HIH Insurance
 

HIH Insurance Limited was a publicly listed company in Australia. Prior to its collapse in 2001, the HIH Group was the second largest general insurer in Australia and had operations in many other countries.

On 15 March 2001, HIH Insurance Limited and a number of its subsidiaries were placed into provisional liquidation. Subsequently, on 27 August 2001, the companies that were in provisional liquidation were placed into liquidation.

Schemes of Arrangement are now in place for eight of those companies.

The Scheme Administrators have made initial payments to certain creditors and will make further payments over the coming years.

Decision on the priorities to apply to non Australian assets – The House of Lords has handed down its decision that Australian priorities are to apply to the Insolvency of the HIH group. Download a copy of the English Scheme Administrators summary of the decision.


Scheme Company
Estimated Final %
To Date
HIH
20% to 40%
28% & 35.2%*
20% & 26.4%*
FAIG
55% to 65%
53% & 54.4%**
CIC
60% to 80%
60% & 60.4%***
FAIT
Less than 10%
nil
FAIR
100%
100%
FAII
1% to 10% ****
5%
WMG
70% to 100%
30%, 65% and 75.5%*****
HIHU
15% to 20%
10%
The above figures are preliminary estimates only. Final outcomes may vary considerably from these estimates, depending on reinsurance collected, development of future claims patterns, bad debt levels, other asset recoveries, the success of litigation, nature of claims and costs incurred.
* HIH Casualty & General Insurance Ltd creditors with Insurance liabilities in Australia have been paid 35.2 cents in the dollar and in the US have been paid 29.16 cents in the dollar. Creditors with Insurance liabilities Not in Australia or the US have been paid 26.4 cents in the dollar.

HIH Casualty & General Insurance Ltd Non Insurance creditors in Australia have been paid 28 cents in the dollar, creditors with Non insurance liabilities Not in Australia have been paid 20 cents in the dollar.
** 54.4 cents in the dollar has been paid to FAI General Insurance Company Limited creditors with Insurance liabilities worldwide, 53 cents in the dollar has been paid to all other FAI General Insurance Company Limited creditors.
*** CIC Insurance Ltd creditors with Insurance liabilites in Australia have been paid 60.4 cents in the dollar and Non Insurance creditors in Australia have been paid 60 cents in the dollar.
**** the lower range estimate relates only to creditors with insurance liabilities outside of Australia.
***** The return to creditors with insurance liabilities in Australia reflects the fact that under the terms of the Scheme they will receive payment from Fund 3 (non-reinsurance assets in Australia) net of any Scheme payment they may have already received from Fund 1 (reinsurance assets in Australia) and Fund 2 (reinsurance assets not in Australia). In summary:
Creditors with Insurance liabilities in Australia: 75.5%
Creditors with Insurance liabilities outside of Australia: 30%
Creditors with Non Insurance liabilities in Australia: 65%
 
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