Church-based insurer ACS (NZ) Ltd, the former Ansvar New Zealand, says its new “contingent scheme of arrangement” aims to ensure all claims against it are paid in full.

Ansvar CEO Andrew Moon says ACS directors will only trigger the scheme arrangements if they determine that the company’s liabilities exceed its assets, or if creditors’ claims can no longer be met in full.

“However, based on all the information currently available to us, we do not expect this to occur,” Mr Moon told insuranceNEWS.com.au.

He says ACS intends to settle all claims quickly and efficiently. However, this will take some time and the “claims position is evolving”.

“If a situation occurred where our liabilities exceeded our assets, it is possible that pro-rata payments will be made,” he said.

The scheme of arrangement will require New Zealand High Court approval and the support of scheme creditors – the claimants – at a scheme meeting.

An initial court hearing is scheduled for May 1 and the creditors’ meeting in early to mid-June. There will then be a second court hearing to approve final orders.

Mr Moon says the company has spoken to some major claimants about the proposed scheme and they have indicated they will support it.

To date, UK parent company Ecclesiastical has strengthened the financial position of ACS by more than $NZ75 million ($59 million).

ACS has not provided any update on the total claims figure.