Liquidity risk arising from a sharp increase in insurance claim payments
First written in FY2017. 1 of 2 entries say "Restated". Latest entry: FY2019.
The whole theme swung hardest in 2020: 4 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Restated".
- FY2019RestatedAnnual report
「Anicom Group has established a cash-flow management framework based on appropriately monitoring its funding position. However, if its funding position deteriorates due to an increase in insurance claim payments resulting from the rapid spread of an infectious disease or other factors, and it is forced to raise funds at significantly higher costs than usual or sell assets at significantly lower prices, this could affect its financial position and performance.」
The disclosure continues to cover deterioration in the funding position due to a sharp increase in insurance claim payments and the cash-flow management framework. - FY2017First statedAnnual report
「However, if the Group's funding position deteriorates due to an increase in insurance claim payments resulting from the rapid spread of an infectious disease or other factors, and the Group is forced to raise funds at significantly higher costs than usual or sell assets at significantly lower prices, this could affect its financial position and performance.」
The disclosure indicates that an increase in insurance claim payments due to infectious diseases or other factors could weaken the funding position and force the Group to raise funds at high cost or sell assets at low prices.