HIH保险公司破产案例分析

HIH Insurance bankruptcy case

Contents

The situation of HIH………………………………………... - 3 -

1. Introduction………………………………………………. - 3 -

2. Data analysis……………………………………………… - 3 -2.1 The evolution of HIH………………………………………………. – 3 - 2.2 The share of HIH in half of 2000…………………………………… - 4 -

2.3 The balance sheet of HIH (1999-2000)……………………………… - 5 -

3 .Company strategic issues………………………………… - 5 - 3.1 Strategy making and execution……………………………………… - 6 - 3.2 Rapid expansion…………………………………………………….. - 7 -

3.3 Top managers’ ability………………………………………………… - 7 -

4. Company operation……………………………………… - 8 - 4.1Reinsurance………………………………………………………….. -8 - 4.2 Risk management…………………………………………………… - 8 - 4.3 Financial operation………………………………………………….. - 9 - Summary…………………………………………………….. - 9 - Reference…………………………………………………….. - 10 -

The situation of HIH

1. Introduction:

The HIH was established in 1969, after struggle 20 years it gone public. Because of HIH is influential in Australia insurance market, its stock increase in front of Australia stock market. success in the capital market let it get massive funds to develop the oversea market.

March 15, 2001, the High Court of Australia New South Wales New South Wales (NSW). Place ordered to HIH and its 17 subsidiary companies in Australia, local provisional liquidation, and specify the KPMG Consulting firm (KPMG)Tony McGrath, Mr. and Alex Macintosh, Mr. provisional liquidator.

After a preliminary investigation found that the carrying amount of HIH losses as high as $ 800 million, plus possible outstanding claims and potential recourse, even if the more optimistic estimates, actual total loss may be as high as $ 36-53 billion. Convinced HIH insolvent circumstances, the High Court of Australia officially announced on May 17, 2001 HIH bankruptcy, this is the following Reinsurance Australia, GIO Australia, the New Cap Re three of the company went bankrupt, the Australian insurance industry suffered another heavy blow, at the same time the largest bankruptcy cases in the HIH is Australia's history.

2. Data analysis

2.1 The evolution of HIH

1968, a man named Raymond of Reginald Williams, who founded a major agent of Lloyd's of London (Lloyd's) underwriting underwriting agency that the MW of Payne, underwriting agency. In the next 32 years, the company through a series of mergers and acquisitions and convertible equity process, the premium income and total assets are increasing, and developed into one of 29 companies as the main body, a total of more than 250 companies, including the huge insurance Group (its structure as shown in Figure 1), Australia's second largest non-life insurance companies. In 32 years time, Mr. Williams has been the senior management of HIH, presided over the company's business. Mr. Williams because of serious differences in the Pacific, the