At 14:28 on May 12, China 40 Chuan Wenchuan 7.8 earthquake occurred. Information, as early as 2002, Liu Yonghao's hope that the new Huarong Chemical Co., Ltd. became the first in western China earthquake insurance policyholders. Huarong Chemical is new hope and the IFC (International Finance Corporation) joint venture between the major chemical companies. Catastrophe insurance for insurance companies operating in various sectors affected immediately aroused the concern.
Worked for a foreign re-insurance industry, a senior actuary to this reporter that "as more than three deaths such as earthquakes, if the majority of loss is also borne by the reinsurance companies. Therefore, the real losses, should be our ( It refers to in the reinsurance industry). "He explained that more than a certain amount claimed by the insurance companies are the business of reinsurance companies were re-insurance, in particular, this may cause huge losses of earthquake risk.
Buffett shares God's Bajun that there are two well-known reinsurers Bajun GEICO and reinsurance reinsurance. 2008 Bajun first-quarter earnings from a year earlier sharp decline in the incident, leading to Bajun large-scale reduction of business profits, is the reinsurance business.
Bajun said in the earnings, because in the past few years, the frequency of accidents occurred relatively low historical levels, thus Bajun investors to enjoy more benefits, but this year should no longer look forward to do the same.
The actuary said: reinsurance companies will also be prepared. Every year, the reinsurance industry to the insurance premium income in the future as the most likely to pay the amount of reserves up. So now the basic payment of the amount of the reserve is only a few years ago. "10 years, several decades before a serious accident occurred, the reinsurance companies is not too great a burden."
Not only can increase the reserve to cope with catastrophe insurance companies the ability of investment income is also a major guarantee for the company an important guarantee of efficiency.
An investment analyst to this: "Buffett operating insurance companies and reinsurance companies on the fundamental purpose is not to make money in the insurance industry, but taken from these two sectors of the capital."
The analyst explained that while the 2007 acquisition of British Bajun Lloyd - TSB Group's insurance company Equitas move. At that time, Equitas announced, in 1988-92, and due to series of natural disasters and the impact of huge asbestos claims, the group loss of up to 8 billion pounds, according to the situation at that time to continue to develop, Equitas collapse sooner or later the problem. Bajun invested 7 billion U.S. dollars to save Equitas, was also caused many people to speculate.
In 2007 the annual report of the Bajun, we see that the Bajun acquisition of Equitas in the quarter, had recorded 7.1 billion U.S. dollars of disposable income. Thus, according to analysts understanding of the foregoing, the Bajun the acquisition of Equitas, and in fact no real funding, but the premium income of more reserve funds.
In fact, when the Chinese economy as the beginning of the snowstorm and the recent earthquake accident distress, Bajun also encountered the same problem. Bajun 2008 first-quarter earnings of "liability insurance underwriting" of income for the quarter of 22.27 billion U.S. dollars over 2007's 28.3 billion U.S. dollars over the same period a decrease of 6.03 billion U.S. dollars or 21.3 percent. Among them, Bajun reinsurance group pre-tax profit was 29 million U.S. dollars, over the same period in 2007 was 553 million U.S. dollars to 5.2%; another reinsurance companies - GEICO's liability insurance underwriting business only 186 million U.S. dollars were recorded in the pre-tax profits, up Over the same period last year, a decrease of 110 million U.S. dollars. Bajun in the Bulletin of the early warning investors, the insurance business in 2008 profit would be likely than in 2007 substantially reduced.
And the relative decline in income and profits should be that Buffett in 2008, a substantial increase in the amount of investment. According to the Quarterly Bulletin, Bajun, Bajun the total amount of investment for 13.3 billion U.S. dollars, far higher than the same period last year 2.7 billion U.S. dollars, and in 2007 the year of 13.4 billion U.S. dollars is almost the same. Of these, about 10.5 billion U.S. dollars in investment before decreased relatively high fixed rate maturity securities (fixed maturity securities), including the Federal Housing Loan Bank (Federal Home Loan Bank) bonds and a number of local government bonds, and so also invested 4.8 billion U.S. Yuan, on the acquisition of other companies.
