The liquidation of former boutique Queenstown-based Western Pacific Insurance has dragged into its fourth year - but with more than $15 million of Christchurch earthquake claims having been finalised in recent months.
Liquidator Grant Thornton's latest report, from December, said during the past six months more than $15 million of earthquake claims had been finalised, with plans for a further $20 million in claims to be presented to the Western's reinsurers by March.
Western was operated by Queenstown-based Graham Smolenski and his Australian brother-in-law Jeff McNally, and once held 7000 policies worldwide, amounting to $10 billion in insurance cover.
However, Western was unable to meet its obligations to pay out just $6 million in Christchurch earthquake-related claims, and it collapsed, with liquidators appointed in April 2011.
There were a total of 204 claims, estimated at $58.4 million, of which 92 related to the first earthquake in September 2010, estimated at $14.9 million, and 112 claims for February 2011, estimated at $43.5 million.
The liquidators said payouts to Canterbury policyholders would be made after all the earthquake claims ''had been quantified and agreed''.
The liquidators said in the report they expected more than $10 million in claims to have been finalised by the end of December.
''Our current estimate for completion of loss assessment of the earthquake claims is at least 12 months,'' the liquidators said.
The liquidators estimated recoveries from reinsurers of $32.1 million, subject to costs. Costs for October and November, covering the claims department, legal fees and liquidators fees was about $48,500.
While there may be an estimated shortfall of $16.9 million for policy holders, separately, unsecured creditors have lost about $27.6 million - a total shortfall of more than $44 million.
