Christchurch earthquake victims further embroiled in liquidation claims with collapsed insurer Western Pacific Insurance, of Queenstown, face refunds of 66c in the dollar, but that return could be further eroded for some.
Estimated insurance claims on Western policies are up to $48.32 million, but only $32.19 million is due from Western's reinsurers' payouts, leaving a $16.13 million shortfall, meaning a payment of 66c in the dollar.
Liquidators Grant Thornton have just released their 13th report, to creditors or as statutory reports, since Western's collapse.
''We expect there will be a shortfall of funds available for claims and also expect that the quantum of claims may increase as assessment of same is completed,'' the liquidators said in their most recent report.
No time frame was given, but in May liquidators said they required at least another six months to wind up the liquidation.
When contacted, the liquidators said that 66c in the dollar was an average, and reinsurers' policies varied widely. Some of the 80 claimants from September 2010 quake could get a higher percentage, because of a higher cap on payouts, but those in the second group of 100 claimants from the February 2011 quake have a lower cap and might get lower payments.
Boutique insurer Western Pacific's saga began with its collapse in April 2011, as the first $6 million of Christchurch earthquake claims rolled in, before claims spiralled to $65 million.
It was later revealed that worldwide, Queenstown-based Western's director Graham Smolenski and his brother-in-law, Jeff McNally, had sold about 7000 insurance policies, amounting to $10 billion of insurance cover.
After an earlier High Court decision in the liquidators' favour over claims on the reinsurers' cash, there remain outstanding unsecured creditor claims of $18.75 million, which no longer rate a mention in reports.
The liquidators said they received $1.93 million in mid-June, after a settlement was reached with an unidentified reinsurer as the ''full and final settlement'' of its obligations.
In its previous report, Grant Thornton said an unidentified reinsurer had proposed to settle its obligation immediately, and pay $1.93 million, which represented a $554,118 discount. A total of $280,553 in unpaid premiums owing to the reinsurer was also deducted.
''A further [unspecified] claim for the company's greatest loss has also been presented to the panel of reinsurers,'' Grant Thornton said.
It had kept the claims office open over the two months to the end of August, liaised with loss adjusters, reviewed claims and kept reinsurers appraised of claims, Grant Thornton said.
It also said it had continued recovery efforts ''to realise the significant unremitted premiums'' being held by brokers.
Costs for the two months to August were $40,900, comprising $22,000 to keep the claims department operating, $4700 in legal fees and the balance, which went towards liquidators' fees.
