The receivers and liquidators of Herbert Insurance Group have notified the failed insurer’s professional indemnity insurers of potential claims.

Auckland-based Herbert went into liquidation and had a receiver appointed in March.

New Zealand’s Serious Fraud Office is investigating the failure, and liquidators Andrew McKay and Aaron Walsh of Corporate Finance Ltd say they have started their own enquiries to determine whether there have been any breaches of legislation or whether there are any other recovery avenues available.

The liquidators’ first report says the ASB Bank has security over most of the company’s assets.

Receiver KordaMentha is in the process of selling the assets and expects this to be completed around March next year.

KordaMentha has previously said that the company’s key asset is its customer base of around 4500 clients. This was transferred to Aon in March with an agreement that its value would be assessed in a year’s time and consideration would be payable then.

KordaMentha has said the ASB might get some distribution for the $NZ780,000 ($627,201) it is owed but there is unlikely to be any funds available for unsecured creditors owed around $NZ200,000 ($160,820).

The Inland Revenue Department has made a preferential creditor’s claim of $NZ314,000 ($252,502).

The liquidators’ report says the company has funds held in trust relating to premiums paid by brokers and therefore not available to creditors. Distribution is subject to the Insurance Intermediaries Act and the liquidators are working with insurers on how it will be paid.