Forum Archive Index - May 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Please refer to my post of May 20:

 

Re:

 

TAB: The price has crept back, partly, because states are trying to reduce gambling by various means. 

 

Another reason is that, following my post of Jan. 6, 2001, nothing more has been heard about a world wide interactive TV channel based on 24 hrs horse racing around the world.

 

An American company was trying to organize this and the English clubs had already accepted the proposals.

 

We shall just have to wait!

 

QBE: The price retreated from its high due to the fall-out from the HIH debacle. The NSW govenment has decided to recompense some policy holders ( Yes, it is election year! ).

 

They decided to acquire some $ A 68 mill. this year from  insurance companies with a similar amount to follow each year! They said that the companies were not allowed to directly ask this money back from future policy holders.

 

The payment is based on the premiums received on Australian soil. There is some fear that other states may imitate these regulations. 

 

I don't think, that this controversial NSW government can stop these companies from raising premiums at this positive stage of the Insurance Cycle.

 

QBE is rapidly expanding off-shore and thus will receive an increasing amount of premiums from areas which are not subject to the new regime. 

 

It has also directly benefitted from the collapse of HIH as it has taken over some client bases by arrangement!

 

Other, larger companies which operate in Australia only, will be more exposed, but no doubt, given time, will recover the additional "ransom" to be paid: HIH was a large company and one would now see a somewhat lowering of competition as a result of the liquidation.

 

 

In any case, the lowering of Company tax by the present Government will undo most of the damage!

 

Our investments are long term and normally, such a price retreat would be another opportunity to invest!

 

Gerry