a bit of Reading for interested people. I was told that this could be a very good deal even compared to Aussie Listed Insurers and also way way better than the besieged Greenstone. Cheers
CBL Insurance Limited is the largest and oldest provider of
credit surety and financial risk in New Zealand.
Our founders built a sound and impeccable business underwriting reputation. This has been further enhanced by the strong relationships we have developed with international 'A' rated re-insurers, coupled with our underlying security indemnities and focus on core business.
We offer a wide range of credit insurance, reinsurance and financial surety related products through an international distribution network that we have developed over a number of years. With clients in New Zealand and around the world, we take pride in our ability to tailor products to individual clients, taking into account the regulatory environments in which they operate.
Our years of experience have given us the ability to apply tried and tested financial risk assessment and analysis in an innovative manner and a belief in approaching problems with a 'can do' philosophy. As a result we have a wide portfolio of clients with only one thing in common – they all need to obtain the financial assurance we can offer.
The pioneering work of our founders has meant that our company has developed an excellent reputation, which has supported and underpinned the vision of people and local companies for over 35 years.
In 1996, the company was purchased by our present owners and was given added focus and impetus allowing us to introduce new products into the market and launch an international platform for writing business.
CBL Insurance has a financial rating of B+ (Good) and an outlook of 'Positive' from AM Best with an issuer credit rating of bbb- CBL Insurance seeks Australian acquisition, listing
New Zealand insurer CBL Insurance Group is eying an Australian acquisition as part of plans to pursue a wider $NZ120 million ($118 million) dual listing.
According to a statement released early Thursday morning in New Zealand, CBL has hired UBS and Bancorp Corporate Finance to assess growth plans including opportunities in Australia.
The Australian acquisition is expected to underpin CBL's float plans, which include both an Australian and New Zealand listing.
The growth plans were revealed as CBL reported $NZ242 million premium income for the year to December and a $NZ36 million profit.
CBL is a privately owned Auckland-based international credit and financial risk insurer that specialises in writing building and construction related surety insurance. The company writes insurance in 25 countries and makes most of its revenue outside of New Zealand.
Its biggest shareholders include managing director Peter Harris and deputy chairman Alistair Hutchison. The company is chaired by Fisher Funds Management chairman and former investment banker Sir John Wells. Should CBL finalise the Australian deal and make a run at the ASX- boards, it would be the latest in a string of insurance sector companies to float in Australia.
Real Insurance-owner Greenstone Insurance is also lining up for a listing, while insurance broker Steadfast Group, lenders' mortgage insurer Genworth Mortgage Insurance Australia, insurance comparison business iSelect and private health insurer Medibank Private have all debuted in the past two years. UBS to advise on CBL listing
Investment bank UBS has been appointed as an adviser to New Zealand-based insurer CBL ahead of plans by the company for an initial public offering and listing in Australia and New Zealand.
It comes as the company prepares to break into the Australian market through an acquisition, set to be announced before the IPO plans get under way around June, according to sources.
It is understood that the plans by the company are to raise about $NZ120m to create a public company to list with a market value of around $NZ400m.
Currently, the business is run by managing director Peter Harris and operates in 25 countries with more than 100 employees working out of eight offices across four continents.
It specialises in writing building and construction related credit and financial surety insurance, bonding and reinsurance.
The Auckland-based credit surety and financial risk insurer posted a 38 per cent lift in its operating profit to $NZ36m after it wrote $NZ242m of premium income for 2014, an increase of 14 per cent on the previous year. Kiwi CBL Insurance eyes Australian acquisition, listing
Privately owned New Zealand insurer CBL Insurance is set to make its mark in Australia with a material acquisition and ASX-listing slated to occur before June 30.
It's understood CBL chief executive Peter Harris and chief financial officer Carden Mulholland will meet a handful of institutional investors in Sydney starting Monday, kicking off investor education ahead of a potential $400 million float.
Mr Harris, who owns about 40 per cent of the financial, credit risk and bonding company, would not confirm the listing plans but said
the company had hired investment bank UBS to assist in a capital structure review.
He said the company had also agreed to terms to buy an Australian insurer and was hopeful the deal would be cleared by the prudential regulator in the next two months.
"At the moment our insurance book is Euro-centric," Auckland-based Mr Harris told The Australian Financial Review.
"We want to increase our Australasian footprint and in particular we are keen to acquire an Australian insurer. And we'll be adding to the local insurance market as opposed to trying to take share off somebody else." CBL started in Auckland 40 years ago as a privately owned insurance and reinsurance group focused on credit and financial risk.
