The liquidation of failed New Zealand insurer Western Pacific will take until at least 2016, as loss adjusters deal with Canterbury earthquake claims.

Liquidators David Ruscoe and Richard Simpson of Grant Thornton say the loss adjusters are working on 60 quake claims valued at $NZ37 million ($34.4 million) and expect to take another year to finish their assessments.

Western Pacific collapsed in April 2011 and its only major asset is reinsurance of $NZ48.33 million ($44.94 million) for earthquake claims.

The liquidators have taken court action to recover $NZ600,000 ($557,890) of unremitted premiums from brokers.

They say the Inland Revenue and employees, who are preferential creditors, should get a distribution in the next year but unsecured creditors, including some insureds, are unlikely to receive anything for the $NZ16.96 million ($15.8 million) they are claiming.

The company’s affairs are under investigation to see whether there are transactions that can be made void and the money recovered, and whether the company traded recklessly.