UK-based church insurer the Ecclesiastical Group has pulled out of earthquake cover in New Zealand and will now write NZ business through subsidiary company Ansvar Australia.

Ansvar NZ provides coverage for more than 600 churches and other customers.

Ecclesiastical CEO Michael Tripp says the Canterbury earthquakes “have produced the group’s biggest-ever series of losses”.

“Although we are well protected by our reinsurance programs we have nevertheless experienced gross claims across the three main [earthquake] events of more than £330 million ($527 million),” Mr Tripp said.

According to New Zealand media reports Ansvar NZ collected $NZ35 million ($27.5 million) in premium during that period.

The move to withdraw New Zealand earthquake coverage came immediately after ratings agency AM Best downgraded Ansvar New Zealand’s financial strength to BB+ (good) from A- (excellent), with the rating “under review with negative implications”.

Mr Tripp says Ecclesiastical decided to stop writing any new business via Ansvar NZ and will offer new business and renewals through Ansvar Australia. The policies written from Australia for New Zealand will not include earthquake cover.

However, New Zealand media reports say renewals up to December 1 will include earthquake cover.

Mr Tripp did flag the possibility of providing earthquake cover in the future.

“We are exploring whether it might be possible to provide future protection either by offering earthquake coverage as a stand-alone product or potentially as part of a broader cover,” he said.