NZ-based insurer Western Pacific has temporarily halted acceptance of new business while it assesses its risk portfolio.

In a letter to brokers last week CEO Jeff McNally says the assessment process will be completed by March 25.

Mr McNally told insuranceNEWS.com.au the second Christchurch earthquake on February 22 “was a huge shock to the insurance industry”.

He says Western Pacific has a strong reinsurance program with a panel of 18 reinsurers, and the program was renewed on December 31.

“We’re a growing company, so our risk retentions are very low and reinsurance is very important to us,” he said. “We were very pleased with the terms we received, and we’re confident about our future in this market.”

He says that following the second quake Western Pacific and other insurers needed to sort out the claims complexities.

“I decided it was time to stop, take a deep breath and assess our exposures,” he said. “We’ve taken the opportunity to also look at our cat exposures throughout the country.”

Brokers who deal with Western Pacific “have been understanding and supportive” of the halt on new business. The company will continue to decline new business from Canterbury province after it resumes underwriting.

“Half of our South Island business was centred in Christchurch, and we’ve been working hard to look after our clients there,” Mr McNally said. “They’re mainly mum-and-dad retail businesses, and those who were in the centre of the city in particular have taken a big hit.”