The Ohau release is slightly misleading in my opinion.
A claim being made against an insurance company is not an unexpected event. When a policy is issued a portion of the premium is transferred to provisions where it is set aside to meet expected claims. While a provision is obviously not an an exact determination of future events a customers house burning down is not a surprise.
It is only when claims exceed provisions and overtop excessive loss reinsurance the profit and loss takes a a hit.
Boop boop de do
Marilyn
So (as I sort of said) the Lake Ohau event claims are $5m to $7m higher than the provision set aside ...and will impact profit by this amount.
Suppose thats what they meant to so.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Bookmarks