Liquidators of failed boutique Queenstown insurer Western Pacific are still waiting for $34 million in payments from its reinsurers, more than two years after the company collapsed.
Western Pacific fell over in April 2011, following claims for just $6 million of the first quake-related Christchurch claims. Total claims by creditors and policyholders at one point were estimated at $65 million.
Now, claims from the September 2010 and February 2011 quakes total $48.2 million but, after estimates of the reinsurance recovery payouts, the policyholders still face a $16.1 million shortfall.
Following a court decision, separate policyholders outside Christchurch and other creditors will probably miss out on about $27.6 million in claims. Grant Thornton has filed 10 reports since taking on Western's liquidation and is still seeking premiums held by brokers.
However, little has changed since its previous report in October. Liquidator Simon Thorn did not return calls this week about estimates of when the reinsurers might pay or how much was owed by brokers holding premiums.
Grant Thornton retained the reinsurance polices during the liquidation by paying $430,000 in premiums, with a further $2 million premium owed for 2011 treaties. Expected recoveries are estimated at about $34 million. Western's directors were Queenstown-based Graham Smolenski and his brother in-law Jeff McNally. The company held 7000 policies around the world, with total potential liabilities of more than $10 billion.
