Forum Archive Index - December 2001

["m&j.bacon" <m&j.bacon@xtra.co.nz>]

Jerry

I prefer NRMA for most to the same reasons and almost no exposure
to reinsurance now along with a better spread of business. Owns State
Insurance
now.

Mike

At 12:46 9/12/2001 +1300, you wrote:
> Someone
> supplied me with an article:
> http://finance.news.com.au/common/story_page/0,4057,3384163%255E521,00.html
>  
> And I made the following comments:
>  
> Re QBE, yes, there will be *less risky* business to be done but at much
> higher premiums!
>
> Not too much concerned about this. Article not very helpful, ie. says
> that QBE is the biggest participant at LLoyds, but forgets to mention
> that it
> holds 7-8% of the Insurance/Reinsurance market.
>  
> Four things to remember:
> 1. The WTC claims will extend over many years and can be offset on an
> annual basis by much higher premiums.
>
> 2. There will be little competition from now on ( as I have mentioned a
> few times ). As more smaller companies go against the wall ( because of
> WTC claims ), the rest will have more breathing space.
>
> As you know, this is the second shake-out immediately following that one
> of 2 years ago.
>
> 3. While a few businesses refuse to insure because of too high premiums,
> the vast majority with debts/ morgages will have to insure because the
> Bank/Lender tells them to do so. ( And the lender is not paying for this
> ).
>
> 4.QBE and others can now afford to "drop the rubbish".
> Previously, they may have taken some of it on. They will be in
> "quality insurance" from now on.
>
> 5. Businesses now **want** to be insured by the larger companies of which
> QBE is one. All should have written in war- and terrorist clauses in the
> new year.
>
> QBE has moved strongly over the last two days with the financial year
> closing on Dec 31.
>
> Gerry

Regards from,
On-line Pharmacy: www.drugdispensary.com
Secure Payments: https://secure.drugdispensary.com/payments/
Health Forum: www.drugdispensary.com/healthcare/cgi-bin
Postal: 244 Ferry Road Christchurch 8001 New Zealand
Phone: +64 3366 0081 Fax: +64 3366 9830
E-mail: info@drugdispensary.com
CAUTION: This communication is confidential and may be legally privileged or subject to copyright. If it is not addressed to you please contact us at our cost and do not use, disclose, copy, distribute or retain any of it without our authority.