CBL Insurance Had Massive Insolvency Breaches Since 2013, Court Hears

CBL Insurance has finally entered liquidation amid accusations of massive solvency breaches, Insurance Times reported. Nathan Gedye, lawyer for the Reserve Bank of New Zealand, said CBL Insurance’s balance sheet was insolvent by $86.6m in 2013, $102m in 2014, $104m in 2015 and $98.6m in 2016, according to The New Zealand Herald. The company’s solvency position as at December 2017 was 25 per cent compared to the ratio required by direction of the Reserve Bank of 170 per cent and the required 100 per cent under licence, a shortfall of $136.5m. By December 2017, the company’s solvency position was 25% compared to the required ratio of the Reserve Bank of 170%, and the required 100% under licence - a shortfall of $136.5m. Gedye used affidavit evidence from Geoff Atkins, principle of Australian-based Actuary Finity Consulting. Read more