Worked for a foreign re-insurance industry, a senior actuary to this reporter that "as more than three deaths such as earthquakes, if the majority of loss is also borne by the reinsurance companies. Therefore, the real losses, should be our ( It refers to in the reinsurance industry). "He explained that more than a certain amount claimed by the insurance companies are the business of reinsurance companies were re-insurance, in particular, this may cause huge losses of earthquake risk.
Buffett shares God's Bajun that there are two well-known reinsurers Bajun GEICO and reinsurance reinsurance. 2008 Bajun first-quarter earnings from a year earlier sharp decline in the incident, leading to Bajun large-scale reduction of business profits, is the reinsurance business.
Bajun said in the earnings, because in the past few years, the frequency of accidents occurred relatively low historical levels, thus Bajun investors to enjoy more benefits, but this year should no longer look forward to do the same.
The actuary said: reinsurance companies will also be prepared. Every year, the reinsurance industry to the insurance premium income in the future as the most likely to pay the amount of reserves up. So now the basic payment of the amount of the reserve is only a few years ago. "10 years, several decades before a serious accident occurred, the reinsurance companies is not too great a burden."
Not only can increase the reserve to cope with catastrophe insurance companies the ability of investment income is also a major guarantee for the company an important guarantee of efficiency.
An investment analyst to this: "Buffett operating insurance companies and reinsurance companies on the fundamental purpose is not to make money in the insurance industry, but taken from these two sectors of the capital."
The analyst explained that while the 2007 acquisition of British Bajun Lloyd - TSB Group's insurance company Equitas move. At that time, Equitas announced, in 1988-92, and due to series of natural disasters and the impact of huge asbestos claims, the group loss of up to 8 billion pounds, according to the situation at that time to continue to develop, Equitas collapse sooner or later the problem. Bajun invested 7 billion U.S. dollars to save Equitas, was also caused many people to speculate.
In 2007 the annual report of the Bajun, we see that the Bajun acquisition of Equitas in the quarter, had recorded 7.1 billion U.S. dollars of disposable income. Thus, according to analysts understanding of the foregoing, the Bajun the acquisition of Equitas, and in fact no real funding, but the premium income of more reserve funds.
In fact, when the Chinese economy as the beginning of the snowstorm and the recent earthquake accident distress, Bajun also encountered the same problem. Bajun 2008 first-quarter earnings of "liability insurance underwriting" of income for the quarter of 22.27 billion U.S. dollars over 2007's 28.3 billion U.S. dollars over the same period a decrease of 6.03 billion U.S. dollars or 21.3 percent. Among them, Bajun reinsurance group pre-tax profit was 29 million U.S. dollars, over the same period in 2007 was 553 million U.S. dollars to 5.2%; another reinsurance companies - GEICO's liability insurance underwriting business only 186 million U.S. dollars were recorded in the pre-tax profits, up Over the same period last year, a decrease of 110 million U.S. dollars. Bajun in the Bulletin of the early warning investors, the insurance business in 2008 profit would be likely than in 2007 substantially reduced.
And the relative decline in income and profits should be that Buffett in 2008, a substantial increase in the amount of investment. According to the Quarterly Bulletin, Bajun, Bajun the total amount of investment for 13.3 billion U.S. dollars, far higher than the same period last year 2.7 billion U.S. dollars, and in 2007 the year of 13.4 billion U.S. dollars is almost the same. Of these, about 10.5 billion U.S. dollars in investment before decreased relatively high fixed rate maturity securities (fixed maturity securities), including the Federal Housing Loan Bank (Federal Home Loan Bank) bonds and a number of local government bonds, and so also invested 4.8 billion U.S. Yuan, on the acquisition of other companies.
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