Mr English released a statement following the release of documents outlining the support given to Christchurch-based insurer AMI.
The Treasury documents related to the Government's $500 million back-up support package, announced on April 7.
"The support package, which will be called on only as a last resort, gives policyholders certainty, helps ensure an orderly rebuild of Christchurch and gives AMI the time to seek a market solution to the challenges it faces as a result of the two Canterbury earthquakes," he said.
However, in the last sentence of his statement, Mr English said Treasury expected to include AMI - including its full assets and liabilities - in the consolidated Crown accounts when it completed the 2010-11 year-end accounts in October.
The Crown had the capacity, if necessary, to direct the operating and governing policies of AMI and take control of the board through its option to make a partial payment, he said.
The Crown was also directly affected by the risks or benefits of AMI's operations because of the support package.
Craigs Investment Partners broker Chris Timms questioned why Treasury would include AMI in its accounts if the funding was only last resort.
"What the Government is doing and what it is saying are two different things. If there was any doubt the money will be not be called upon, what is the point of treating it like a state-owned enterprise?
"It looks like we own 78% of an airline, some power stations and now an insurance company," he said.
A spokesman for Mr English said in response to an Otago Daily Times question that Treasury had decided to take a conservative approach to the financial reporting aspects of the bailout because of the breadth of the support package.
"The book-keepers decided that because of the nature of the package, we need to include it in the books," the spokesman said.
The documents released by Treasury showed the Government was advised that the consequences of AMI failing were severe and would delay the rebuilding of Christchurch by several years.
AMI is New Zealand's second-largest residential insurer and has 35% of the Christchurch market. Treasury said support of AMI, rather than statutory management, would allow timely processing of claims, preserve contractual relationships, remove the need for customers to switch insurers and give the Crown control via support arrangements.
AMI said yesterday Goldman Sachs would assist in determining the level, type and structure of capital required to both settle claims and to satisfy prudential regulatory requirements.
AMI expected to be able to quantify its exposure to the February 22 earthquake by the end of August, which would clarify its need for fresh capital.
Although all claims were not yet in, the company believed it would exceed the $600 million of reinsurance cover it held.
AMI's arrangement for the Government to provide up to $500 million in extra capital, if necessary, had freed the company to use its own capital of $350 million to meet claims once the $600 million of existing reinsurance cover has been exhausted, without breaching the regulations governing the industry.
Mr English said that since the package was announced, the Government had been "engaging constructively" with AMI.
"The implications for the Crown accounts of the support package are still very uncertain and will remain so for a number of months as AMI continues to assess earthquake claims."
