A news item on the insuranceNEWS.com.au web site provides an update on what is being arranged for Ansvar’s clients (here).
The following are excerpts from the article:
Church-based insurer ACS (NZ) Ltd, the former Ansvar New Zealand, has written to policyholders to inform them of a June 12 meeting in Christchurch.
The New Zealand High Court has directed ACS to hold the meeting to discuss a scheme of arrangement with its creditors – the claimants – so they may vote on approving the scheme and, if necessary, determine the members of an initial creditors’ committee.
Ansvar CEO Andrew Moon said previously that the scheme would only be triggered if ACS directors determine that liabilities exceed assets, or if creditors’ claims can no longer be met in full.
If the scheme is not approved, ACS says it will continue to manage claims, but could be “vulnerable to increasing claims” and other factors that may endanger its solvency.