27 Apr 2011

Recovering reinsurance top priority for Western Pacific

3:24 pm on 27 April 2011

Liquidators handling the affairs of the failed Queenstown-based company Western Pacific Insurance say their priority is recovering reinsurance from overseas companies.

Western Pacific was put into liquidation earlier this month, after its directors became concerned that it wouldn't have enough money to cover claims from Christchurch's earthquakes.

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

The liquidators - David Ruscoe and Simon Thorn, of Grant Thornton - have been unable to sell the business, so have cancelled all the policies.

They say they are focussed on making sure that reinsurance with offshore companies can be collected, and they'll be in a better position to progress individual claims once they have recovered the money.

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