The company has expanded internationally in the past decade and now makes more than 95 per cent of its revenue outside of New Zealand.
Its biggest market is France and its highest-selling product is builders' risk liability insurance, which is taken by homeowners to protect against the risk of their builder going bankrupt.
Mr Harris said CBL avoided commodity-type car, house and casualty insurance and focused on making profit from its underwriting decisions rather than investment income.
"Our total focus is on underwriting profit. It is a very different model from most insurance companies that concentrate on top-line growth," he said. "We would rather write less business and make more money."
He reckons the only way to do that is thorough due diligence and building long-term relationships with customers.
'NOTHING BEATS FACE-TO-FACE CONTACT'
CBL's Auckland-based management team are knowing for spending up to one-third of their time on the road, looking after business in France, Mexico, Ireland and Australia, among other places.
"It doesn't matter how good your technology is, there is nothing that replaces sitting across the table from someone and asking 'how can we help grow your business'," he said.
"And we don't do acquisitions as an investment. We do acquisitions where they have an ability, we think, to grow through our product base and where they can help us with distribution."
The New Zealand insurer is expected to tell potential investors it had $NZ242 million ($232 million) gross written premiums last calendar year and made a $NZ36 million operating profit.
Gross writer premium has increased 42 per cent each year over the past five years, on a compounded basis, and 55 per cent including acquisitions. Profit grew at 65 per cent a year over the same timeframe. CBL's Australian business consists of selling home deposit bonds under the Deposit Power brand. The bonds allow a property purchaser to pay a house deposit using a CBL bond as an alternative to cash.
However, Australia accounts for only 4 per cent of CBL's revenue. "Targeting Australia is a really exciting thing for our company," Mr Harris said.
"To date, our Australasian market has lagged the development of the rest of our business, partly because of regulation. The APRA regulatory barriers to competition to outsiders are pretty well known and this [acquisition] gives us the ability to work within these parameters without having to set up a separate start up, which is something we would not want to do."
At the smaller end of the insurance market, Sydney-based Assetinsure is
believed to be the target of Kiwi IPO hopeful CBL Insurance.
As reported by The Australian Financial Review, CBL has agreed to buy
an Australian company and is hopeful of regulatory approval by June 30. It's understood CBL has told potential investors that Assetinsure, which has $40 million in net tangible assets, would give CBL an Australian platform from which it could expand in the region.
Assetinsure is a specialist insurance company for product lines focusing on companies and financial institutions. The business had a poor 2014 financial year, posting a $5.8 million loss, after it was hit by the largest ever claim in the Australian surety market from Forge Group. Assetinsure is privately owned.
CBL Insurance tipped as next IPO
1:20 PM Friday Mar 13, 2015
An Auckland-based insurance firm is being >pped to carry out the second
ini>al public offering and NZX main board lis>ng of 2015.
CBL Insurance, a privately-owned credit surety and financial risk insurer, has today reported a 14 per cent liP in unaudited annual premium income to $242 million and a 41 per cent increase in opera>ng profit to $36 million.
In the result announcement the company, which raised A$55 million through a secured debt offer late last year, said it had appointed investment bank UBS and Bancorp Corporate Finance to "assess its op>ons".
• Christopher Adams: Fliway float first chance in sector since Freightways
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A market source said CBL was a candidate for an IPO and NZX main board lis>ng, which was likely to take place before the end of June.
It is unclear how much cash the insurer might hope to raise, or what value the possible offer might place on the firm.
The source said CBL could be the second company to float on the NZX this year aPer transport and logis>cs operator Fliway Group, which expects to list on April 9.
The company, founded over 40 years ago, has 100 staff working in eight offices across four con>nents.
It has customers in 25 countries.
CBL is chaired by Sir John Wells, who is also the chairman of Fisher Funds, Bancorp and Auckland Council Property.
Sir John is the father of New Zealand broadcaster Jeremy Wells.
CBL managing director Peter Harris said in a statement that the firm was a considerable exporter of financial services, with much of its revenue generated outside New Zealand, largely in Europe.
The final two sentences of the press release suggest an IPO and lis>ng is imminent.
"CBL shares cannot currently be applied for or acquired under any intended offer," the company said. "If an offer is made, it will be made in accordance with the provisions of the Financial Markets Conduct Act 2013."
CBL's largest shareholder is Singapore-based Oceanic Securi>es, with a 32.4 per cent stake, according to the Companies Office.
Ellerslie-based Federal Pacific Group, owned by CBL deputy chairman Alistair Hutchison, has a 30.8 per cent holding.
