Quote:
Originally Posted by Slava
Yeah, that's exactly what it is. ICBC loss ratios look fine through 2014 (which is a few years out of date, but I didn't want to dig anymore). The ratios might be a little worse for 2017 because of the fires, but even so that's not going to be the telling factor. The government has taken billions in dividends from ICBC over the years though, and that's why they're facing this issue.
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Would have to think that the disappearing yields on bonds is impacting their ability to maintain a return on premiums too, especially if the Govt. reached in to reduce principal or distributions after recent spread compression. But I still do find it strange when the ICBC makes the culprit 'too many car crashes' rather than something that is more or less under their control.