The New Zealand rump of failed Australian insurer HIH has been put into permanent liquidation.
KPMG partners Kerryn Downey and Alan Isaac, who have acted as provisional liquidators ,liquidators, were appointed permanent liquidators by the High Court at Auckland last week.
The liquidation affects HIH Casualty and General Insurance (NZ) and HIH Holdings (NZ). The two companies went into liquidation on June 6, following the March collapse of the HIH group.
Isaac said the liquidators could now get on with the job of realising the insurer’s assets and accessing its obligations.
During the interim liquidation they were only able to maintain the companies’ financial positions, he says.
A meeting of creditors, owned an estimated $40 million, will be held by August 13.
Isaac says it was difficult to estimate what assets the companies owned until the position regarding reinsurers was clear.
The liquidation does not affect the recently completed sale of most of HIH Casualty’s insurance business to QBE.
However, it will affect about 300 claims taken over from FAI General Insurance and some other debts not taken on by QBE.
Downey and Isaac said they were working with other liquidators of the HIH group in Australia, the United Kingdom and the United States.
Prior to the group’s collapse HIH Casualty appeared to be doing well, achieving record turnover and profit in the June 2000 year. It had also set up a new structure meant to separate it from the Australian company.
Among the products it offered were workplace accident insurance and professional indemnity insurance.
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