Reinsurance must be getting more and more expensive as well, that must affect their future bottom line.
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Reinsurance must be getting more and more expensive as well, that must affect their future bottom line.
just listened to conference call very vague around capital needed for new companies, Im thinking they will need a heap of new capital to recapitalize both companies to meet rbnz criteria and if they cant separate runoff completely then new tower is still liable for insurance claims so very iffy in my opinion sounds like a plan but very risky this stock. as they say one more adverse event could be the nail in the coffin?
Great choice of name - Runoff . I can't associate anything positive with this name.
all I can think of is
run off with the wife
run off with the money
Bad bank, new bank makes a lot of sense.
Will involve a massive injection of capital to hive off 'bad' bank so best to wait on the sidelines.
They will need to capitalize the 'bad' bank with at least the current level of equity (NTA) of $160m to satisfy RBNZ and insurance council.
169m shares on issue so a 2 for 1 at 50c?
Amount required reduced by amount from a cornerstone shareholder (say, Heartland Bank)?
Interesting times ahead.
Fat fat fees for the corporate advisors!
Since Christchurch, it seems that many people are now discovering after the latest quakes that to "keep premiums affordable" they have to a large extent "Claytons" insurance policies: http://www.stuff.co.nz/national/nz-e...r-quake-relief
Would a policy with a reasonable excess to cover you for all risks in NZ now be unaffordable? The cost of living on the Pacific ring of fire...
Whats up with the 13.2 million declared as exposure to the Kaikoura EQ's in the last release???
I seem to recall a few weeks ago or less they declared their exposure as maximum $7.2 M
Management is pushing its luck with the recent release - it uses so many superlatives when the recent history of this company is nothing but a shambles.
How is 14 Mill down the tube in IT write offs. Who needs insurance claims to destroy shareholder wealth when you have this going on.
The company remains a speculative play only - doesnt qualify as an investment any more.
I'd be gutted if corporate welfare happened here
Tower need to manage their way through these disasters .....even if shareholders have to front up with more dosh
http://www.interest.co.nz/insurance/...s-capital-ring
http://www.interest.co.nz/insurance/...nal-settlement
No comment from me