News | Law and Order
21 Feb 2018 23:53
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Law and Order

    CBL to exit problematic French unit

    CBL Corp is looking to sell its problematic Fernch construction insurance division and is pursuing legal action against the vendors it bought it through.


    CBL Corp is hiring advisers to sell the French construction insurance division that's seen it fall foul of regulators over solvency concerns and is pursuing legal action against the vendors of Securities and Financial Solutions Europe SA (SFS).

    The Auckland-based credit surety and financial insurance risk firm expects to exit the French business within 90 days after a board-led strategic review found the high level of capital needed to meet estimated future claims posed a disproportionate risk.

    CBL said the French unit was profitable and all options were on the table, including the sale of the insurance book, and the distribution and operational networks of the managing general agents as a going concern.

    The insurer said it had triggered legal rights against the vendors of SFS under the purchase agreement, and that alongside other remedies it has recourse to $40 million to recover against its balance sheet.

    CBL bought SFS for 94.5 million euro ($NZ160m) through cash, bank debt and vendor funding.

    "The board considers this exit of the French Construction Business to be a significant and positive decision made in the interests of ensuring CBL's long-term growth and profitability," it said.

    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.

    The insurer has said this week that it will need a couple of weeks to finalise a capital raising and on Wednesday said the details were still being worked out.

    CBL will stop writing new French construction business from April and all renewals will end from June.

    The company still expects to report annual earnings on February 27, having issued a profit warning earlier this month that it posted a loss of between $75m and $85m in calendar 2017.


    NZN




    © 2018 NZN, NZCity


     Other Law and Order News
     21 Feb: Police assess search for man near Bulls
     21 Feb: China cracks down on funeral strippers hired to entertain mourners, attract larger crowds
     21 Feb: Woman robbed in car in Hamilton
     21 Feb: Tense exchange over accused's violent past
     21 Feb: Alfie Evans: UK parents lose legal battle to keep seriously ill toddler on life support
     21 Feb: Murder charge laid after Opotiki death
     21 Feb: Defence in euthanasia calls single witness
     Top Stories

    RUGBY RUGBY
    Fit-again Rodda to play Reds' rugby opener More...


    BUSINESS BUSINESS
    Kiwi gains against Aussie after weak data More...



     Today's News

    International:
    Cape Town's Day Zero pushed back, but authorities say drought threat still real 23:35

    Law and Order:
    Police assess search for man near Bulls 21:55

    Entertainment:
    Francia Raisa says Selena Gomez feels like her "family" now 21:35

    Law and Order:
    China cracks down on funeral strippers hired to entertain mourners, attract larger crowds 21:25

    Rugby:
    Fit-again Rodda to play Reds' rugby opener 21:15

    Entertainment:
    Liam Payne and Cheryl Tweedy are yet to agree on which football team their son will support 21:05

    Entertainment:
    Maya Jama isn't "ignorant to the fact" that people only know her because of her relationship with Stormzy 20:35

    Environment:
    Gita hits New Plymouth's water supplies 20:05

    Entertainment:
    Justin Theroux and Jennifer Aniston kept their properties separate when they married 20:05

    Entertainment:
    Kelly Brook proposed to her boyfriend Jeremy Parisi - but he rejected her 19:35


     News Search






    Power Search


    © 2018 New Zealand City Ltd