Troubled New Zealand mutual AMI Insurance is weighing up approaches from potential new investors and has hired corporate advisors Goldman Sachs to help raise new capital.

Christchurch-based AMI, which had large exposures in the earthquake-devastated city, last week posted a $NZ705 million ($561.95 million) net loss for the year to June 30, compared with a $NZ33 million ($26.05 million) profit in the previous year.

Chairman Kerry Nolan says AMI would have posted a record profit but for the impact of claims and provisions related to the Christchurch earthquakes.

He says AMI is confident of its position and expects to show a trading profit for this financial year.

AMI posted gross written premium income of $NZ362 million ($286.14 million) for the year, compared with $NZ341 million ($269.49 million) for the previous financial year.

Mr Stokes, who says the insurer is maintaining customer numbers and is winning new business, is confident in being able to attract a new investor to help recapitalise the mutual.

Major New Zealand insurer Tower is believed to be among the possible suitors.

The cost of the earthquake claims, over and above the company’s reinsurance, is expected to reach $NZ531 million ($419.82 million), Mr Nolan says.

“We have effectively set aside $NZ760 million ($600.87 million), which includes a large contingency, to pay earthquake claims as they are settled over the next few years and have already paid out $NZ80 million ($63.24 million),” he said.

“We estimate just over one-third of claims will be paid out in [2012], a similar amount in June 30 2013 and about 20% in the following year. I emphasise that all claims will be paid as they are settled.”

AMI has $NZ2.3 billion ($1.81 billion) in assets, including $NZ1.2 billion ($948.88 million) of available reinsurance, and $NZ500 million ($395.31 million) of government capital which can be drawn down if needed.