nzx-prod-s7fsd7f98s.s3-websit...890/275458.pdf

Are they still getting ready for a cap raise or is the game already over...

[Dust]

Guess Harbour, ACC and FNZ Capital (being shareholders) must have assumed proper due diligence was done - oops!

Reasonable to say the average investor wouldn't possess the ability to conduct proper DD on this dud, but Harbour and their team of talent, 5 something CFA charterholders dropping the ball on this just makes me chuckle I guess the old boys club are just dart board picking stocks these days too