New Zealand local government insurer Civic Assurance expects arbitration with two reinsurers to be settled early next year.

The group is in dispute with R+V of Germany and AIG over Canterbury earthquake claims.

The cases stopped Civic receiving a full licence from the Reserve Bank of New Zealand under the new regulatory system that began in 2010.

It holds a provisional licence, and CEO Tim Sole says it will apply for a full one when the arbitration is settled, allowing it to write new policies.

Civic and AIG will enter arbitration in December, with six days set aside. A panel of three senior legal figures could hand down their decision a month later.

The group is awaiting a date for the R+V hearing.

Mr Sole told insuranceNEWS.com.au other issues will also be settled soon.

Loss adjusting for the primary loss from Christchurch City Council should be finished early next year, enabling Civic and the council to negotiate a settlement.

Civic had to stop offering property cover in 2011 after the quakes. Reinsurers covered most of its losses of about $NZ800 million ($702 million), but refused to renew the cover.

Its credit rating was also cut to B++ with a negative outlook. Although it was able to get property reinsurance last year, councils were unwilling to buy cover when Civic did not have an A rating.