The Australian National University (ANU) and broker Aon have settled long-running litigation over the devastating Canberra bushfires in January 2003 that destroyed the Mt Stromlo Observatory.

ANU sued its three insurers, Chubb, CGU and Ace Insurance in December 2004 for losses of $61.4 million. In 2005 it joined Aon to the action in the ACT Supreme Court.

Aon had brokered the university’s insurance between 1999 and 2002, and the university claimed the broker had acted negligently in failing to renew insurance for some of its properties.

The insurers settled in 2006 for $34.39 million, arguing that they had not insured all of the buildings on Mt Stromlo, which included telescope buildings.

The university continued the action against Aon, saying the broker failed to arrange insurance for the buildings or to notify it of the failure to arrange insurance.

A Court of Appeal judgement delivered in November 2010 said the loss plus interest and costs was $27 million.

A spokesman for the university confirmed last week that the parties have now reached a confidential settlement. Aon refused to comment.

The litigation became one of the longest-running cases in the ACT Supreme Court, with appeals to the Court of Appeal and the High Court.