I did the following;
1. Issued 2 billion in bonds (two issues of 1 billion each) at an interest rate of 7.1%. Then:
2. Bought 1 billion of those bonds with a shell subsidiary (a company I set up with enough cash to buy the bonds).
3. Bought 1 billion of those bonds with an insurance company's claims reserves (not sure what you call that internally, the insurance company's cash held inside of the mini-subsidiary thing that is the HQ).
After a year,
The outcome of #2 was "Stock and Bond Return" on the income statement of a little over $80 million. Interest rates declined in the interim, so this makes sense. Nothing appears to be broken here.
The outcome of #3 was "Investment Income" in the insurance company (there are no investments outside of this one bond issue) of about $13 million. Since this is a insurance company it's hard to say whether I got the interest paid in cash, but I definitely don't see it in the investment income where it belongs.
It appears that insurance companies are getting "Income" in the form of price appreciation on the bonds, but not receiving the coupons paid out by the bonds (i.e. the only reason you buy bonds instead of hold cash). Considering I'm the only entity in the game issuing high volumes of bonds, and that I'd like to use all that idle insurance company cash productively, this is a problem - since it appears that the interest I'm paying out of my main holding company is going into some sort of black hole.
Version: 6.3.02
All DLCs.
No MODs.
BUG: Bond Interest For Insurance Company Flawed
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- David
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Re: BUG: Bond Interest For Insurance Company Flawed
The bug has been fixed in the latest version 6.3.03. Please download it from: http://www.capitalism2.com/forum/viewto ... =52&t=7312