Failed New Zealand insurer Western Pacific’s liquidators have received $NZ1.9 million ($1.59 million) after settling a reinsurance contract relating to the Canterbury earthquakes.

Western Pacific collapsed in April 2011, with $NZ33.9 million ($28.36 million) in reinsurance money as its only asset.

The liquidators’ latest report to creditors estimates a shortfall of $NZ16.14 million ($13.5 million). Western Pacific has claims of $NZ13.92 million ($11.65 million) from the September 2010 quake and $NZ34.41 million ($28.79 million) from the February 2011 event.

Liquidators David Ruscoe and Simon Thorn, of Grant Thornton, say it has been difficult to complete loss adjusting to recover reinsurance proceeds, but the first payment will allow more to be done.

They are waiting for advice from engineers and surveyors to complete loss adjustment before presenting a claim to the panel of reinsurers covering the quake losses.