A New Zealand man will be sentenced next month after being found guilty of trying to extort $NZ5.5 million ($5.12 million) from IAG.

IAG NZ refused Chris Robinson’s insurance claim after a fire gutted his five-bedroom house in September 2011, on the grounds the blaze was deliberately started.

Robinson accused the insurer’s investigators of fabricating evidence.

He threatened to publicise the matter, which he said would hurt IAG’s reputation, unless the insurer agreed to pay him $NZ3.5 million ($3.25 million) in damages and another $NZ2 million ($1.86 million) to compensate for stress.

IAG referred the matter to police.

“Making a blackmail complaint to the police was very unusual for IAG, but Mr Robinson’s threats and the demands, made at a time when he was on bail, were so improper that IAG was obliged to refer the matter to the police,” IAG NZ Deputy General Counsel Seamus Donegan told insuranceNEWS.com.au.

“The arrest and prosecution that followed were entirely a decision of the New Zealand Police and the crown prosecutor.

“The case has not concluded until sentencing on June 10, but at this stage IAG can say we are pleased with the verdict.”