Friday, December 16, 2011

Please Explain...........

............ why one should not think the Aussies got the premium income and the profits while the poor bloody tax payers of New Zealand got the liabilities.

A huge National/ACT/Maori Party/What'sisname public relations FAIL.

"AMI's liabilities for current and future earthquake claims will be held by a new company to be owned by the government, with IAG providing support services, .....".



Link

6 comments:

Anonymous said...

Profits?

Adolf Fiinkensein said...

Anonymug 4:03

Yes,

P R O F I T S

Those things which enable well run insurance companies to own most of the high rise buildings in city business districts.

P R O F I T S

The surplus premiums left over each year after claims are paid. You wanna bet The Auzzies will allow the AMI clients to continue enjoying sub profit premiums? Course they won't.

P R O F I T S

The return on the investment of premiums and cash reserves, after deducting operating expenses.

Now is there something else you'd loike to know?

Anonymous said...

No insurance company would have bought AMI without the Christchurch EQ liabilities realised, it would been like buying a $400k house with $170k of repairs required before it was habitable.

Adolf Fiinkensein said...

Exactly - so why not drop the price by $170k and let the taxpayer off the hook?

That was my point and it still holds good.

Anonymous said...

The Government aka taxpayer was always going to pay for some of AMI's EQ liabilities, what selling AMI is doing is lessoning the financial impact of those liabilities on the Government. Bill even mentioned it.

And considering the assumed cost of the total Govt liability for the ChcH EQ is about $170m odd while big is merely a drop in the bucket, an unfortunate cost but unavoidable nevertheless.

Anonymous said...

Adolf, there may be enough reinsurance in the kitty to pay the claims. There was no way any insurer can take on more Christchurch eq liability at present.

Paranormal