13 Apr 2011

Liquidators uncertain of how much insurer owes

10:20 pm on 13 April 2011

Liquidators of failed Queenstown insurer Western Pacific says it does not know how much the company owes yet.

In its first report, Grant Thornton says the insurer has 7000 policy holders, and estimates it owes creditors $3.8 million, with $1.9 million of unsettled insurance claims.

Western Pacific collapsed after its directors became concerned it would not have enough to cover claims from the Canterbury earthquakes.

Grant Thornton's liquidators David Ruscoe and Simon Thorn warn the company's accounts may not be up to date, as the books are held by a external party.

They say there is a large amount of unpaid premium income due, which Grant Thornton is trying to collect, as well as reinsurance funds.