Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Irish central bank seeks provisional administration at CBL

Irish central bank seeks provisional administration for CBL's European unit

By Paul McBeth

Feb. 27 (BusinessDesk) - The Central Bank of Ireland sought a court order to appoint provisional administrators to CBL Corp's European unit, following similar action from New Zealand's prudential supervisor, to avoid a "disorderly failure" of the insurer.

KPMG's Kieran Wallace was appointed provisional administrator to CBL Insurance Europe dac by the High Court on application from Ireland's central bank, which the regulator said in a statement was to protect the insurer's policyholders. The regulator had been in talks with CBL's European unit for months to fix what it viewed as a number of breaches, including a weak financial position, and the insurer's inability to address those issues prompted the central bank to seek the order.

"The Central Bank has made this application as it has formed the view that CBLIE is in breach of a number of regulatory requirements and is in a distressed financial position," the bank said. "In the absence of taking this action, it is the Central Bank’s view that there could be a disorderly failure of CBLIE."

The Irish central bank action comes after the Reserve Bank of New Zealand's successful High Court application to appoint interim liquidators to CBL Insurance on Friday to maintain the assets of the Kiwi insurer, followed quickly by CBL Corp's voluntary administration to preserve value for stakeholders.

The Central Bank of Ireland said deputy governor Ed Sibley made the decision to seek the court order, saying the CBL unit "failed to make adequate provision for its debts, including contingent and prospective liabilities," had been run in a way that jeopardised the rights of policyholders," and that it was "unable to comply with its regulatory requirements in a material respect."

Earlier this month, the Irish regulator had instructed CBL's European unit to stop writing new business immediately, something the New Zealand insurer opposed, while New Zealand's Reserve Bank had been reviewing the Kiwi insurer to assess the adequacy of its reserving for a French construction business, and set the CBL unit’s minimum solvency at 170 percent and required it to consult on any non-business as usual transactions of more than $5 million.

Earlier this month CBL Corp said it was hiring advisers to sell the French construction insurance division and had triggered legal rights against the vendors who sold the Kiwi company the unit.

CBL’s stock has been suspended from trading on the NZX as the stock market operator tries to work out whether it’s kept the market informed of material information and met continuous disclosure obligations, which has also attracted engagement from the Financial Markets Authority. The shares last traded at $3.17 before being suspended, more than twice the $1.55 price the shares were sold at in an initial public offering in late 2015.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: