Allianz will pay $120 million to the liquidator of HIH under a settlement agreement reached in the NSW Supreme Court last week. The German-owned insurer’s payment will be in final settlement of its 2000 joint venture with six HIH companies.

Allianz initially paid $200 million for 51% of the joint venture and then paid a second installment of $125 million.

HIH liquidator Tony McGrath says “tax implications” delayed the settlement, and the figure was the “most commercially viable that could be reached”.