[ad_1]
Supplied
Private insurers and the EQC have decided who should bear the costs of repairs already made to homes in Christchurch after the 2011 and 2012 earthquakes.
Home insurers Tower and IAG have reached agreements that will see EQC reimburse them for repairs they made after the Christchurch earthquakes that the state natural disaster insurer should have paid for.
In the aftermath of the 2011 and 2012 earthquakes, private insurers and EQC performed repair work on Canterbury homes under an agreement that would determine where costs should fall later.
But the agreement on who should pay what was difficult to achieve, led Tower to sue EQC for more than $ 80 million.
Now Tower says EQC will pay it $ 42.1 million in a settlement that would end its legal action.
READ MORE:
* Insurers will take over EQC claims management
* The division of competition: Why are Australian insurers’ profits so high in New Zealand?
* Bounce to black for Tower insurer after moving to risk pricing
IAG, which owns the AMI, State, NZI, Lumley and Lantern brands, did not disclose how much it would be paid as a result of its liquidation, calling the figure “commercially sensitive.”
Last week, Suncorp, owner of Vero and AA Insurance, also reached an agreement with EQC on the portion of the earthquake-damaged home repair costs that EQC should bear.
Tower is double listed on the New Zealand and Australian stock markets, while IAG and Suncorp are listed only in Australia.
Tower chairman Michael Stiassny said the deal provided shareholders with certainty.
Tower had settled for just over three-quarters of the amount he believed was owed to him.
“We now have a very strong capital position and we will provide a further update regarding dividend payments with our financial year 2020 results announcement tomorrow (Wednesday),” Stiassny said.
IAG CEO Craig Olsen said that now both parties can move forward with certainty.
THINGS
Rob Kerr has developed a $ 480 million plan for the 11 km long Ōtākaro Avon River Red Zone Corridor in Christchurch. (Video first published on October 31, 2020)
EQC CEO Sid Miller said the settlement meant that companies could draw a line with the past and continue to focus on helping resolve the remaining claims for customers.
“The series of earthquakes experienced by the Canterbury region caused a number of complexities in the allocation of damage to buildings and grounds and the cost of repair between different seismic events,” Miller said.
The cost of the liquidation would be borne by EQC’s reinsurers.
“This agreement is an important milestone for EQC in our Canterbury earthquake recovery program.”
