Former FAI CEO Rodney Adler has spent much of the past couple of months sitting as an observer at the HIH Royal Commission, and he has obviously been keen to give his view of events. In the couple of days that he has been in the witness chair, he has made clear his belief that FAI was not the “Trojan horse” which brought down HIH last year.

“It was a great prize,” he said. “In my opinion the acquisition of FAI by HIH was strategically sensible.”

HIH acquired FAI for about $300 million and collapsed with debts of up to $5.3 billion two years later. Mr Adler said the cost of the acquisition was returned in profits to HIH in the first 12 months.

Mr Adler’s answers to questions have so far been typically wide-ranging – Royal Commissioner Neville Owen has already told him to speed it up a bit – but Mr Adler already faces a 20-year ban from being a director and massive fines over the HIH share-buying scheme and has much to say in this very public forum.

He has denied close knowledge of the notorious financial reinsurance side-letters, and suggested his executives did much of the decision-making. “I gave my executives a great deal of operational latitude and respect and it was up to them to tell me what was important and pertinent,” he said.

The commission hearing was adjourned to Thursday to allow Mr Adler to appear today in Melbourne as a prosecution witness in the case of former OAMPS CEO Robert Porter, who faces charges related to the use of company funds. FAI controlled 17% of OAMPS at the time.