The management of Gerling Australia, who formed a joint venture with HIH in December, were as surprised as anyone that the financial status of HIH deteriorated so quickly.

In a note to brokers, Gerling MD Kevin Kinsella said the underwriting agency agreement with HIH was approved by APRA “with no indication that the ultimate demise of HIH was imminent”.

Gerling cancelled its agency agreement with HIH last Wednesday, shortly after the alternative joint venture arrangement with QBE was announced.

Requesting brokers to pay any premiums due to the agency directly to Gerling, Mr Kinsella said the agency will no longer honour quotations which have not been bound/accepted in writing before March 14.

“This includes business that may form part of a facility or binder already accepted under the agency agreement…”