27 Apr 2011

Western Pacific policies cancelled by liquidators

10:45 am on 27 April 2011

Liquidators handling the affairs of the failed Queenstown-based company Western Pacific Insurance say they have been unable to sell the business, so have cancelled all the policies.

The company was placed in liquidation earlier this month, after the directors became concerned it would not have enough money to cover claims from the Christchurch earthquakes.

The company, which has 7000 policy-holders, owes creditors $3.8 million and has $1.9 million worth of unsettled insurance claims.

David Ruscoe and Simon Thorn of Grant Thornton says they are focussed on making sure that reinsurance with offshore companies can be collected.

They have also arranged for Tower Insurance to consider offering cover to all Western Pacific's policy-holders at current market rates.