CBL Insurance IPO

[Balance]

Bal, don't forget that Brian G used to be or still is a contributor to this forum, a very badly needed one I might add.

Yup - why he (along with the useless board of sleeping NZX directors) should reflect on how he supported, for short term gains, the marginalization and buggerisation of the NZX and capital markets in NZ and ASX is now the big winner.

Huge crocodile tears will not change that fact.

Brian wrote this : "As far as this columnist is concerned, the clear answer to all the issues raised in this column is that the regulatory, board, investment banking and broker analysts' oversight of CBL has been extremely weak. New Zealand investors deserve much better than this."

Yup - NZ investors deserve better than a NZX which focused exclusively on extracting maximum profits at market participants' expense and NZ now reaps the results of that focus.

[bull....]

As expected, an avalanche of articles and assessments about CBL :

http://www.nzherald.co.nz/business/n...ectid=12004875

Excerpt : "But in an email Harris said there was a wider story to be told about how CBL got to where it is and where it might be heading. "The facts will show some mistakes we have made, and the cause and effect of those, and just where we are and why, along with our plan for dealing with these issues."

Fair enough - should provide the guy a chance to give his side of the story. So put away those stones in the meantime?

https://www.insurancetimes.co.uk/col...426527.article
https://www.insuranceage.co.uk/insur...ance-affidavit

Alpha & Elite named as the two insurance companies CBL paid money to, in contravention of RBNZ's instructions.

Of concern is this : "Elite went into run off in July 2017 and the legal document noted that at the time PwC, which was conducting a report into Elite, was concerned about CBL’s ability to meet reinsurance obligations to Elite.
PwC also questioned the sufficiency of CBL’s reserving and said CBL’s reserves were materially lower than those of Elite, a Gibraltar legal expenses insurer."

Alarm bells here - CBL's situation was already of concern way back in July 2017.

Who knew, why was the market not advised and who sold shares with that knowledge?

should be investigated who knew about the investigations by rbnz and then who sold shares , the fact it wasnt announced to the nzx means anyone in the know who sold has committed insider trading.

could be a nice defence in the future

[whatsup]

I wouldn't be surprised if the FMA doesn't have a go at the fishheads with their involvement and lack of governence!

[carrom74]

I wouldn't be surprised if the FMA doesn't have a go at the fishheads with their involvement and lack of governence!

The same FMA .. which gave a clean chit to Intueri...

[bull....]

in bed with the big end of town for sure

[BlackPeter]

I wouldn't be surprised if the FMA doesn't have a go at the fishheads with their involvement and lack of governence!

The same FMA .. which gave a clean chit to Intueri...

in bed with the big end of town for sure

You are raising very valid concerns. I think however that this time might be different. The world is watching how we deal with this train wreck (just have a look at all the articles in Europe about CBL), and if we don't manage this time to properly clean up this mess and make sure it won't happen again, than it might be that all NZ shareholders will pay for it with lower share prices and all NZ creditors will pay for it with higher interest rates.

We can lose credibility only once in the eyes of the world, and if investors get the impression that compliance with regulations is in NZ only on a voluntary basis for the old boys club, than they will stop sending us their hard earned money to pop up our share markets and provide for our mortgages. If the regulators don't get it right this time, we risk dropping share prices due to money leaving Wild West NZ and subsequently a dropping NZ$ (everybody loses) and much higher interest rates.

I guess - this is not the first example for extremely weak governance in NZX companies. Pick WYN, IQE, RAK or recently FBU. And this are just some examples. Now it is CBL with a biggie. We better make sure the list does not get longer. We can't afford to if we want to keep a working and reasonable priced capital market in our economy.

[bull....]

just reading fonterra has put a gagging order on a former director on friday to stop them disclosing info about the carry on in board meetings also nzx rural ? is it related to the nzx ? ... hope its not another bad look in governance in nz

https://www.stuff.co.nz/business/far...-leonie-guiney

[BlackPeter]

...

That said, here goes, ranked highest to least; OHE, TRA and NZO.

Sorry, missed that initially. I would be interested to learn why you think TRA is likely to follow CBL going down the gurgler. However - given that this is the CBL thread - is it o.k. we continue the discussion on the TRA thread?

https://www.sharetrader.co.nz/showth...l=1#post706578

[Balance]

https://www.rbnz.govt.nz/-/media/Res...ance.pdf?la=en

Page 32 : Letter from RBNZ to Peter Harris - 27 July 2017 - "The Central Bank of Ireland has recently issued a direction to CBLIE on the grounds that CBLIE ...etc ...etc ....is likely to be unable to meet its obligations ...etc ...etc. THIS IS BASED ON ITS ASSESSMENT OF CBL."

A check of announcements from CBL shows that there has been no reference whatsoever to this direction from the Central Bank of Ireland! Surely that was a very material piece of information which would have definitely impacted upon the perception of CBL with consequential share price impact.

What we saw share price however was a sell off from beginning of August 2017 - from a high of $3.78 then to a low of $2.82 by middle of September 2017, a drop of 25%.

So who knew, when did they know and did they sell shares with that knowledge? Hope FMA and NZX are up to the job as they have shown themselves to be bottom of the cliff inspectors so far.

[winner69]

https://www.rbnz.govt.nz/-/media/Res...ance.pdf?la=en

Page 32 : Letter from RBNZ to Peter Harris - 27 July 2017 - "The Central Bank of Ireland has recently issued a direction to CBLIE on the grounds that CBLIE ...etc ...etc ....is likely to be unable to meet its obligations ...etc ...etc. THIS IS BASED ON ITS ASSESSMENT OF CBL."

A check of announcements from CBL shows that there has been no reference whatsoever to this direction from the Central Bank of Ireland! Surely that was a very material piece of information which would have definitely impacted upon the perception of CBL with consequential share price impact.

What we saw share price however was a sell off from beginning of August 2017 - from a high of $3.78 then to a low of $2.82 by middle of September 2017, a drop of 25%.

So who knew, when did they know and did they sell shares with that knowledge? Hope FMA and NZX are up to the job as they have shown themselves to be bottom of the cliff inspectors so far.

Very interesting stuff eh Balance

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