Could be opportunistic now with all the bad news out there?
Originally Posted by winner69
I have the feeling many/several have looked over Tower as an acquisition and say nah ....at least while an unquantified significant liability hanging over their heads
Maybe in a few years time if they get through the current crises
not good for this company, wonder what the hit is they might not have cover?
Most of their policies by volume and value are likely to be in the major cities. From what I've seen in the news Wellington and Christchurch were shaken but ok which will limit the scale of the claims meaning this is not a repeat of the Christchurch in terms of claims and will be massively under any reinsurance limits (its blowing out the top of reinsurance limits that is creating problems re the Chch quakes).
Assuming the cumulative reinsured bill is modest it may even be good for the insurance industry as it helps disconnect the view large earthquakes in NZ create hundred of millions if not billions in claims.
Most of their policies by volume and value are likely to be in the major cities. From what I've seen in the news Wellington and Christchurch were shaken but ok which will limit the scale of the claims meaning this is not a repeat of the Christchurch in terms of claims and will be massively under any reinsurance limits (its blowing out the top of reinsurance limits that is creating problems re the Chch quakes).
Assuming the cumulative reinsured bill is modest it may even be good for the insurance industry as it helps disconnect the view large earthquakes in NZ create hundred of millions if not billions in claims.
Looking at the damage so far, surely its got to be already well into the hundreds of millions - replacing some of those roads will cost that (not that they will be insurance claims thou) - there is quite a bit of damage in Wellington as well with some of the port and its wharves moved by a metre - I have a friend who is in a 5 storey apartment building in Wellington CBD who says he was told the building will be condemned as has moved half a metre if so, that alone is a big claim. The TSB arena and BNZ building (why you would build a massive building like that on a wharf anyway is beyond me) both sustained damage. I would say this could quite easily get into the billions range.
Looking at the damage so far, surely its got to be already well into the hundreds of millions - replacing some of those roads will cost that (not that they will be insurance claims thou) - there is quite a bit of damage in Wellington as well with some of the port and its wharves moved by a metre - I have a friend who is in a 5 storey apartment building in Wellington CBD who says he was told the building will be condemned as has moved half a metre if so, that alone is a big claim. The TSB arena and BNZ building (why you would build a massive building like that on a wharf anyway is beyond me) both sustained damage. I would say this could quite easily get into the billions range.
CNN has reported that it would be at least a billion dollars in damages. Another round of insurance premium hikes for the Shaky Isles?
CNN has reported that it would be at least a billion dollars in damages. Another round of insurance premium hikes for the Shaky Isles?
Premium hikes the least of our worries. You just might see some insurers withdrawing coverage. Homeowners / landowners and business owners unable to get asset protection will reduce the value of those assets.
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