The Australian portfolio of failed New Zealand brokers Herbert Insurance is being sold to PSC Insurance.

Details of the sale are still being finalised but Herbert Australia CEO Tony Christian and the three Gold Coast-based staff expect to transfer to PSC within two weeks. 

PSC refused to comment on the matter when contacted by insuranceNEWS.com.au last week.

The portfolio of Herbert Australia was put up for sale in March after its Auckland-based parent went into receivership and liquidation.

New Zealand’s Serious Fraud Office is investigating the New Zealand business following concerns that premiums were not paid to insurers. The investigation is in the early stages of data collection.

Mr Christian told insuranceNEWS.com.au Herbert Australia is in the same area of business as PSC and will be joining a larger group that operates nationwide.

He says the company has not lost any clients as a result of the failure of Herbert New Zealand, “despite some nasty competition from other brokers”.

Aon New Zealand has taken over the Herbert New Zealand book.

Auckland-based ASB Bank appointed a receiver to Herbert last month, and creditors also appointed a liquidator. The company was estimated to have a deficit of $NZ4.4 million ($3.24 million) and the initial liquidator’s report said directors blamed the collapse on a reduction in revenue due to finance companies failing during the recession.

An associate company, Herbert Securities, provided premium funding and also had a receiver and liquidator appointed. In its first liquidator’s report, Herbert Securities’ director Grant Herbert attributed its failure to Herbert Insurance.